Opportunities for VAS in the mobility pricing market
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Ptolemus Consulting Group's report analyzes the future of electronic tolling and mobility pricing, drawing on extensive research and market forecasts. It highlights the transition towards a more interconnected and innovative tolling environment, propelled by advancements in technology and the demand for value-added services. The study presents insights into major players, regulatory changes, and the potential of mobility pricing to transform transportation services globally.
Opportunities for VAS in the mobility pricing market
- 1. PTOLEMUS Consulting Group Exploring the opportunities for VAS in the future mobility pricing market Frederic Bruneteau - Dublin – 1st September 2015 - PTOLEMUS intellectual property IBTTA’s 83rd Annual Meeting & Exhibition
- 2. PTOLEMUS PTOLEMUS in a nutshell The strategy consulting firm for the mobility ecosystem 2 Mobile telecom operators Mobile device & positioning suppliers Automotive manufacturers & suppliersApplications providers Insurers, aggregators & assistance providers OBD2 Bluetooth Dongle basic compatible car models Telematics solution providers Banks & private equity investors 2012 Directors’ report ITS operators, regulators & fleets
- 3. PTOLEMUS 3 PTOLEMUS in a nutshell • 650-page analysis of the global electronic tolling landscape based on: - 60 interviews in 12 countries - 135 figures and charts - 3 years of hands-on experience advising key players in the ecosystem • A comparative assessment of tolling technologies, models and trends - ANPR, DSRC, Infrared, GNSS, RFID & WAVE technologies & business models compared - Evolution path from toll gates, ETC to MLFF - The new trends: big car data, mobile tolling, mobility pricing and sustainable mobility • A detailed analysis of all major players' strategies & solutions - Their development strategies in the new value chain compared - 23 company profiles, from Atlantia to Xerox - 35 tolling markets compared • A decryption of regulatory evolutions - Bill 810, eCall, EETS, ERA Glonass, REETS, Resolution 005 AGEPAR - 43 standards & patents listed: 6C, CEN, ETSI, ARTEFATO, ISO, etc. • 2010-25 bottom-up market forecasts - Number of devices sold, vehicles subscribed by technology & vehicle type - 36 countries covered in Europe, North America, South Africa, India, China, Japan, Korea and South East Asia • An in-depth review of ETC markets - 35 countries in Europe, America, Asia & Africa profiled and analysed - 14 case studies including ATI, AutoPass, BroBizz, Ecotaxe, e-way, Hu-Go, LKW Maut, PrePass, Via Verde, etc. • Toll charger models - Toll connected services opportunity analysis - Markets’ readiness for connected services - Integration with 11 VAS and 5 connected services Note: A 95-page free abstract can be downloaded on www.ptolemus.com/etc-study PTOLEMUS just published the ETC Global Study, the most comprehensive analysis of the tolling market worldwide More than a research report, a real strategic market analysis
- 4. PTOLEMUS Mobility pricing - Principles Mobility pricing means charging for the 3 cost components: driver, vehicle and road infrastructure Source: PTOLEMUS Road infrastructureDriver Vehicle
- 5. PTOLEMUS Mobility pricing - Principles Mobility pricing means charging for the 3 cost components: driver, vehicle and road infrastructure Source: PTOLEMUS Road infrastructure Road charging system Driver Vehicle services Vehicle Vehicle parts
- 6. PTOLEMUS Mobility pricing - ETC Road tolling is becoming global and progressing fast 1 2 3 4 5 Proportion of the road network tolled Source: PTOLEMUS ETC Global Study
- 7. PTOLEMUS Mobility pricing - ETC The road charging system could become the payment layer of all mobility services Source: PTOLEMUS Road infrastructure Mobility payment system Driver Vehicle services Vehicle Vehicle parts
- 8. PTOLEMUS Mobility pricing - ETC This can happen only if the payment system is electronic and relies on a secure device / process Source: PTOLEMUS Road infrastructure Electronic toll collection Driver Vehicle services Vehicle Vehicle parts
- 9. PTOLEMUS The gates of tolling are falling… Free flow or ORT in 2005 Mobility pricing - ETC Source: PTOLEMUS ETC Global Study
- 10. PTOLEMUS Mobility pricing - ETC The gates of tolling are falling… Free flow or ORT in 2025 Source: PTOLEMUS ETC Global Study
- 11. PTOLEMUS Global ETC subscriptions will exceed 300 million by 2020 11 Mobility pricing - ETC - 50.0 100.0 150.0 200.0 250.0 300.0 350.0 400.0 450.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Cumulative number of ETC subscriptions worldwide (in million) Oceania Asia Africa South America North America Europe Cumulative number of ETC subscriptions worldwide (in millions) Source: ETC Global Study - PTOLEMUS market forecasts
