M2M Research Series

The European Wireless M2M Market The European Wireless M2M Market is a comprehensive report analysing the market for mobile network machine to machine communication in Europe. This strategic research report from Berg Insight provides you with 160 pages of unique business intelligence including 5-year industry forecasts and expert commentary on which to base your business decisions.

This report will allow you to: Understand the true potential of the European wireless M2M market. Anticipate future trends and technology developments. Evaluate the business opportunities in the main vertical market segments. Identify potential customers, partners and competitors on the main European markets. Comprehend the differences and commonalities between Europe and other regions. Profit from valuable insights about the most successful business propositions on the market.

Order now! Please visit our web site to order this report and find more information about our other titles at www.berginsight.com

See inside for further details

Berg Insight’s M2M Research Series What are the key business opportunities in the emerging European wireless M2M market? Berg Insight’s M2M Research Series is a unique series of market reports published on a quarterly basis. Each title offers detailed analysis of a specific vertical application area such as intelligent metering, fleet management or vehicle telematics. Once per year we also publish a summary of our research with detailed forecasts for the European wireless M2M market. www.berginsight.com

M2M Research Series

Strong growth ahead for wireless M2M in Europe There are billions of devices in Europe that could potentially be networked using fixed or wireless technologies. Generally, the cost of connecting a device to a GSM/GPRS network must be justified by the perceived value of the information it communicates. The most obvious cases are remote monitoring of mission critical equipment or tracking of valuable assets. This type of applications however tends to be deployed in relatively small volumes. Mass market opportunities only exist in segments where valuable information can be generated by a large population of devices. Examples of this are found in the utility, transportation, security and retail industries. Europe has 345 million energy meters, 254 million motor vehicles, 8 million security alarm systems and 6 million POS-terminals. Altogether these segments represent a potential market of over 600 million wireless M2M connections. The European wireless M2M market is in a solid growth phase with strong demand across a wide range of industries. Berg Insight estimates that deployments of wireless M2M units, defined as deployed and activated devices, reached 4.1 million units in 2006. Growing at a compound average annual growth rate of 42.9 percent, the market size is expected to reach 24.4 million units by 2011. In the medium term, the annual growth rate will however be more moderate. Not until after 2010 will the anticipated mass-market adoption of telematics by automotive OEMs push growth rates above 30 percent. Other key vertical markets are forecasted to see a more linear growth. Security alarms and POS-terminals are expected to reach their natural saturation point in a relatively near future, whereas the full growth potential for energy meters will remain far from realized even at the end of the period. Mobile operators are positioning themselves differently in the M2M value chain. Most of them are actively or passively limiting

their role to provide network connectivity services. Some such as Orange, Telefónica O2, Telenor and TeliaSonera are participating directly in the market, whereas others like Vodafone have adopted an indirect approach with partner resellers. Telenor Sweden is arguably the most advanced mobile operator in this area and expects the number of wireless M2M connections to exceed regular handsets by 2008. The greater part of the connections derive from the regulation driven deployment of remote meter reading in Sweden that will result in 1 million electricity meters being connected to Telenor’s GPRS network. Several MVNOs and MVNEs have also established themselves as providers of wireless M2M connectivity services and solutions on the European market. Modes of operation range from reselling the network capacity of mobile operators to providing partial or complete network infrastructure via a hired air-interface. Value added resellers like Mobius Networks and Wireless Logic work closely with one or a few mobile operators, while international carriers like Jasper Wireless and Wyless seek to offer global coverage on a single communications platform. Rather than competing with traditional network operators, the wireless M2M communication providers are becoming a major distribution channel for mobile data services in large parts of Europe.

This report answers the following questions: How large is the actual addressable market for wireless M2M in Europe? What are the main trends and fastest growing appli cations in the automotive, utility, security and retail industries? When and in what form will eCall-type services become a standard feature on the European automobile market? What are the key drivers behind the growing demand for fleet management and vehicle tracking solutions? Which are the leading providers of OEM and aftermarket telematics solutions? How is GPRS facing up to competing technologies for remote meter reading? What is driving the adoption of wireless POS-terminals and security alarms? How are the mobile operators addressing the bourgeoning M2M market? Which are the main alternative wireless M2M communication providers in Europe?

Mobile network wireless M2M connections in Europe (2006–2011)

Table of Contents

1 Introduction to wireless M2M and the European market



1.1 1.1.1 1.1.2 1.2 1.2.1 1.2.2 1.2.3 1.3 1.4 1.4.1 1.4.2



Introduction From telemetry to M2M Industry value network Key vertical market segments Electricity and gas meters Motor vehicles Other segments European mobile network infrastructure Mobile network M2M data modules and terminals Mobile network M2M communication devices Mobile network M2M module vendors

2 Network operators and MVNOs 2.1 Deutsche Telekom 2.1.1 T-Mobile 2.1.2 Toll Collect 2.2 France Telecom 2.2.1 France Telecom Group M2M strategy 2.2.2 Orange Group 2.2.3 Mobistar 2.3 Telefónica O2 2.3.1 Telefónica O2 Czech Republic 2.3.2 O2 Germany 2.3.3 O2 Ireland 2.3.4 O2 UK 2.4 Telenor 2.4.1 Telenor Mobile 2.4.2 Telenor Cinclus 2.5 TeliaSonera 2.6 Vodafone Group 2.6.1 Vodafone Netherlands 2.6.2 Vodafone UK 2.6.3 SFR 2.7 Wireless M2M communication providers 2.7.1 Aspider Solutions 2.7.2 BT Redcare 2.7.3 Eutelsat 2.7.4 Jasper Wireless 2.7.5 Kuantic 2.7.6 Metrilog 2.7.7 Mobius Networks 2.7.8 Netsize 2.7.9 RAM Mobile Data 2.7.10 Stream Communications 2.7.11 Wireless Logic 2.7.12 Wireless Maingate 2.7.13 Wyless



