Aftermarket Car Telematics 5th Edition

Aftermarket Car Telematics 5th Edition

Aftermarket Car Telematics is the fifth consecutive report fromBerg Insight analysing the latest developments on the marketfor applications such as stolen vehicle tracking (SVT), vehiclediagnostics, Wi-Fi hotspot, roadside assistance and convenienceapplications targeting consumers. This strategic research reportfrom Berg Insight provides you with 190 pages of unique businessintelligence including 5-year industry forecasts and expertcommentary on which to base your business decisions.

Aftermarket Car Telematics 5th Edition

Telematics is a broad term that may be applied to a wide range of automotive connectivitysolutions. Berg Insight’s definition of an aftermarket car telematics solution in this report includestelematics devices created by a company other than the carmakers and are retrofitted into carsmainly via OBD-II and blackbox devices based on both cellular/GNSS and RF technology. Theconnected car is a major trend in the automotive industry and virtually all of the world’s leadingcarmakers have launched mass-market services in key regions. The OEM initiatives can be seenas competition for the aftermarket solutions, but there is still a growing demand for different formsof aftermarket car telematics services. Aftermarket telematics still has a dominant position on themarket in many parts of the world. Several categories of aftermarket car telematics applicationshave become popular including roadside assistance, stolen vehicle tracking (SVT), vehiclediagnostics, usage-based insurance, dealer and inventory management, Wi-Fi hotspot as wellas convenience applications targeting consumers.

The addressable market for aftermarket car telematics solutions is significant. At the end of 2022,there were an estimated 1.36 billion passenger cars and light trucks registered worldwide. Eventhough aftermarket car telematics services face competition from smartphone-only solutions andOEM solutions, Berg Insight is of the opinion that the aftermarket car telematics market is still ina growth phase. Berg Insight estimates that total shipments of aftermarket car telematics systemsreached 26.7 million units worldwide in 2023. Growing at a compound annual growth rate of 7.7percent, shipments are expected to reach 38.7 million units in 2028. The number of aftermarketcar telematics systems in active use is forecasted to grow at a compound annual growth rate of9.0 percent from 87.7 million in 2023 to 135.1 million worldwide in 2028. The penetration rate willat the same time grow from 6.3 percent in 2023 to 8.6 percent at the end of the forecast period.

The market is characterised by a great diversity of players interacting in a complex value chainthat spans multiple industries. The car telematics companies targeting the aftermarket car sectorinclude specialists focusing on this application area only as well as general telematics playersthat serve a broad range of applications including also for example fleet management forcommercial vehicles. The leading aftermarket car telematics solution providers have reachedinstalled bases in the millions. Examples of leading car telematics solution vendors includeOCTO Telematics, Procon Analytics, StarLine, Spireon, Targa Telematics, Ituran, PassTime GPS,Vodafone Automotive, Tracker Connect, Maxtrack and Carsystem. The most common go-to-market strategy is to partner with insurance companies, dealers, OEMs, MNOs and vehiclefinance companies. Leading companies delivering telematics hardware and related services tothe aftermarket car telematics market include Teltonika, Jimi IoT, Queclink, Danlaw, Positioning Universal, Xirgo Technologies, ERM Advanced Telematics, Suntech International, Meta System,Munic and Gosuncn RichLink.

Stolen vehicle recovery and security-related telematics applications are mature aftermarket cartelematics applications. Regional market conditions such as a high level of vehicle crimeinfluence the demand for stolen vehicle tracking and have made SVT solutions popular incountries such as Brazil, Argentina, China, Israel, Russia and South Africa. Vehicle theft hasincreased in the past years in many countries. For example, there were thefts of more than 1.0million motor vehicles in the US in 2023 according to the National Insurance Crime Bureau(NICB). Berg Insight forecasts that the number of active aftermarket SVT units in use worldwidewill reach 91.2 million in 2028, up from 58.2 million at year-end 2023.

Telematics has become an important part of the aftersales programmes of dealers and vehiclefinance companies, enabling remote diagnostics and direct communication with drivers. Thereis a tremendous opportunity to turn a reactive way of managing customers into a proactiveprocess by integrating CRM solutions, using data from cars intelligently. Collecting data from thefleet on the lot is also valuable for dealers in order to for example collect information about faultycomponents and software bugs as well as battery status. Direct-to-consumer car telematics offerings are available to varying degrees in many regions by companies such as Verizon, Mojio,Tail Light (Bouncie), Agnik (Vyncs), Protectus (CarLock) and Autobrain. Many direct-to-consumer car telematics providers have broadened their product portfolios to include additionaltelematics application areas such as fleet management as well as powering B2B2C telematicsservices.