SlideShare uma empresa Scribd logo
1 de 27
The Essential European Fleet Management Update


                      Anil Valsan
      Global Director of Research, Automotive &
                    Transportation
                    Feb 23rd 2010
Agenda for the Workshop




     European Fleet Management Market Overview and Trends



     Green Telematics Market Overview and Trends



     Snapshot of Electric and Hybrid Commercial Vehicles



    Summary and Conclusions




                                                            2
European Fleet Management Market
      Overview and Trends




                                   3
Erratic Fuel Cost, Duty of Care and Congestion are expectedly the Major
  Challenges Facing Transport Industry – Opportunities for Telematics
  Providers
                           Market for Commercial Vehicles Telematics: Challenging Affecting Transport Industry (Europe), 2008-2015
                                                              High attrition rate haunts fleet      Unavailability of
                                                                         operators               information adding to
                                                                                                 overall operational cost
                      Road charges like toll collection
                          system would mandate
                       installation of telematics box
                                                                    Driver Recruitment                                         Communication at
                                                                      and Retention                   Speeding and
                                                                                                      Parking Fines              optimum cost

   Information related to                   Road Charging
congestion needed at critical
                                                                                                                               Driver
            time                                                                                                            Communication
                                                                                                                                               Continuous Monitoring
                   Congestion                                                                                                                         Needed

                                                                  Fleet Operation-                                                Hijacking and
                                                                Industry Challenges                                                   Theft



               Environment
                                                                                                                     Work Time
                                                                                                                      Directive        Need for Integrated Driver
                                                                                                                                             Management
    Promotion of ‘Green Image’ & need                                              Speculative
      for optimal driving to minimize           Duty of Care                        Fuel Cost
                 pollution
                                                                                                    Since fuel cost is the major component of the operation cost,
                                                                                                   companies focus on frugal consumption. Moreover, the erratic
                                                 Continuous and critical driver                   nature of fuel cost warrants deployment of monitoring system for
                                              monitoring required for comprehensive                                      optimal consumption
                                                             training


                                                                                                                                                                     4
In the Current Market Conditions Telematics is considered as a Reality
        Check tool for Many Fleets to Remain Profitable and Stay in Business
                        Greater
                        Service                                                                                Increasing Cost Benefits


                       Capability
                                       High                            Demand for
                                                                           high
                       Customer     operational       Competitive
                                                                     levels of service
                       Satisfaction  efficacy         Advantage      and information
                                                                                                                        Desire for
                                                                      transparency
                                                                                                                         greater
                       Customer                                                                                         operation
                       Retention                                                                                       optimisation




                                        Improving                      Market
                                       Duty of Care                    Drivers
                                        and other
                                        intangible
                       High                                                                Emission
                                         Benefits
                                                                                         Reduction and
Market Driver Impact




                                                                                            Desire to
                                                                                            promote
                                                                                          Green Image

                                                      Introduction
                       Low                              of Digital
                                                                                                 Key Market Restraints:
                                                      Tachograph
                                                                                                 • Economic slowdown delaying potential
                                                                                                   investment
                                                                                                 • Cost of telematics still perceived to be
                                                                                                   high. Small fleets are difficult to address
                                                                                                 • Yet to reach critical mass to provide
                                                                                                   customization


                                                                                                                                                 5
ROI is Strongest Factor for CV Telematics – Savings of 233
Euros/Month/Truck

                                                        Benefits of Effective Deployment of FMS


              Effective Driver                       Vehicle                          Regulation                 Improved               Other Benefits
               Management                          Management                         Compliance                 Consumer
   Savings




                                                                                                                  Service               Customer and
                                                                                                               Effective time             Employee
                   15%                                                                Bi monthly
                                                     Fuel Cost                                                 management.             Satisfaction and
                Productivity                                                         Digital Tacho
                                                     Reduction                                                 Reduction of              Regulatory
                 increase                                                              Read out
                                                                                                                  idle time              Compliance




                   Typical Cost Savings per truck per month
                                                                                                     Payback Period on a Typical Investment
                                                           126 €                     233 €
                                                                                                     Investment: per truck
                                                                                                     Hardware Cost               : 2,000 € (net amount)
                                                                                                     Service Cost : 40 € / month (Comprehensive)
                                                      35 €
                                     25 €                                                            Payback period per truck with 233 € monthly saving
                     23 €                                                                            would be 11 months (approx)
      23 €
                                                                                                     After 11 months the initial investment would start
 Reduced waiting Digital Tacho –    Increased     Fuel Consumption Effective Route    Total
                                                                                                     paying back
 time = increased Mass Data Read   Productivity      Regulation     Planning and
                                                                                     Savings
   billable hours      out                                        lesser km wasted                      (233 * 11) – (2000 + 40 * 11) = 123 €
    Source: ING


                                                                                                                                                          6
FMS Installed Base to Grow at 13% CAGR while that of Track
 Trace at 2.4%

                                             Total Installed Base
                 1,200,000
                              FMS   Track and Trace
                                                      CAGR 9.0%
Installed Base




                  600,000




                        0
                             2008   2009      2010     2011       2012   2013   2014    2015                   Market Penetration
                                                        Year                                                Low                 High




                 • FMS Penetration would Grow Significantly                      • Navigation as a feature with FMS would find
                   Across Europe – Benelux, Germany, France                        increasing adoption among fleet operators.
                   would Continue to be Major Markets
                                                                                 • With increasing partnership between navigation
                 • Penetration of FMS to reach 14.5 % by 2015                      companies and telematics vendors like Garmin
                   from 6.39% in 2008                                              + Mix Telematix, the penetration of navigation
                                                                                   would gain momentum.
                 • Replacement sale of Track and Trace would be
                   dominant in 2015.                                             • Operation consulting to add huge value to fleets


                                                                                                                                       7
Total Revenue – System-wise: FMS Hardware Sales and Service Market
Would Continue to be Highly Lucrative
                                                    Market for Heavy and Medium Commercial
                                                   vehicle Telematics: System-wise Total Market
                                                              Revenue (Europe), 2008

                                                                      2008
     Market for Heavy and Medium Commercial                     67%                                Market for Heavy and Medium Commercial
    vehicle Telematics: System-wise Total Market                                                  vehicle Telematics: System-wise Total Market




                                                                                                                                                 Note: All figures are rounded; the base year is 2008.
               Revenue (Europe), 2015                                                                        Revenue (Europe), 2015

                     2015                                                                                            2015
        Frost & Sullivan Scenario                                                                         Conservative Scenario
                                                                                        14%
            65%                                             6%        7%       6%
                                                                                                           59%




                                                                                                                                                 Source: Frost & Sullivan
                                                   FMS                        Track and Trace
                                                   Navigation                 RVD                                                            10%

                                         7%        Emergency Assistance
                                   12%                                                                                                   10%
          7%          9%                                                                                      10%             11%




Currently, revenue generated through FMS product                                      Revenue generated through FMS sale and service
sale and service accounts to approximately 67 per                                     would witness an year-on-year growth of 8.5 per cent
cent of the total market revenue. This would grow at a                                over the forecast period while that of RVD,
CAGR of 13 per cent from 2008 to 2015, and by 2015,                                   emergency assistance and navigation would grow at
it would account for nearly 65 per cent of the total                                  a CAGR of 19 to 20 per cent from 2008 to 2015.
revenues. Revenue share of track and trace system                                     Under this scenario, the revenue shares of all the
would witness a dip and that of other systems would                                   systems would grow, except FMS, which would
grow.                                                                                 account to 59 per cent of the total market revenues.


                                                                                                                                                 8
Third-party Logistics and Petrochemical Industry Show Highest
    Adoption for Telematics, but Other Industries Gain Momentum

          Increasing consumer demands                 Market for Heavy and Medium Commercial vehicle Telematics: Telematics
          for high quality service coupled                            Adoption by Sector (Europe), 2008-2015                        The importance of fuels to
          with government legislations to                                                                                           maintain economic stability,
           maintain high hygiene levels,                                                                                               and timely and safe
           promote the use of telematics                                                                                            deliveries are a key driver
                                                                        Vehicle                                                           for telematics
                                                                    Transport, 11%                 Retail, 14%

       Low demand for                      Food &
                                       Beverages, 15%
      navigation-based
      systems, although
       the construction
          industry is                   Mining, 7%
      expected to have                                                                                                        3PL, 23%
       strong growth in
           tracking                                     Constructions,                     Petroleum &
                                                             9%                           Chemicals, 21%                           Note: All figures are rounded; the base
                                                                                                                                   year is 2008. Source: Frost & Sullivan


•   3PL have the highest usage for telematics at 23 per cent, as 3PL are
    demanding continuous improvements in the service level agreements over                    “..it is imperative that we have solutions based on a time
                                                                                              frame scenario…Telematics solutions helps us address
    a period of time while being able to manage their cost (especially, fuel cost)            labour and other direct cost”- A major food service
•   Hot selling retail products with strong demand as well as perishable goods                distribution company

    in food and beverages are expected to have the highest growth rates.
                                                                                            “We have undertaken the major capital investment in the
•   Construction and mining companies are mainly interested not only in                     technology and further investment will be incremental, either
    tracking solutions to optimise their operations but also to track their assets          through the addition of one or two pieces of software for the fleet,
                                                                                            or the installation of the full hardware and software to each new
    if they get stolen.                                                                     truck” – A international transport and logistics company



                                                                                                                                                                             9
Setting Telematics as Standard as well as Leveraging the Existing Sales
Infrastructure and Strategic Partnerships will Increase the OEMs’ Share
                      Unit Shipments per year – OEM vs. Third-party suppliers

         OEM                                                                               OEM
         15%                                                                               30%
                               •Increasing collaborations between
                                truck manufacturers and aftermarket
                                telematics vendors to drive OEMs
                                share. The product offering through
                                such alliance to combine truck
                                manufacturer's vehicle expertise and
                                telematics    vendor’s     transport               Third-party Suppliers
 Third-party Suppliers
                                business expertise                                         70%
         85%

                               •Line fitted telematics proportion to
                                increase




        2008                                                                               2015
                                                                                          Source: Frost & Sullivan

  Similar trend is seen in North America – Volvo, International, Paccar are the current OE solutions