- 12. PTOLEMUS Mobility pricing - ETC technology Source: PTOLEMUS 12 Digital tachograph eCall device Fleet telematics black box Telematics insurance device Smartphone On-board computer Electronic tolling device Mobility pricing could be performed using a tolling OBU but also other connected devices
- 13. PTOLEMUS Today, the toll technology world is split into 2 camps Mobility pricing - ETC technology Secondary implementation: DSRC GNSS RFID Infrared Video Tolling WAVEPrimary toll technology: Source: PTOLEMUS ETC Global Study
- 14. PTOLEMUS There will be no successful VAS market without a roaming level playing field 14 • Scale is required for VAS success • The mobile telecoms services industry, one of the most successful VAS platforms, has grown to a $700 billion market thanks to roaming • How can the industry move to roaming faster? • A possible option: shift from device- to cloud- based intelligence - Barriers force the system to rely on hardware - Free flow transforms tolling into a software-based information exchange - ID and location become the key requirements - Consequence on privacy and enforcement Mobility pricing - ETC interoperability Source: PTOLEMUS
- 15. PTOLEMUS 15 EUCARIS Number plate information exchange mechanism Police Customs BE Other enforcement authorities Police Technical vehicle inspection center MOT Registration Authority (DIV) Registration Authority (DVLA) Registration Authority (RWV) EUCARIS SERVERS Registration Authority (KBA) UK NL FR DE SE Mobility pricing - ETC interoperability Source: PTOLEMUS Applying cloud-based roaming in the US and in the EU ATI’s HUB Number plate information exchange mechanism ATI HUB Regional HUB Regional HUB
- 16. PTOLEMUS Mobility pricing - ETC interoperability Source: PTOLEMUS 16 Openness makes the ETC business case more attractive • New and different • Not EETS-interoperable from the start • Open to any certified device (22 suppliers available) • Completely open system • Very inexpensive (€75 million for initial set-up) and built in 6 months • Fully integrated with fleet management services Unlimited potential for VAS • Segment-based (hybrid) • New and different • Not EETS-interoperable from the start • Single device allowed • Closed to other EETS-compatible devices • Expensive (€1.4 billion over 12 years) and took 5 years (2011-2016) • No VAS allowed • Mix of pure GNSS location and segments Belgium’s Viapass HGV tolling system Hungary’s Hu-Go HGV tolling system 2016 2013
- 17. PTOLEMUS If roaming doesn't come, the smartphone will force its way in! • 50-75% penetration in North America and in Europe • A very successful service delivery platform, e.g. 1.5 million apps on the App Store • 18 sensors in the iPhone 6, 1-2 new ones added every generation • Today, the device offers - A customer interface - A reliable GNSS antenna - Identification to match with ANPR - Secure payment and account management - A platform for VAS 17 Accelerometer 3-axis gyroscope Glonass Barometer Proximity sensor Light level Touch screen Camera(s) GPS location & time WiFiNFC Bluetooth iBeacon Magneto- meter 4G connectivity Microphone Voice & messaging communication Fingerprint sensor A smartphone brings more sensors than a black box Source: PTOLEMUS Mobility pricing - ETC interoperability
- 18. PTOLEMUS If the car becomes a public transport, who will operate it? 18 Mobility pricing - Barbarians at the gates Source: PTOLEMUS, Velodyne Road infrastructure UBER Driver Vehicle services Vehicle Vehicle parts TODAY Road infrastructure UBER UBER UBER UBER Vehicle parts 2025? - 5 - HDL-64E VLP-16 5
- 19. PTOLEMUS Road operators could become “car pipes” • Roaming is becoming a must if the industry wishes to survive, as it brings - Economies of scale, i.e. lower device costs - Higher revenues - Higher user benefits • But it is not sufficient: despite having achieved roaming, mobile operators have mostly become data pipes • Road charging could become just another Apple Pay service • More value needs to be provided by toll operators to customers 19 Mobility pricing - Barbarians at the gates Source: PTOLEMUS, Velodyne
- 20. PTOLEMUS Smartphones are becoming a viable solution to provide a very low cost road charging solution open to VAS • For example, Cintra is experimenting Satelise, a smartphone-enabled solution for road pricing and a platform for road services • Compatible with existing tolling systems, it allows for distance-based charging • Technology solution based on - Geo-fence virtual control points - ANPR for enforcement • The software platform can also offer: - Road services (traffic, weather, etc.) - Emergency call services - Loyalty programs - HOV schemes - Discount policies for green vehicles and responsible driving - Insurance premium bonuses* 20Source: PTOLEMUS - Note: * In cooperation with major insurance companies, under investigation Mobility pricing - VAS opportunities - B2C Introduces the C SATEL solution platform It uses s features only on Complem with exis Allows fo chargi SATELISE brand h International Pate
