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Pune, August 18, 2017

Telematics in India: Trends and Opportunities Presentation

2 20170818_Telematics_India2017_v01.pptx

Agenda

Telematics: An overview Brief overview of what is telematics and its significance in various sectors including automotive

1

Telematics market: Global and India Global market overview, India market overview including market characteristics, market structure and drivers

2

Trends and opportunities in India Key trends and characteristics of telematics ecosystem, potential opportunities for Indian players

3


Telematics is widely recognized as a game changer in many industries

TELEMATICS

HEALTH: Control of biological parameters (voltage, weight, heart rate ...) facilitating hospitalization or home health monitoring

SPORT: Management of trainings, efforts & performances of top athletes & amateurs

TELESURVEILLANCE: Detection systems to trigger an intervention in case of intrusion into premises or a remote immobilization for stolen vehicles

TRANSPORT AND LOGISTICS: Fleet management, visualization in real time of the progress of deliveries and anticipation of technical controls

AUTOMATIC DISTRIBUTION: Anticipation of shortages and maintenance plans, collection of data on consumption habits to adjust assortments and prices

OFFICE AUTOMATION AND INDUSTRY: Monitoring of proper functioning of equipment (e.g. air conditioners, elevators, conveyor belt) and information on supply needs or preventive visits (e.g. copiers, printers)

TRADE: Economical and flexible solution for fast cash credit card payments

ENERGY: Real-time monitoring of transport networks in order to detect leaks and control flows, immediate collection of actual consumption to ensure more accurate and flexible billings (e.g. water, gas and electricity)

ENVIRONMENT AND COMMUNITIES: Control of facilities, remote management (e.g. traffic lights, timestamps, public lighting) and emergency matters (e.g. flood management, pollution control, telesurveillance)

Telematics – contraction of telecommunication informatics - represent a real breakthrough as it enables not only to receive data but also to store and send it

By 2020, it is estimated that there will be 24 bn "connected objects" aside of 12 bn mobile connected devices

Source: GSMA, Press, Roland Berger analysis

Telematics – An overview


In automotive sector, telematics equipment offers a wide variety of features to help make the vehicle smarter

Telematics:

Telecommunications + Informatics

Proactive maintenance

Driver behavior

Journey analysis

Vehicle tracking

GPS and navigation

Accident recording

Accident notification

Vehicle theft tracking

Fuel management

Intra-fleet benchmarks

Vehicle diagnostics

Vehicle logbook

Mileage reporting

Internet connectivity

Services facilitated by telematics equipment in automotive industry

Source: Secondary research, Roland Berger

Telematics – An overview


Globally, the vehicle telematics market is valued at USD 39 bn in 2016 and is dominated by telematics for commercial vehicles

Global vehicle telematics market revenue, 2014 – 2022 [USD bn]

61%

Passenger vehicle

Commercial vehicle

38% 39%

62%

75

2021F 2016 2015 2019F

64

55

39

+17%

2020F

46

2018F

88

2017F

103

2022F 2014

28 33

40%

60%

61%

39%

63%

34%

65% 64%

32%

68%

35%

66%

36% 37%

> Global vehicle telematics market is

valued at ~USD 39 bn is 2016, it is

expected to grow at CAGR 17% to

USD 103 bn in 2022

> Global telematics market is

dominated by commercial vehicles

which account for nearly two thirds

of the total share

> In the passenger vehicle segment,

demand is driven by significant

usage in cab services and

increased penetration in medium

and high end passenger vehicles

such as Volkswagen, BMW, Audi

etc.

Global vehicle telematics market: Overview

Global telematics market


CAGR [%]

2017-22

16%

20%

added CV/PV slit and CAGR


EMEA dominates the global CV telematics market with a 38% share; APAC is expected to be the leading contributor by 2022

Global telematics market – Commercial vehicles

Global CV telematics market revenue, 2014 – 2022 [USD bn]

62

53

46

4034

3025

2219

2016 2014 2015 2020F 2017F 2018F 2019F 2021F 2022F

+16%

Revenue share by region, 2015 [%]

Americas

26%

36%

EMEA 38%

APAC

> CV telematics finds applications in various fields such as passenger safety and security, customer relationship management, business

services such as fleet management and tracking as well as private services such as navigation support to passengers

> EMEA accounts for the greatest share of the market – regulatory initiatives such as eCall Driver Safety project is a key driver

> APAC is the second largest market driven by countries such as China, Japan, India etc. – By 2022, APAC is expected to be the leading

contributor to global commercial vehicles telematics market

Global commercial vehicle telematics market: Overview



Key driver behind growth in CV telematics enables a greater value chain coverage….