3 Market forecasts and trends

3.1 3.2 3.3 3.4

European wireless M2M market summary Private vehicles Commercial vehicles Electricity and gas meters

3.5 Security alarms 3.6 POS-terminals

4 Private vehicles

4.1 4.2 4.2.1 4.2.2 4.2.3 4.2.4 4.3 4.3.1 4.3.2 4.3.3 4.3.4 4.3.5 4.3.6 4.3.7 4.3.8 4.3.9 4.3.10 4.3.11 4.4 4.4.1 4.4.2 4.4.3 4.4.4 4.4.5



5 Commercial vehicles

5.1 5.2 5.2.1 5.2.2 5.2.3 5.3 5.3.1 5.3.2 5.3.3 5.3.4 5.3.5 5.3.6 5.3.7 5.3.8 5.3.9 5.3.10 5.4 5.4.1 5.4.2 5.4.3



The European private vehicle market Car telematics solutions Car telematics applications Car telematics infrastructure Car telematics value chain The European eCall initiative Key player profiles ATX Group Cobra Automotive Technologies IMA LoJack TRACKER Traqueur Magneti Marelli MetaSystem Trafficmaster Viasat Wireless Car OEM and aftermarket telematics offerings PSA Peugeot Citroën BMW Jaguar and Land Rover Octo Telematics Norwich Union

The European commercial vehicle market Fleet management solutions Fleet management applications Fleet management infrastructure Fleet management value chain and stakeholders Key player profiles CI Omnibridge and Siemens VDO Cybit Garmin and GPS-Buddy Masternaut Minorplanet Navman Wireless Punch Telematix Qualcomm WBS TomTom WORK Transics OEM commercial vehicle telematics solutions DaimlerChrysler FleetBoard Volvo Dynafleet Scania Fleet Management

6 Electricity and gas meters

6.1 The European utility industry 6.1.1 Electricity market 6.1.2 Gas market 6.1.3 Industry players

6.2 6.2.1 6.2.2 6.2.3 6.3 6.3.1 6.3.2 6.3.3 6.3.4 6.3.5 6.3.6 6.3.7 6.3.8 6.3.9 6.3.10 6.4 6.4.1 6.4.2 6.4.3



7 Security alarms

7.1 7.2 7.3 7.3.1 7.3.2 7.3.3 7.3.4 7.3.5 7.3.6 7.4 7.4.1 7.4.2 7.4.3



AMM solutions AMM applications Advanced metering infrastructure AMM value chain and stakeholders Key player profiles Bayard Group Itron Iskraemeco Elster Echelon EDMI Enel/IBM AMM Alliance Kamstrup ADD Grup Metrima AMM deployments in Europe ACEA EssentNuon Fortum

The European security alarm market Mobile network alarm monitoring solutions Key player profiles Securitas Direct ADT Europe UTC Fire & Security G4S Alert Services Prosegur GPRS alarm communication in Scandinavia Aroundio and Securitas Direct Professional Multicom Security Safetel

8 POS-terminals

8.1 8.2 8.3 8.3.1 8.3.2 8.3.3 8.3.4 8.3.5 8.3.6 8.3.7 8.3.8 8.3.9 8.3.10 8.4

The European POS-terminal market POS-terminal payment transactions Key player profiles VeriFone Ingenico Hypercom Thales Sagem Intellect Cybernet Gemalto Banksys DA Sistemi Mobile network POS-terminal communication solutions

Glossary

M2M Research Series

About the Author Tobias Ryberg is founding partner of Berg Insight and

principal analyst responsible for the M2M research series. He is an experienced analyst and author of numerous articles and reports about telecom and IT for leading Swedish and international publishers. The European wireless M2M market has been his major research area for the past 4 years.

Who should buy this report?

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. From time to time we also perform custom research assignments. Our vision is to be the most valuable source of intelligence for our customers.

Related products

The European Wireless M2M Market is the foremost source of information about all the major vertical markets for wireless M2M in Europe. Whether you are a telecom vendor, mobile operator, vehicle manufacturer, security company, utility, investor, consultant or government agency, you will gain valuable insights from our in-depth research.

Fleet Management and Wireless M2M The North American Wireless M2M Market Mobile Personal Navigation Services

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© Berg Insight AB - No. 09

Car Telematics and Wireless M2M

M2M Research Series

Car Telematics and Wireless M2M Car Telematics and Wireless M2M is the third consecutive report analysing the latest developments on the European market. This strategic research report from Berg Insight provides you with 100 pages of unique business intelligence including 5year industry forecasts and expert commentary on which to base your business decisions.

This report will allow you to: Understand the dynamics of the European car telematics industry. Learn about the telematics strategies of the technology leading car manufacturers. Evaluate the likelihood for eCall to become operational before 2012. Identify the leading providers of aftermarket vehicle tracking solutions. Realise the potential importance of motor insurance providers in the telematics value chain. Profit from valuable insights about the most successful business and technology propositions on the market.