                                                                                                                 10
Green Telematics Market Overview and
               Trends




                                       11
Fuel Cost Reduction and Green Image are Key Benefits to Commercial
Vehicle Fleets Installing Green Telematics


                                 Fuel Cost              Reduced Carbon
                                 Reduction                 Footprint


                                                                          Higher Demand
             Better Efficiency
                                            Benefits                         for KPIs

                                            of Green
                                        Fleet Telematics
   Meet Duty of Care                                                              Other Intangible
     Obligations                                                                     Benefits



                                       Green Telematics Package
     As an optional / standard service with FMS - As a part of larger service package green
     telematics services could cost around € 15 per month

     As Product Proposition – With track & trace device, this green service can cost additionally €
     15-20/month
     Dedicated CAN BUS black box with GPS+ GSM/GPRS – Hardware cost €500 and green service
     cost an additional € 15-20/month




                                                                                                      12
Key Product Offerings – Green Telematics can be Offered through a Dedicated
New System or Using Existing FMS or Navigation Systems

                                                               Connected Navigation with green routing feature
                                                                               could be a value addition
                                   PAYD Insurance
                             • One time investment for
                               hardware - € 220-250
 Green Telematics Products




                                                                  Dedicated CANbus integrated hardware, with
                             • Monthly fixed cost including   comprehensive vehicle and driver management functionality
                               communication - € 25-30        Hardware cost - €450-500 Service cost - € 15 -20 per month

                                                                As an add on to track & trace real time routing,
                                                                  speeding and idling reports, basic vehicle and driver
                                Navigation with Green                                management.
                                                                            Service cost - € 15 per month
                                      Routing
                             • Feature Cost : € 250-300
                             • In case of connected           As an add on service to fleet
                               navigation, the monthly           management system.
                               service cost is € 8-10         Comprehensive vehicle and driver
                                                                       management.
                                                              Service cost - € 15 -20 per month


                                                                                                             Leasing
 User Group




                                      Private users               Fleet Company
                                                                                                            Companies




                                                                                                                           13
Impact of Green Telematics: About 10% Fuel Cost Reduction and An Equal
Measure CO2 Emission Reduction is Possible through Green Telematics

                                           Penetration of green routing feature in navigation is estimated to reach over 11% in
            Green Navigation               Europe and about 15% in North America by 2015. The adoption of green telematics in
                                           the car parc would reach over 4% in Europe and over 4% in North America

                                           With about 5% penetration estimated in the commercial vehicle segment both in Europe
       Green Fleet Telematics              and North America, the total revenue generated through new hardware sale and service
                                           revenue is expected to reach over $1 billion

                                           PAYD adoption would largely depend on the kind of marketing push from business
            PAYD Insurance                 community combined with the extension of extended by the regulation environment.
                                           PAYD penetration is expected to reach 1.5% of car parc in Europe by 2015




               Impact of 20% of Green Telematics Penetration in Passenger Car Parc

                                   North American
                                                                         European Market
                                       Market



        Car Parc                   over 270 million                       over 160 million
                                                                                                        On an average both green
                                                                                                           navigation and PAYD
                                 18,500 km per car                      Over 18,600 km per               insurance could achieve
     Annual Mileage
                                                                                car                      10% reduction in fuel and
                                                                                                        emission in passenger cars
       Emission                   About 15.5 million                      About 9.5 million
       Reduction                      tonnes                                  tonnes


  M3FA-18                                                                                                                            14
ROI Analysis for Commercial Vehicle: Up to 10% Cost Saving from Fuel
Consumption Reduction Achievable through Green Fleet Telematics

                                                                                                           Incremental ROI


                                                                                          Direct Cost Reduction                                        Further Benefits
   Green Telematics Service

                              Vehicle & Driver Management




                                                            Fuel Consumption
                                                                                         Driver Productivity                 Maintenance            Improved Management
                                                                Reduction

                                                            • Data to control        • Key performance               • Optimum maintenance         Better Corporate Image
                                                             fuel consumption          indicators for                  management. Remote
                                                                                      weakness                         vehicle diagnostics        Customer and Employee
                                                            • Cost saving and          identification and rating     • Reduced wear and tear,          Satisfaction
                                                             emission reduction      • Accurate analysis of            higher residual value            Fleet Structure
                                                             through report            driver behavior               • Reduced down time and             Optimization
                                                             analysis                • Peer to peer evaluation         repair time
                                                                                     • Incentive calculation
 Add on Green Services




                                                              Contract Maintenance

                                                                                                                                     • Route optimization and reduced
                                       Pay How You Drive / Pay As you pollute Insurance                                                unauthorized driving
                                                                                                                                     • Improved driver behavior
                                                                                                                                     • Fuel consumption reduction
                                                                          Green Navigation
                                                                                                                                     • Further cost saving possible through
                                                                                                                                       add on services


                 M3FA-18                                                                                                                                                      15
ROI Case Study 1 – Investment on FMS Add on Green Telematics Service can be
Realized within 5 Months Based on Just Fuel Cost Savings

           Typical Cost Saving and Emission Reduction for a 40 Tonne (GCW) Long Haul Vehicle clocking annual mileage
           of 160,000 km
  Case 1



           Hardware : Mid tier FMS costing - Cost: €1500
           Service : Basic Logistics Management + Driver/Fuel/Vehicle management - Cost €35
           Cost Saving: Realistic fuel cost saving of 8% achievable through green fleet telematics service

                                                        Before                After               Saving/Reduction

                  Fuel Consumption                     51,200 L              47,104 L                    4096 L

                  Fuel Cost                            € 58,368             € 53698.56                 € 4669.44

                  CO2 Emission tones                     133.1                 122.4                      10.7


                                               €4670




                           €420   €1920
               €1500


                                                                      Facts:
           Hardware Cost                  Total Cost Incurred         Fuel Consumption of 40 Tonne Truck – 32 L / 100km
                                                                      Diesel Cost (UK Average) – € 1.14 per liter
           Annual Service Cost            Annual Fuel Cost Saving     CO2 Emission per liter diesel burnt – 2.6 kg



                                                                                                                          16
Green Telematics Truck Parc Penetration to Reach about 4% in Europe
LCV Market
                         Green Telematics Market: Green Fleet Light Commercial Truck Parc
                                         Penetration (Europe), 2008-2015                                                          • With around 23 million light commercial vehicles in Europe,
                         12%                   Telematics Fleet Penetration                                                         the penetration of telematics is just over 4 per cent and this
                                                                                                                                    is expected to reach over 12 per cent by 2015.
Truck Parc Penetration




                         10%                   Green Telematics Penetration

                          8%                                                                                                      • More than 80% of the vehicles that are fitted with telematics
                          6%                                                                                                        are track and trace system with GPS + GPRS/GSM module
                                                                                                                                    with back end service functionality that provides basic work
                          4%
                                                                                                                                    management capability.
                          2%
                                                                                                                                  • However, there are significant number of operators who
                          0%
                               2008   2009   2010            2011                  2012     2013     2014      2015                 prefer to install CAN bus integrated mid tier FMS solution
                                                                Year                      Source: Frost & Sullivan                  which would give greater control over the vehicle and driver.
                                                                                                                                  • Penetration of green telematics services is expected to
                                                                                                                                    reach around 3.9% by 2015.

                                                                                 Green Telematics Market: Green Fleet Light Commercial Truck
                                                                                           Revenue Forecasts (Europe), 2008-2015

                                                                           250
                                                                                               Dedicated Green Fleet Telematics Hardware Revenue
                                                    Revenues (€ Million)




                                                                           200                 Service Revenue

                                                                           150

                                                                           100

                                                                           50

                                                                             0
                                                                                   2008      2009     2010       2011      2012      2013     2014     2015
                                                                                                                        Year
                                                                                                                                      Source: Frost & Sullivan



                         M3FA-18                                                                                                                                                               17
Green Telematics Offers True ROI in Case of Commercial Vehicles and
Solid Savings on Fuel Cost for Passenger Vehicles
                                 Green Telematics Market: Green Routing Feature Penetration                                                   Green Telematics Market: Green Fleet Telematics Truck Parc
                                         on PND Unit Shipments (World), 2009-2016                                                                           Penetration (World), 2009-2016


                                 20%                                                                                                         6%
 Feature Penetration in Units




                                                        Euro pe                     No rth A merica
                                                                                                                                                           Europe                 North America




                                                                                                                    Truck Parc Penetration
                                 15%
                                                                                                                                             4%
            Sold




                                 10%

                                                                                                                                             2%
                                 5%


                                                                                                                                             0%
                                 0%
                                       2009      2010      2011   2012      2013      2014        2015   2016                                     2009    2010    2011   2012    2013     2014    2015     2016
                                                                         Year                                                                                             Year
                                                                                       Source: Frost & Sullivan                                                                             Source: Frost & Sullivan
                                                                                                                  Typical Cost Saving and Emission Reduction for a 40 Tonne
ROI for an user in UK clocking 16,000 km per annum in a                                                           (GCW) Long Haul Vehicle clocking annual mileage of
diesel vehicle with 5.9L/100km fuel efficiency and savings of                                                     160,000 km fitted with fleet management system with green
15% through eco navigation                                                                                        service subscription
                                                                                                                                                                                             €4670
                  €300
                                                                                   Savings would pay
                                                           €163                     for the device in
                                              €100                                 around 22 months
                                                                                     and the further                                                             €420     €1920
                                                                                    savings from the                                              €1500
                                Average cost of eco navigation PND                    device is ROI

                                Cost per year considering usage for 3
                                years                                                                                                         Hardware Cost                             Total Cost Incurred
                                Fuel Cost Savings per year
                                                                                                                                              Annual Service Cost                       Annual Fuel Cost Saving


               M3FA-18                                                                                                                                                                                                 18
Revenue Forecast: Revenue Through Green Telematics to Reach Over
€100 million by 2015 in the Heavy and Medium Commercial Vehicle
Segment
          Green Telematics Market: Green Fleet Heavy and Medium Truck Revenue Forecasts (Europe), 2008-2015
                                           150
                                                                            Service Revenue                          Hardware Revenue


          Revenues (€ Million)
                                           100



                                                        50



                                                         0
                                                                 2008    2009      2010          2011      2012                            2013        2014         2015
                                                                                                        Year