Cov

erag

e

Transportation value chain

High

Low

New vehicle

sales

Fleet mgmt. Service/

repair

Spare part

sales

Rental Financial

services

Fleet/vehicle

operation

Coverage 2013 Coverage 2030

> Connectivity based solutions enable OEMs to understand their customers' needs and address them with tailored product and service offerings – OEMs need to strengthen

their aftersales business – Increased customer retention required

– Moreover OEMs are requested to serve growing customer demand – Extended support and user-specific products and services (e.g. remote diagnostics)

Enabler connectivity

Importance of truck connectivity

Profit pool coverage Connectivity solutions

Source: Roland Berger

Remote diagnostics

Load detection/ monitoring Performance analysis

Order management

Tacho management

…

Connectivity solutions



8

and enables OEMs to differentiate themselves and capture opportunities beyond vehicle sales

Truck OEM engagement/core business 2013 2030

> There is a higher engagement of OEMs along the value chain who are expected to market themselves as full-service providers

> Logistics providers will require extended services and tailored solutions such as fleet/vehicle operation models

> Logistics companies will focus on business contracting and operation of core routes – maintaining capacity/cost flexibility when contracting new business or facing demand volatility and business risks

100%

0%

Fleet/vehicle operation

Transportation business

New vehicles ("Iron & steel")

Financial services

Spare part sales

Fleet management

> Route execution

> Driver lease

> Vehicle lease

Transportation value chain

OEM engagement/ core business

Source: Roland Berger

OEM engagement along the transportation value chain – Outlook 2030

Rental

Service/repair



In India, the commercial vehicle telematics market is valued at USD 113 m in 2016 and expected to grow at CAGR 21% in 2017-22

India commercial vehicle telematics market revenue, 2014 – 2022 [USD m]

378

320

269

224

180

144

11390

72

2021F 2016 2015 2019F

+21%

2020F 2018F 2017F 2022F 2014

> The Indian commercial vehicle

telematics market constitutes 0.45% of

the global commercial vehicle

telematics market

> Market is expected to grow at CAGR

21% during 2017-22, driven by:

– Demand for cargo and vehicle

safety - increasing incidents of

large scale highway truck theft for

cargo and truck high-jacking

necessitates need for remote

monitoring

– Transit losses - transit losses

account for 10% of logistics cost in

India on top of fuel pilferage which

is also very common

– Evolving business models for

professionalized cargo

transportation (3PL, 4PL players)

– Policy support by government for

preventing accidents (monitoring

speed, driving pattern, etc.)

India commercial vehicle telematics market: Overview


Telematics market in India

added slide


CV telematics installed base in India is expected to grow at CAGR 25%, led by after-market segment and entry level solutions

1,383

293

+25%

2015 2022F

Telematics installed base ['000 units] Split of installed base

Type of fitment Type of solution

Split by region Split by industry

Aftermarket

80%

20%

OEM

31%

1%

68%

Mid tier

Entry level

High end

Others Tourism

3% Retail 11%

Pharma

12%

21%

Cold chain

27%

Courier

26%

South

North

West

East

13%

27%

28%

32%

Telematics penetration in CV market in India


Telematics market in India – Commercial vehicles

updated OEM/Aftermarket mix


The Indian market currently has various options catering to several price ranges, offered by both OEMs and after-market providers

CV telematics market: Range of FMS1)offerings

Increasing level of

services offered

Entry level

Mid-tier

High-end

Advanced services/

Enterprise level

1) Fleet Management Services

Basic driver management + Vehicle management +Transport management + Additional data services

+additional advanced services

> Used for basic fleet tracking

> Monitors vehicles to increase fleet

utilization and productivity

> Helps reduce cost of operations,

fuel and maintenance

> Used in several industries such as

logistics, oil & gas, manufacturing,

courier, cold chain, emergency

vehicles, etc.

