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Installed-base of car telematics set to reach 150 million.

According to a new research report from the IoT analyst firm Berg Insight, the number of active aftermarket car telematics units will grow at a compound annual growth rate (CAGR) of 20.6 percent from 58.7 million at the end of 2018 to 150.0 million at the end of 2023.

Berg Insight’s definition of an aftermarket car telematics solution in this report comprises both cellular/GNSS and RF-based solutions. A growing number of aftermarket telematics services have in the past few years become available for consumers that want to add services and connectivity to cars. Berg Insight forecasts that shipments of aftermarket car telematics devices for consumer applications will grow from 20.3 million units in 2018 to reach 51.0 million in 2023.
 
”Aftermarket car telematics solutions are useful in a number of application areas including stolen vehicle tracking and recovery (SVT/SVR), vehicle diagnostics, Wi-Fi hotspot, convenience applications and usage-based insurance”, said Martin Svegander, IoT Analyst at Berg Insight. Vehicle diagnostics allows service providers such as dealers and workshops to improve service offerings to car owners. Dealers and finance companies can moreover leverage telematics for internal fleet management and manage the customer lifetime value. Examples of convenience applications enabled by aftermarket telematics devices include remote control of certain vehicle functions such as door lock/unlock and finding the last parking position.

Aftermarket car telematics services are offered by a wide range of players. Examples of leading telematics companies selling services via third parties or directly to consumers include Octo Telematics, Spireon, Ituran, Mojio, Scope Technology, Automatic Labs (SiriusXM), CalAmp (LoJack), Bright Box, Viasat Group and Vodafone Automotive. “Distributing services and products through third parties is the most common way to market for aftermarket car telematics solution vendors”, continued Mr. Svegander. Important sales channels include insurance companies, dealers, mobile network operators and online retailers. Some solution vendors also market their products on their own websites and through telemarketing.
 
The connected car market is highly important for mobile network operators that bet on the Internet-of-Things market. Many mobile network operators have started to explore the aftermarket car telematics opportunity and they are well-positioned to provide such services. “Mobile network operators can accelerate sales by targeting their existing customer base as well as leverage an ecosystem of partners to pursue data monetization opportunities for their installed base of car telematics solutions”, added Mr. Svegander.

Technologies such as AI, ML, blockchain and robotics will drive multiple growth opportunities in Supply Chain Market, research suggests.


Frost & Sullivan’s latest analysis, Growth Opportunities in the Internet of Things-enabled Supply Chain Management Market, Forecast to 2024, reveals that end-to-end visibility, predictive analysis, transparency, and real-time insights are some of the benefits driving the adoption and implementation of Internet of Things (IoT) systems within the supply chain management (SCM) market. The trend toward IoT-enabled SCM is creating a convergence of disparate sets of providers and the rise of a new ecosystem that will have far-reaching benefits to users.

“Current supply chains will be reinvented as IoT-enabled systems allow unprecedented end-to-end visibility, remote tracking, and control,” said Deepali Sathe, Senior Industry Analyst at Frost & Sullivan. “The increase in automation will significantly improve accuracy of predictions and speed of execution.”

The research identifies market drivers and restraints, offers strategic recommendations, and forecasts IoT revenues in the digital supply-chain management sector until 2024. The research also lists a variety of use-case scenarios across the various segments in supply-chain management.

One of the biggest impacts of technology adoption on SCM has been the introduction of new business models. As data siloes diminish, customers can focus on the benefits that can be achieved as a result of improved end-to-end visibility, ability to remotely control devices, and automated processes.

Vendors offering IoT-enabled solutions can tap into new growth opportunities by:
• Focussing on increasing demand for IoT-enabled, multi-function robots and cobots;
• Investing in the development of sensors and tags required for connected devices;
• Offering strong, multi-layered cybersecurity solutions to tackle potential threats;
• Harnessing data using AI and ML technologies to enable solutions such as chatbots or smart home speakers;
• Meeting customer preference for XaaS business models such as platforms and sensors.

“Predictive analytics based on artificial intelligence (AI), machine learning (ML), and Big Data Analytics (BDA) will reduce errors and take the guesswork out of planning, forecasting and execution,” noted Adrian Drozd, Research Director at Frost & Sullivan.

“Technologies such as blockchain can create better and faster processes and prevent fraud, while robotics will enhance automation and precision for greater accuracy.”

Third-party logistics companies (3PLs) are lacking in proactivity and continuous improvement, according to the latest research from  supply chain and logistics consultancy, SCALA.

SCALA surveyed a selection of the UK’s best-known businesses and 3PLs (whose revenue runs into the billions and whose number of clients run into the thousands) to ascertain companies’ satisfaction rates and areas of concern regarding the performance of their 3PLs.

 

The findings revealed that a key shortfall in 3PLs’ performance is their inability to innovate and bring fresh ideas and solutions to the table. More than half (59%) of the companies surveyed stated that their 3PL is ‘poor’ at introducing new initiatives. None said that their 3PL is extremely good at this.

 

However, the research highlighted contrasting views from 3PLs; the majority of which were overly optimistic in their performance. Indeed, 84% of 3PLs said they are good at introducing new ideas and initiatives.

 

John Perry, managing director at SCALA, commented: “These findings show that there is clearly a major conundrum for both parties. There is definitely a feeling amongst client companies that 3PLs do not bring enough innovation, particularly after the 3PL has won the contract.

 

“However, in our experience, the 3PL’s response to this is often to point out that the greatest improvement potential comes from looking at the supply chain and service more holistically, but they find their clients can be resistant to this level of collaboration. Yes, there are opportunities for standalone innovation in operations, but greater impact can be gained by looking at logistics as a whole. The two respective companies need to work together to truly achieve that. 

 

“More upfront discussion and negotiation, together with ongoing regular reviews and sharing of information, would lead to more consistent expectations and better performance.”

 

Participating companies that shared their views in SCALA’s research cover a wide range of sectors but predominantly operate in the grocery, FMCG, electrical appliance and homewares sectors. The 3PLs range from regional providers to the very largest in the UK, with the majority having in excess of 100 clients.

Findings from the Deloitte Consumer Tracking Survey has revealed the UK consumer confidence index is -8 per cent; down four percentage from this time last year. Customer experience expectations, however, show no signs of slowing, with over half of UK consumers feeling more loyal towards brands that show a deeper understanding of their preferences and priorities. This means that now more than ever, businesses will be focusing on providing a seamless digital customer experience, optimising customer engagement.

While technologies like AI and automation will be critical for businesses to remain competitive in these times of such low consumer confidence, it is important not to overlook the importance of in-person human interaction. Retailers with omnichannel strategies retain an average of 89 per cent of their customers, according to Teleperformance DIBS, and any businesses failing to focus directly on customer experience will struggle with customer retention.

Rajnish Sharma, from Teleperformance Digital Integrated Business Services, comments: “With people so worried about their personal finances in the increasing economic uncertainty, it will take a lot more than just a good product or service to persuade the average consumer to hand over their cash.  Consumers are looking for frictionless, hassle-free and personalised customer experiences. In fact, in the next year the customer experience will be more important than product and price. To remain competitive in these times of economic uncertainty, businesses need to be available to provide round-the-clock, real-time service – at the consumer’s convenience. While AI bots are widely being introduced to improve engagement and streamline communication, it’s important to note that human interactions are not just cognitive, but social and emotional.”