                                                                        2008                                                                         2015
                                                         20                                                                       120




                                                                                                          Revenues (€ Million)
                                 Revenues (€ Million)




                                                                                                                                   90


                                                         10                                                                        60


                                                                                                                                   30


                                                             0                                                                      0

                                              Dedicated Service             Extended with FMS                                    Dedicated Service     Extended with FMS

                                              Extended with T&T             Dedicated Hardware                                   Extended with T&T     Dedicated Hardware
                                                                                                                                                     Source: Frost & Sullivan


                                                                                                                                                                                19
Pay How You Drive is the Commercial Vehicle Version of Usage Based
Insurance
                                                                                                                Business Segment
                                                                                              100%     UPTO 20%                            6.25%
                                Acceleration of the vehicle
                                                                                                                        80%          Cost of the basic
                                                                                                                                 telematics solution along
                                   Braking the vehicle                                                                               with the hardware
                                                                                                                                 spread over a period of 3
                                                                                                                                            years
              PHYD                    Speed of the vehicle
                                                                                                                                     73.75% of
                                   Mileage traveled                                                                                  the premium
                                                                                            Traditional Discount to   To             goes to the
                                                                                            premium to   costumer Insurance          insurance
                                Time traveled                                               be paid by based on his Company          company.
                                                                                             customer previous year
                                                                                                          claims

                                        Business Model – Business Segment
                                        Insurance companies buys the box at a price from the
                                        telematics company and own them.
                                             •   RSA pays 100-120 GBP for box and for the basic
                                                 PHYD functionality and geolocalisation.
                                        The leasing company or the end-user pays for the additional
                                        services based on their need.
                                             •   The leasing company or the user pays 3-12 GBP for
                                                 additional services based on his needs.
                 Benefits to Insurance Co.                               Benefits to Leasing Co.                              Benefits to Fleet Co.
  PHYD, Geolocalisation
                                                           PHYD, Geolocalisation                                  FMS, Geolocalisation
  •   Monitoring driving behavior and calculation of
                                                               Monitoring driving behavior & knowledge about      •   Effective fleet management
      annual premium based on user’s risk                  •
                                                               vehicle service records to assess the value of     •   On time eCall and SVT assistance
  •   Reduce claim cost of crash and theft
                                                               the vehicle at the end of the contract.            •   ECO Driving
  •   ECO Driving


                                                                                                                                                             20
Key Conclusions – Green Telematics Offers Immense Growth
Opportunities and Provides a Definite Social Incentive of Cost Effective
Emission Reduction
                                      The low cost involved and the
                                     ease of adoption among old and
                                     new vehicles is the fundamental
   The penetration of green fleet    advantage of green telematics. A       With stringent norms
    teleamatics in the long-haul    comprehensive and wide adoption     expected in the coming years,
    segment to be much higher            of the same could effect        companies are increasingly
       than local and regional        significant emission reduction    incorporating environment as
   segment both in Europe and                                            a component to their overall
           North America                                                      business strategy



     Promotion of PAYD as an
                                          Green Telematics               Regulatory compliance and
       environmental friendly
                                             Demand to                  cost cutting intitiatives to drive
    insurance with the needed
                                                                          green telematics adoption
     support from legislation to              Increase                    within the commercial and
   increse its adoption among               Dramatically                      leasigng segment
      the consumer segment


   The desire to cost cutting and                                       Car and truck manufactures to
    making high value purchase       An evolution of comprehensive      increasingly adopt telematics
      to increase adoption of          green telematics solution          for diagnostics and related
   navigation with green routing        encompasing insurance,           services that combined with
              feature.                      vehicle and driver           consumer efforts could help
                                      management is inhibited by                reduce emission
                                      the limitations inherent with
                                         various stake holders.


                                                                                                             21
Snapshot of Electric and Hybrid
    Commercial Vehicles




                                  22
What do commercial drivers think of electric vehicles?

     Overall, most commercial drivers feel that using electric vehicles would be a good idea. While some doubt reliability and distance able to travel the
     vast majority would be willing to use them if their capability requirements could be met. Only very few were very sceptical.



     “I think they are a good idea with over 5,000 fleet                            “It is a good idea because we are a company that
     of vans our company would benefit from this .”                                 travels mainly of small distances within the city.”
                        Commercial driver for EDF Energy, UK                                   Commercial driver for mairie de maurepas, France


     “Too slow for my line of work, a bad idea. No I do                             “Perhaps is OK but I have not thought about it
     not believe they would suit my line of work. I                                 very much.”
     need to be able to get in vehicle and go, without                                                Commercial driver for Selbst , Germany
     worrying if I have enough energy to get me where
     I am going and back.”                                                          “It is a very good idea, I would definitely use one
      Commercial driver for MG Green Maintenance Engineers, UK                      for sure if it meets my needs. We need to do
                                                                                    more for the environment.”
                                                                                                       Commercial driver for Agentur, Germany
     “Yes I am ready but my condition is that it can
     make about 200 km without needing to be                                        “I think they are an excellent idea and I hope to
     charged and support the maximum 60 kg.”                                        switch to one when they become more available.”
                   Commercial driver for Chefdeterroir, France                                      Commercial driver for National Theatre, UK


     “It is a good idea to have an electric vehicle. But                            “I think they are a good idea, assuming I can fit
                                                                                    all of my equipment into them and the range is
     the problem is travelling in rural areas sometimes
     and it is difficult to find charge points.”                                    enough to get me from A to B.”
                              Commercial driver for PC30, France                                             Commercial driver for HCE, UK


Base : Total interviews (N=170), UK n=58, France n=61, Germany n=51


                                                                                                                                                             23
Market Overview: Electric Commercial Vehicles are concentrated more towards
depot based delivery vehicles with fixed payload and work schedule cycle.
        Electric Commercial Vehicles Market: Overview of suitability (Europe 2010)    Electrification Attractiveness

                                                                                      High ( 4% ~ 10% of total CV market @ 2015)
                               Postal Vans
             Urban                                                 Refuse Trucks
                               Super Market                                           This implies immediate opportunity and target for
          (< 60 miles)         City Councils
                                                                   Ports Usage
                                                                   Transit Bus        electric vehicles
                               Utilities

                                                                                      Medium (1% ~ 4 % of total CV market @ 2015)
Range




          Intra Urban                             Parcel Vans
                                                  Logistics                           This signifies an expanding opportunity gained by
          (<150 miles)
                                                  Distribution                        early adopters experience and challenges can be
                                                                                      overcome but require substantial investment


           Highway                                                                    Low (<1% of total CV market @ 2015)
         (> 150 miles)                       Medium to Long Haul
                                                                                      This represents the size of opportunity and
                                                                                      electrification will need to overcome considerable
                                                                                      technical and market challenges
                                   LCV              MCV                HCV

                                      Type of Commercial Vehicle
  Urban                                           Intra-Urban                           Highway
  Usage lies in an urban                          Usage lies in an urban and intra-     Usage mostly lies in highway
  environment with frequent stop                  urban distribution. May have          routes long haulage with heavy
  and go combined with fixed load                 stop and go routes                    loads

                                                                                                                            Source: Frost & Sullivan



                                                                                                                                                 24
Market Attractiveness of Hybrid Commercial Vehicles

  Hybrid commercial vehicles deliver attractive fuel economy benefits while reducing emissions. However, these benefits are more
        pronounced in certain types of vehicle categories and in certain duty-cycles.
  Frost & Sullivan’s research indicates LCVs, HCVs and transit buses that operate within congested urban areas will emerge as early
        adopters of hybrid powertrain systems.
  The fuel saving potential is further enhanced through reliance on electric systems, in diesel-electric hybrids, which deliver the following
        performance attributes:
               Start/stop systems turns off the engine when the car stops
               Engine can be operated at its highest point of efficiency
               Cold starts are performed by electrical systems
               Regenerative braking technology recovers energy while braking and stores in storage system

 North American and European Hybrid Commercial                                                 North American and European Hybrid Commercial Vehicles
 Vehicles Market: Early Adopters for Hybrids (North                                            Market: Potential Fuel Saving by Hybrid Commercial Vehicles
 America & Europe), 2009                                                                       and Buses (North America & Europe), 2009
                                                                                              45
           Early Adopters for Hybrid Vehicles
                                                                                              40
                Urban Package/Courier Delivery Trucks
     LCV




                                                                      Potential Fuel Saving
                Urban Beverage Delivery Trucks                                                35

                                                                                              30
                Utility Trucks
     MCV
                Fire/Rescue Trucks

                                                                               (%)
                                                                                              25

                Refuse Trucks, Heavy urban delivery trucks                                    20
     HCV
                (beverage, groceries and produce etc)
                                                                                              15
     Bus        Urban Transit buses and School buses
                                                                                              10

                                                                                               5

                                                                                               0
                                                                                                          Inner City                           Edge of City


                                                                                                                                                              25
Summary and Conclusions




                          26
Key conclusions - Growth Opportunities Will Come From the
Appropriate Segmentation of the User Market
                                                             Eastern Europe growth
               New Volumes Growth Still Expected             Consolidation of certain national transport market to
                                                             boost demand
                                                             Under penetrated small fleets provide significant
                                                             growth opportunities
                                                                      Consolidation among fleets
                         Impact of Economy Slowdown would             Telematics vendors need to adopt strategic
                         Affect Market Dynamics Significantly         growth steps needed to stay competitive

                                                                      Matured market replacement cycle
                                                                      Large vehicle fleets already have high
                       Replacement in More Matured Markets            penetration of telematics
                                                                      Focus on value proposition and differentiation
 Conclusions

                                                                          Demonstrate sector-specific knowledge
                          Industry and Sector-specific Requirements       and understanding


                                                           Focus should shift towards customer
                        Focus on Recurring Revenue         retention and value-adding services
                                                           Further push telematics integration into
                                                           business process – consulting revenue


                                            ROI and operator satisfaction are highly correlated to
               Implementation Focus
                                            the ability to successfully sell telematics


                                                                                                                 27

Mais conteúdo relacionado

Mais procurados

Ameya E-log Product Note
Ameya E-log Product NoteAmeya E-log Product Note
Ameya E-log Product NoteAnkur Singh
 