> Assists in vehicle maintenance and

operations (fuel consumption,

remote fault diagnostics)

> Integrated with back office

platforms (routing/scheduling, ERP,

CRM)

> Wide range of monitoring and

analysis, from location,

maintenance, operations,

distribution management and

vehicle abuse

Source: Secondary Research

Backup


cost


The competitive landscape is highly fragmented - top 3 account for nearly 60% of the total market

Telematics hardware market share in India [2015]

Arya Omnitalk

2%

Trimble

CMC Technology

Dhanus Technologies

13%

32%

6%

Others 35%

Efkon India

12%


Competitive landscape in CV telematics

> The competitive landscape can be split into four segments: large international players (e.g. Trimble), OEMs (e.g. Tata, Ashok Leyland, etc.), Indian non-OEMs (e.g. Goodsmover) and Chinese players (e.g. Concox)

> Large international players such as Trimble provide (high technology) complete solution to a variety of industries, including transportation. It caters to large corporate customers but not to mass market small fleet operators

> Indian non-OEMs cater to large public or private sector companies, offering customized solutions

> OEMs' share, although currently small, is expected to increase in order to maximize monetization potential in insurance, aftermarket, advertising, etc.

> Chinese players focus on low cost devices and primitive web solutions targeting smaller operators. They constitute a significant share by volume, but relatively smaller share by value


(includes OEMs)

(subsidiary of Strabag, Austria))

updated – changed text and share


OEMs operating in India are entering partnerships with telematics players to offer integrated fleet management solutions for logistics

Telematics Systems

Source: Secondary Research, Roland Berger

Navigation

Real Time Tracking Geofencing SMS Alerts & Queries

Real Time Tracking Geofencing SMS Alerts

Real Time Tracking Geofencing SMS Alerts

Real Time Tracking Geofencing SMS Alerts & Queries

Real Time Tracking SMS Alerts

Fleet Management

Trip Management Driver Analysis Report Generation

Driver Analysis Report Generation



Safety & Security

Anti theft alerts

Anti theft alerts Collision Warning Systems in school buses

Anti theft Immobilizer Emergency SOS button Driver Assistance System

Anti theft alerts Fire Detection and Supression System for buses

Multi Drive Mode for driving assistance

Remote Unit Mgmt. Maintainence Reminders

Remote Diagnostics Maintenance Reminders

Maintenance Reminders

Vehicle Mgmt. Others

Mobile App connectivity Infotainment and Passenger Info System for buses

Infotainment and Passenger Info System for buses

Mobile App connectivity Infotainment and Passenger Info System for buses

Infotainment System for buses


Maintenance Reminders Mobile App connectivity Infotainment System


WGA - I had footnotes in these slides, eg. for bharat benz as this was a dealer solution, where are they?

NA – Added, double-checked discrepancy, they were missing in the source from where I had taken this slide

1)

1) Trident Trucking, dealer of Bharat Ben in Karnataka, has partnership with Ormat


Telematics ecosystem will involve diversified competencies…

Source: Roland Berger analysis

Distribution of the connected vehicle / device

Management of client relationship

Manufacturing of components and interface

Manufacturing of Intelligence /

OS Connectivity supply

Data processing Services providing

> Manufacturing of hardware: screens, control

interface, sound system, measuring elements,

modem, connected devices (embedded,

aftermarket or brought-in)

> Development of operating systems and

connected intelligence inc. HMI/ IVI1) (external

to core-car onboard computer)

> Distribution of connected vehicle or device

> Providing of

connectivity hardware

(simcard, Wifi etc.)