Order now! Please visit our web site to order this report and find more information about our other titles at www.berginsight.com

See inside for further details

Berg Insight’s M2M Research Series What are the key business opportunities in the emerging European wireless M2M market? Berg Insight’s M2M Research Series is a unique series of market reports published on a quarterly basis. Each title offers detailed analysis of a specific vertical application area such as intelligent metering, fleet management or vehicle telematics. Once per year we also a publish summaries of our research with detailed forecasts for the Global and European wireless M2M markets, respectively. www.berginsight.com

M2M Research Series

Where is the European telematics market headed? Telematics is a broad term that may be applied to a wide range of automotive IT solutions. Berg Insight’s definition of a car telematics solution in this report is an automatic system designed for passenger cars which incorporate some form of wireless communication via a wide area network. The history of car telematics can be traced back to the first stolen vehicle tracking systems based on RF communication using unlicensed frequency bands, which appeared on the market in the 1980s. Subsequently mobile networks have enabled true online connectivity with two-way communication at the same time as GPS technology has been commoditised to the extent that high-accuracy satellite positioning can be integrated into virtually any device. Today a standard telematics unit features GPRS, GPS and frequently also some kind of interface to the electronics systems of the vehicle. This kind of device may be used as a platform for one or several types of applications. Several categories of car telematics applications are today offered on a commercial basis. These include eCall and driver assistance, SVR, motor insurance telematics, leasing and rental fleet management and vehicle diagnostics. eCall and driver assistance applications deliver value in the form of improved safety and better convenience when travelling. SVR facilitates recovery of the car in case of theft and frequently entitles the owner to insurance benefits. Motor insurance telematics combines SVR with innovative business models such as PAYD (Pay-As-You-Drive). Leasing and rental fleet management gives owners better control over hired-out vehicles and enables new forms of contracts. Vehicle diagnostics allows car manufacturers, dealers and workshops to improve their service offering to car owners. The automotive industry has two traditional tracks for new innovations to reach the market. One is the car manufacturers (OEMs) who can offer new functionalities as factory-installed standard or optional features. The other is aftermarket vendors that develop products which can be installed by car-owners regardless of brand or model. In many cases there is a parallel development of both OEM and aftermarket products. Currently the European car telematics market Million units

dominated by aftermarket products with most OEMs showing very limited interest in developing any services by themselves. Outside Europe there is significantly more OEM activity, with GM OnStar in the US being the prime example. The leading providers of aftermarket vehicle tracking solutions in Europe are a mix of national players with very strong positions on their local markets and pan-European players, operating directly or through resellers on several markets. Companies in the first category include the LoJack distributors TRACKER, Traqueur and Detector in the UK, France and Spain and Central Eastern European players such as AutoGuard, Caesar Satellite and SECAR in Poland, Russia and the Czech Republic. Trafficmaster in the UK also ranks as a significant player on that market. The second category comprise Italy’s three leading GSM/GPS telematics providers Cobra, MetaSystem and Viasat which have all expanded into foreign markets through direct representation or distributors. In addition to the companies mentioned above there are numerous players of all sizes offering vehicle tracking products in individual countries. OEM telematics propositions have so far largely failed to make a significant impression on the European market. Availability is still restricted to a handful of brands and models on selected markets. PSA and BMW are the most active players in the market, bundling telematics services with navigation, audio and Bluetooth handsfree products. Volvo Cars continues to expand its service offering to new European countries even though customer demand has proven weak. The Fiat Group has shown renewed interest in the telematics market with the Tema.Mobility initiative and can be expected to launch new services on the platform when it becomes available. Premium brands such as Porsche, Jaguar and Land Rover are focusing their telematics efforts on OEM SVR solutions.

This report answers the following questions: What are the dynamics behind developments in the European car telematics industry? What is the current status of the eCall initiative?

20

Why is motor insurance telematics successful in Italy? 15

What are the main trends on the SVR market?

10

How is RF tracking technology standing up against GSM/GPS? Who are the leading providers of aftermarket vehicle tracking solutions?

5

How is the OEM telematics value chain evolving? 0

2006

2007

2008

2009

2010

2011

2012

Shipments of car telematics units (Europe 2006–2012)

Year

What are the current car telematics propositions from Europe’s main car brands?

Table of Contents



1 Passenger cars in Europe

Introduction Car manufacturers Leasing and rental companies Motor insurance Emergency services and assistance providers 1.5.1 PSAP and SOC organisations 1.5.2 Assistance providers 1.5.3 Automobile clubs





1.1 1.2 1.3 1.4 1.5

2 Car telematics solutions 2.1 2.1.1 2.1.2 2.1.3 2.1.4 2.2 2.2.1 2.2.2 2.2.3 2.2.4 2.2.5 2.3

Car telematics infrastructure Vehicle segment Tracking segment Network segment Service segment Car telematics applications eCall and driver assistance Stolen vehicle recovery Motor insurance telematics Leasing and rental fleet management Vehicle diagnostics Aftermarket solutions versus OEM solutions

3 Market forecasts and trends

3.1 Car telematics market forecast 3.2 Application trends 3.2.1 eCall: Pending regulatory process 3.2.2 SVR: Declining price advantage for RF tracking against GSM/GPS 3.2.3 Motor insurance telematics 3.3 Value chain analysis 3.3.1 Aftermarket solution providers 3.3.2 OEM solution providers 3.3.3 Car brands and dealers 3.3.4 Telecom industry players 3.4 Future industry trends