Sertica - Fleet Management / Procurement / Maintenance
Sertica - Fleet Management / Procurement / MaintenanceSertica - Fleet Management / Procurement / Maintenance
Sertica - Fleet Management / Procurement / MaintenanceLogimatic
 
Fleet management
Fleet managementFleet management
Fleet managementHammaduddin
 
Pro Tms Commute -Automation for employee Transportation
Pro Tms Commute -Automation for employee TransportationPro Tms Commute -Automation for employee Transportation
Pro Tms Commute -Automation for employee Transportationshashidharjoshi
 
IoT enabled intelligent fleet management
IoT enabled intelligent fleet managementIoT enabled intelligent fleet management
IoT enabled intelligent fleet managementKalman Tiboldi
 
Measuring the performance of your fleet by clearly defining strategy and tactics
Measuring the performance of your fleet by clearly defining strategy and tacticsMeasuring the performance of your fleet by clearly defining strategy and tactics
Measuring the performance of your fleet by clearly defining strategy and tacticsTristan Wiggill
 
Nextgen tools for data migration in aviation
Nextgen tools for data migration in aviationNextgen tools for data migration in aviation
Nextgen tools for data migration in aviationEXSYN Aviation Solutions
 
Employee transportation management software - TrackCompanyBus
Employee transportation management software - TrackCompanyBusEmployee transportation management software - TrackCompanyBus
Employee transportation management software - TrackCompanyBusTrackCompanyBus
 
GreenRoad Fleet Managment solution spotlight
GreenRoad Fleet Managment solution spotlightGreenRoad Fleet Managment solution spotlight
GreenRoad Fleet Managment solution spotlightMiles Driven
 
Fleet Management System & Gps Vehicle Tracking system
Fleet Management System & Gps Vehicle Tracking systemFleet Management System & Gps Vehicle Tracking system
Fleet Management System & Gps Vehicle Tracking systemVAMO SYSTEMS PRIVATE LIMITED
 
Your Path to Fleet Mangement
Your Path to Fleet MangementYour Path to Fleet Mangement
Your Path to Fleet MangementBizPhiz
 
Analysis of the service operations of global taxis
Analysis of the service operations of  global taxisAnalysis of the service operations of  global taxis
Analysis of the service operations of global taxisClaireAnnaJ
 
Fleet Robo-Fleet Management Solutions with GPS Vehicle Tracking System
Fleet Robo-Fleet Management Solutions with GPS Vehicle Tracking System Fleet Robo-Fleet Management Solutions with GPS Vehicle Tracking System
Fleet Robo-Fleet Management Solutions with GPS Vehicle Tracking System fleetrobo
 
The value proposition of advanced telematics
The value proposition of advanced telematicsThe value proposition of advanced telematics
The value proposition of advanced telematicsTristan Wiggill
 
Total Quality Management
Total Quality ManagementTotal Quality Management
Total Quality ManagementNyssa Razzak
 

Mais procurados (19)

Ami_ams
Ami_amsAmi_ams
Ami_ams
 
Ameya E-log Product Note
Ameya E-log Product NoteAmeya E-log Product Note
Ameya E-log Product Note
 
Sertica - Fleet Management / Procurement / Maintenance
Sertica - Fleet Management / Procurement / MaintenanceSertica - Fleet Management / Procurement / Maintenance
Sertica - Fleet Management / Procurement / Maintenance
 
Fleet management
Fleet managementFleet management
Fleet management
 
Pro Tms Commute -Automation for employee Transportation
Pro Tms Commute -Automation for employee TransportationPro Tms Commute -Automation for employee Transportation
Pro Tms Commute -Automation for employee Transportation
 
IoT enabled intelligent fleet management
IoT enabled intelligent fleet managementIoT enabled intelligent fleet management
IoT enabled intelligent fleet management
 
Measuring the performance of your fleet by clearly defining strategy and tactics
Measuring the performance of your fleet by clearly defining strategy and tacticsMeasuring the performance of your fleet by clearly defining strategy and tactics
Measuring the performance of your fleet by clearly defining strategy and tactics
 
Nextgen tools for data migration in aviation
Nextgen tools for data migration in aviationNextgen tools for data migration in aviation
Nextgen tools for data migration in aviation
 
Employee transportation management software - TrackCompanyBus
Employee transportation management software - TrackCompanyBusEmployee transportation management software - TrackCompanyBus
Employee transportation management software - TrackCompanyBus
 
GreenRoad Fleet Managment solution spotlight
GreenRoad Fleet Managment solution spotlightGreenRoad Fleet Managment solution spotlight
GreenRoad Fleet Managment solution spotlight
 
Fleet Management System & Gps Vehicle Tracking system
Fleet Management System & Gps Vehicle Tracking systemFleet Management System & Gps Vehicle Tracking system
Fleet Management System & Gps Vehicle Tracking system
 
Fleet management software,Fleet management System - Odoo
Fleet management software,Fleet management System - Odoo Fleet management software,Fleet management System - Odoo
Fleet management software,Fleet management System - Odoo
 
Your Path to Fleet Mangement
Your Path to Fleet MangementYour Path to Fleet Mangement
Your Path to Fleet Mangement
 
RMTS Business Profile
RMTS Business ProfileRMTS Business Profile
RMTS Business Profile
 
Analysis of the service operations of global taxis
Analysis of the service operations of  global taxisAnalysis of the service operations of  global taxis
Analysis of the service operations of global taxis
 
AxesTrack - GPS for FREE
AxesTrack - GPS for FREEAxesTrack - GPS for FREE
AxesTrack - GPS for FREE
 
Fleet Robo-Fleet Management Solutions with GPS Vehicle Tracking System
Fleet Robo-Fleet Management Solutions with GPS Vehicle Tracking System Fleet Robo-Fleet Management Solutions with GPS Vehicle Tracking System
Fleet Robo-Fleet Management Solutions with GPS Vehicle Tracking System
 
The value proposition of advanced telematics
The value proposition of advanced telematicsThe value proposition of advanced telematics
The value proposition of advanced telematics
 
Total Quality Management
Total Quality ManagementTotal Quality Management
Total Quality Management
 

Destaque

Commercial telematics global market outlook (2015-2022)
Commercial telematics   global market outlook (2015-2022)Commercial telematics   global market outlook (2015-2022)
Commercial telematics global market outlook (2015-2022)Swaraj Nanda
 
Ottimizzare i trasporti: aumentare l'efficienza, risparmiare sui costi - PTV...
Ottimizzare i trasporti: aumentare l'efficienza, risparmiare sui costi  - PTV...Ottimizzare i trasporti: aumentare l'efficienza, risparmiare sui costi  - PTV...
Ottimizzare i trasporti: aumentare l'efficienza, risparmiare sui costi - PTV...logisticaefficiente
 
Global Commercial Telematics Market - Size, Share, Global Trends, Company Pro...
Global Commercial Telematics Market - Size, Share, Global Trends, Company Pro...Global Commercial Telematics Market - Size, Share, Global Trends, Company Pro...
Global Commercial Telematics Market - Size, Share, Global Trends, Company Pro...Allied Market Research
 
Frost and Sullivan Automotive Capabilities
Frost and Sullivan Automotive CapabilitiesFrost and Sullivan Automotive Capabilities
Frost and Sullivan Automotive Capabilitiesmeghakhemka
 
Achieving “services” business process excellence: Metrics-driven best practic...
Achieving “services” business process excellence: Metrics-driven best practic...Achieving “services” business process excellence: Metrics-driven best practic...
Achieving “services” business process excellence: Metrics-driven best practic...Genpact Ltd
 
A.T. Kearney: Positioning for the Telematics Tipping Point
A.T. Kearney: Positioning for the Telematics Tipping PointA.T. Kearney: Positioning for the Telematics Tipping Point
A.T. Kearney: Positioning for the Telematics Tipping PointbengillTU
 

Destaque (7)

Commercial telematics global market outlook (2015-2022)
Commercial telematics   global market outlook (2015-2022)Commercial telematics   global market outlook (2015-2022)
Commercial telematics global market outlook (2015-2022)
 
Executive summary italiano e&m outlook
Executive summary italiano e&m outlookExecutive summary italiano e&m outlook
Executive summary italiano e&m outlook
 
Ottimizzare i trasporti: aumentare l'efficienza, risparmiare sui costi - PTV...
Ottimizzare i trasporti: aumentare l'efficienza, risparmiare sui costi  - PTV...Ottimizzare i trasporti: aumentare l'efficienza, risparmiare sui costi  - PTV...
Ottimizzare i trasporti: aumentare l'efficienza, risparmiare sui costi - PTV...
 
Global Commercial Telematics Market - Size, Share, Global Trends, Company Pro...
Global Commercial Telematics Market - Size, Share, Global Trends, Company Pro...Global Commercial Telematics Market - Size, Share, Global Trends, Company Pro...
Global Commercial Telematics Market - Size, Share, Global Trends, Company Pro...
 
Frost and Sullivan Automotive Capabilities
Frost and Sullivan Automotive CapabilitiesFrost and Sullivan Automotive Capabilities
Frost and Sullivan Automotive Capabilities
 
Achieving “services” business process excellence: Metrics-driven best practic...
Achieving “services” business process excellence: Metrics-driven best practic...Achieving “services” business process excellence: Metrics-driven best practic...
Achieving “services” business process excellence: Metrics-driven best practic...
 
