Post on 20-Aug-2015
Car Navigation Market in South East Asia
by
Vivek Vaidya Vice President - Asia Pacific Automotive & Transportation
29th Nov, 2011 Automotive Practice
2
Overview Southeast Asian Automotive Market I
Agenda
New Market Trends
II Drivers & Restraints
III Navigation Market Trends
IV Market Forecasts and Future Outlook
V
Key Conclusions and Opportunities VI
3
Overview ASEAN is home to more than 2.5 million light vehicle sales in 2010
39% 34%36% 36%
37% 37% 38% 38%39%
31% 31%31%
32%
30%30%
29%29%
28%6%
4%
5%5%
5%
5%4%
4%4%
25%31%
27%27%
28%
28%
28%
29%29%
39% 34%36% 36%
37% 37% 38% 38%39%
31% 31%31%
32%
30%30%
29%29%
28%6%
4%
5%5%
5%
5%4%
4%4%
25%31%
27%27%
28%
28%
28%
29%29%
39% 34%36% 36%
37% 37% 38% 38%39%
31% 31%31%
32%
30%30%
29%29%
28%6%
4%
5%5%
5%
5%4%
4%4%
25%31%
27%27%
28%
28%
28%
29%29%
Market Overview: Light Vehicle Sales, 2007 - 2015
Brunei
Cambodia Indonesia
Laos
Burma (Myanmar)
Philippines
Vietnam Thailand Singapore
Malaysia
• The light vehicle market in in South East Asia 4 countries (Thailand, Malaysia, Singapore and Indonesia) accounted for more than 1.5 million vehicles in 2010
• Thailand is the largest light vehicle market in the region which account for nearly 40 percent
4
Toyota, 32%
Honda, 10%
Perodua, 8%Isuzu, 9%
Proton, 7%
Nissan, 6%
Others, 28%
Overview Thailand is the largest light vehicle market in the region which account for nearly 40 percent Market Overview: Light Vehicle Sales by
Segments, 2007 - 2015 Market Overview: Market Share of Top
Vehicle Manufacturers, 2010
• Toyota holds the largest market share in South East Asia 4 countries with more then 30 percent of the market share, followed by Honda, Perodua, Isuzu, Proton and Nissan
• MPV and Pickup segment will remain major segment which account for nearly half of the market because of popularity in Thailand and Indonesia, although A and B segment will grow gradually
Continental brands such as Mercedes-Benz, BMW and Audi holds less than 1 percent of the market
22%
26%
26% 26%
25%
25%25%
24%24%
27%
20%
20%
19%
19%
19%
18%
18%18%
17% 18%18% 20%
20%21%
21% 21% 21%
22%
26%
26% 26%
25%
25%25%
24%24%
27%
20%
20%
19%
19%
19%
18%
18%18%
17% 18%18% 20%
20%21%
21% 21% 21%
22%
26%
26% 26%
25%
25%25%
24%24%
27%
20%
20%
19%
19%
19%
18%
18%18%
17% 18%18% 20%
20%21%
21% 21% 21%22%
26%
26% 26%
25%
25%25%
24%24%
27%
20%
20%
19%
19%
19%
18%
18%18%
17% 18%18% 20%
20%21%
21% 21% 21%
22%
26%
26% 26%
25%
25%25%
24%24%
27%
20%
20%
19%
19%
19%
18%
18%18%
17% 18%18% 20%
20%21%
21% 21% 21%
5
Navigation Market Characteristics by Country
• OEMs has offered navigation systems for their passenger cars but recently introduced for pick up trucks
• Japanese OEMs fit navigation systems in production line in Thailand, while continental OEMs import CBU vehicles with navigation.
Thailand
• Proton is currently offering PNDs and will change to embedded type, and even plan to start telematics services in 2015.
• While, another local OEM, Perodua is currently offering PNDs for limited models but no intention to increase models with navigation.
Malaysia
• Singapore can afford more embedded navigation systems than other countries, but necessity of navigation systems are very low because the land is small and traffic systems are well established.
• The market is too small for OEMs to develop navigation systems for Singapore.
Singapore
• Although Indonesia has large population and land, navigation systems are still very expensive for most of Indonesian.