4 Aftermarket vehicle tracking solutions

4.1 Value chain overview 4.2 Aftermarket vehicle tracking solution providers 4.2.1 AutoGuard 4.2.2 Caesar Satellite 4.2.3 Cobra Automotive Technologies 4.2.4 Detector 4.2.5 MetaSystem and Octo Telematics 4.2.6 SECAR 4.2.7 TRACKER Network 4.2.8 Traqueur 4.2.9 Trafficmaster 4.2.10 Viasat Group 4.2.11 Other vehicle tracking vendors 4.3 Insurance industry telematics initiatives 4.3.1 Austria: UNIQA SafeLine 4.3.2 Italy: Motor insurance providers adopt telematics to combat theft and fraud 4.3.3 Spain: MAPFRE launches Generation Y pilot project 4.3.4 United Kingdom: Norwich Union Pay As You Drive 4.3.5 United Kingdom: Thatcham CAT 5 and TQA vehicle security standards



5 OEM telematics solutions 5.1 5.2 5.2.1 5.2.2 5.2.3 5.3 5.3.1 5.3.2 5.3.3 5.3.4

Value chain overview Automotive suppliers Autoliv Continental Automotive Systems Magneti Marelli Telematics service providers Altea ATX Group Eurowatch IMA





5.3.5 5.3.6 5.4 5.4.1 5.4.2 5.4.3 5.4.4 5.4.5 5.4.6

Tema.Mobility WirelessCar OEM telematics propositions BMW Fiat Group Jaguar and Land Rover Porsche PSA Group Volvo Cars

6 The European eCall initiative

6.1 Regulatory process 6.1.1 Activities of DG eCall and other working groups 6.1.2 Actions by the EC and EU Member States 6.1.3 Lobbying by industry stakeholders 6.2 eCall functional specifications and standardisation 6.2.1 IVS functional specifications 6.2.2 MSD transport mechanism 6.2.3 PSAP requirements 6.3 Case studies 6.3.1 Germany: ADAC performs international feasibility trial of eCall 6.3.2 United Kingdom: National PSAPs support private eCall services 6.3.3 United States: GM OnStar provides emergency call service to 5 million cars

Glossary

M2M Research Series

About the Author Tobias Ryberg is founding partner of Berg Insight and

principal analyst. He is an experienced analyst and author of numerous articles and reports about telecom and IT for leading Swedish and international publishers. The car telematics market has been one of his major research areas for the past 4 years.

Who should buy this report?

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. From time to time we also perform custom research assignments. Our vision is to be the most valuable source of intelligence for our customers.

Related products

The European Wireless M2M Market The North American Wireless M2M market Fleet Management and Wireless M2M

Order form — TO RECEIVE YOUR COPY OF ‘Car Telematics and Wireless M2M’ You can place your order in the following alternative ways:

Choose type of format

1. Place your order online in our web shop at www.berginsight.com 2. Fax this order sheet to us at fax number: +46 31 711 30 96 3. Mail this order sheet to us at: Berg Insight AB, Viktoriagatan 3, 411 25 Gothenburg, Sweden 4. Email your order to: [email protected] 5. Phone us at +46 31 711 30 91 Family/Surname

Forename

Paper copy.........................1000 EUR PDF 1-5 user license.......... 1500 EUR PDF corporate license........ 3000 EUR

Position

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VAT is chargeable on all orders from Sweden. Orders from all other countries in the European Union must include the buyer’s VAT Registration number below in order to avoid the addition of VAT. Your PO number

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Please charge my credit card VISA

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Reports will be dispatched once full payment has been received. For any enquiries regarding this, please contact us. Payment may be made by credit card, cheque made payable to Berg Insight AB, Viktoriagatan 3, 411 25 Gothenburg, Sweden or by direct bank transfer to Skandinaviska Enskilda Banken, 106 40 Stockholm, Sweden. Account Holder: Berg Insight AB Account number: 5011 10 402 80 BIC/SWIFT: ESSESESS IBAN: SE92 5000 0000 0501 1104 0280

We enclose our cheque payable to Berg Insight AB Please invoice me Signature

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Berg Insight AB, Viktoriagatan 3, SE-411 25 Gothenburg, Sweden • Phone +46 31 711 30 91 • Fax +46 31 711 30 96 • www.berginsight.com • [email protected]

© Berg Insight AB - No. 20

Wireless M2M and Mobile Broadband Devices

Car Telematics and Wireless M2M is the foremost source of information about the car telematics market in Europe. Whether you are a telematics vendor, vehicle manufacturer, telecom operator, investor, consultant, or government agency, you will gain valuable insights from our in-depth research.

M2M Research Series

Fleet management and Wireless M2M Fleet management and Wireless M2M is the third consecutive report from Berg Insight analysing the latest developments on the European fleet management market. This strategic research report from Berg Insight provides you with over 110 pages of unique business intelligence, including 5-year industry forecasts, expert commentary and real-life case studies on which to base your business decisions.

This report will allow you to: Understand the dynamics behind the adoption of fleet management in Europe. Identify key international and regional market players. Comprehend the telematics strategies of leading OEMs. Anticipate future technology trends in the telematics space. Recognize the business opportunities in each part of the fleet management chain. Profit from valuable insights about the most successful business and technology propositions on the market.