A.T. Kearney: Positioning for the Telematics Tipping Point
A.T. Kearney: Positioning for the Telematics Tipping PointA.T. Kearney: Positioning for the Telematics Tipping Point
A.T. Kearney: Positioning for the Telematics Tipping Point
 

Semelhante a The Essential European Fleet & Asset Management Update

Delivering the Next Generation Airport
Delivering the Next Generation AirportDelivering the Next Generation Airport
Delivering the Next Generation AirportAmor Group
 
Collaborative Decision Making in Aviation
Collaborative Decision Making in AviationCollaborative Decision Making in Aviation
Collaborative Decision Making in AviationCapgemini
 
Dyer at kearny presentation
Dyer at kearny presentationDyer at kearny presentation
Dyer at kearny presentationCALSTART
 
Fleet presentation
Fleet presentationFleet presentation
Fleet presentationeFM srl
 
Scheduling and Revenue Management
Scheduling and Revenue ManagementScheduling and Revenue Management
Scheduling and Revenue Managementnsihammou
 
Vc6096 White Paper 1008
Vc6096 White Paper 1008Vc6096 White Paper 1008
Vc6096 White Paper 1008lofrumento
 
Scan0003
Scan0003Scan0003
Scan0003Diyar
 
value chain
value chainvalue chain
value chainDiyar
 
EcoTrak fuel saving technology
EcoTrak fuel saving technologyEcoTrak fuel saving technology
EcoTrak fuel saving technologykatelloyd
 
Carpooling in the Greater Toronto and Area: Smart Commute's Carpool Zone, A W...
Carpooling in the Greater Toronto and Area: Smart Commute's Carpool Zone, A W...Carpooling in the Greater Toronto and Area: Smart Commute's Carpool Zone, A W...
Carpooling in the Greater Toronto and Area: Smart Commute's Carpool Zone, A W...Smart Commute
 
Capacity Managementand the Cloud
Capacity Managementand the CloudCapacity Managementand the Cloud
Capacity Managementand the Clouddannyq
 
Sprint Transportation &amp; Distribution Solutions
Sprint Transportation &amp; Distribution SolutionsSprint Transportation &amp; Distribution Solutions
Sprint Transportation &amp; Distribution Solutionskjcastro
 
PartnerTEL TEM Services
PartnerTEL TEM ServicesPartnerTEL TEM Services
PartnerTEL TEM ServicesSeanRosales
 
Cptl Wem Presentation 2009 Final V2
Cptl   Wem Presentation   2009   Final V2Cptl   Wem Presentation   2009   Final V2
Cptl Wem Presentation 2009 Final V2Eric Schummer
 
HCLT Brochure: HCL in Freight Logistics
HCLT Brochure: HCL in Freight LogisticsHCLT Brochure: HCL in Freight Logistics
HCLT Brochure: HCL in Freight LogisticsHCL Technologies
 
Corp Connection 2pp A4 Eco Flyer
Corp Connection   2pp A4 Eco FlyerCorp Connection   2pp A4 Eco Flyer
Corp Connection 2pp A4 Eco FlyerDr David Clayton
 
Enhancing Passenger Experience Through Real Time Process Monitoring
Enhancing Passenger Experience Through Real Time Process MonitoringEnhancing Passenger Experience Through Real Time Process Monitoring
Enhancing Passenger Experience Through Real Time Process MonitoringAmor Group
 

Semelhante a The Essential European Fleet & Asset Management Update (20)

Delivering the Next Generation Airport
Delivering the Next Generation AirportDelivering the Next Generation Airport
Delivering the Next Generation Airport
 
Collaborative Decision Making in Aviation
Collaborative Decision Making in AviationCollaborative Decision Making in Aviation
Collaborative Decision Making in Aviation
 
Dyer at kearny presentation
Dyer at kearny presentationDyer at kearny presentation
Dyer at kearny presentation
 
Fleet presentation
Fleet presentationFleet presentation
Fleet presentation
 
Scheduling and Revenue Management
Scheduling and Revenue ManagementScheduling and Revenue Management
Scheduling and Revenue Management
 
Alok Kamal
Alok  KamalAlok  Kamal
Alok Kamal
 
Vc6096 White Paper 1008
Vc6096 White Paper 1008Vc6096 White Paper 1008
Vc6096 White Paper 1008
 
Scan0003
Scan0003Scan0003
Scan0003
 
value chain
value chainvalue chain
value chain
 
Step Fwd It
Step Fwd ItStep Fwd It
Step Fwd It
 
EcoTrak fuel saving technology
EcoTrak fuel saving technologyEcoTrak fuel saving technology
EcoTrak fuel saving technology
 
Carpooling in the Greater Toronto and Area: Smart Commute's Carpool Zone, A W...
Carpooling in the Greater Toronto and Area: Smart Commute's Carpool Zone, A W...Carpooling in the Greater Toronto and Area: Smart Commute's Carpool Zone, A W...
Carpooling in the Greater Toronto and Area: Smart Commute's Carpool Zone, A W...
 
Capacity Managementand the Cloud
Capacity Managementand the CloudCapacity Managementand the Cloud
Capacity Managementand the Cloud
 
SmartConnect-Cloud
SmartConnect-CloudSmartConnect-Cloud
SmartConnect-Cloud
 
Sprint Transportation &amp; Distribution Solutions
Sprint Transportation &amp; Distribution SolutionsSprint Transportation &amp; Distribution Solutions
Sprint Transportation &amp; Distribution Solutions
 
PartnerTEL TEM Services
PartnerTEL TEM ServicesPartnerTEL TEM Services
PartnerTEL TEM Services
 
Cptl Wem Presentation 2009 Final V2
Cptl   Wem Presentation   2009   Final V2Cptl   Wem Presentation   2009   Final V2
Cptl Wem Presentation 2009 Final V2
 
HCLT Brochure: HCL in Freight Logistics
HCLT Brochure: HCL in Freight LogisticsHCLT Brochure: HCL in Freight Logistics
HCLT Brochure: HCL in Freight Logistics
 
Corp Connection 2pp A4 Eco Flyer
Corp Connection   2pp A4 Eco FlyerCorp Connection   2pp A4 Eco Flyer
Corp Connection 2pp A4 Eco Flyer
 
Enhancing Passenger Experience Through Real Time Process Monitoring
Enhancing Passenger Experience Through Real Time Process MonitoringEnhancing Passenger Experience Through Real Time Process Monitoring
Enhancing Passenger Experience Through Real Time Process Monitoring
 

Mais de HitReach

Sun Power Presentation
Sun Power PresentationSun Power Presentation
Sun Power PresentationHitReach
 
Esia Presentation
Esia PresentationEsia Presentation
Esia PresentationHitReach
 
Ambata Presentation
Ambata PresentationAmbata Presentation
Ambata PresentationHitReach
 
Kustar webinar
Kustar webinarKustar webinar
Kustar webinarHitReach
 
Estela webinar
Estela webinarEstela webinar
Estela webinarHitReach
 
Csp today webinar
Csp today webinarCsp today webinar
Csp today webinarHitReach
 
360 degrees
360 degrees360 degrees
360 degreesHitReach
 
Auto OEMs Under the Microscope: Infotainment Usability Analyzed
Auto OEMs Under the Microscope: Infotainment Usability AnalyzedAuto OEMs Under the Microscope: Infotainment Usability Analyzed
Auto OEMs Under the Microscope: Infotainment Usability AnalyzedHitReach
 
Applications Poised to Open the Door to a New World of Connected Cars
Applications Poised to Open the Door to a New World of Connected CarsApplications Poised to Open the Door to a New World of Connected Cars
Applications Poised to Open the Door to a New World of Connected CarsHitReach
 
Tried and Tested Tips to Monetize the Data Pipe – T-Mobile
Tried and Tested Tips to Monetize the Data Pipe – T-MobileTried and Tested Tips to Monetize the Data Pipe – T-Mobile
Tried and Tested Tips to Monetize the Data Pipe – T-MobileHitReach
 
BP Don ‘Live Well Abandonment’ - Application Of Post Project Actions For 2nd ...
BP Don ‘Live Well Abandonment’ - Application Of Post Project Actions For 2nd ...BP Don ‘Live Well Abandonment’ - Application Of Post Project Actions For 2nd ...
BP Don ‘Live Well Abandonment’ - Application Of Post Project Actions For 2nd ...HitReach
 
Meeting the Challenges for Developing and Financing a Nuclear Power Project
Meeting the Challenges for Developing and Financing a Nuclear Power ProjectMeeting the Challenges for Developing and Financing a Nuclear Power Project
Meeting the Challenges for Developing and Financing a Nuclear Power ProjectHitReach
 
Presentation: Cell ID & AGPS: Right Location, Smarter Service
Presentation: Cell ID & AGPS: Right Location, Smarter ServicePresentation: Cell ID & AGPS: Right Location, Smarter Service
Presentation: Cell ID & AGPS: Right Location, Smarter ServiceHitReach
 
CASE STUDY: The evolution of the personal telematics market: Building a solut...
CASE STUDY: The evolution of the personal telematics market: Building a solut...CASE STUDY: The evolution of the personal telematics market: Building a solut...
CASE STUDY: The evolution of the personal telematics market: Building a solut...HitReach
 
How the Nintento Wii’s motion plus technology has opened the door to a wave o...
How the Nintento Wii’s motion plus technology has opened the door to a wave o...How the Nintento Wii’s motion plus technology has opened the door to a wave o...
How the Nintento Wii’s motion plus technology has opened the door to a wave o...HitReach
 
Expected near-term developments in satellite personal location, tracking, mes...
Expected near-term developments in satellite personal location, tracking, mes...Expected near-term developments in satellite personal location, tracking, mes...
Expected near-term developments in satellite personal location, tracking, mes...HitReach
 
Panel: Affordable options for Indoor location and elevation
Panel: Affordable options for Indoor location and elevationPanel: Affordable options for Indoor location and elevation
Panel: Affordable options for Indoor location and elevationHitReach
 
Practical Solutions for a Plug-In Electric Vehicle Network
Practical Solutions for a Plug-In Electric Vehicle NetworkPractical Solutions for a Plug-In Electric Vehicle Network
Practical Solutions for a Plug-In Electric Vehicle NetworkHitReach
 
Fresh Opportunities for Smart Grid Solution Providers in Europe
Fresh Opportunities for Smart Grid Solution Providers in EuropeFresh Opportunities for Smart Grid Solution Providers in Europe
Fresh Opportunities for Smart Grid Solution Providers in EuropeHitReach
 
A Fresh Look at the Future of Long Term Evolution (LTE)
A Fresh Look at the Future of Long Term Evolution (LTE)A Fresh Look at the Future of Long Term Evolution (LTE)
A Fresh Look at the Future of Long Term Evolution (LTE)HitReach
 

Mais de HitReach (20)

Sun Power Presentation
Sun Power PresentationSun Power Presentation
Sun Power Presentation
 
