The global ETC market, next battleground for connected services

Transcription

1 Consulting Group The global ETC market, next battleground for connected services Road User Charging Conference Brussels - 8 th March 2018 intellectual property

2 The global ETC market, next battleground for connected services An introduction to Why ETC is an attractive market for new suppliers The barbarians at the gates - New service providers entering the market ETC providers must enable new services and improve user experience Consulting Group

3 The global ETC market, next battleground for connected services An introduction to Consulting Group

4 in a nutshell The consulting & research firm for the connected world Consulting services Fields of expertise Strategy definition Investment assistance Procurement strategy Mobility services Car pooling Car sharing Fields of expertise Smart parking Multimodal mobility Ride hailing Road side assistance Tax refund Innovation management Business development Deployment Vehicle services & telematics bcall ecall FMS SVT / SVR VRM Concierge In-car Wi-Fi Fuel cards Parking Navigation Speed cameras Traffic information Market research services Usage-based charging Vehicle data & analytics Car As A Service Electronic Toll Collection AI CAN-bus Crowd-sourcing Data protection Mobility-as-a- Service Road charging Driving behaviour OBD Predictive analytics UBI / PAYD Vehicle rental Vehicle leasing Remote diagnostics xfcd Vehicle automation ADAS Autonomous cars Autonomous trucks Enabling technologies Positioning (GNSS / WiFi / cellular) M2M / connectivity Smartphones Telematic devices V2X 4

5 in a nutshell Our clients come from across the mobility ecosystem Analytics, maps & applications providers Automotive manufacturers & suppliers Mobile telecom operators RUC & fleet operators & regulators Telematics solution providers Device & location suppliers Insurers, aggregators & assistance providers Banks & private equity investors 5

6 in a nutshell including from road user charging and fleet services 6

7 in a nutshell Projects around the globe Clients Offices / Consultants 7

8 in a nutshell - Strategy consulting We help all stakeholders define their RUC strategies For the Wallonian road operator, evaluated the feasibility of a shadow tolling scheme Assisted in developing its usagebased charging telematics business Defined & implemented its partnership strategy in the connected vehicle ecosystem Major motorway operator Identified market opportunities & defined strategic plan in connected mobility services Road & infrastructure operator Defined toll pricing strategy & marketing plan across Europe European fleet services provider Assisted the board of its technology unit in its strategy definition Global motorway operator Evaluated the technologies & business potential of the EU electronic tolling market Defined its global data & analytics strategy to predict incidents Major road operator Defined strategic positioning in the field of fleet connected vehicle services Built company strategy, value proposition & go-to-market plan in fleet mobility services Global electronic tolling supplier Assisted in forging partnerships in EU connected vehicle ecosystem Global ETC system provider Detected opportunities from connected & autonomous vehicles for the space industry Space agency

9 in a nutshell - Typical consulting assignments as well as their fleet services strategy Led the technology due diligence of Arvento, the leading Turkish fleet management service provider Defined the company s fleet telematics strategy & services dashboard specifications For its fleet, evaluated the benefits of telematics and scheduling solutions Assisted in the strategic & technology evaluation of an Irish fleet Telematics Service Provider Motorway operator Evaluated future changes in the European fleet services market Fuel card services group Helped evaluate European OBD market opportunities in fleet services Major telematics device vendor Defined our client s strategic plan in the field of connected fleet services Major motorway operator Defined the European pricing strategy for FMS, fuel card services, tolling & tax refund Fleet services provider Led commercial due diligence of ITmobile, a Belgian fleet TSP Led technology due diligence of Lytx, a US video-based fleet Telematics Service Provider Define its 5-year US fleet services strategy & go-to-market plan Global fuel card company Helped define the insurance and fleet management specifications of its ecall on-board unit Global automotive OEM 9

10 in a nutshell - Research brings unparalleled depth of knowledge in connected and autonomous vehicle services The most comprehensive research on insurance analytics The reference report on UBI, quoted by The Economist, the Financial Times & the Wall Street Journal The most comprehensive, global report on light and heavy commercial vehicle services The reference on vehicle payment services The most thorough analysis of ADAS and AVs Reference figures & forecasts for 14 connected car services For more information and pricing details, please contact fbruneteau@ptolemus.com 10

11 The global ETC market, next battleground for connected services An analysis of the global ETC market Consulting Group

12 Analysis of the global ETC market The global tolling market is highly fragmented, but this will not preclude the emergence of new service providers DSRC GNSS RFID Infrared ANPR Telematics UBI Not yet chosen = Secondary implementation Source:. Note: Enforcement technologies not shown

13 Analysis of the global ETC market The global tolling market is highly fragmented, but this will not preclude the emergence of new service providers DSRC GNSS RFID Infrared ANPR Telematics UBI Vignette Not yet chosen = Secondary implementation Source:. Note: Enforcement technologies not shown

14 Analysis of the global ETC market As with connected cars, there is a clear trend towards the use of GNSS + cellular connectivity for HGV tolling GNSS tolling schemes in 2018 GNSS tolling schemes in 2025 GNSS (Certain/highly certain) GNSS (Less certain) DSRC Source: 14