Order now! Please visit our web site to order this report and find more information about our other titles at www.berginsight.com

See inside for further details

Berg Insight’s M2M Research Series What are the key business opportunities in the emerging European wireless M2M market? Berg Insight’s M2M Research Series is a unique series of market reports published on a quarterly basis. Each title offers detailed analysis of a specific vertical application area such as intelligent metering, fleet management or vehicle telematics. Once per year we also publish a summary of our research with detailed forecasts for the European wireless M2M market. www.berginsight.com

M2M Research Series

Good times ahead for European fleet management providers Fleet management is an ambiguous term used in reference to a wide range of solutions for different vehicle-related applications. Berg Insight’s definition of a fleet management solution is vehiclebased systems that incorporate data logging, satellite positioning and data communication to a backoffice application. The history of fleet management solutions goes back several decades. Onboard vehicle computers first emerged in the 1980s and were soon connected to various satellite and terrestrial wireless networks. Today mobile networks can provide ubiquitous online connectivity at a reasonable cost and mobile computing technology delivers very high performance, as well as excellent usability. All of these components combined enable the delivery of vehicle management, transport management, driver management and mobile workforce management applications linking vehicles and enterprise IT systems. Furthermore the same technology platform can also be used for electronic toll collection. Berg Insight is of the opinion that the European fleet management market has entered a period of solid growth that will last for several years to come. There is a general sentiment of optimism in the industry, underpinned by increasing awareness of the benefits with telematics among fleet owners. With penetration coming from a low level it will take considerable time before the market reaches a point of saturation. Currently, Berg Insight estimates that nearly 30,000 European businesses with more than 50 employees – over 12.5 percent – are now using the technology on at least parts of their vehicle fleets. This means that fleet management has now entered the early majority stage of the innovation adoption curve among large businesses. Ultimately Berg Insight expects that virtually all new commercial vehicles sold will be equipped with some form of mobile network connectivity. Approximately 27.4 million commercial vehicles are owned by enterprises in Europe, with another 1.4 million vehicles being owned by public entities. About 20 percent of the light commercial vehicles and 5 percent of the medium and heavy trucks are in

A diversity of solution providers compete for the top positions on the European fleet management market. Companies range in size from GE Equipment Services – a part of one of the world’s largest corporations – to GPS-Buddy, a start-up company thriving on a partnership with GPS product vendor Garmin. Leading technology companies like Qualcomm and TomTom are also active market players, as well as the infrastructure group Abertis through its French motorway operator Sanef’s subsidiary Masternaut. Cybit, Minorplanet and Navman Wireless have emerged as leaders from the advanced UK market, while Transics and Punch Telematix originate from Belgium. Two South African companies – Digicore and TeliMatrix/OmniBridge (best know for the VDO Fleet Manager range) – have also risen to prominent market positions backed by a strong domestic market and international reach. Furthermore truck OEMs including Mercedes-Benz/Daimler, Volvo Trucks and Scania are significant players in the heavy truck segment.

This report answers the following questions: Why is the fleet management market maturing right now and what is driving adoption? What is the geographical and ownership structure of commercial vehicle fleets in Europe? Which are the main players involved in the fleet management value chain?

Million units 4,0

Who are the leading international and regional providers of fleet management solutions in Europe?

3,5 3,0

How will the consolidation of the industry continue to evolve?

2,5 2,0

What OEM telematics propositions are offered by the leading manufacturers of trucks, trailers and construction equipment?

1,5 1,0 0,5 0,0

private ownership, which includes vehicles owned by private persons but used for business purposes. Altogether enterprises and public entities own approximately about 19.9 million light commercial vehicles, 6.8 million trucks and 0.7 million buses and coaches in Europe. Furthermore Berg Insight estimates that there are about 2.5 million heavy trailers or semi-trailers, 2.0 million construction equipment units and 3.0 million agriculture equipment units. Between 2007 and 2012, Berg Insight forecasts that the penetration rate for fleet management in Europe will increase from 2.8 percent to 11.3 percent at the end of the period.

2006

2007

2008

2009

2010

2011

2012

Year

Installed base of fleet management units (EU27+2 2006–2012)

How is the introduction of the digital tachograph affecting demand for remote communication in the heavy transport industry?

Table of Contents

1 Commercial vehicle fleets in Europe

Light commercial vehicles Medium and heavy trucks Busses and coaches Trailers and semi-trailers Off-road construction and agriculture equipment 1.6 Ownership structure 1.6.1 Distribution by company size and industry 1.6.2 Leasing companies







1.1 1.2 1.3 1.4 1.5

2 Fleet management solutions 2.1 2.1.1 2.1.2 2.1.3 2.1.4 2.2 2.3 2.3.1 2.3.2 2.4 2.5 2.6

Fleet management infrastructure Vehicle segment GNSS segment Network segment Backoffice segment Vehicle management Driver management Digital tachograph integration Insurance risk management Transport management Mobile workforce management Electronic toll collection

3 Market forecasts and trends 3.1 European fleet management market forecast 3.1.1 Addressable market and rate of adoption 3.1.2 Installed base and unit shipments 3.1.3 Regional markets 3.1.4 Vendor market shares 3.2 Market drivers and barriers 3.2.1 Macroeconomic factors 3.2.2 Regulatory environment 3.2.3 Competitive environment 3.2.4 Technology environment 3.3 Value chain analysis 3.3.1 Telematics industry players 3.3.2 Automotive industry players 3.3.3 Telecom industry players 3.3.4 IT industry players 3.4 Future industry trends

