This report analyzes and forecasts the market opportunities for components related to telematics applications for the time span extending from 2010 to 2016. Although it is difficult to separate revenues derived from content delivered via telematics hardware or components from the overall potential of the market, revenues that are related to content services will only be considered to the extent that they drive the sales of components.
 
Telematics, as an industry, is no longer in its infancy, yet it has not yet achieved mainstream status, particularly in the consumer market because drivers have not seen the need or benefit of the higher cost. The significant changes occurring in the general automotive industry as well as demographic changes present an opportunity for telematics.
 
Telematics systems have higher margins than other automotive technologies and so offer the possibility of increasing the margins of smaller cars. Consumers are becoming accustomed to a continuous connection to the Internet; the vehicle cabin represents one of the last significant spaces where this is not yet common. Commercial telematics systems have produced fuel savings and lowered emissions. Designers of electric and other alternatively fueled cars will include telematics systems as a necessity to tell consumer where they can refuel their cars. The world’s aging population may represent an opportunity for telematics technology to the extent that the technology increases safety or prolongs the independence of older drivers.
 
This report covers telematics products used in vehicles, which can be broadly segregated into hardware and software. Hardware includes tracking, connection, sensors, and user interface. It focuses particularly on the markets and opportunities for telematics in the consumer and commercial vehicle markets. Software includes the embedded operating systems that control the systems; it does not include any content-related packages.
 
As a complete source for serious players in the emerging telematics marketplace, this study is presented in easy-to-follow sections that overview this subject, define the technology, segment the market by product type and application, profile companies, and identify suppliers.
 
Vehicle designers can use this report to assess the status of the telematics market in order to identify suppliers and systems integrators, and thereby forecast future markets. Market managers will be able to assess the competition, and identify customers and new suppliers for components. And management consultants will be able to determine whether companies divest or invest in telematics technology, based in part on the market projections, competitive strengths, and development issues revealed in this report.
 
Equipment managers will be able to develop or modify existing products to address telematics technology manufacturing concerns emphasized in this report. Market opportunities and new customers for material suppliers will be identified, based on the study’s projected growth in applications. Venture capital managers will be able to identify targets for investment, merger, or acquisition, based on companies identified and described in this report. And strategic planners can identify other, critical asset companies with whom they may partner, and, in turn share in overall fiber-optic technology growth as projected in this report.
 

Report Highlights:

• An overview of the telematics industry and of the products and technologies used in consumer and commercial vehicles
• Analysis of market segments by product type and application, with data for 2009, estimates for 2010, and projections of compound annual growth rates (CAGRs) from 2011 through 2016
• Coverage of the software and hardware used, including tracking, connections, sensors, and user interfaces
• Discussion of the concept that the world's aging population represents an opportunity for telematics technology to the extent that it increases safety or prolongs the independence of older drivers
• Profiles of leading companies and suppliers.  

TABLE OF CONTENTS

CHAPTER ONE: INTRODUCTION

    STUDY GOALS AND OBJECTIVES 1
    REASONS FOR DOING THE STUDY  1
    SCOPE OF REPORT  1
    INTENDED AUDIENCE  2
    INFORMATION SOURCES . 2
    ANALYST CREDENTIALS .. 2
    RELATED REPORTS .. 3
    DISCLAIMER .. 3

CHAPTER TWO: SUMMARY

  SUMMARY TABLE GLOBAL NET MARKET VALUE FOR
    TELEMATICS, BY SEGMENT, THROUGH 2016 ($ BILLIONS). 5
  SUMMARY FIGURE GLOBAL NET MARKET VALUE FOR
    TELEMATICS, BY SEGMENT, 2011 AND 2016 ($ BILLIONS)  5

