The Connected Car:
Driving the Industry
Forward
Hughes Telematics, Inc. Proprietary & Confidential
Telematics Update Munich
November 2009
Can Telematics Fuel Industry Recovery?Can Telematics Fuel Industry Recovery?Can Telematics Fuel Industry Recovery?Can Telematics Fuel Industry Recovery?
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Can Telematics Fuel Industry Recovery?Can Telematics Fuel Industry Recovery?Can Telematics Fuel Industry Recovery?Can Telematics Fuel Industry Recovery?
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What NEW is Driving this Optimism?What NEW is Driving this Optimism?What NEW is Driving this Optimism?What NEW is Driving this Optimism?
Feature Integration
� Connected Services
� Overnight InnovationConsumer Interest
� Technology
� Connectivity
OEM Cost Reduction
� Device Integration
� Repairs
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Consumer Savings
� Pay as You Drive Insurance
Continues to Grow
Government Regulation
� eCall
� Congestion Charging
� Emissions Reduction
� Car-to-Car Communications
� Driver Information
Let’s Consider the BuyerLet’s Consider the BuyerLet’s Consider the BuyerLet’s Consider the Buyer
� Who is the next generation buyer?
� What do they want?
� How will TSPs deliver it?
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� How will TSPs deliver it?
� When must OEMS deliver?
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What Do Tomorrow’s Buyers Look Like?What Do Tomorrow’s Buyers Look Like?What Do Tomorrow’s Buyers Look Like?What Do Tomorrow’s Buyers Look Like?
� The Next Gen 1
o Under 35 years of age
o Mostly female
o Moderate education
o Avid internet users
2nd highest ownership of
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o 2nd highest ownership of
electronic devices
o Try to stay current with new
technology
o 50% are very interested in
purchasing telematics in
next vehicle
1 GfK Automotive Study, 2007
What Do Tomorrow’s Buyers Look Like?What Do Tomorrow’s Buyers Look Like?What Do Tomorrow’s Buyers Look Like?What Do Tomorrow’s Buyers Look Like?
� The Mega Techies 1
o Under 35 years of age
o Mostly male
o College Grads
o Actively adopt new technology
o Want instant access
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o Want instant access
o Highest ownership of electronic
devices
o 70% are very interested in
purchasing telematics in next
vehicle
1 GfK Automotive Study, 2007
Consumers Crave ConnectivityConsumers Crave ConnectivityConsumers Crave ConnectivityConsumers Crave Connectivity
� Smartphones were 21% of
European mobile phone sales
in Q2 ‘09 – IDC
� Mobile Internet adoption is
set to grow to 39 percent in
Western Europe in 2014 from
13 percent in 2008.– Forrester
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13 percent in 2008.– Forrester
Research
� International Facebook users
grew from 34 million at the
beginning of ‘08 to 95 million
users in ‘09 – Facebook
In Fact In Fact In Fact In Fact –––– Consumers Are ObsessedConsumers Are ObsessedConsumers Are ObsessedConsumers Are Obsessed
� The average European
averages 4 texts a day;
teenagers can average as high
as 100. – Tomi Ahonen Mobile
Telecom Annual Review 2009
� In February 2009, Facebook
accounted for 4.1% of all
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accounted for 4.1% of all
minutes spent online in Europe.
– ComScore
� 77% of Europeans could not
live without daily access to the
internet, compared to 54% for
access to a car. – AMD & YouGov
Buyer Values Are Changing Buyer Values Are Changing Buyer Values Are Changing Buyer Values Are Changing ---- DramaticallyDramaticallyDramaticallyDramatically
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Buyer Values Are Changing Buyer Values Are Changing Buyer Values Are Changing Buyer Values Are Changing –––– DramaticallyDramaticallyDramaticallyDramatically2222
� Thrifty
o Virtual Accessories, Mobile
Coupons, Social Apps, PAYD, SVT
Insurance Discounts
� Adaptability
o OTA Reflash, Application Store,
Mobile Apps, Web Personalization
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� Consumer to Consumer
o Social Apps, Web Affinity Groups
� Green
o Diagnostics, Emissions, Eco
Navigation, Smart Charging
2 Consumer Psychology, The Economist, April 2009
Driving Connected: Driving Connected: Driving Connected: Driving Connected:
High Interest
Daily Utility
Opportunities
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Safety and Security
Navigation
Convenience
Diagnostics
Infotainment
High D
aily
Utility
Opportunities
Driving Connected: The OpportunityDriving Connected: The OpportunityDriving Connected: The OpportunityDriving Connected: The OpportunityEnhancements
Peace of Mind
NavigationPOI Search
Traffic ProductivityOTA Updates
Social Apps
Info On Demand
Streaming
Media
Services that
Create Daily Utility
Opportunities to
Lifestyle
M-Commerce
Mobile Apps
Weather
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High Integration
Low D
aily
Utility
InfotainmentNavigation DiagnosticsSafety &
Security
ACN/E-Call
Diagnostics
Emissions
Convenience
Internet
Gaming
Concierge
Low Integration
Core ServicesOpportunities to
Create LoyaltyEco-Telematics
Dealer Connect
VII
How to Deliver Today’s ServicesHow to Deliver Today’s ServicesHow to Deliver Today’s ServicesHow to Deliver Today’s Services
� Flexible and Scalable Architecture
� Supports Rapid Service and 3rd Party Integration
� Multiple HMIs
� Multiple Hardware Platforms
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How to Deliver Tomorrow’s ServicesHow to Deliver Tomorrow’s ServicesHow to Deliver Tomorrow’s ServicesHow to Deliver Tomorrow’s Services
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Telematics AvailabilityTelematics AvailabilityTelematics AvailabilityTelematics Availability
30%
40%
50%
60%
70%
Percentage of New Cars Shipping with Telematics Percentage of New Cars Shipping with Telematics Percentage of New Cars Shipping with Telematics Percentage of New Cars Shipping with Telematics in Europein Europein Europein Europe3333
Research suggests 65% of vehicles
will ship with telematics by 2014
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0%
10%
20%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
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3 ABI Research, 2009
Willingness to PayWillingness to PayWillingness to PayWillingness to Pay
� PEoD for Safety and
Security is only -0.13. – GfK Automotive
� 48% of people are
definitely/probably
interested in In-
Vehicle Internet. – JPDA,
0%
10%
20%
30%
40%
50%
60%
70%
$10 $15 $20 $25
Safety & Security
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Vehicle Internet. – JPDA,
2009
� 52% of people are
definitely/probably
interested in Personal
Assistance Safety
Services. – JDPA, 2009
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$10 $15 $20 $25
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
$5 $8 $11 $14
Navigation
TimelineTimelineTimelineTimeline
� “By 2012, the majority of
vehicle manufacturers will
concentrate product
development efforts for
mature markets on enabling
wireless data connectivity in
more than half of their next-
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more than half of their next-
generation cars.” – Gartner
Predicts 2009
� “A critical turning point for
vehicle ICT solutions is only
two model generations away.” – Gartner
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The Hughes Telematics ResponseThe Hughes Telematics ResponseThe Hughes Telematics ResponseThe Hughes Telematics Response
� Keys for Success
o Develop a flexible architecture for future growth
o Look beyond current interest levels and build towards latent
consumer trends
o Break free from stale business models
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o Break free from stale business models
o In a word – Simplicity
o Integrate with the rest of the ‘connected’ ecosystem
o ‘Cool’ never goes out of style
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Contacting Hughes TelematicsContacting Hughes TelematicsContacting Hughes TelematicsContacting Hughes Telematics
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