4 OEM products and strategies

4.1 Truck manufacturers 4.1.1 Mercedes-Benz 4.1.2 Volvo Group

4.1.3 Scania 4.1.4 MAN Nutzfahrzeuge 4.1.5 DAF Trucks 4.2 Construction equipment manufacturers 4.2.1 Caterpillar 4.2.2 Volvo CE 4.2.3 Komatsu 4.3 Trailer manufacturers 4.3.1 Schmitz Cargobull 4.3.2 Krone 4.4 OE suppliers 4.4.1 Celtrak 4.4.2 Haldex 4.4.3 Stoneridge Electronics

5 International aftermarket solutions providers

5.1 5.1.1 5.1.2 5.2 5.2.1 5.2.2 5.3 5.3.1 5.3.2 5.4 5.4.1



5.4.2 5.5 5.5.1 5.5.2 5.6 5.6.1 5.6.2 5.7 5.7.1 5.7.2 5.8 5.8.1

5.8.2 5.8.3 5.9 5.9.1 5.9.2 5.10 5.10.1 5.10.2

Cybit UK fleet management business Maritime and PMR businesses Digicore C-track UK and European distribution network GE Equipment Services GE Veriwise TIP Trailer Services GPS-Buddy Partnership with Garmin and market strategy IPO plans for 2008 Masternaut Technology platform Masternaut UK Minorplanet VMIgreenlight Market position Navman Wireless Product platform Market position OmniBridge Company background and relation to Siemens VDO VDO Fleet Manager International market strategy Punch Telematix Acquisition history Product and market strategy Qualcomm Enterprise Services EutelTRACS transport industry solution GlobalTRACS construction equipment industry solution

5.11 5.11.1 5.11.2 5.12 5.12.1 5.12.2

TomTom Recent acquisition activities TomTom WORK Transics Product portfolio European market expansion

6 Regional aftermarket solution providers

6.1 6.1.1 6.1.2 6.1.3 6.1.4 6.1.5 6.1.6 6.1.7 6.1.8 6.1.9 6.2 6.2.1 6.2.2 6.2.3 6.2.4 6.2.5 6.2.6 6.3 6.3.1 6.3.2 6.3.3 6.3.4 6.3.5 6.3.6 6.4 6.4.1 6.4.2 6.4.3 6.4.4 6.5 6.5.1 6.5.2 6.5.3 6.5.4 6.5.5 6.5.6 6.5.7 6.5.8

Benelux and France CarrierWeb Elosystemes Geodynamics GreenCat IT Mobile Mobile Devices Orange Business Services RAM Mobile Data Traqueur Germany and Central Europe Autoguard Euro Telematik Finder Idem SECAR Truck24 Italy and Iberia Cobra Automotive Technologies Datatronics Detector Ecutronic Knosos Tecmic Nordic countries Aplicom Comlog Locus Vehco UK and Ireland Aeromark APD Communications Bluetree Systems Matrix Telematics Quartix Trafficmaster Trakm8 Trimble

Glossary

M2M Research Series

About the Author Tobias Ryberg is founding partner of Berg Insight and

principal analyst. He is an experienced analyst and author of numerous articles and reports about telecom and IT for leading Swedish and international publishers. The Fleet Management and Commercial Vehicle telematics market has been his major research area for the past 4 years.

Who should buy this report?

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. From time to time we also perform custom research assignments. Our vision is to be the most valuable source of intelligence for our customers.

Related products

Fleet Management and Wireless M2M is the foremost source of information about the Commercial Vehicle Telematics and Fleet Management market in Europe. Whether you are a telematics vendor, vehicle manufacturer, telecom operator, investor, consultant, or government agency, you will gain valuable insights from our in-depth research.

The European Wireless M2M Market The North American Wireless M2M market Car Telematics and Wireless M2M

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© Berg Insight AB - No. 18

Wireless M2M and Mobile Broadband Devices

M2M Research Series

Smart Metering and Wireless M2M Smart Metering and Wireless M2M is the fourth consecutive report from Berg Insight analysing the latest developments on the European AMM market. This strategic research report from Berg Insight provides you with over 130 pages of unique business intelligence, including 5-year industry forecasts, expert commentary and real-life case studies on which to base your business decisions.

This report will allow you to: Understand the regulatory and macroeconomic drivers behind the adoption of intelligent metering in Europe. Learn more about recent market developments in ten Western European countries. Discover the AMM solutions available from leading vendors on the European market. Benefit from experiences gained by leading industry players when implementing smart metering. Recognize the business opportunities in each part of the metering value chain. Profit from valuable insights about the most successful business and technology propositions on the market.