Esia Presentation
Esia PresentationEsia Presentation
Esia Presentation
 
Ambata Presentation
Ambata PresentationAmbata Presentation
Ambata Presentation
 
Kustar webinar
Kustar webinarKustar webinar
Kustar webinar
 
Estela webinar
Estela webinarEstela webinar
Estela webinar
 
Csp today webinar
Csp today webinarCsp today webinar
Csp today webinar
 
360 degrees
360 degrees360 degrees
360 degrees
 
Auto OEMs Under the Microscope: Infotainment Usability Analyzed
Auto OEMs Under the Microscope: Infotainment Usability AnalyzedAuto OEMs Under the Microscope: Infotainment Usability Analyzed
Auto OEMs Under the Microscope: Infotainment Usability Analyzed
 
Applications Poised to Open the Door to a New World of Connected Cars
Applications Poised to Open the Door to a New World of Connected CarsApplications Poised to Open the Door to a New World of Connected Cars
Applications Poised to Open the Door to a New World of Connected Cars
 
Tried and Tested Tips to Monetize the Data Pipe – T-Mobile
Tried and Tested Tips to Monetize the Data Pipe – T-MobileTried and Tested Tips to Monetize the Data Pipe – T-Mobile
Tried and Tested Tips to Monetize the Data Pipe – T-Mobile
 
BP Don ‘Live Well Abandonment’ - Application Of Post Project Actions For 2nd ...
BP Don ‘Live Well Abandonment’ - Application Of Post Project Actions For 2nd ...BP Don ‘Live Well Abandonment’ - Application Of Post Project Actions For 2nd ...
BP Don ‘Live Well Abandonment’ - Application Of Post Project Actions For 2nd ...
 
Meeting the Challenges for Developing and Financing a Nuclear Power Project
Meeting the Challenges for Developing and Financing a Nuclear Power ProjectMeeting the Challenges for Developing and Financing a Nuclear Power Project
Meeting the Challenges for Developing and Financing a Nuclear Power Project
 
Presentation: Cell ID & AGPS: Right Location, Smarter Service
Presentation: Cell ID & AGPS: Right Location, Smarter ServicePresentation: Cell ID & AGPS: Right Location, Smarter Service
Presentation: Cell ID & AGPS: Right Location, Smarter Service
 
CASE STUDY: The evolution of the personal telematics market: Building a solut...
CASE STUDY: The evolution of the personal telematics market: Building a solut...CASE STUDY: The evolution of the personal telematics market: Building a solut...
CASE STUDY: The evolution of the personal telematics market: Building a solut...
 
How the Nintento Wii’s motion plus technology has opened the door to a wave o...
How the Nintento Wii’s motion plus technology has opened the door to a wave o...How the Nintento Wii’s motion plus technology has opened the door to a wave o...
How the Nintento Wii’s motion plus technology has opened the door to a wave o...
 
Expected near-term developments in satellite personal location, tracking, mes...
Expected near-term developments in satellite personal location, tracking, mes...Expected near-term developments in satellite personal location, tracking, mes...
Expected near-term developments in satellite personal location, tracking, mes...
 
Panel: Affordable options for Indoor location and elevation
Panel: Affordable options for Indoor location and elevationPanel: Affordable options for Indoor location and elevation
Panel: Affordable options for Indoor location and elevation
 
Practical Solutions for a Plug-In Electric Vehicle Network
Practical Solutions for a Plug-In Electric Vehicle NetworkPractical Solutions for a Plug-In Electric Vehicle Network
Practical Solutions for a Plug-In Electric Vehicle Network
 
Fresh Opportunities for Smart Grid Solution Providers in Europe
Fresh Opportunities for Smart Grid Solution Providers in EuropeFresh Opportunities for Smart Grid Solution Providers in Europe
Fresh Opportunities for Smart Grid Solution Providers in Europe
 
A Fresh Look at the Future of Long Term Evolution (LTE)
A Fresh Look at the Future of Long Term Evolution (LTE)A Fresh Look at the Future of Long Term Evolution (LTE)
A Fresh Look at the Future of Long Term Evolution (LTE)
 

Último

Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..dlewis191
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsIntellect Design Arena Ltd
 
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfPDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfHajeJanKamps
 
Data skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsData skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsyasinnathani
 
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxJemalSeid25
 
MoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor PresentationMoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor Presentationbaron83
 
Slicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinSlicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinAnton Skornyakov
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBBPMedia1
 
Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Lviv Startup Club
 
Plano de marketing- inglês em formato ppt
Plano de marketing- inglês  em formato pptPlano de marketing- inglês  em formato ppt
Plano de marketing- inglês em formato pptElizangelaSoaresdaCo
 
To Create Your Own Wig Online To Create Your Own Wig Online
To Create Your Own Wig Online  To Create Your Own Wig OnlineTo Create Your Own Wig Online  To Create Your Own Wig Online
To Create Your Own Wig Online To Create Your Own Wig Onlinelng ths
 
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...AustraliaChapterIIBA
 
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...IMARC Group
 
7movierulz.uk
7movierulz.uk7movierulz.uk
7movierulz.ukaroemirsr
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsWristbands Ireland
 
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)tazeenaila12
 
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessQ2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessAPCO
 
Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursKaiNexus
 

Último (20)

Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..Team B Mind Map for Organizational Chg..
Team B Mind Map for Organizational Chg..
 
Upgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking ApplicationsUpgrade Your Banking Experience with Advanced Core Banking Applications
Upgrade Your Banking Experience with Advanced Core Banking Applications
 
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdfPDT 89 - $1.4M - Seed - Plantee Innovations.pdf
PDT 89 - $1.4M - Seed - Plantee Innovations.pdf
 
Data skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story pointsData skills for Agile Teams- Killing story points
Data skills for Agile Teams- Killing story points
 
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
TalentView Webinar: Empowering the Modern Workforce_ Redefininig Success from...
 
Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024Borderless Access - Global B2B Panel book-unlock 2024
Borderless Access - Global B2B Panel book-unlock 2024
 
Introduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptxIntroduction to The overview of GAAP LO 1-5.pptx
Introduction to The overview of GAAP LO 1-5.pptx
 
MoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor PresentationMoneyBridge Pitch Deck - Investor Presentation
MoneyBridge Pitch Deck - Investor Presentation
 
Slicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup BerlinSlicing Work on Business Agility Meetup Berlin
Slicing Work on Business Agility Meetup Berlin
 
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John MeulemansBCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
BCE24 | Virtual Brand Ambassadors: Making Brands Personal - John Meulemans
 
Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)Michael Vidyakin: Introduction to PMO (UA)
Michael Vidyakin: Introduction to PMO (UA)
 
Plano de marketing- inglês em formato ppt
Plano de marketing- inglês  em formato pptPlano de marketing- inglês  em formato ppt
Plano de marketing- inglês em formato ppt
 
To Create Your Own Wig Online To Create Your Own Wig Online
To Create Your Own Wig Online  To Create Your Own Wig OnlineTo Create Your Own Wig Online  To Create Your Own Wig Online
To Create Your Own Wig Online To Create Your Own Wig Online
 
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
IIBA® Melbourne - Navigating Business Analysis - Excellence for Career Growth...
 
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
Boat Trailers Market PPT: Growth, Outlook, Demand, Keyplayer Analysis and Opp...
 
7movierulz.uk
7movierulz.uk7movierulz.uk
7movierulz.uk
 
Fabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and FestivalsFabric RFID Wristbands in Ireland for Events and Festivals
Fabric RFID Wristbands in Ireland for Events and Festivals
 
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
Harvard Business Review.pptx | Navigating Labor Unrest (March-April 2024)
 
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for BusinessQ2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
Q2 2024 APCO Geopolitical Radar - The Global Operating Environment for Business
 
Developing Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, OursDeveloping Coaching Skills: Mine, Yours, Ours
Developing Coaching Skills: Mine, Yours, Ours
 

