Visiongain Forecasts UBI Market at 33M Policyholders in 2016

Usage-Based Insurance (UBI), also known as telematics-based insurance, is increasingly being adopted worldwide, according to a new report by Visiongain.

According to the research firm, UBI will account for 33 million policyholders in 2016, a significant increase over the 21.7 million policyholders accounted for in 2015. Over $21.8bn of automotive premiums will be generated by the Usage-Based Insurance market in 2016, per the research.

“Already commonplace in Italy, the United States and the UK, a number of new markets have recently experienced a growth in the adoption of UBI including Japan, South Africa, and Brazil.“

The research firm expects smartphone and hybrid solutions to play an increasingly influential role in the UBI market.

Overestimated market

As we already pointed out last year (read here), this report seems to overestimate the current penetration of UBI.

Research firm IHS recently estimated the UBI market at 12 million policyholders in 2015: around 5 million in the United States and 3.6 million in Italy.

Today, Italy is the only country in which UBI has a double digit share of the insurance market, representing 10 percent of the market there in 2015, according to the IHS Automotive report.

FMS to Reach 1.5M Vehicles in South Africa by 2020

The number of active fleet management systems deployed in commercial vehicle fleets in South Africa was 0.9 million at the end of 2015, according to a new report from Swedish market research firm Berg Insight.

Growing at a compound annual growth rate (CAGR) of 10.8 percent, this number is expected to reach 1.5 million by 2020.

The market is dominated by a group of aftermarket telematics players including MiX Telematics, Cartrack, Altech Netstar, DigiCore (Ctrack) and Tracker which are all headquartered in South Africa and have installed bases of more than 100,000 fleet management units on the domestic market.

These top-5 players together represent around two thirds of the total number of active fleet management systems in use in the country today. This is a sign of the maturity of the market where “the penetration is comparably high from an international perspectiveâ€?, explained Rickard Andersson, Senior Analyst at Berg Insight.

“Many of the local telematics solution providers have their roots in vehicle security applications. These telematics companies have in many cases extended their SVR offerings with additional functionalities for fleet management. Far from all deployments are thus full-scale advanced fleet management solutions, and a notable share of the installed fleet telematics systems on the South African market is represented by comparably low-end tracking systems combining stolen vehicle recovery with basic fleet management features.â€?

Carsharing: 26M Users Worldwide in 2020

Two reports from market research firms Berg Insight and Frost and Sullivan published coincidentally today are both forecasting 26 million users of carsharing services worldwide in 2020.

According to Berg Insight, the number of users has grown from 4.8 million worldwide at the end of 2014 (100,000 operated cars) to an estimated 6.5 million (with 123,000 cars) at the end of 2015. It is expected to grow at a compound annual growth rate (CAGR) of 32.0 percent until 2020 when the total carsharing fleet will then reach 450,000 cars.

Roundtrip rental versus Free floating services

Today, most Carsharing Operators (CSOs) use station-based networks offering roundtrip rental. This operational model requires users to return a vehicle to the same station from which it was accessed. Some CSOs have also started to offer one-way carsharing that enables users to return the car to any station operated by the CSO.

“Another model that is rapidly gaining users is free floating carsharing, which enables members to pick up and drop off cars anywhere within a designated areaâ€?, said André Malm, Senior Analyst, Berg Insight.

He adds that the ability to access available cars instantly without prior booking or need to schedule return time make this type of service very attractive. “Free floating services are now available in 12 countries and 43 cities in Europe and North America, with a combined fleet of about 20,000 cars and roughly 2.0 million members at the end of 2015â€?, said Mr Malm.

Carsharing Operators Move to Smartphone-based Car Access Systems

At the technology level, Frost & Sullivan expects that in the next three to seven years, the market will move away from off-the-shelf technologies toward open source software, plug and play systems and smartphone-based near field communications/ Bluetooth low energy (NFC/BLE) technologies.