15 Analysis of the global ETC market Strong growth in ETC revenues makes the market attractive to other connected mobility service providers ETC transaction revenues Example of commercial vehicle market ($ million) Key influencing factors 120, ,000 80,000 60,000 40,000 20, , ,000 80,000 60,000 40,000 20,000 0 Europe HGVs New/expanded HGV schemes Significantly increased use of electronic payments in key markets Growth in tolled road networks Standardised installation of ETC lanes Strong macroeconomic growth Source: ETC market forecasts 15

16 The global ETC market, next battleground for connected services The barbarians at the gates - New service providers entering the market Consulting Group

17 Barbarians at the gates ETC OBUs are just one of many connected devices fighting for control of service delivery Current / potential devices capable of generating telematics data Black box ISA* OBD device Tolling/ETC OBU Smartwatch PND Speed camera locator Aftermarket ELD Dash cam Smartphone Fuel level sensor TSP box epod device OEM system TSP black box Tachograph Semi-embedded ETC device Vehicle keys OEM smartwatch Line-fitted Event data recorder Fixed Removable Portable Source: - Note: ISA: Intelligent Speed Adaptor - ELD: Electronic Logging Device; ETC: Electronic Toll Collection; 17 *ISA = Intelligent Speed Adaptor - epod: Electronic Proof of delivery

18 Barbarians at the gates Tolling is one small part of a truck s TCO, which could make toll operators tier-2 players Key: Fleet TSPs Tyre manufacturers Fuel card issuers ETC providers Fuel Depreciation Maintenance Tolling Financing Tires Insurance Taxes Driver Source: Note: Graph based on annual TCO calculation for a CRT HGV operating in Europe driving 120,000 km per year (TCO: Total Cost of Ownership)

19 Barbarians at the gates The potential to capture toll-related spend has encouraged numerous players to enter the tolling services market More and more groups are positioning themselves as toll service providers TOLLING SERVICE PROVIDERS ENERGY COMPANIES FUEL CARD ISSUERS FLEET TELEMATICS PROVIDERS ROAD OPERATORS MOBILITY SERVICE PROVIDERS OEMs Source: 19

20 Barbarians at the gates Many of these players are far better placed to generate vehicle data and provide a wider set of services Transaction services Fleet services Vehicle data sets Axxes Easytrip Eurotoll Telepass Toll4Europe ViaVerde TomTom ViaSat Frotcom Eurowag DKV UTA 20 Source:

21 Barbarians at the gates Packaging services will change the way ETC is delivered, which could impact the value chain in different ways COMPONENTS SYSTEMS & OPERATION SERVICE PROVISION TOLL CHARGER SUB - COMPONENTS MANUFACTURE DATA MANAGEMENT/ CONNECTIVITY SUB-SYSTEMS SYSTEMS INTEGRATION Value chain integrators SYSTEMS OPERATION Device manufacturers Active toll chargers Service operators Systems specialists 21 Source:

22 Barbarians at the gates The ability to deliver a complete set of connected services, not device coverage, will define the success of EETS providers HQ Lyon, France Courbevoie, France Rome, Italy Senlis, France Copenhagen, Denmark Kleinostheim, Germany Germany Prague, Czech Republic ETTS registration December 2015 February 2016 March 2016 June 2016 September 2016 n.a. Q Feb 2017 Toll domain coverage (planned) Device Device supplier n/a Source: Covered either at present or at planned launch Covered at a later date

23 The global ETC market, next battleground for connected services ETC providers must enable new services and improve user experience Consulting Group

24 Barbarians at the gates ETC providers must focus on enabling new services and improving the user experience 24

25 Barbarians at the gates Failure to embrace change could result in ETC becoming just another (vehicle) payment ETC payments using AliPay have been launched in Hunan Province, prior to a full nationwide roll-out A single AliPay account can be attached to multiple vehicles AliPay accounts are linked to vehicle licence plates with ANPR acting as a the charging & enforcement mechanism AliPay has been embraced as a means to combat chronic congestion at toll gates across the country and will soon enable open road tolling in all provinces Source: 25

26 Conclusion & next steps ETC service providers must adapt the user experience and leverage their position to enable more integrated services Electronic toll payments will continue to grow at a fast pace across the globe ETC will become a feature within a wider range of fleet and consumer mobility services Thank you for listening! All players in the ETC value chain should define a strategy for moving towards integration with other connected services, including: - Driving interoperability & integration with other service providers - Partnering with players outside the tolling sector - Acquiring innovative start ups in the field of mobility to accelerate - Enabling ETC payments and providing the service foundations for new players 26

27 Consulting Group Strategies for Mobile Companies Brussels - Boston - Chicago - Düsseldorf London - Milan - New York Moscow - Paris - Toronto contact@ptolemus.com Frederic Bruneteau Managing Director fbruneteau@ptolemus.com Justin Hamilton Consultant jhamilton@ptolemus.com