Order now! Please visit our web site to order this report and find more information about our other titles at www.berginsight.com

See inside for further details

Berg Insight’s M2M Research Series What are the key business opportunities in the emerging European wireless M2M market? Berg Insight’s M2M Research Series is a unique series of market reports published on a quarterly basis. Each title offers detailed analysis of a specific vertical application area such as intelligent metering, fleet management or vehicle telematics. Once per year we also publish a summary of our research with detailed forecasts for the European wireless M2M market. www.berginsight.com

M2M Research Series

Europe embraces smart metering in search for energy savings Metering is a fundamental business enabler for companies in the utility sector. At the beginning of 2006, there were approximately 246 million electricity meters; 101 million gas meters and 3 million district heating meters in EU23+2. Electricity reaches virtually every household and business in the whole of Europe, while gas is most widely used in the Netherlands, the UK, Italy, Germany, France and Poland. Metering practices are undergoing radical changes in the wake of the liberalisation of the European energy markets. The new situation will require that the utility meters of tomorrow are connected to data communication networks. Automated meter management (AMM) is a generic term for intelligent metering services based on two-way data communication. AMM could be considered as the third generation of metering technology. Manually read meters have been around since the advent of the utility industry in the late 19th century. Over the last three decades, automated meter reading (AMR) based on one-way or two-way communication has evolved, particularly in the US where radio-based AMR is widely used. AMM broadens the scope of AMR beyond just meter readings with additional features enabled by two-way real-time data communication. There are numerous drivers, as well as barriers, which influence the developments on the European AMM market. Macroeconomic factors such as energy consumption patterns and tax policies play a major role. The regulatory and competitive environment in each country is also important for regional markets. Technology development is a fourth factor influencing market developments. Electricity prices and electricity consumption levels are strong factors influencing whether AMM is deployed or not in different markets. The European countries with the highest market activity are those with the highest electricity consumption per household – Norway, Sweden and Finland, and those with the highest electricity retail prices – Denmark, the Netherlands and Italy. Northern Europe became the hotspot for AMM in Europe in 2003 when Sweden announced the decision to require monthly readings of all electricity meters by 2009. Soon activities spread to the other Nordic countries. Vattenfall, Fortum and E.ON decided to deploy AMM in

Finland as well as in Sweden, as the leading industry players in both countries at the time. Developments in Denmark took off in 2004 with several ambitious projects being announced by the country’s largest utilities. Norway has taken a more cautious stance, but in June 2007 the Norwegian energy authority NVE declared that it would recommend new legislation requiring smart meters to take effect in 2013. As of August 2007, almost all of the DSOs in Sweden had signed contracts for AMM solutions. In Finland and Denmark, the share of metering points under contract was 23 percent and 15 percent respectively. Norway was lagging behind with just 6 percent. Altogether contracts for nearly 8 million smart meters are still open in the Nordic region. Energy market reforms and growing public interest in energy conservation has also set the Western European market for AMMsolutions in motion. While deployments in Italy are nearing completion, other countries are becoming increasingly active. The Netherlands is set to follow the Swedish example and introduce legislation requiring smart metering by the mid 2010s. Governments in Austria, Ireland, Spain and the UK are also encouraging AMM in various ways. At the same time the market is driven forward by the initiatives of leading energy industry players which are increasingly confident that advanced metering technology is needed to improve efficiency. In August 2007, large-scale deployments of AMM had been announced by Enel, ACEA, AEM-Torino and ASM Brescia in Italy, Endesa and Enel Viesgo in Spain, LINZ STROM in Austria, as well as Oxxio and Nuon in the Netherlands.

This report answers the following questions: Why do the regulators in the Netherlands, Norway and Ireland want to mandate smart metering in their countries? What are the latest government and industry initiatives for promotion and standardisation of smart metering in the UK? Why has Endesa decided to roll out smart meters to 11 million network customers in Spain? How has the energy retailer Oxxio positioned its smart metering proposition on the deregulated Dutch meter market? What are the latest market developments in the Nordic countries? Who are the leading suppliers of AMM solutions on the European market? Can GPRS and wireless mesh technologies challenge PLC for meter communication? Which lessons can be learned from implementation of advanced metering infrastructure in North America?

Installed base of electricity smart meters (EU23+2 2006–2012)

Table of Contents

1 Electricity, gas and district heating distribution in Europe

1.1 1.2 1.3 1.4

Energy industry players Electricity distribution market Gas distribution market District heating market

2 AMM – Automated meter management 2.1 2.1.1 2.1.2 2.1.3 2.1.4 2.2 2.2.1 2.2.2 2.2.3 2.3 2.3.1 2.3.2 2.3.3 2.4 2.5 2.5.1 2.5.2 2.5.3



AMM applications Remote meter reading Customer relationship management Demand-side management Value added services Advanced metering infrastructure Smart meters Collection system MDMS Communication technology options PLC point-to-multipoint Wireless Mesh point-to-multipoint GPRS point-to-point AMM value chain AMM rollout strategies C&I segment Residential customer segment Rollout strategies and choice of communication technologies

3 Key industry players 3.1 3.1.1 3.1.2 3.1.3 3.1.4 3.2 3.2.1 3.2.2 3.3 3.3.1 3.3.2 3.4 3.4.1 3.4.2 3.4.3 3.4.4 3.4.5 3.4.6 3.4.7 3.4.8 3.4.9 3.5 3.5.1 3.5.2 3.5.3

Landis+Gyr Landis+Gyr Europe Enermet Hunt Technologies Ampy Metering Itron Itron North America Actaris Echelon NES – Networked Energy Services VAR program Metering system vendors Add Grup Aidon EDMI Elster Enel Iskraemeco Kamstrup PRI Sagem Communications MDMS and middleware vendors EnergyICT Netinium Oracle





