A comprehensive look at the key players and telematics trends in the USA market...

OE telematics has become highly competitive in the USA with many more exciting new services being launched over the next two years. Telematics services used to focus on safety and security benefits and now are branching out to more connected navigation-based services and traffic information delivery. This places competitive pressure on vehicle manufacturers to keep up with this pace of development.

This report provides the reader with the latest in market and technical trends for telematics services in the US along with a summary of the vehicle manufacturer telematics services available today or planned for the near future. It also provides an overview of the individual services offered by each OEM and highlights key players within the telematics value chain comprising in-vehicle hardware suppliers, mobile network operators, telematics service providers and call centre operators.

For additional information please email jappleby@sbd.co.uk or telephone Juanita on +44 (0) 1908 305101 and she will be happy to deal with your enquiry.

An analysis of the telematics An analysis of the telematics value chain in the USAvalue chain in the USA

SBD Telematics and ITS researchSBD Telematics and ITS research

This report will help you:

Remain competitive by offering the right services and features in the US market

Understand how services are being delivered

Develop innovative services and features with an outlook on future trends

Overcome issues with relation to connectivity, business models and supplier selection

Safety and security evolving to more connected services...

Driven by demand from consumers, the US market is currently the most competitive arena for OE telematics systems globally. The number of manufacturers bringing connectivity to their vehicles is increasing all the time and those with existing telematics systems are launching new services to keep themselves at the cutting edge. Competitive pressure is forcing other vehicle manufacturers to enter the market to avoid being perceived as technology laggards by potential customers.

While most OE telematics systems in the US retain a focus on traditional safety and security services, the number of connected navigation services is growing. As the breadth of available services grows, competition is driving down the cost of these services to the end user.

As well as the variety in the services offered and how they are delivered to the customer, there is also diversity in the business goals that vehicle manufacturers have for their telematics programs. Some manufacturers are promoting their telematics capabilities in order to sell more vehicles. GM has refined and promoted OnStar’s capabilities over 14 years of operation but the core features remain safety and security-focused. Ford has taken a bold approach with SYNC and is trying to make the services and branding “cool” rather than focus on safety and security features.

This report presents a summary of the vehicle manufacturer telematics services available in the US today or planned for the near future. It provides an overview of the individual services offered by each OEM and highlights key players within the telematics value chain comprising in-vehicle hardware suppliers, mobile network operators, telematics service providers and call centre operators. Looking beyond the simple facts, this report will enable the reader to analyse the key market trends and understand the differences between vehicle manufacturers’ telematics strategies.

BMW and Ford both offer extended subscription-free periods to new vehicle owners - the challenge for other vehicle manufacturers will be whether they can compete and whether the US consumers’ willingness to pay for safety and security services will come to an end.

...know what tomorrow brings

TABLE OF CONTENTSTABLE OF CONTENTS 1. Executive summary1. Executive summary 1.1 601.1 60--second summary of conclusionssecond summary of conclusions 1.2 Current status1.2 Current status 1.3 Market analysis1.3 Market analysis 1.4 Future outlook1.4 Future outlook 1.4.1 Safety and security features1.4.1 Safety and security features 1.4.2 Connected navigation features1.4.2 Connected navigation features 1.4.3 Infotainment services1.4.3 Infotainment services 2. Introduction2. Introduction 2.1 The telematics value chain2.1 The telematics value chain 2.2 History of telematics in the USA2.2 History of telematics in the USA 2.3 Current and planned services2.3 Current and planned services 2.4 Service cost2.4 Service cost 2.4.1 Initial free period2.4.1 Initial free period 2.4.2 Annual subscription cost2.4.2 Annual subscription cost 2.4.3 Pay per use fees2.4.3 Pay per use fees 3. Introduction to vehicle manufacturer services3. Introduction to vehicle manufacturer services 3.1 Subscription services delivered via satellite3.1 Subscription services delivered via satellite 3.1.1 XM satellite radio3.1.1 XM satellite radio 3.1.2 Sirius satellite radio3.1.2 Sirius satellite radio 3.2 Free3.2 Free--atat--thethe--pointpoint--ofof--use traffic servicesuse traffic services 3.3 Acura (AcuraLink)3.3 Acura (AcuraLink) 3.4 Audi (Online)3.4 Audi (Online) 3.5 BMW (Assist)3.5 BMW (Assist) 3.6 Ford (SYNC)3.6 Ford (SYNC) 3.7 GM (OnStar)3.7 GM (OnStar) 3.8 Kia (UVO)3.8 Kia (UVO) 3.9 Lexus (Enform with Safety Connect)3.9 Lexus (Enform with Safety Connect) 3.10 Mercedes Benz (mbrace)3.10 Mercedes Benz (mbrace) 3.11 Toyota (Safety Connect)3.11 Toyota (Safety Connect) 3.12 Overall trends and future outlook3.12 Overall trends and future outlook 4. TCU and in4. TCU and in--vehicle systemvehicle system 4.1 Hardware components4.1 Hardware components 4.2 Communication strategy4.2 Communication strategy 4.3 Data transfer method4.3 Data transfer method 5. Mobile Network Operators (MNO)5. Mobile Network Operators (MNO) 5.1 Coverage5.1 Coverage 5.2 Considerations for vehicle manufacturers5.2 Considerations for vehicle manufacturers 6. Telematics Services Providers (TSP)6. Telematics Services Providers (TSP) 6.1 Profile of key TSPs6.1 Profile of key TSPs 6.2 Industry trends6.2 Industry trends 7. Call Centre Operators (CCO)7. Call Centre Operators (CCO) 7.1 Profile of key CCOs7.1 Profile of key CCOs 7.2 Industry trends7.2 Industry trends

LIST OF FIGURESLIST OF FIGURES Fig. 1 Fig. 1 Vehicle manufacturers’ telematics focus in the USVehicle manufacturers’ telematics focus in the US Fig. 2Fig. 2 Key points of selected OEM telematics systemsKey points of selected OEM telematics systems Fig. 3Fig. 3 The telematics value chain in the USThe telematics value chain in the US Fig. 4Fig. 4 Timeline for telematics services in the USATimeline for telematics services in the USA Fig. 5Fig. 5 Current and planned telematics services in the Current and planned telematics services in the USUS Fig. 6Fig. 6 Fitment and pricing comparison of telematics Fitment and pricing comparison of telematics servicesservices Fig. 7Fig. 7 Comparison of subscription costs over the first 3 Comparison of subscription costs over the first 3 yearsyears Fig. 8Fig. 8 SubSub--division of OE telematics services in the USdivision of OE telematics services in the US Fig. 9Fig. 9 Subscription services delivered by satelliteSubscription services delivered by satellite Fig. 10 Fig. 10 FreeFree--atat--thethe--pointpoint--ofof--use traffic servicesuse traffic services Fig. 11Fig. 11 AcuraLink servicesAcuraLink services Fig. 12Fig. 12 Online subscription packages and servicesOnline subscription packages and services Fig. 13Fig. 13 Assist subscription packages and servicesAssist subscription packages and services Fig. 14Fig. 14 BMW TeleService optionsBMW TeleService options Fig. 15Fig. 15 SYNC subscription packages and servicesSYNC subscription packages and services Fig. 16Fig. 16 Example of data routing with Ford SYNCExample of data routing with Ford SYNC Fig. 17Fig. 17 eCall implementation differences (SYNC v typical eCall implementation differences (SYNC v typical case)case) Fig. 18Fig. 18 OnStar subscription packages and servicesOnStar subscription packages and services Fig. 19Fig. 19 OnStar monthly subscriber communicationsOnStar monthly subscriber communications Fig. 20Fig. 20 UVO subscription packages and services (under UVO subscription packages and services (under consideration)consideration) Fig. 21 Enform subscription packages and servicesFig. 21 Enform subscription packages and services Fig. 22Fig. 22 mbrace subscription packages and servicesmbrace subscription packages and services Fig. 23Fig. 23 Safety Connect subscription packages and Safety Connect subscription packages and servicesservices Fig. 24Fig. 24 TCU suppliers and system redundancy featuresTCU suppliers and system redundancy features Fig. 25Fig. 25 TCU communication strategiesTCU communication strategies Fig. 26Fig. 26 TCu biTCu bi--directional data communication channelsdirectional data communication channels Fig. 27Fig. 27 Key MNOs in the US and their partnerships with Key MNOs in the US and their partnerships with OEMsOEMs Fig. 28Fig. 28 Coverage comparison 2G v 3G in the USCoverage comparison 2G v 3G in the US Fig. 29Fig. 29 Key TSPs in the US and their partnerships with Key TSPs in the US and their partnerships with OEMsOEMs Fig. 30Fig. 30 Key CCOs in the US and their partnerships with Key CCOs in the US and their partnerships with OEMsOEMs

SBD Tel: +44 (0)1908 305101 E-mail: postbox@sbd.co.uk www.sbd.co.uk

The SBD Mission... … to provide our customers with the knowledge, insight and understanding they need to develop class leading Telematics and Vehicle Security products and improved Cost Of Ownership performance

About the report author...

Related Reports Complete guide to telematics services in Europe and the USA This over 270 page report in an interactive, presentation format. This allows a considerable amount of market and technical information to be found in one source. This unique format includes all available services by vehicle manufacturer including definitions of services, overview of system architectures and interfaces, summary of business models and communication infrastructures. Reference SBD/TEL/2900 An introduction to automotive apps ~ Embedded platforms and smartphone integration This report provides an overview of the technical solutions that are available to vehicle manufacturers to allow their customers to safely access apps in the car, either through an embedded platform or a connected smartphone. The secondary aim of the report is to detangle the often confused reporting of automotive apps and in so doing to provide an accessible description of the related software structures and the associated implications on product and business strategies. Reference SBD/TEL/2950 Getting ready for public eCall This report analyses what will happen following the likely introduction of a mandate by the EC forcing vehicle manufacturers to equip all new cars with eCall. In addition to assessing the readiness of PSAPs to support public eCall, this report provides a strategic analysis of how vehicle manufacturers are likely to respond to the regulation. Reference SBD/TEL/2401 Analysis of the telematics value chain for private eCall This report analyses the service value chain for private eCall, outlining who the key players are and how they are adapting their services to remain competitive. Reference SBD/TEL/2402

For a quotation or further information please contact Juanita Appleby on:

Email: jappleby@sbd.co.uk

Phone: +44 (0)1908 305 101

Fax: +44 (0)1908 305 106

Pricing:

Report Electronic pdf copy

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Paul Burnley – Senior ITS and Telematics Specialist

Paul graduated from the University of Surrey with a Masters degree in Electrical and Electronic Engineering. He has worked with a number of leading suppliers developing cutting-edge automotive electronics. His strong technical background makes him an expert in investigating the operation of in-car and off-board systems, particularly in telematics and connectivity. Paul’s research covers both mature and emerging markets and he is widely regarded is Europe’s foremost expert for tracking legislation in Brazil.