> Providing of connectivity

services (prepaid,

subscription…)

> Data analytics and knowledge generation:

local and central data storage, encryption,

enrichment, calculation

– Driver data

– Personalized cloud data

– Vehicle data

– Vehicle health status data

> Creation and commercialization of apps and

software

Telematics market in India – Trends and opportunities

WGA - This slide is not clear to

me pls explain

NA – The slide shows various competencies that will be required in the present/future to leverage telematics

They include

1)Manufacture of components (in vehicle connectivity devices) and associated interfaces

2) Development of OS and intelligence (off-vehicle devices such as sensors connected to environment and their underlying logic)

3) Connectivity supply includes hardware and associated services to leverage telecom technologies

4) Data processing and analytics

5) Providing services based on data collected from vehicle or 3rd party content providers

Other competencies include distribution of devices (could possibly be done by a different company) and management of client relationship which would include skills pertaining to customer lifecycle management 1) In-vehicle infotainment


… and greatly expand the playing field by bringing in new players

Traditional players New players

IT/INFRASTRUCTURE PROVIDERS OPERATORS

DEVICE MANU-

FACTURERS

INTERNET COMPANIES

IT SERVICE PROVIDER

SUPPLIERS

SPECIFIC SERVICES

Reach new customers and keep the control of

the client relationship

Major actors of the connected car environment

Consolidate position on intelligence systems, avoid

new entries…

Extend business to new usages…

Extend the connectivity and mobility way of life to new universes …

Reinforce the relationship with customers, optimize vehicle design and usage…

OEMs



http://www.ford.de/

http://www.ford.de/

http://images.motorcycle-usa.com/PhotoGallerys/bosch-logo.jpg


The changing ecosystem will also lead to new alliances, roles and underlying principles

New

Alliances

> Insurance groups could team up with navigation and emergency call system providers to get access to driver data

> Network giants such as Google etc. could sponsor mobile internet access from the vehicle

New

Roles

> Automotive companies are becoming software developers

> Telecom companies are starting to see themselves as automotive suppliers for data transfer channels

> Hardware companies become analytics provider/operator, for example Octo Telematics

New speed,

new principles

> Automotive industry needs to realign itself – new cycles, partners ….

> IT industry development cycles are much faster than those of car manufacturers



Changes in the new ecosystem WGA - where is this from, what is

Octo Telematics

NA – Taken from the pdf document you had shared titled ' Who will drive the Connected car?' (page 13)

Octo telematics is one of the initial entrants into telematics insurance opportunities and have built solutions to help insurers and drivers by capturing data such as driving behavior, location, duration, contextual elements and crash impact information


At the same time, Indian telematics market is also evolving and several trends are emerging


Non exhaustive Trends in Indian telematics market

Market trend Impact level Impact

Demand for cloud-based telematics 1

> Enable easier integration and efficient scalability by utilizing standalone devices which use cloud-based data

> Additionally offers huge space of data storage and reduces complexity

Favorable Government legislation 2

> Government has focused on multiple initiatives aimed at utilizing vehicle telematics which is expected to drive telematics market

– Key initiative: Plan to introduce fleet management in 400,000 buses by 2017

3 Increasing collaboration and partnerships

> CV OEMs are increasingly partnering up with telematics providers to offer integrated fleet management solutions

– Tata Motors has partnered with Microlise to provide solutions under Tata Fleetman platform

4 Focus on value added products

> Vendors are expected to introduce value added products to attract customers

– Telematics devices are expected to be equipped with speech recognition features to enable easy driving

Medium impact High impact


New slide


As a result, several opportunities open up; Indian players can leverage and monetize these to build successful businesses

Domain Potential opportunity description Sno.

2 Driver assistance and related services

(Services based on underlying product solutions)

IT services

(Supporting software/enabler solutions)

> Integration, management and maintenance of entire consumer information stack

> Cyber security solutions 3

Opportunities for Indian players [selection] Not exhaustive



1 Connectivity solutions

(Product (largely hardware) focused)

> Providing hardware and software solutions which leverage various communication technologies and enable M2M1) communication

> Common applications include various ADAS sensors such as driver drowsiness detection, parking assist, lane departure warning systems, lane keep assist etc.

1) M2M – Machine-to-machine

WGA - what does this mean

concretly?

NA – Service offerings in the telematics market will either be based on data collected from vehicles/drivers or gathered from other 3rd party providers. Content providers are those 3rd party providers. For example, Facebook can be a content provider and provide my social media related data which can be leveraged to form a service that tells me which of my friends are nearby on my driving route. Similarly, Zomato can be a content provider and can tell me average ratings of various restuarants nearby on my driving route

Data processing and services

> Data analytics services to record various types of vehicle and driver data; some examples include

– Driver data including his preferences, condition, fatigue, behavior etc.