3.5.4 3.6 3.6.1 3.6.2 3.6.3 3.6.4 3.6.5

4 Market forecasts and trends

4.1 4.1.1 4.1.2 4.1.3 4.1.4 4.2 4.2.1 4.2.2 4.3 4.3.1 4.3.2



Market drivers and barriers Macroeconomic factors Regulatory environment Competitive environment Technology development AMM market forecast Market value Geographical distribution Impacts of AMM on the European wireless M2M market GPRS technology market Wireless Mesh technology market

5 Market profiles: Northern Europe

5.1 5.1.1 5.1.2 5.1.3 5.2 5.2.1 5.2.2 5.2.3 5.3 5.3.1 5.3.2 5.4 5.4.1 5.4.2



Powel End-to-end solution providers Bglobal IBM Metrima Policom Telenor Cinclus

Sweden Electricity distribution industry structure Metering regulatory environment AMM market developments Norway Electricity distribution industry structure Metering regulatory environment AMM market developments Finland Electricity distribution industry structure Metering regulatory environment and AMM market developments Denmark Electricity distribution industry structure Metering regulatory environment and AMM market developments

6 Market profiles: Western Europe

6.1 6.1.1 6.1.2 6.2 6.2.1 6.2.2 6.2.3 6.3 6.3.1 6.3.2

Austria Electricity and gas distribution industry structure Metering regulatory environment and AMM market developments Ireland Electricity and gas distribution industry structure Metering regulatory environment Plans for a nationwide smart metering pilot Italy Electricity distribution industry structure Metering regulatory environment and AMM market developments

6.4 6.4.1 6.4.2 6.5 6.5.1 6.5.2 6.6 6.6.1 6.6.2 6.6.3 6.6.4

The Netherlands Electricity and gas distribution industry structure Metering regulatory environment and AMM market developments Spain Electricity distribution industry structure Metering regulatory environment and AMM market developments United Kingdom Electricity and gas distribution industry structure Metering regulatory environment Nationwide smart metering and energy information pilot Industry smart metering standardisation initiative

7 Case studies: European and international AMM projects 7.1 7.1.1 7.1.2 7.1.3 7.1.4 7.2 7.2.1 7.2.2 7.3 7.3.1 7.3.2 7.4 7.4.1 7.4.2 7.5 7.5.1 7.5.2 7.6 7.6.1 7.6.2 7.7 7.8 7.9 7.9.1 7.9.2 7.9.3 7.9.4 7.9.5

E.ON Group E.ON Nordic E.ON@future project E.ON UK E.ON US Centrica British Gas Oxxio Endesa Defining multi-supplier interoperability for residential smart metering Pilot installations and full-scale implementation plans Vattenfall Group smart metering initiatives AMM projects in Sweden and Finland Nuon Infostroom project Initial pilots and full-scale deployment plans Fortum Point-to-point GPRS smart metering solution from Telenor Cinclus Status for AMM in Finland and Norway Rhein Energie Skagerak Energi AMM deployments in the US and Canada Pacific Gas & Electric PPL Electric Salt River Project TXU Hydro One

Glossary

M2M Research Series

About the Author Tobias Ryberg is founding partner of Berg Insight

and principal analyst. He is an experienced analyst and author of numerous articles and reports about telecom and IT for leading Swedish and international publishers. The European Smart Metering market has been his major research area for the past 4 years.

Who should buy this report?

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. From time to time we also perform custom research assignments. Our vision is to be the most valuable source of intelligence for our customers.

Related products

The European Wireless M2M Market The North American Wireless M2M market Car Telematics and Wireless M2M

Order form — TO RECEIVE YOUR COPY OF ‘Smart Metering and Wireless M2M’ You can place your order in the following alternative ways:

Choose type of format

1. Place your order online in our web shop at www.berginsight.com 2. Fax this order sheet to us at fax number: +46 31 711 30 96 3. Mail this order sheet to us at: Berg Insight AB, Viktoriagatan 3, 411 25 Gothenburg, Sweden 4. Email your order to: [email protected] 5. Phone us at +46 31 711 30 91 Family/Surname

Forename

Paper copy.........................1000 EUR PDF 1-5 user license.......... 1500 EUR PDF corporate license........ 3000 EUR

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VAT is chargeable on all orders from Sweden. Orders from all other countries in the European Union must include the buyer’s VAT Registration number below in order to avoid the addition of VAT. Your PO number

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Please charge my credit card VISA

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Reports will be dispatched once full payment has been received. For any enquiries regarding this, please contact us. Payment may be made by credit card, cheque made payable to Berg Insight AB, Viktoriagatan 3, 411 25 Gothenburg, Sweden or by direct bank transfer to Skandinaviska Enskilda Banken, 106 40 Stockholm, Sweden. Account Holder: Berg Insight AB Account number: 5011 10 402 80 BIC/SWIFT: ESSESESS IBAN: SE92 5000 0000 0501 1104 0280

We enclose our cheque payable to Berg Insight AB Please invoice me Signature

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Berg Insight AB, Viktoriagatan 3, SE-411 25 Gothenburg, Sweden • Phone +46 31 711 30 91 • Fax +46 31 711 30 96 • www.berginsight.com • [email protected]

© Berg Insight AB - No. 13

Wireless M2M and Mobile Broadband Devices

Smart Metering and Wireless M2M is the foremost source of information about the ongoing transformation of the metering sector. Whether you are a vendor, utility, telecom operator, investor, consultant, or government agency, you will gain valuable insights from our in-depth research.