• Richer people who can afford navigation systems do not need navigation systems because they have drivers.
Indonesia
6
Thailand Navigation Market: PNDs dominate the car navigation market
with nearly 96 percent of the market due to reasonable price and plenty of choices
74,400114,700
176,700
247,800
322,300
418,800
544,500
652,400
779,000
Market Size by Stage: Frost & Sullivan Scenario (Thailand), 2007-2015
• PNDs dominate the car navigation market with nearly 95 percent of the market due to reasonable price and plenty of choices
• Embedded type is used by OEMs but will not penetrate into the market due to high price and availability in the aftermarket
PND 96.0%
Embedded 4.0%
• Currently mainly luxury and larger vehicles in D segment and above offer navigation systems but it will shift to smaller segment such as C and B segment in the future • Garmin and MIO are major PND players in Thailand which account for more than 70 percent of the market share
7
Malaysia Navigation Market: Aftermarket is still major contributor,
accounting for 90 percent of the market
Market Size by Stage: Frost & Sullivan Scenario (Malaysia), 2007-2015
• The navigation market in Malaysia has been growing very fast in the past 2 years, although the market is still small.
• Currently the car navigation market is dominated by PND and embedded type is not favored by national automakers due to the complexity of the system integration on their current product and higher cost
• Garmin and Papago are major PND players in Malaysia
• Mobile phone map is a threat for PNDs as the functions of
mobile phone map have improved dramatically in the last few years and the screen size is getting bigger which is easier to see
PND 98.9%
Embedded 1.1%
24,40060,400 69,600
104,400155,800
238,100
353,300
524,800
781,100
8
Singapore Navigation Market: Embedded type is available as OE
fitment but not available in the aftermarket
Market Size by Stage: Frost & Sullivan Scenario (Singapore), 2007-2015
• Car navigation systems are not indispensable in Singapore because the land is small, road network is relatively simple and busy traffic time is predictable.
• However, car navigation systems , especially PND type, are getting popular because of reasonable price, convenience and multi-functions
• Garmin dominates the PND market in Singapore with more
than half of the market share in the aftermarket.
• Embedded type may penetrate into the market if more attractive telematics services such as maintenance reminder, breakdown calls, emergency calls are available
PND 94.7%
Embedded 5.3%
5,200
18,400
31,200
38,00042,200
45,70048,000 48,000 46,800
9
Indonesia Navigation Market: OE and dealer fitting is not common and
yet to see signs to become popular
Market Size by Stage: Frost & Sullivan Scenario (Indonesia), 2007-2015
• The car navigation market in Indonesia is currently very small but will grow very fast toward 2015 due to increasing public awareness and affordability.
• The car navigation market is dominated by PND and embedded type may not able to penetrate further into the market due to high price.
• Garmin and Mio are the major market players in Indonesia
which have about 90 percent of the market share.
• Garmin holds about half of the market share, while MIO has about 40 percent of the market share.
PND 99.5%
Embedded 0.5%
12,20018,100
37,700
52,900
79,100
110,600
143,800
158,400
174,600
10
Generation Y: Goods and Services Catered to Values, Beliefs, Interest and Lifestyle
Personalization
and
Individualization
Techno Savvy and
Connected 24 X 7
Civic and
Environmentally
Friendly
Demanding and
Impatient – “Fast
and the Furious”
Personalized Search and
News
Social Networking Profiles
Personalized Products
Gaming Gizmos
Smart Phones
Facebook-on-the Move
Microblogs
Eco- Transport
Bag-For-Life (Paper Bags
Instead of Plastic)
Paperless Banking
Instant Text Messaging
Instant Chat
Speed Oriented
Gaming (Car Racing)
M65B-18
11
Queue for iphone It is very common for people to take picture
of food they are about to eat and post it on
Facebook…before they finish the dish they
get hundreds of likes
Cell Phones are commonly used while
travelling, for voice as well as data service.