CHAPTER THREE: OVERVIEW

     DEFINITION OF THE INDUSTRY  7
     HOW THE INDUSTRY FITS IN THE ECONOMY  7
          EFFECT OF ECONOMIC CRISIS . 7
               Carmakers Bailed Out, Bankrupt  7
                      Government Sponsored Incentives  8
               Credit Remains Tight .. 8
               Slow Recovery .. 8
          CLIMATE CHANGE .. 9
          CONCEPTS IN THE INDUSTRY .. 9
               Regional Differences . 9
               Standards and Interoperability . 9
               Open-source Movement  10
               The iPhone Effect  10
               The Google Effect . 10
               Embedded vs Portable .. 11
               Liability Issues . 12
               Privacy Issues  12
                      Insurance  13
               Safety, Maintenance and Distraction .. 13
                      Telematics vs. Cell Phones .. 13
          LIFE CYCLES . 14
          HISTORY  15
  TABLE 1 BRIEF HISTORY OF TELEMATICS  15
               Convergence of Industry . 15
               Dual-use Promise. 16
               Capital Investment . 16
               Japan Leads the Way  16
                     Portability Becomes Key . 17
                     Consolidation . 17
                     Credit Crisis  17
                 GOVERNMENT REGULATIONS  17
                 FORESEEABLE FUTURE DEVELOPMENTS 18
                     Safety and Service Advances  19
                     Pay-As-You-Go Pricing . 19
                     Personal Transportation . 19
                     Ad Supported Service  20
                     Bundling 20
                     Alternative Fuel Vehicles  20
                     Crowd Sourcing. 21
                     Touch Screens  21

CHAPTER FOUR: TECHNOLOGY 

     PROCESS ECONOMICS . 22
          HARDWARE PRICING . 22
  TABLE 2 GLOBAL FORECAST FOR HARDWARE COMPONENT
    PRICES, THROUGH 2016 ($)  22
              No Pricing Power . 23
              Manufacturing .. 23
          EMBEDDED SOFTWARE PRICING  24
  TABLE 3 GLOBAL MARKET FORECAST FOR EMBEDDED
    SOFTWARE PRICES, THROUGH 2016 ($).. 24
     PATENT ANALYSIS . 25
  TABLE 4 PATENTS BY COMPANY, SINCE 2003 . 25
  TABLE 5 PATENTS BY YEAR .. 26