- 21. PTOLEMUS Source: PTOLEMUS - Note: FMS: Fleet Management Services Partnering with fleet tracking suppliers brings key advantages 21 Fuel consumption Navigation Time driven Traffic FMS PROVIDERS TOLL SERVICE PROVIDERS Routing engine FUEL CARD PROVIDERS Position Planning Trip cost calculation Activity reports Geofencing Alerts Fuel cost analysis Real toll per truck Toll cost calculation Post trip analysis Toll billing Full FMS solution Messaging Tachograph upload POI Fuel fraud preventionRouting Trip cost calculation SERVICE DATA Geofencing Fuel spent Own FMS Basic navigation Track & trace SVR Mobility pricing - VAS opportunities - B2B Fleet vehicles - Complementarity and data exchange between service providers
- 22. PTOLEMUS Openness is a must for toll chargers / agencies to move to VAS and mobility pricing • Connected vehicles, autonomous vehicles, free flow and roaming are about to radically change tolling • If ETC becomes a feature of a wider service controlled by new entrants, then monopolies will crumble • Regulators should support innovation by facilitating access to a secure ANPR data exchange • We recommend tolling operators to - Drive interoperability & integration with other services if they do not want to become payment commodities - Partner with players outside the tolling sector: car sharing providers, insurance companies, OEMs, etc. - Build B2C or B2B businesses, besides their existing B2G activities 22 Thank you! Conclusion Source: PTOLEMUS
- 23. PTOLEMUS Consulting Group S t r a t e g i e s f o r M o b i l e C o m p a n i e s Brussels - Boston - Chicago - Hamburg - London Milan - New York - Paris - Vienna [email protected] www.ptolemus.com @PTOLEMUS Frederic Bruneteau, Managing Director [email protected] +32 4 87 96 19 02
- 24. PTOLEMUS PTOLEMUS in a nutshell PTOLEMUS is the first strategy consulting firm focused on the connected vehicle 24 Strategy definition Vision creation, strategic positioning, business plan development, board coaching & support Investment assistance Strategic due diligence, market assessment, feasibility study, M&A, post- acquisition plan Innovation management Value proposition definition, product & services development, architecture design, assistance to launch Business development Partnership strategies, detection of opportunities, ecosystem- building, response to tenders Our consulting services Procurement strategy Specification of requirements & tender documents, launch of tenders, supplier negotiation & selection Implementation Deployment plans, complex / high risk project & program management, risk analysis & mitigation strategy Usage-based charging Road charging / electronic tolling, Usage-based Insurance, fleet leasing & rental, car sharing, Car As A Service, etc. Telematics & Intelligent Transport Systems ADAS, connected vehicle, crowd-sourcing, fleet management, eCall, bCall, SVR, tracking, vehicle data analytics (OBD / CAN-bus), VRM, V2X, xFCD Positioning / Location enablement M2M & connectivity Our fields of expertise Car infotainment & navigation Connected services (Traffic information, fuel prices, speed cameras, weather, parking, points of interest, social networking), driver monitoring, maps, navigation, smartphone integration
- 25. PTOLEMUS PTOLEMUS in a nutshell - Typical assignments 25 TELEMATICS: ANTICIPATING THE ROAD AHEAD Proposal to Admiral Group plc 7th October 2014 Ref. 2014-10-ADMI-1 Strictly confidential Appraised future telematics technology & market trends and their impacts Leading EU insurance group Assisted in developing its usage- based charging telematics business Performed the feasibility study of a shadow electronic tolling system Assisted in sourcing a driving behaviour database across Europe Global tier-1 automotive supplier Defining strategic positioning in insurance telematics value chain Global tier-1 automotive supplier Evaluated the technologies & business potential of the European electronic tolling market Major embedded electronics vendor Defined strategy & business plan of its telematics business Pan-European insurance company Assisted in sourcing the navigation engine of its next generation in-car system Consumer electronics device supplier Defined its strategy in mass cellular positioning data Assisted in designing a digital roadside assistant solution using OBD dongles Global roadside assistance group Defined strategic positioning in the field of fleet connected vehicle services Major motorway operator Led commercial due diligence of a UK data management service provider Financial investor Conducted the technology due diligence of a major fleet management service provider Major private equity fund Defined & implemented partnership strategy in connected commercial vehicle ecosystem Future EETS service provider Publicly- owned toll charger Mobile operator
- 26. PTOLEMUS PTOLEMUS in a nutshell Our clients come from around the globe 26Source: PTOLEMUS
- 27. PTOLEMUS 3 A growing recognition They mentioned PTOLEMUS PTOLEMUS in a nutshell