“NFC based technologies are being incorporated as a basic standard in smartphones by the majority of the smartphone makers. This will unearth opportunities for cost-effective, smartphone-based remote vehicle control solutions,â€? said Frost & Sullivan analyst Albert Geraldine Priya.

15% Annual Growth for Telematics Fleet Tracking in Europe

Swedish market research firm Berg insight published yesterday their annual report on fleet management systems in Europe, reporting that the number of active fleet management systems deployed in commercial vehicle fleets in Europe is expected to reach 8.90 million by 2019, a compound annual growth rate (CAGR) of 15.1 percent, up from 4.40 million in the last quarter of 2014.

Market Led by TomTom

According to Berg Insight, “A group of international aftermarket solution providers have emerged as the leaders on the European fleet management market.“

TomTom Telematics has climbed to the number one spot in Europe ahead of Masternaut. The Dutch company has today about 450,000 vehicles under management in Europe and Masternaut is estimated to have an active installed base of 350,000 units, mainly in France and the UK.

Microlise, Digicore and Trimble have also joined the exclusive group of fleet management providers in Europe having more than 100,000 active devices in the field.

Transics is number one in the heavy trucks segment with an estimated 85,000 active units installed.

Standard line fitment in trucks

Berg Insight also noticed that truck manufacturers are fast growing their subscriber bases in Europe helped by standard line fitment of fleet management solutions. Dynafleet by Volvo, FleetBoard by Daimler and Scania Fleet Management are the most successful with active subscriber bases of 70,000 units, 72,000 units and 88,000 units respectively end of 2014.

High number of mergers and acquisitions

A significant number of acquisitions happened in 2015.

“Nine major mergers and acquisitions have taken place in the past year among the vendors of fleet management systems in Europeâ€?, said Johan Fagerberg, Senior Analyst at Berg Insight.

TomTom acquired Fleetlogic in the Netherlands in December 2014 adding another 27,000 subscribers to its installed base. Fleetmatics acquired Ornicar in February 2015 — a local FM solution provider in France adding around 15,000 vehicle subscriptions. In March 2015, a decision was made to merge the two Danaher Corporation owned companies Navman Wireless and Teletrac. Later in April, Orange Business Services acquired OCEAN that now operates as a subsidiary with the OCEAN brand name.

Continued…

U.S. Location-Based Ad Spend to Grow to $11.3B in 2016

In its newly released U.S. Local Advertising Forecast 2016, market research firm BIA/Kelsey projects that location-targeted mobile ad spending will grow from $8.4 billion in 2015 to $11.3 billion in 2016.

Overall Kelsey projects total local advertising revenues in the U.S. to reach $146.6 billion in 2016, up from $141.3 billion this year.

Location-aware ads therefore represents 5.9% of the total market in 2015 expected to grow to 7.7% in 2016, a growing trend and plenty of opportunities.

Trailers & Containers Tracking to Reach 5.8M Units by 2019

The installed base of active tracking devices deployed in cargo loading units including trailers, intermodal containers, air cargo containers, cargo boxes and pallets reached 1.8 million worldwide in 2014, according to research firm Berg Insight.

In 2014 the shipment of tracking device dedicated to these markets was estimated at 430,000 units by the Swedish firm.

Growing at a compound annual growth rate (CAGR) of 26.2 percent, the installed base is expected to reach 5.8 million by 2019, according to research firm Berg Insight.

Tracking of trailers and swap bodies is the largest market segment and accounted for 71.3 percent of the total installed base of tracking units on trailers and cargo containers at the end of 2014. Intermodal container tracking is the second largest segment with an installed base of 350,000 tracking units at the end of 2014.

Maritime shipping

The maritime shipping industry has started to embrace real-time container tracking on a large scale. “The foremost example to date is Maersk Line that recently announced a major implementationâ€? said Johan Svanberg, Senior Analyst, Berg Insight.

After several years of pilot projects, AT&T has now in collaboration with WAM Technologies (acquired by Orbcomm in October 2015) connected 290,000 of Maersk Line’s refrigerated intermodal containers.

