Archive for November, 2010

Gothenburg, Sweden: According to a new research report from the analyst firm Berg Insight, 4.3 million passenger cars in Europe will have an on-board telematics device at the end of 2010. Stolen vehicle tracking is still the main application, followed by automatic emergency call, driver assistance and motor insurance telematics. Berg Insight has a positive outlook for the European car telematics market in the coming five years, as the crisis for the global automotive industry is left behind. Demand for aftermarket vehicle tracking solutions is now coming back to pre-crisis levels. The OEM market segment is showing signs of increasing activity and several programs that were shelved in late 2008 have now been resurrected when the car manufacturers put new focus on their telematics strategies.

“The penetration rate is still below 2 percent of the total car parc, so there is a huge untapped potential”, said Johan Fagerberg, Senior Analyst, Berg Insight. Across the world, new regulations and extended availability of services drive the demand for high volume, low cost telematics solutions. In Europe the eCall project has made progress and the vision of cars that automatically dial 112 after a crash is getting closer to becoming a reality. “Some vital technical standards are now in place and the EC has presented a realistic deadline for full-scale implementation by 2014”, continues Mr. Fagerberg. The largest remaining obstacle is now resistance from France and the UK, which are the only major EU member states that have not expressed their support for the initiative. Berg Insight projects that the safety system will generate 15 million new telematics-enabled cars per year once implemented pushing the total number of active subscribers to 28.7 million in 2015.

About Berg Insight
Berg Insight offers premier business intelligence to the telecom industry. We produce concise reports providing key facts and strategic insights about pivotal developments in our focus areas. Our vision is to be the most valuable source of intelligence for our customers.

For additional information, please contact:
Johan Fagerberg, CEO
E-mail: johan.fagerberg@berginsight.com
Phone: +46 31 711 30 91

Gothenburg, Sweden: According to a new research report from the analyst firm Berg Insight, global shipments of Personal Navigation Devices (PNDs) will peak at about 42 million units in 2011 and gradually decline thereafter. Growing shipments in markets such as Brazil, China, India and Russia are not likely to compensate for the decline in Europe and North America. In mature markets where the installed base of PNDs is already high, the device category is facing increasing competition from smartphones and low-cost in-dash navigation systems. However, aftermarket navigation systems will be the largest segment for several years to come and many customers, especially in Europe and North America, are likely to use more than one navigation capable device for different occasions in the future.

PND vendors are increasingly looking at new features and value-added services to resist slower growth and increasing competition. Vendors are for instance adding larger screens and cellular connectivity to new models to persuade customers to upgrade their existing PNDs. Berg Insight forecasts that more than 80 percent of PNDs shipped worldwide in 2015 will have integrated cellular connectivity. “Sales of replacement devices to existing customers now account for about one third of shipments in mature markets”, said André Malm, Senior Analyst, Berg Insight. He adds that customers looking for a new PND typically want a larger screen and new services such as traffic information or speed camera warnings. “Vendors need to communicate the advantages of connected services, such as better traffic information, in order to educate potential customers and stimulate demand”, commented Mr Malm.

About Berg Insight
Berg Insight offers premier business intelligence to the telecom industry. We produce concise reports providing key facts and strategic insights about pivotal developments in our focus areas. Our vision is to be the most valuable source of intelligence for our customers.

For additional information, please contact:
Johan Fagerberg, CEO
E-mail: johan.fagerberg@berginsight.com
Phone: +46 31 711 30 91