Unlike Japan it is not considered rude to
make a call while travelling
Smartphones are integral part of life
12
Embedded systems in Southeast asia are set to grow…but
-
50.00
100.00
150.00
200.00
250.00
2010 2011 2012 2013 2014 2015
Embedded Systems in South East Asia
Embedded
13
The volumes of PND would be significantly higher… but what is more exciting is…
-
500.00
1,000.00
1,500.00
2,000.00
2,500.00
3,000.00
3,500.00
4,000.00
2010 2011 2012 2013 2014 2015
Embedded Vs PND growth
Embedded PND
14
Smart Phones are likely to outnumber PND and Embedded systems in order of magnitude!
-
50,000.00
100,000.00
150,000.00
200,000.00
250,000.00
300,000.00
2010 2011 2012 2013 2014 2015
Smart Phones Vs PND Vs Embedded
Embedded PND Smart Phones
15
Southeast Asia shows one of the highest intentions to purchase smartphones at global level
16
Built-In Beamed-In
Brought-In
Features like eCall which are built into the vehicle
embedded telematics unit e.g. Ford Sync 911, OnStar
ACN
Features like Ford Service Delivery Network (FSDN) which allows real time services to be sent to user using his mobile
phone with data and Bluetooth
Bringing in apps from platforms like Apple App
store through users smartphone for use in
vehicle through vehicle HMI, e.g. Syncast in Ford Sync
Built in Apps Already Exists like 911, Beamed-in and Brought-in are the ones in focus Currently
Built-In – Source of revenues are from hardware
and apps subscription for OEMs, hardware
providers and service providers
Beamed-In – Source of revenues are App
Subscription fees for OEMs and
associated service providers
e.g. Mercedes Mbrace $280
subscription for 3 years service
Brought-In – Source of revenues for OEMs are only through
interfaces for using Smartphone apps inside the car, e.g. Smart iPhone cradle, Ford Sync, etc
17
Internet in the Car: From an automakers perspective Brought-In method the most cost effective and way to bring internet radio into the car
Beamed - In
Brought - In
Built - In
These are head-units which are installed when the vehicle is assembled.
A dedicated SIM card built into the vehicle
Bluetooth is the primary method of data transfer from the portable device to the car speakers
These are portable devices such as mobile phone or music players. The mobile phone network is used for connectivity
These are mobile phones used as a modem or have a USB modem
Connectivity is provided by tethering consumer mobile phone or having a modem in the car
BMW Connected Drive
Ford SYNC
Source: Frost & Sullivan
Smart drive kit for iphone + smart drive app
GM OnStar**
**OnStar has some safety features built in but a variety of media features are beamed in only on request
USB Modem
ClarionMIND Pioneer in-dash unit
Aftermarket
These are aftermarket head-units that provide access to internet with use of consumer mobile phone
18
Southeast Asia has the potential to leapfrog the conventional steps in development of navigation and telematics market
Built - In
These are head-units which are installed when the vehicle is assembled.
Aftermarket
These are aftermarket head-units that provide access to internet with use of consumer mobile phone
Beamed - In
These are mobile phones used as a modem or have a USB modem
Brought - In
These are portable devices such as mobile phone or music players. The mobile phone network is used for connectivity
19
Critical Development Points for Vehicle Centric and Consumer Centric Apps
Emergency Assistance, Stolen vehicle tracking, usage-based insurance,
advanced diagnostics and breakdown assistance
Internet radio, Vehicle information, breakdown
assistance, Social networking, parking
information, dynamic POI information, EV charge
spots location information, EcoDriving, etc
Embedded
Tethered Built inside the car by OEMs
and tier 1 suppliers
Hosted from Smartphone inside
car using tethered connectivity
Critical
Good to Have
Ecodriving,
Diagnostics
, Internet
radio, etc
20
Telematics Related Apps
BMW Roadside Assistance
Mercedes Mbrace App
BMW Connected App
Continental TPMS App
Vehicle Information
Apps
Audi Car Monitor App
myChevrolet App
Ciao Fiat Smartphone
App
Dynolicius – Diagnostics App
Entertainment Apps
Toyota I Heart Internet Radio
App
Ford - Sync Enabled Pandora
Ford – Sync Enabled Stitcher
BMW/Mini Connected App
Location Based Service Apps
Toyota Park Smart App
OnStar Mylink App
Trapster – Speed Camera
App
Viper Smart Start Remote
App
Navigation Related Apps
TomTom Navigation App
Bosch Navigation App
Toyota Smart G-Book App
Mercedes Smart Drive App
Others
EV Apps – BMW Active E, Nissan
LEAF apps
Zip Car – Car Sharing App
Fauercia Smart Fit – Seat
Related App
Green Apps – Green Meter
App
Source: Frost & Sullivan.