CHAPTER FIVE: MARKETS BY PRODUCTS 

     MARKET BY PRODUCTS . 27
  TABLE 6 GLOBAL NET VALUE OF TELEMATICS MARKET BY
    PRODUCTS, THROUGH 2016 ($ MILLIONS)  27
          MARKET BY PRODUCTS (CONTINUED)  28
          HARDWARE  29
              Growth Drivers and Inhibitors  29
                   Worldwide Vehicles Sales . 30
  TABLE 7 GLOBAL FORECAST FOR NEW VEHICLES SALES,
    THROUGH 2016 (MILLIONS).. 30
                   Total Potential Telematics Market . 31
  TABLE 8 TOTAL GLOBAL MARKET SIZE FORECAST FOR ALL
    VEHICLES, NEW AND EXISTING, THROUGH 2016 (MILLIONS). 31
              New Consumer Vehicles with Telematics . 31
  TABLE 9 GLOBAL FORECAST FOR NEW VEHICLES WITH
    TELEMATICS, THROUGH 2016 (MILLIONS) . 32
    Installed Telematics Base .. 33
TABLE 10 GLOBAL FORECAST FOR INSTALLED TELEMATICS
   BASE, THROUGH 2016 (MILLIONS)  33
                   Gross Revenues . 34
TABLE 11 GLOBAL GROSS MARKET VALUE FOR EMBEDDED
   HARDWARE SYSTEMS, THROUGH 2016 ($ MILLIONS) . 34
                   Components of Telematics Systems.. 35
                             Hardware .. 35
TABLE 12 GLOBAL MARKET VALUE FORECAST FOR HARDWARE
   COMPONENTS, THROUGH 2016 ($ MILLIONS) .. 36
                              Embedded Software . 38
TABLE 13 GLOBAL MARKET VALUE FORECAST FOR EMBEDDED
   SOFTWARE, THROUGH 2016 ($ MILLIONS) 39
                   Net Global Value for Embedded Hardware .. 39
FIGURE 1 GLOBAL NET MARKET VALUE FOR EMBEDDED
   HARDWARE SYSTEMS, 2008-2016 ($ MILLIONS)  40
         TELEMATICS SERVICE FEES  40
                   Consumer Segment. 41
TABLE 14 MONTHLY FEE RATE FORECAST FOR TELEMATICS
   SERVICES BY REGION, THROUGH 2016 ($) .. 41
                   Commercial Segment. 41
                   Gross Market Value 42
TABLE 15 GLOBAL GROSS POTENTIAL MARKET VALUE FORECAST
   FOR TELEMATICS SERVICES, THROUGH 2016 ($ MILLIONS)  43
                   Costs of Collecting Fees  43
TABLE 16 GLOBAL MARKET COST FORECAST FOR TELEMATICS
   SERVICES, THROUGH 2016 ($ MILLIONS) . 44
                   Net Market Value from Service Fees  44
TABLE 17 GLOBAL NET MARKET VALUE FORECAST FOR
   TELEMATICS SERVICE FEES, THROUGH 2016 ($ MILLIONS)  45
FIGURE 2 GLOBAL MARKET VALUE FOR SERVICE FEES, 2008-2016
   ($ MILLIONS) . 46
         PORTABLE TELEMATICS DEVICES . 46
TABLE 18 GLOBAL MARKET FORECAST FOR PORTABLE
   TELEMATICS DEVICES, THROUGH 2016 (MILLIONS) .. 47
FIGURE 3 GLOBAL MARKET VALUE FOR PORTABLE TELEMATICS
   DEVICES, THROUGH 2016 ($ MILLIONS) . 48
         PHONE APPLICATIONS . 48
TABLE 19 GLOBAL MARKET VALUE FORECAST FOR TELEMATICS
   PHONE APPS, THROUGH 2016 ($ MILLION AND/OR MILLION
   UNITS)  49
FIGURE 4 GLOBAL MARKET VALUE FOR TELEMATICS PHONE
   APPS, 2008-2016 ($ MILLIONS) . 50

CHAPTER SIX: MARKETS BY APPLICATION 

  TABLE 20 GLOBAL VALUE OF TELEMATICS MARKET BY
     APPLICATION, THROUGH 2016 ($ MILLIONS) . 51
      CONSUMER SEGMENTS . 52
  TABLE 21 GLOBAL MARKET FORECAST FOR CONSUMER
     TELEMATICS BY SEGMENT, THROUGH 2016 ($ MILLIONS)  52
            CONCIERGE  52
  FIGURE 5 GLOBAL MARKET FORECAST FOR CONCIERGE
     SYSTEMS, 2008-2016 ($ MILLIONS) . 53
            NAVIGATION . 54
  FIGURE 6 GLOBAL MARKET FORECAST FOR NAVIGATION, 2008-
     2016 ($ MILLIONS) . 55
            PHONE APPS . 55
  FIGURE 7 GLOBAL MARKET FORECAST FOR TELEMATICS PHONE
     APPS, 2008-2016 ($ MILLIONS) . 56
      COMMERCIAL SEGMENTS  56
            MEDIUM AND HEAVY TRUCKS .. 57
  TABLE 22 GLOBAL MARKET FORECAST FOR COMMERCIAL
     TELEMATICS BY SEGMENT, THROUGH 2016 ($ MILLIONS)  58
            OTHER COMMERCIAL VEHICLES . 58