– Vehicle data including vehicle health, GPS location, position, speed etc.

– Data from vehicle environment such as traffic lights, weather etc.

> Formulation of service modules such as those pertaining to navigation, diagnostics etc.

Content providers

> Providing all relevant data (e.g. social, consumer preferences etc.) from users to vehicles

> Development and distribution of various services to different players in the playing field

Segregated growth areas into product (primarily hardware with some software), services and supporting software/enabler solutions

Added ADAS point in "hardware" side as it is largely sensor driven


Hardware is a fast-growing segment within telematics market with ~ 21% CAGR till 2022; connectivity solutions are a key component

Hardware market growth in India CV telematics[USD m]

3719

174

48

185

90

378

5

2015 2022F

Installation Hardware Services

+19.6%

+24.8%

+21.4%

CAGR

2015-22

> Hardware market is an important component of overall telematics market accounting for more than 50% of share in 2015

> It is expected to grow at CAGR 21% till 2022 to a total market size of USD 185 m within overall CV telematics market; separate potential within other segments such as PV, aircrafts etc.

> Hardware market includes on-board, off-board units and associated interfaces – both in-vehicle as well as those outside the vehicle

– Key examples of products include connected devices such as sensors and other devices including ADAS devices which enable machine-to-machine communication

> Compared to software, hardware complexity in Indian market is still evolving – growth in telematics has made hardware structure more complex and sophisticated which is expected to slow down overall market growth

Trends and opportunities – Connectivity solutions

Source: 6WResearch, Secondary research, Roland Berger

CV telematics market growth by hardware, services and installation costs

New slide to show market potential

Corresponding data was not available for PV telematics market in India and hence have considered only CV


M2M communication is paramount for telematics and presents an attractive growth opportunity for players

Opportunity in connectivity solutions

WiFi, Bluetooth DSRC

DSRC 3G, 4G, …

3G, 4G, … > A variety of technologies are leveraged for enabling

M2M communication

– DSRC for time sensitive and critical functions

– Commercial wireless technologies

– 3G/4G connectivity

> Significant potential exists for manufacturing and producing embedded systems, sensors and devices which leverage communication technologies to enable M2M communication

> Savari networks is one such company which produces hardware and software solutions

– It also produces road-side units which can be installed on traffic lights – it has equipped 11 intersections in Palo Alto which enable people to communicate with traffic lights

Comments

1) DSRC – Direct short range communications

Source: Nissan; RFID Centre; RITA; Roland Berger


New slide


Sensors market in India

Indian market for automotive sensors is highly fragmented; advanced sensor technologies represent a huge opportunity

> Chinese sensors and buzzer kits have flooded the Indian aftermarket for parking sensors

> Largest application of driving awareness sensors is in low-cost ultrasound based parking assist sensors, often coupled with warning buzzers

> No manufacturers exist for LIDAR, RADAR or Vision processing applications in India

> International manufacturers like Velodyne and SICK GmbH are looking to grow through lead users

– Velodyne HDL-32E LIDAR deployed in Hi Tech Robotic Systemz demo vehicle NOVUS

– SICK radar sensors used in Autonomous Nano built by TCS engineer Dr Roshy Jacob

Typical sensor price ranges in Indian aftermarket

Parking Sensor

Radar Sensors

Lidar Sensors

Infrared Sensors

2,700 500

10,000

80,000 55,000

12,500

30,000 7,000

Minimum price (INR) Maximum price (INR)

Indian market for automotive sensors – highly fragmented

Advanced sensor technologies largely absent on Indian roads

Prices of sensors available online

Infrared sensors are estimated at INR 55,000 to INR 80,000

WGA: In sensors, what is relevant for India

RB: Indian market is highly fragmented and largely parking sensors – have created slide explaining this. Also, sensor prices available in India from trading companies, e-commerce etc. is compiled, but data is limited for certain sensors

Source: News Reports, Roland Berger


1) Highly automated driving

New slide (Taken from Hitec robotics deck)


Services is the fastest growing segment within telematics market with ~ 25% CAGR till 2022; significant potential exists

Services market growth in India CV telematics[USD m]

3719

174

48

185

90

378

5

2015 2022F

Installation Hardware Services

+19.6%

+24.8%

+21.4%

CAGR

2015-22

> Services market is an important component of overall telematics market accounting for ~ 40% share in 2015

> Services market is expected to grow at CAGR 25% till 2022 to a total market size of USD 174m within overall CV telematics market; separate potential within other segments such as PV, aircrafts etc.