Vehicle Manufacturer Developed Apps OEMs are Currently working on API’s to Control Entertainment Apps on Smartphones through Vehicle HMI and are Also Developing Dedicated Apps in many Areas
21
A growing user base for mobile phone-based Navigation and location based
services is prompting interfacing these devices to vehicle display
Implications
Source: Frost & Sullivan
Few major PND manufacturers
dominate the market however, Mobile phones
are a threat to PNDs
Gen Y Influence very high in future HMI designs and infotainment concepts –
touch screen, voice commands critical
requirements
Market is still nascent to many
evolving technologies around
telematics and infotainment
ASEAN Market is mainly dominated
by PNDs with slower growth for
Embedded systems
Mobile phones may become the preferred navigation and connectivity devices for
majority of the car users
In-dash unit market may never take off in this region
Conclusions and Opportunities
Vehicle manufacturers and connectivity service providers need to evolve a
different road map for these markets
22 22
Appendix – Frost & Sullivan Research Content
23
2011
2011 Apps, HMI and Telematics Voice of Consumer Study (In-progress)
US Consumers’ Attitudes, Perceptions, and Willingness to Pay Towards Mobility Apps, HMI
Concepts and Telematics Services
2011
2011 Apps, HMI and Telematics Voice of Consumer Study (In-progress)
European Consumers’ Attitudes, Perceptions, and Willingness to Pay Towards Mobility Apps,
HMI Concepts and Telematics Services
2011
2011 Comfort and Convenience VOC Study (In-progress)
European Consumers’ Attitudes, Perceptions, and Willingness to Pay Towards Multiple
Comfort and Convenience Technologies during Different Driving Phases
2010 US Voice of Customer Study: Telematics & Infotainment and App-Store Applications
2010
2010 Infotainment Voice of the Customer: European Consumers’ Attitudes, Perceptions, and
Willingness to Pay Regarding New Generation Infotainment, App Concepts, and HMI
Solutions
2009
European Consumers’ Desirability and Willingness to Pay for Connected Navigation,
Location-Based Services and Features
2009
Russian Consumers’ Desirability and Willingness to Pay for Connected Navigation, Location-
Based Services and Features
2008
Voice of Customer Study – Desirability and Willingness to Pay for Navigation Systems and
Telematics Services (US)
2008 Consumer Desirability & Willingness to Pay for Navigation Systems and Features (Europe)
2007
European Consumers’ Attitudes, Perceptions, and Willingness to Pay Towards Multiple
Comfort and Convenience Technologies Forthcoming
Telematics, HMI, Connectivity and Navigation Related Existing and
Upcoming Consumer Research
24
2012
Strategic Analysis of the European Telematics Services Market - Focus on Emergency
and Breakdown Assistance
2012
Strategic Analysis of the European Telematics Services Market - Focus on Stolen
Vehicle Tracking
2012
Strategic Analysis of the North Telematics Services Market - Focus on Emergency,
Breakdown and Vehicle Tracking Features
2012
Strategic Analysis of Tracking Legislation and its Impact on the Telematics Services
Market in Brazil
2012
Strategic Analysis of ERA GLONASS Legislation and its Impact on the Telematics
Services Market in Russia
2012
Strategic Update of the In-Car Audio Systems Market in North America - Including Focus
on Audio Systems, Amplifiers, Speakers, Aux-in Features, Sound Processing Software,
etc
2012 Strategic Update of New Developments in the European Automotive HVAC Market
2012
Impact Assessment and New Developments in Smartphone Interface Technologies Such
as Mirrorlink in the European and North American Automotive Market
• Location-based
services
• GPS / Navigation
systems
• Infotainment systems
• Wireless
Communication /
Bluetooth
• CV Telematics
• RVD
3G, GPRS. HSDPA, UMTS, WiFi
Completely
Off board
Navigation
Real Time
Dynamic
Traffic
Information
Mobile TV
- DVB H
Audio
& Video
Downloading
Social
Networking
Tools
Parking
Information
&
Reservation
Pedestrian
Navigation
eCall