CHAPTER SEVEN: INTERNATIONAL ASPECTS

     REGIONAL MARKETS  59
     GLOBAL SUMMARY  60
  TABLE 23 GLOBAL NET MARKET VALUE FORECAST FOR
     TELEMATICS BY REGION, THROUGH 2016 ($ MILLIONS) . 61
          U.S.. 62
  TABLE 24 U.S. MARKET SIZE FORECAST FOR VEHICLES,
     THROUGH 2016 (MILLIONS).. 63
                  U.S. Consumer Vehicle Market .. 63
                  U.S. Commercial Vehicle Market .. 64
                  New Consumer Vehicles with Telematics . 64
                  New Commercial Vehicles with Telematics . 65
                  Total Vehicles in U.S. Fleet 65
                  Total Consumer Vehicles with Telematics  66
                  U.S. Telematics Market by Application .. 66
                            U.S. Embedded Hardware  66
                            U.S. Service Fees .. 67
  TABLE 25 U.S. NET MARKET VALUE FORECAST FOR TELEMATICS
     BY APPLICATION, THROUGH 2016 ($ MILLIONS) . 67
                            U.S. Portable Devices . 67
                            U.S. Cell Phone Application Fees. 68
  FIGURE 8 U.S. NET MARKET VALUE FORECAST FOR TELEMATICS
     BY APPLICATION, 2008-2016 ($ MILLIONS)  69
          EUROPE . 70
             Total European New Vehicles Sales . 70
                   European Consumer Vehicle Market . 71
TABLE 26 EUROPE MARKET SIZE FORECAST FOR VEHICLES,
   THROUGH 2016 (MILLIONS).. 72
                   European Commercial Vehicle Market . 72
             European Forecast for Vehicles with Telematics .. 72
                   European New Consumer Vehicles with Telematics  73
                   European New Commercial Vehicles with
                      Telematics .. 73
             Total Vehicles on the Road in Europe . 73
                   Total European Consumer Vehicle Fleet . 73
                   Total European Commercial Vehicle fleet .. 74
             Total European Fleet with Telematics  74
                   Total European Consumer Fleet with Telematics.. 74
                   Total European Commercial Fleet with Telematics .. 74
             European Net Market Value by Application  75
                   European Embedded Hardware  75
                   European Service Fees .. 75
TABLE 27 EUROPE NET MARKET VALUE FORECAST FOR
   TELEMATICS BY APPLICATION, THROUGH 2016 ($ MILLIONS) .. 75
                   European Portable Devices . 76
                   European Phone App Fees 76
FIGURE 9 EUROPE NET MARKET VALUE FORECAST FOR
   TELEMATICS BY APPLICATION, THROUGH 2016 ($ MILLIONS) .. 76
        BRAZIL, RUSSIA, INDIA, CHINA (BRIC) . 77
             Total BRIC New Vehicles Sales .. 77
                   BRIC New Consumer Vehicle sales  78
                   BRIC New Commercial Sales . 78
TABLE 28 BRIC MARKET SIZE FORECAST FOR VEHICLES,
   THROUGH 2016 (MILLIONS).. 79
             BRIC Forecast for Vehicles with Telematics  79
                   BRIC New Consumer Vehicles with Telematics . 80
                   BRIC New Commercial Vehicles with Telematics . 80
             Total Vehicles on the Road in BRIC Countries .. 81
                   Total BRIC Consumer Vehicle Fleet .. 81
                   Total BRIC Commercial Vehicle fleet  81
             Total BRIC Fleet with Telematics . 81
                   Total BRIC Consumer Fleet with Telematics 81