The Essential European Fleet & Asset Management Update

  • 1. The Essential European Fleet Management Update Anil Valsan Global Director of Research, Automotive & Transportation Feb 23rd 2010
  • 2. Agenda for the Workshop European Fleet Management Market Overview and Trends Green Telematics Market Overview and Trends Snapshot of Electric and Hybrid Commercial Vehicles Summary and Conclusions 2
  • 3. European Fleet Management Market Overview and Trends 3
  • 4. Erratic Fuel Cost, Duty of Care and Congestion are expectedly the Major Challenges Facing Transport Industry – Opportunities for Telematics Providers Market for Commercial Vehicles Telematics: Challenging Affecting Transport Industry (Europe), 2008-2015 High attrition rate haunts fleet Unavailability of operators information adding to overall operational cost Road charges like toll collection system would mandate installation of telematics box Driver Recruitment Communication at and Retention Speeding and Parking Fines optimum cost Information related to Road Charging congestion needed at critical Driver time Communication Continuous Monitoring Congestion Needed Fleet Operation- Hijacking and Industry Challenges Theft Environment Work Time Directive Need for Integrated Driver Management Promotion of ‘Green Image’ & need Speculative for optimal driving to minimize Duty of Care Fuel Cost pollution Since fuel cost is the major component of the operation cost, companies focus on frugal consumption. Moreover, the erratic Continuous and critical driver nature of fuel cost warrants deployment of monitoring system for monitoring required for comprehensive optimal consumption training 4
  • 5. In the Current Market Conditions Telematics is considered as a Reality Check tool for Many Fleets to Remain Profitable and Stay in Business Greater Service Increasing Cost Benefits Capability High Demand for high Customer operational Competitive levels of service Satisfaction efficacy Advantage and information Desire for transparency greater Customer operation Retention optimisation Improving Market Duty of Care Drivers and other intangible High Emission Benefits Reduction and Market Driver Impact Desire to promote Green Image Introduction Low of Digital Key Market Restraints: Tachograph • Economic slowdown delaying potential investment • Cost of telematics still perceived to be high. Small fleets are difficult to address • Yet to reach critical mass to provide customization 5
  • 6. ROI is Strongest Factor for CV Telematics – Savings of 233 Euros/Month/Truck Benefits of Effective Deployment of FMS Effective Driver Vehicle Regulation Improved Other Benefits Management Management Compliance Consumer Savings Service Customer and Effective time Employee 15% Bi monthly Fuel Cost management. Satisfaction and Productivity Digital Tacho Reduction Reduction of Regulatory increase Read out idle time Compliance Typical Cost Savings per truck per month Payback Period on a Typical Investment 126 € 233 € Investment: per truck Hardware Cost : 2,000 € (net amount) Service Cost : 40 € / month (Comprehensive) 35 € 25 € Payback period per truck with 233 € monthly saving 23 € would be 11 months (approx) 23 € After 11 months the initial investment would start Reduced waiting Digital Tacho – Increased Fuel Consumption Effective Route Total paying back time = increased Mass Data Read Productivity Regulation Planning and Savings billable hours out lesser km wasted (233 * 11) – (2000 + 40 * 11) = 123 € Source: ING 6
  • 7. FMS Installed Base to Grow at 13% CAGR while that of Track Trace at 2.4% Total Installed Base 1,200,000 FMS Track and Trace CAGR 9.0% Installed Base 600,000 0 2008 2009 2010 2011 2012 2013 2014 2015 Market Penetration Year Low High • FMS Penetration would Grow Significantly • Navigation as a feature with FMS would find Across Europe – Benelux, Germany, France increasing adoption among fleet operators. would Continue to be Major Markets • With increasing partnership between navigation • Penetration of FMS to reach 14.5 % by 2015 companies and telematics vendors like Garmin from 6.39% in 2008 + Mix Telematix, the penetration of navigation would gain momentum. • Replacement sale of Track and Trace would be dominant in 2015. • Operation consulting to add huge value to fleets 7
  • 8. Total Revenue – System-wise: FMS Hardware Sales and Service Market Would Continue to be Highly Lucrative Market for Heavy and Medium Commercial vehicle Telematics: System-wise Total Market Revenue (Europe), 2008 2008 Market for Heavy and Medium Commercial 67% Market for Heavy and Medium Commercial vehicle Telematics: System-wise Total Market vehicle Telematics: System-wise Total Market Note: All figures are rounded; the base year is 2008. Revenue (Europe), 2015 Revenue (Europe), 2015 2015 2015 Frost & Sullivan Scenario Conservative Scenario 14% 65% 6% 7% 6% 59% Source: Frost & Sullivan FMS Track and Trace Navigation RVD 10% 7% Emergency Assistance 12% 10% 7% 9% 10% 11% Currently, revenue generated through FMS product Revenue generated through FMS sale and service sale and service accounts to approximately 67 per would witness an year-on-year growth of 8.5 per cent cent of the total market revenue. This would grow at a over the forecast period while that of RVD, CAGR of 13 per cent from 2008 to 2015, and by 2015, emergency assistance and navigation would grow at it would account for nearly 65 per cent of the total a CAGR of 19 to 20 per cent from 2008 to 2015. revenues. Revenue share of track and trace system Under this scenario, the revenue shares of all the would witness a dip and that of other systems would systems would grow, except FMS, which would grow. account to 59 per cent of the total market revenues. 8
  • 9. Third-party Logistics and Petrochemical Industry Show Highest Adoption for Telematics, but Other Industries Gain Momentum Increasing consumer demands Market for Heavy and Medium Commercial vehicle Telematics: Telematics for high quality service coupled Adoption by Sector (Europe), 2008-2015 The importance of fuels to with government legislations to maintain economic stability, maintain high hygiene levels, and timely and safe promote the use of telematics deliveries are a key driver Vehicle for telematics Transport, 11% Retail, 14% Low demand for Food & Beverages, 15% navigation-based systems, although the construction industry is Mining, 7% expected to have 3PL, 23% strong growth in tracking Constructions, Petroleum & 9% Chemicals, 21% Note: All figures are rounded; the base year is 2008. Source: Frost & Sullivan • 3PL have the highest usage for telematics at 23 per cent, as 3PL are demanding continuous improvements in the service level agreements over “..it is imperative that we have solutions based on a time frame scenario…Telematics solutions helps us address a period of time while being able to manage their cost (especially, fuel cost) labour and other direct cost”- A major food service • Hot selling retail products with strong demand as well as perishable goods distribution company in food and beverages are expected to have the highest growth rates. “We have undertaken the major capital investment in the • Construction and mining companies are mainly interested not only in technology and further investment will be incremental, either tracking solutions to optimise their operations but also to track their assets through the addition of one or two pieces of software for the fleet, or the installation of the full hardware and software to each new if they get stolen. truck” – A international transport and logistics company 9
  • 10. Setting Telematics as Standard as well as Leveraging the Existing Sales Infrastructure and Strategic Partnerships will Increase the OEMs’ Share Unit Shipments per year – OEM vs. Third-party suppliers OEM OEM 15% 30% •Increasing collaborations between truck manufacturers and aftermarket telematics vendors to drive OEMs share. The product offering through such alliance to combine truck manufacturer's vehicle expertise and telematics vendor’s transport Third-party Suppliers Third-party Suppliers business expertise 70% 85% •Line fitted telematics proportion to increase 2008 2015 Source: Frost & Sullivan Similar trend is seen in North America – Volvo, International, Paccar are the current OE solutions 10
  • 11. Green Telematics Market Overview and Trends 11
  • 12. Fuel Cost Reduction and Green Image are Key Benefits to Commercial Vehicle Fleets Installing Green Telematics Fuel Cost Reduced Carbon Reduction Footprint Higher Demand Better Efficiency Benefits for KPIs of Green Fleet Telematics Meet Duty of Care Other Intangible Obligations Benefits Green Telematics Package As an optional / standard service with FMS - As a part of larger service package green telematics services could cost around € 15 per month As Product Proposition – With track & trace device, this green service can cost additionally € 15-20/month Dedicated CAN BUS black box with GPS+ GSM/GPRS – Hardware cost €500 and green service cost an additional € 15-20/month 12
  • 13. Key Product Offerings – Green Telematics can be Offered through a Dedicated New System or Using Existing FMS or Navigation Systems Connected Navigation with green routing feature could be a value addition PAYD Insurance • One time investment for hardware - € 220-250 Green Telematics Products Dedicated CANbus integrated hardware, with • Monthly fixed cost including comprehensive vehicle and driver management functionality communication - € 25-30 Hardware cost - €450-500 Service cost - € 15 -20 per month As an add on to track & trace real time routing, speeding and idling reports, basic vehicle and driver Navigation with Green management. Service cost - € 15 per month Routing • Feature Cost : € 250-300 • In case of connected As an add on service to fleet navigation, the monthly management system. service cost is € 8-10 Comprehensive vehicle and driver management. Service cost - € 15 -20 per month Leasing User Group Private users Fleet Company Companies 13
  • 14. Impact of Green Telematics: About 10% Fuel Cost Reduction and An Equal Measure CO2 Emission Reduction is Possible through Green Telematics Penetration of green routing feature in navigation is estimated to reach over 11% in Green Navigation Europe and about 15% in North America by 2015. The adoption of green telematics in the car parc would reach over 4% in Europe and over 4% in North America With about 5% penetration estimated in the commercial vehicle segment both in Europe Green Fleet Telematics and North America, the total revenue generated through new hardware sale and service revenue is expected to reach over $1 billion PAYD adoption would largely depend on the kind of marketing push from business PAYD Insurance community combined with the extension of extended by the regulation environment. PAYD penetration is expected to reach 1.5% of car parc in Europe by 2015 Impact of 20% of Green Telematics Penetration in Passenger Car Parc North American European Market Market Car Parc over 270 million over 160 million On an average both green navigation and PAYD 18,500 km per car Over 18,600 km per insurance could achieve Annual Mileage car 10% reduction in fuel and emission in passenger cars Emission About 15.5 million About 9.5 million Reduction tonnes tonnes M3FA-18 14
  • 15. ROI Analysis for Commercial Vehicle: Up to 10% Cost Saving from Fuel Consumption Reduction Achievable through Green Fleet Telematics Incremental ROI Direct Cost Reduction Further Benefits Green Telematics Service Vehicle & Driver Management Fuel Consumption Driver Productivity Maintenance Improved Management Reduction • Data to control • Key performance • Optimum maintenance Better Corporate Image fuel consumption indicators for management. Remote weakness vehicle diagnostics Customer and Employee • Cost saving and identification and rating • Reduced wear and tear, Satisfaction emission reduction • Accurate analysis of higher residual value Fleet Structure through report driver behavior • Reduced down time and Optimization analysis • Peer to peer evaluation repair time • Incentive calculation Add on Green Services Contract Maintenance • Route optimization and reduced Pay How You Drive / Pay As you pollute Insurance unauthorized driving • Improved driver behavior • Fuel consumption reduction Green Navigation • Further cost saving possible through add on services M3FA-18 15