> Services market value chain includes actors such as content provider, content aggregator, application providers and integrators

– Key examples of offerings include analytics based services for diagnostics, fleet management, fuel cost optimization, navigation etc. as well as infotainment/ entertainment services

Trends and opportunities – Driver assistance and related services

Source: 6WResearch, Secondary research, Roland Berger

CV telematics market growth by hardware, services and installation costs

New slide to show market potential

Corresponding data was not available for PV telematics market in India and hence have considered only CV


> Car sensors and/or connected devices

> OEM built in and dashboard integrated

> Brought-in (OBD, wired, smartphone with bluetooth etc.)

Various types of services can be offered by processing the data that is collected from vehicles as well as that from content providers

Opportunities in Indian market: Data processing and services

DATA COLLECTION

NETWORK CONNECTION

DATA PROCESSING

SERVICES

CONNECTED VEHICLE VALUE CHAIN

> One-way specific: GPS

> Two-ways:

– SIM card

– Wifi, cable etc.

> Can be local or central

> Involves

– Storage and encryption

– Enrichment of data

– Calculation/analytics to find insights

> Various services pertaining to:

– Security

– Navigation and info

– Entertainment

– Diagnosis

Source: GSMA, Secondary research, Roland Berger

Driver assistance and related services – Data processing and services WGA - How easy is it to get access to vehicle data?

Arent OEMs blocking this? How will it be done?

What are the future trends? What are market potentials of these areas?

NA – Vehicle data can be obtained through various mediums as explained in the next 2 reference slides. OEMs solutions have slow market penetration due to a variety of factors. In this context, a lot of 3rd party players are developing external retrofit solutions which is allowing them to capture the market in connectivity. OBD dongles has emerged as an attractive option

Added market trends and potential in previous slides

WGA - Why cant Indian companies play in this area (Services)?

NA – Changed. Data collection now goes into the previous section (connectivity solutions) and this section focuses on data collection and service offerings

Indian companies can and are playing in this area. Also added some examples in later slides

> Security

> Navigation and info

> Entertainment

> Air-diagnostics

> Air services and scheduling

> Payment


For example, future insurance services are expected to be based on data collected and processed from vehicles and nearby environment

Driver assistance and related services – Data processing and services

1 actual

accident

Hundreds of

risky events

A dozen

near accidents

> Age

> Sex

> Marital status

> Years experience

> Usage declared

> Mileage declared

> Territory garaged

> Insurance score

> Driving record

Today's model inputs Tomorrow's model inputs

All of today's inputs AND

> Time drive (hours)

> Time of day (late night/rush hour)

> Actual miles and type

> Weather

> Seat belt and phone usage

> Maintenance

> Driving style (aggressive, calm etc.)

> Actual claims

> Overall driver score

> Events

Few data points refreshed every year

Existing actuary experience is little help for this pricing model

>1000 data points recorded every second

A pricing reinvention?

Once every decade?

Few times a year?

Daily or hourly?



Similarly, services can also aim at improving vehicle performance by leveraging driver behavior data and preferences, example Google


Predictive analytics for vehicle optimization: Google Ford example

Business model – who pays for it

> Subscription model (might be bundled together with other service

in systems like Sync)

Players and roles

> Google –Algorithm and analytics providers

> OEMs –System integrators

> Car owners –Users (and data gathering objects)

Description > Google API analyzes historical driving patterns and driver styles

to increase vehicle driving efficiency

Users and benefits

> Drivers/fleet operators: Better use of powertrain will lead to

increased energy efficiency

Driving history

Predictive algorithms

Optimize powertrain

Prediction

API

Information to optimize vehicle operations sent to car1)

1) Some information and algorithms will be saved locally

Source: Ford, Google, Roland Berger

Driving data transmitted to Google cloud database


Activity in this field in India is still limited – few efforts have been made till now, mostly in the field of safety and diagnosis


Company Initiative/product description Sno.