                   Total BRIC Commercial Fleet with Telematics 82
             BRIC Net Market Value by Application . 82
TABLE 29 BRIC NET MARKET VALUE FORECAST FOR
   TELEMATICS BY APPLICATION, THROUGH 2016 ($ MILLIONS) .. 82
                   BRIC Embedded Hardware . 82
                       BRIC Service Fees  83
                         BRIC Portable Devices .. 83
                         BRIC Phone App Fees  83
FIGURE 10 BRIC NET MARKET VALUE FORECAST FOR
   TELEMATICS BY APPLICATION, THROUGH 2016 ($ MILLIONS) .. 84
        ASIA .. 84
               Total Asian New Vehicles Sales .. 85
                         Asian New Consumer Vehicle Sales .. 85
                         Asian New Commercial Sales. 85
TABLE 30 ASIA MARKET SIZE FORECAST FOR VEHICLES,
   THROUGH 2016 (MILLIONS).. 86
               Asian Forecast for Vehicles with Telematics .. 86
                         Asian New Consumer Vehicles with Telematics . 86
                         Asia New Commercial Vehicles with Telematics  87
               Total Vehicles on the Road in Asia Countries . 87
                         Total Asian Consumer Vehicle Fleet.. 87
                         Total Asian Commercial Vehicle fleet  87
               Total Asian Fleet with Telematics . 88
                         Total Asian Consumer Fleet with Telematics .. 88
                         Total Asian Commercial Fleet with Telematics .. 88
               Asian Net Market Value by Application. 89
TABLE 31 ASIA NET MARKET VALUE FORECAST FOR TELEMATICS
   BY APPLICATION, THROUGH 2016 ($ MILLIONS) . 89
                         Asian Embedded Hardware. 89
                         Asia Service Fees .. 89
                         Asia Portable Devices . 89
                         Asian Phone App Fees  90
FIGURE 11 ASIA NET MARKET VALUE FORECAST FOR
   TELEMATICS BY APPLICATION, THROUGH 2016 ($ MILLIONS) .. 90
        REST OF WORLD (ROW)  90
               Total ROW New Vehicles Sales .. 91
                         ROW New Consumer Vehicle sales . 91
                         ROW New Commercial Market . 91
TABLE 32 ROW MARKET SIZE FORECAST FOR VEHICLES,
   THROUGH 2016 (MILLIONS).. 91
               ROW Forecast for Vehicles with Telematics  92
                         ROW New Consumer Vehicles with Telematics .. 92
                         ROW New Commercial Vehicles with Telematics .. 92
               Total Vehicles on the Road in ROW Countries .. 92
                         Total ROW Consumer Vehicle Fleet .. 92
                         Total ROW Commercial Vehicle fleet  93
               Total ROW Fleet with Telematics.. 93
                         Total ROW Consumer Fleet with Telematics  93
                         Total ROW Commercial Fleet with Telematics  93
               ROW Net Market Value by Application . 94
   TABLE 33 ROW NET MARKET VALUE FORECAST FOR TELEMATICS
      BY APPLICATION, THROUGH 2016 ($ MILLIONS) . 94
                     ROW Embedded Hardware . 94
                     ROW Service Fees . 94
                     ROW Portable Devices  94
                     ROW Phone App Fees . 95
   FIGURE 12 ROW NET MARKET VALUE FORECAST FOR
      TELEMATICS BY APPLICATION, THROUGH 2016 ($ MILLIONS) .. 95