  • 16. ROI Case Study 1 – Investment on FMS Add on Green Telematics Service can be Realized within 5 Months Based on Just Fuel Cost Savings Typical Cost Saving and Emission Reduction for a 40 Tonne (GCW) Long Haul Vehicle clocking annual mileage of 160,000 km Case 1 Hardware : Mid tier FMS costing - Cost: €1500 Service : Basic Logistics Management + Driver/Fuel/Vehicle management - Cost €35 Cost Saving: Realistic fuel cost saving of 8% achievable through green fleet telematics service Before After Saving/Reduction Fuel Consumption 51,200 L 47,104 L 4096 L Fuel Cost € 58,368 € 53698.56 € 4669.44 CO2 Emission tones 133.1 122.4 10.7 €4670 €420 €1920 €1500 Facts: Hardware Cost Total Cost Incurred Fuel Consumption of 40 Tonne Truck – 32 L / 100km Diesel Cost (UK Average) – € 1.14 per liter Annual Service Cost Annual Fuel Cost Saving CO2 Emission per liter diesel burnt – 2.6 kg 16
  • 17. Green Telematics Truck Parc Penetration to Reach about 4% in Europe LCV Market Green Telematics Market: Green Fleet Light Commercial Truck Parc Penetration (Europe), 2008-2015 • With around 23 million light commercial vehicles in Europe, 12% Telematics Fleet Penetration the penetration of telematics is just over 4 per cent and this is expected to reach over 12 per cent by 2015. Truck Parc Penetration 10% Green Telematics Penetration 8% • More than 80% of the vehicles that are fitted with telematics 6% are track and trace system with GPS + GPRS/GSM module with back end service functionality that provides basic work 4% management capability. 2% • However, there are significant number of operators who 0% 2008 2009 2010 2011 2012 2013 2014 2015 prefer to install CAN bus integrated mid tier FMS solution Year Source: Frost & Sullivan which would give greater control over the vehicle and driver. • Penetration of green telematics services is expected to reach around 3.9% by 2015. Green Telematics Market: Green Fleet Light Commercial Truck Revenue Forecasts (Europe), 2008-2015 250 Dedicated Green Fleet Telematics Hardware Revenue Revenues (€ Million) 200 Service Revenue 150 100 50 0 2008 2009 2010 2011 2012 2013 2014 2015 Year Source: Frost & Sullivan M3FA-18 17
  • 18. Green Telematics Offers True ROI in Case of Commercial Vehicles and Solid Savings on Fuel Cost for Passenger Vehicles Green Telematics Market: Green Routing Feature Penetration Green Telematics Market: Green Fleet Telematics Truck Parc on PND Unit Shipments (World), 2009-2016 Penetration (World), 2009-2016 20% 6% Feature Penetration in Units Euro pe No rth A merica Europe North America Truck Parc Penetration 15% 4% Sold 10% 2% 5% 0% 0% 2009 2010 2011 2012 2013 2014 2015 2016 2009 2010 2011 2012 2013 2014 2015 2016 Year Year Source: Frost & Sullivan Source: Frost & Sullivan Typical Cost Saving and Emission Reduction for a 40 Tonne ROI for an user in UK clocking 16,000 km per annum in a (GCW) Long Haul Vehicle clocking annual mileage of diesel vehicle with 5.9L/100km fuel efficiency and savings of 160,000 km fitted with fleet management system with green 15% through eco navigation service subscription €4670 €300 Savings would pay €163 for the device in €100 around 22 months and the further €420 €1920 savings from the €1500 Average cost of eco navigation PND device is ROI Cost per year considering usage for 3 years Hardware Cost Total Cost Incurred Fuel Cost Savings per year Annual Service Cost Annual Fuel Cost Saving M3FA-18 18
  • 19. Revenue Forecast: Revenue Through Green Telematics to Reach Over €100 million by 2015 in the Heavy and Medium Commercial Vehicle Segment Green Telematics Market: Green Fleet Heavy and Medium Truck Revenue Forecasts (Europe), 2008-2015 150 Service Revenue Hardware Revenue Revenues (€ Million) 100 50 0 2008 2009 2010 2011 2012 2013 2014 2015 Year 2008 2015 20 120 Revenues (€ Million) Revenues (€ Million) 90 10 60 30 0 0 Dedicated Service Extended with FMS Dedicated Service Extended with FMS Extended with T&T Dedicated Hardware Extended with T&T Dedicated Hardware Source: Frost & Sullivan 19
  • 20. Pay How You Drive is the Commercial Vehicle Version of Usage Based Insurance Business Segment 100% UPTO 20% 6.25% Acceleration of the vehicle 80% Cost of the basic telematics solution along Braking the vehicle with the hardware spread over a period of 3 years PHYD Speed of the vehicle 73.75% of Mileage traveled the premium Traditional Discount to To goes to the premium to costumer Insurance insurance Time traveled be paid by based on his Company company. customer previous year claims Business Model – Business Segment Insurance companies buys the box at a price from the telematics company and own them. • RSA pays 100-120 GBP for box and for the basic PHYD functionality and geolocalisation. The leasing company or the end-user pays for the additional services based on their need. • The leasing company or the user pays 3-12 GBP for additional services based on his needs. Benefits to Insurance Co. Benefits to Leasing Co. Benefits to Fleet Co. PHYD, Geolocalisation PHYD, Geolocalisation FMS, Geolocalisation • Monitoring driving behavior and calculation of Monitoring driving behavior & knowledge about • Effective fleet management annual premium based on user’s risk • vehicle service records to assess the value of • On time eCall and SVT assistance • Reduce claim cost of crash and theft the vehicle at the end of the contract. • ECO Driving • ECO Driving 20
  • 21. Key Conclusions – Green Telematics Offers Immense Growth Opportunities and Provides a Definite Social Incentive of Cost Effective Emission Reduction The low cost involved and the ease of adoption among old and new vehicles is the fundamental The penetration of green fleet advantage of green telematics. A With stringent norms teleamatics in the long-haul comprehensive and wide adoption expected in the coming years, segment to be much higher of the same could effect companies are increasingly than local and regional significant emission reduction incorporating environment as segment both in Europe and a component to their overall North America business strategy Promotion of PAYD as an Green Telematics Regulatory compliance and environmental friendly Demand to cost cutting intitiatives to drive insurance with the needed green telematics adoption support from legislation to Increase within the commercial and increse its adoption among Dramatically leasigng segment the consumer segment The desire to cost cutting and Car and truck manufactures to making high value purchase An evolution of comprehensive increasingly adopt telematics to increase adoption of green telematics solution for diagnostics and related navigation with green routing encompasing insurance, services that combined with feature. vehicle and driver consumer efforts could help management is inhibited by reduce emission the limitations inherent with various stake holders. 21
  • 22. Snapshot of Electric and Hybrid Commercial Vehicles 22
  • 23. What do commercial drivers think of electric vehicles? Overall, most commercial drivers feel that using electric vehicles would be a good idea. While some doubt reliability and distance able to travel the vast majority would be willing to use them if their capability requirements could be met. Only very few were very sceptical. “I think they are a good idea with over 5,000 fleet “It is a good idea because we are a company that of vans our company would benefit from this .” travels mainly of small distances within the city.” Commercial driver for EDF Energy, UK Commercial driver for mairie de maurepas, France “Too slow for my line of work, a bad idea. No I do “Perhaps is OK but I have not thought about it not believe they would suit my line of work. I very much.” need to be able to get in vehicle and go, without Commercial driver for Selbst , Germany worrying if I have enough energy to get me where I am going and back.” “It is a very good idea, I would definitely use one Commercial driver for MG Green Maintenance Engineers, UK for sure if it meets my needs. We need to do more for the environment.” Commercial driver for Agentur, Germany “Yes I am ready but my condition is that it can make about 200 km without needing to be “I think they are an excellent idea and I hope to charged and support the maximum 60 kg.” switch to one when they become more available.” Commercial driver for Chefdeterroir, France Commercial driver for National Theatre, UK “It is a good idea to have an electric vehicle. But “I think they are a good idea, assuming I can fit all of my equipment into them and the range is the problem is travelling in rural areas sometimes and it is difficult to find charge points.” enough to get me from A to B.” Commercial driver for PC30, France Commercial driver for HCE, UK Base : Total interviews (N=170), UK n=58, France n=61, Germany n=51 23
  • 24. Market Overview: Electric Commercial Vehicles are concentrated more towards depot based delivery vehicles with fixed payload and work schedule cycle. Electric Commercial Vehicles Market: Overview of suitability (Europe 2010) Electrification Attractiveness High ( 4% ~ 10% of total CV market @ 2015) Postal Vans Urban Refuse Trucks Super Market This implies immediate opportunity and target for (< 60 miles) City Councils Ports Usage Transit Bus electric vehicles Utilities Medium (1% ~ 4 % of total CV market @ 2015) Range Intra Urban Parcel Vans Logistics This signifies an expanding opportunity gained by (<150 miles) Distribution early adopters experience and challenges can be overcome but require substantial investment Highway Low (<1% of total CV market @ 2015) (> 150 miles) Medium to Long Haul This represents the size of opportunity and electrification will need to overcome considerable technical and market challenges LCV MCV HCV Type of Commercial Vehicle Urban Intra-Urban Highway Usage lies in an urban Usage lies in an urban and intra- Usage mostly lies in highway environment with frequent stop urban distribution. May have routes long haulage with heavy and go combined with fixed load stop and go routes loads Source: Frost & Sullivan 24
  • 25. Market Attractiveness of Hybrid Commercial Vehicles Hybrid commercial vehicles deliver attractive fuel economy benefits while reducing emissions. However, these benefits are more pronounced in certain types of vehicle categories and in certain duty-cycles. Frost & Sullivan’s research indicates LCVs, HCVs and transit buses that operate within congested urban areas will emerge as early adopters of hybrid powertrain systems. The fuel saving potential is further enhanced through reliance on electric systems, in diesel-electric hybrids, which deliver the following performance attributes: Start/stop systems turns off the engine when the car stops Engine can be operated at its highest point of efficiency Cold starts are performed by electrical systems Regenerative braking technology recovers energy while braking and stores in storage system North American and European Hybrid Commercial North American and European Hybrid Commercial Vehicles Vehicles Market: Early Adopters for Hybrids (North Market: Potential Fuel Saving by Hybrid Commercial Vehicles America & Europe), 2009 and Buses (North America & Europe), 2009 45 Early Adopters for Hybrid Vehicles 40 Urban Package/Courier Delivery Trucks LCV Potential Fuel Saving Urban Beverage Delivery Trucks 35 30 Utility Trucks MCV Fire/Rescue Trucks (%) 25 Refuse Trucks, Heavy urban delivery trucks 20 HCV (beverage, groceries and produce etc) 15 Bus Urban Transit buses and School buses 10 5 0 Inner City Edge of City 25
  • 27. Key conclusions - Growth Opportunities Will Come From the Appropriate Segmentation of the User Market Eastern Europe growth New Volumes Growth Still Expected Consolidation of certain national transport market to boost demand Under penetrated small fleets provide significant growth opportunities Consolidation among fleets Impact of Economy Slowdown would Telematics vendors need to adopt strategic Affect Market Dynamics Significantly growth steps needed to stay competitive Matured market replacement cycle Large vehicle fleets already have high Replacement in More Matured Markets penetration of telematics Focus on value proposition and differentiation Conclusions Demonstrate sector-specific knowledge Industry and Sector-specific Requirements and understanding Focus should shift towards customer Focus on Recurring Revenue retention and value-adding services Further push telematics integration into business process – consulting revenue ROI and operator satisfaction are highly correlated to Implementation Focus the ability to successfully sell telematics 27