1 Trak

N Tell

> Safety solutions which incorporates features such as real time tracking, panic buttons, remote engine immobilizer (for geo-fencing) and over speeding alerts

> Can be used to locate stranded occupants, location of stolen vehicles and provide help and medical assistance if needed

Selected initiatives

2 CarIQ > Analyses various data such as car condition (battery health, engine health), driving patterns, servicing info, location based information etc. to offer a variety of packages

> Offers maintenance related solutions which generate timely service reminders and guidance to nearest workshops which are integrated into the platform

3 Raksha

Safedrive

> Host of safety and emergency service related solutions

> Includes features such as smart panic button (one touch connectivity to trained road officers), impact detection (sense an impact and automatically call for help), friend and family notification in the event of accidents as well as a 24X7 center for coordinating emergency services



Content providers form an integrated part of the overall ecosystem by delivering customized content

Driver assistance and related services – Content providers

Integrator Profile

management

Application server

Policy management

OEM back office

Content providers

Apps

Standard interfaces

Service gateway

Data transport

Vehicle

Business model – who pays for it > E.g. subscription based model

> E.g. usage based model

Players and roles > Wireless service providers (data carrier)

> Third party suppliers (hardware/software platform developers)

> Content developers

Description > Will enable dynamic, customized content delivery for drivers

> Scalable solution that allows OEMs to stay connected with customers and offer new functionality and applications

Users and benefits > Drivers will be able to access content stored in the cloud like music playlists,

schedules, address books, favorite news

> OEMs can cater to wide variety of consumers' digital preferences and also create opportunities for additional revenue stream based on service offered

Adaptive architecture



Indian market poses a challenging environment for content providers – only few basic efforts at providing content till now

Selected initiatives in Indian market

Key challenges in Indian context

1 Low customer demand

> Customer awareness is still developing; overall willingness to spend on infotainment is still minimal

2 Lack of standards

> Limited clarity on best models to engage consumers

> Limited awareness of roles of integrators and content providers

3 High volume of data

> Large volumes of content to be collected given India's population – scale is a major inhibitor

1 MapmyIndia has introduced interactive and social media interfaces allowing users to get access to real-time information as well as social navigation features such as Add/edit a place, writing reviews etc.

2 Harman Automotive navigation solutions show points of interest as well as locations of favorite hotels and restaurants along the way

3 Multiple companies such as CarIQ, MapmyIndia etc. have introduced offerings which analyze driving patterns and behavior to report usage statistics (times of rash driving, idling etc.), trip summaries (mileage, speeds, routes etc.)


Driver assistance and related services – Content providers

Source for challenges

Taken from word document sent by you titled "Article_Connected cars and connected services in India"

Excerpt below

"One of the major factors holding back content aggregators, is scale. Also, unlike developed markets, content aggregators don’t find the Indian market affluent enough to invest, as customer willingness to spend on infotainment is quite minimal. One other key inhibitor in bringing innovative contents to the vehicle is the lack of a standard for content providers. In most cases, auto-makers and content providers do not know the best business model to engage with"


Lastly, connected vehicle system requires huge amounts of information – IT service providers can leverage this opportunity

Trends and opportunities – IT service providers

Fat clients with local storage and dedicated security software for the PC, server

Focus on endpoint protection/security

Past

Many interconnected devices

Data storage and processing power move to the cloud

Security needs to become an integral part of any network and cloud environment

Future Opportunities for service providers

> Manage entire information stack between consumers, OEMs and other service providers

– Infosys, which works with Daimler will manage its global data centers including data channeled from connected cars

> Provide cybersecurity solutions to ensure data integrity



Contact us

Your contact at Roland Berger

Jeffry Jacob Principal Roland Berger E-mail: [email protected] Mobile: +919920630131

Office address: Mumbai

702, VIBGYOR Tower,

Bandra Kurla Complex,

Mumbai - 400 051

Delhi (Gurgaon)

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Pune

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Pune – 411 001

Chennai

Level 5, Tamarai Tech Park,

S.P. Plot No.16-19 & 20-A,

Thiru Vi Ka Industrial Estate,

Inner Ring Road, Guindy,

Chennai – 600032

http://mysite.rolandberger.net/Person.aspx?accountname=ROLANDBERGER/jeffry_jacob

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