- Aftermarket
Solution
Games
Variable message signsVariable message signs
Forthcoming
Telematics, HMI, Connectivity and Navigation Related Upcoming
Research – 2012
* Draft titles subject to change based on other customer feedback as well
25
2011
Key Trends and Forecasts of Navigation Systems and Telematics Services in China, India and
Select APAC Markets
2011
Key Trends and Forecasts of Navigation Systems and Telematics Services in North and Latin
American Markets
2011
Key Trends and Forecasts of Navigation Systems and Telematics Services in Western and Eastern
European Markets including Russia
2011
Strategic Analysis of European and North American Automotive Human Machine Interface Market -
Part 2 Display and Instrument Clusters
2011
Connectivity, App Stores and Cloud-based Delivery Platforms - Future of Connected Infotainment
and Telematics Market
2011
Strategic Analysis of Global Automotive Market for IT Mobility Platforms
Billing and Smart Charging are Two Key Opportunity Areas in the EV Infrastructure Segment
2011
Strategic Analysis of European and North American Automotive Human Machine Interface Market -
Part 1 Steering Wheel Controls, Voice Interfaces and Multifunctional Switches
2010
Executive Analysis of European Consumers’ Awareness and Preferences for Usage of
Smartphone Apps Inside and Outside Car
2010
Strategic Analysis of the Impact of Smartphones and Apps on the European and North American
Infotainment Market
2010
Strategic Analysis of the North American Market for Telematics-Enabled Usage-based Insurance
Market
2010 Strategic Analysis of North American Embedded-Connected Hybrid Telematics Market
2010 Strategic Analysis of the European Market for Telematics -enabled Usage-based Insurance
2010 Automotive Telematics Application Stores – Will it Succeed like the Apple App Store Concept
• Location-based
services
• GPS / Navigation
systems
• Infotainment systems
• Wireless
Communication /
Bluetooth
• CV Telematics
• RVD
3G, GPRS. HSDPA, UMTS, WiFi
Completely
Off board
Navigation
Real Time
Dynamic
Traffic
Information
Mobile TV
- DVB H
Audio
& Video
Downloading
Social
Networking
Tools
Parking
Information
&
Reservation
Pedestrian
Navigation
eCall
- Aftermarket
Solution
Games
Variable message signsVariable message signs
Forthcoming
Existing
Telematics, HMI, Connectivity and Navigation Related Existing and
Upcoming Research – 2010 and 2011
26
• Lighting Systems
• HVAC Systems
• Body Electronics
• ECU’s
• Tire pressure
monitoring systems
• Aftermarket
Electronic
Components
Electrical, Electronics, Comfort and Convenience Related Existing
and Upcoming Research
2012 Strategic Update of the Automotive HVAC Market in Europe
2012
Strategic Analysis of Automotive Electronics Market for Electric Vehicles in Europe and North
America
2012
Strategic Analysis of Automotive Interior and Exterior Lighting Systems Market in Europe and
North America
2012 Strategic Analysis of Automotive Seating Systems in Europe and North America
2009 Strategic Analysis of the European Automotive Human Machine Interface Market
2009
Executive Analysis of the Market for Solar Technology Applications in the European Automotive
Industry
2009 Strategic Analysis of the North American Automotive Software Market
2008 European Automotive Original Equipment DAS, ESP, Passive Safety and Rain Sensors Market
2008 Strategic Analysis of European Market for Electric Corner Modules
2008 Strategic Analysis of the European Automotive Advanced Electronic Controller Market
2008 Strategic Analysis of the European Automotive Exterior Lighting Market
2008 Strategic Analysis of the European Automotive Interior Lighting Markets
2008 Strategic Analysis of Automotive Human Machine Interface Systems in North America
2007 European Automotive Original Equipment (OE) Heating Ventilation and Air Conditioning (HVAC)
Systems Markets
2007 European Automotive Original Equipment Position, Pressure and Temperature Sensors Market
2006 Analysis of European Automotive Wiring Harness and Connectors Markets
Forthcoming