CHAPTER EIGHT: INDUSTRY STRUCTURE AND COMPETITIVE

  ANALYSIS .. 96
    DRIVING FORCES . 96
         DANCE OF THE TITANS  96
         CHANGES IN THE AUTO INDUSTRY .. 96
                   Automakers . 96
         INNOVATION AND MINIATURIZATION OF ELECTRONICS .. 97
         CONSUMER ATTITUDES .. 97
         DIFFERENTIATION DIFFICULTY .. 98
         INTERCONNECTION AND PARTNERSHIPS .. 98
    STRATEGIES FOR STAYING COMPETITIVE  98
         STRENGTHEN THE BALANCE SHEET .. 98
         OPEN INNOVATION . 99
         REAL-TIME DATA STREAMS . 99
    IMPORTANT SHIFTS IN THE INDUSTRY  99
         TURMOIL IN THE AUTO INDUSTRY  99
         CELL PHONES UBIQUITY . 100
         SATELLITE RADIO.. 100
         SMALLER CARS. 100

CHAPTER NINE: COMPANY PROFILES

  TABLE 34 MARKET SHARE OF COMPANIES INVOLVED IN
    CONSUMER TELEMATICS, 2009 . 102
     VEHICLE MAKERS  102
          CAR MANUFACTURERS . 103
  TABLE 35 CURRENT STATUS OF TELEMATICS EFFORTS OF OEMS . 103
               Aisin Seiki Co. Ltd. .. 103
               Bayerische Motoren Werke AG . 104
               China FAW Group Corporation  104
               Continental AG .. 104
               DaimlerChrysler AG  104
               Delphi Corporation .. 104
               Denso Corporation  104
               Fiat SpA . 104
            Ford Motor Company.. 105
             General Motors .. 105
             Honda Motors . 105
             Hyundai Motor Company . 105
             Kia . 105
             Mazda Motor Corporation  105
             Mitsubishi Motors. 105
             Nissan Motor 106
             PSA Peugeot Citroen SA .. 106
             Renault SA  106
             Shanghai Automotive Industry Corporation . 106
             Suzuki Motor Corporation  106
             Toyota .. 106
             Volkswagen AG .. 106
             Volvo AB. 107
        COMMERCIAL TRUCK MANUFACTURERS .. 107
TABLE 36 TELEMATICS EFFORTS OF MAJOR TRUCK MAKERS . 107
             Daimler AG .. 107
             Navistar International Corp. . 107
             Hino Motors Ltd. .. 108
             MAN AG . 108
             Oshkosh Truck Corp. .. 108
             Paccar Inc.. 108
             Scania AB .. 108
             Volvo AB. 108
             Autocar LLC. 109
             FAW . 109
             Isuzu . 109
   TELEMATICS MANUFACTURERS . 109
        AIRBIQUITY . 109
        AIRIQ . 110
        ALK TECHNOLOGIES 110
        ALPINE  111
        ALTEA .. 111
        ATX GROUP .. 111
        AZ LOGICA  112
        BAYERISCHE MOTOREN WERKE AG (BMW) . 112
        CALMAR TELEMATICS  112
        CESAR SATELLITE . 113
        CLARION  113
        COBRA ELECTRONICS. 113
        CONTINENTAL AG . 114
        CYBIT  114
        DAIMLER AG 114
DECARTA 115
DELPHI  115
DENSO . 116
DIGI INTERNATIONAL  116
DIRECTED ELECTRONICS  116
EUROWAY GROUP .. 116
CHINA FAW GROUP CORPORATION. 117
FIAT GROUP  117
FLEETBOSS . 118
FORD MOTOR COMPANY .. 118
FULLPOWER TECHNOLOGIES . 119
GARMIN .. 119
GE CAPITAL SOLUTIONS .. 120
GEOLIFE LTD . 120
GLOBAL TRAFFIC NETWORK  120
GENERAL MOTORS (GM) 121
GOOGLE.. 122
HONDA. 122
HUGHES TELEMATICS  123
INFOWAVE  123
INRIX . 123
INTRINSYC SOFTWARE INTERNATIONAL, INC. . 124
ITURAN  124
KORE TELEMATICS .. 124
LHP TELEMATICS .. 125
MICROSOFT . 125
MITAC INTERNATIONAL TAIWAN . 125
      Navman Wireless.. 126
MIX TELEMATICS GROUP  126
NAVIGON AG .. 127
NAVTEQ .. 127
NISSAN CORPORATION.. 128
OCTO TELEMATICS  128
PIONEER  128
QNX  129
QUALCOMM . 129
QUARTIX  130
SANEF GROUP 130
SANYO ELECTRONIC CORPORATION . 130
TELECOMMUNICATIONS SYSTEMS INC (TCS)  131
TELENAV  131
TELENOR CONNEXION .. 132
TOMTOM INTERNATIONAL BV. 132
TOYOTA .. 132
TRAFFICMASTER. 133
     Teletrac .. 133
TRIMBLE  134
VEKTOR TELEMATICS  134
VINCOTECH GMBH  134
WEBTECH WIRELESS .. 135
XATA.. 135