IHS: “3D Compass Penetration High in Mid-Range Smartphones and Saturated in High-End”

In 2008 a three-axis compass was priced at around $1.40; today, the price of a magnetometer used in a GPS-enabled mobile phone at large volume OEMs is already under $0.20 and is set to fall even further over the next five years, explained market research IHS in a report issued today.

The low end smartphone market is the only segment where there is still an upcoming growth in mobile.

Led by this ongoing price erosion in the electronic compass sensor market, year-over-year semiconductor-based magnetic sensor revenues grew less than 1 percent in 2014. However, the industry’s growth rate is on track to reach nearly 4 percent in 2015, helped by the automotive market that represents 55 percent of the business.

In the automotive sensor penetration is still increasing in mature markets like North America, Europe and Japan. China and other emerging markets, for which the bulk of vehicles have relatively low electronics content today, are rapidly adding more sensors for improved safety, greater comfort and better fuel economy.

Asahi Kasei Microdevices (AKM) has maintained a strong hold on the market for 3-D magnetometers since 2008, and the company still boasts the industry’s least expensive software implementation.

“Samsung and other large customers buying in large quantities have subsequently forced the price down to a point that no other supplier can compete with; however, an aggressive pricing policy has also been pursued by Yamaha and other companies, which has added to the rapid commoditization of the market,” said Richard Dixon, principal analyst for MEMS and sensors at IHS.

RAC Estimates 38% British Business Fleets Use Telematics

38 percent of company fleets in the United Kingdom are using telematics, according to a research by 3GEM Research and commissioned by the business arm of British motorist association RAC among 500 UK business decision-makers. The research was performed in September 2015.

The study also revealed some interesting insights about fleet telematics. Some 68% of firms said that telematics had cut their combined fuel bill, 58% of companies reported that telematics had reduced the amount they paid in speeding fines, and 47% said that their use had led to a drop in insurance premiums.

Furthermore 18% of companies have also used telematics data to prove that a driver wasn’t at fault for an insurance claim, and a further 17% have used the data to successfully appeal against a speeding fine.

OBD to Account for 70% Aftermarket Infotainment Shipments in 2020

The dominance of head units in the infotainment aftermarket will soon be broken with sales of devices connected the the On-Board Diagnostic (OBD) plug exhibiting a compound annual growth rate (CAGR) of 29.5% and accounting for over 70% of aftermarket infotainment shipments in 2020, according to a new report from ABI Research.

This segment includes companies such as Zubie, Automatic, Automile, Mojio, Vinli, Vimcar and many others.

ABI Research thinks that the limitation of some OBD players lies in the vertical service they offer compared to the unicity of the OBD port.

“This is what makes OBD-II platform aftermarket application frameworks like Mojio or Vinli so appealing,â€? commented James Hodgson, research analyst with ABI Research.

“A simple reality of the OBD port is that only one is to be found in every car — with no easy way of adapting it to support the various solutions which need its power and unique access to CAN-bus data. OBD dongles with support for multiple third-party applications enable the peaceful coexistence of would-be competitive services, as well as the promise of more to come.â€?

However, ABI Research believes that moving forward aftermarket solutions will be less relevant because the car will be easier to upgrade.

“In the long term aftermarket vendors will still struggle to maintain their relevance in the face of the proliferation of connected consumer vehicles which will be kept up to date via OTA updates and by hardware updates in the field enabled by modular hardware architectures.“

Interview with ABI Research P. Connolly on Beacons

A recent research from ABI Research indicated that BLE Beacon shipments will comfortably exceed 400 million units in 2020.

Last week, at the Geo IoT conference (part of M2M Innovation World) in Marseille, France, GPS Business News catched up with Patrick Connolly, senior analyst with the research firm and expert on this topic.

In this interview – among other things – he explained us how the Bluetooth beacon market deployments are today going well beyond the retail segment in a very wide spectrum of categories – more than 20 – such as vending machines or location tags.

Listen to or download the audio podcats below: