OSGi World Congress 2003

1. Frost and Sullivan’s Assessment of the European Remote Vehicle
Diagnostics and In-Car Infotainment Markets
Soikot Sengupta
29.09.2003

2. Agenda
• Introduction to Remote Vehicle Diagnostics and In-Car
Infotainment
• Remote Vehicle Diagnostics (RVD):
– Market Data and Forecasts
– Types of Services
– Drivers and Restraints
• In Car Infotainment:
– Market Data and Forecasts
– Technology Roadmap
– Drivers and Restraints
• Strategic Conclusions

3. Introduction to Remote Vehicle Diagnostics and In-
Car Infotainment
! Frost and Sullivan has recently published two reports on the
growth of Remote Vehicle Diagnostics (RVD) and Infotainment,
highlighting the opportunities in both markets.
! Conclusion of both reports show an enormous revenue potential
for the future
! Remote Vehicle Diagnostics (RVD) and Infotainment systems
are prime targets for the introduction of an OGSi platform
! Currently both areas are operating primarily with on-board
systems

4. Remote Vehicle Diagnostic (RVD) - Market Data
and Forecasts
Passenger Vehicles Remote Diagnostics Market Size
and Revenue Forecast (Europe), 2001-2009
0
1000000000
2000000000
3000000000
4000000000
5000000000
6000000000
2001 2002 2003 2004 2005 2006 2007 2008 2009
Year
Revenues(€)
0
200000000
400000000
600000000
800000000
1000000000
1200000000
1400000000
1600000000
1800000000
2000000000
Units
€ Units
Note: All figures are rounded. Source: Frost & Sullivan
• Frost & Sullivan estimates revenues for
European Passenger Car Remote Vehicle
Diagnostics Market to be €344million in 2003
• We expect the market to reach €1.8 billion by
2010, with a CAGR of 31.6%
• Remote diagnostics is expected to be
available as an option in most Executive and
Luxury vehicles by 2005 and may become
standard by 2008
• After 2009 the market is expected to remain
stable until further penetration of RVD can be
achieved in lower-medium and small car
segments

5. Remote Vehicle Diagnostic (RVD): Types of
Services
Remote DiagnosticsRemote Diagnostics
PassivePassive
Proactive DiagnosticsProactive Diagnostics
PeriodicPeriodic ContinuousContinuous
Reactive DiagnosticsReactive Diagnostics
Vehicle
Initiated Fault
Notification
Vehicle
Initiated Fault
Notification
PrognosticsPrognostics Preventive
Maintenance
Preventive
Maintenance
• Present: Passive Reactive Diagnostics is currently the main RVD service available in the market
• Short to Mid Term: Periodic Diagnostics is a reality but OEMs are testing the vulnerability and
potential of the service.
• Long Run: Move towards continuous and eventually proactive diagnostics,
• Key Challenge: Telecommunications needs upgrading to GPRS or UMPT.

6. Remote Vehicle Diagnostics (RVD) : Drivers &
Restraints
Impact
Confidentiality
of information
Data
gathering
Minimise fleet
downtime
Higher customer
loyalty
Telematics
driving RVD
Reduction of
warranty cost
DriversRestraints
High Cost of
Introduction
Bandwidth and
Communication
Cost
Absence of
business model
Lack of perceived
benefits

7. In-Car Infotainment: Market Data and Forecast
In-Car Infotainment Systems Market Revenue Forecast
(Europe), 2001-2009
-
1,000,000,000
2,000,000,000
3,000,000,000
4,000,000,000
5,000,000,000
6,000,000,000
2001 2002 2003 2004 2005 2006 2007 2008 2009
Year
Revenues(€)
Note: All figures are rounded. Source: Frost & Sullivan
• Frost and Sullivan estimates the market for
infotainment market to represent €1.8 billion in
2003
• The market is forecasted to grow to €5 billion
by 2009, a CAGR of 9.8 percent
• Potential for OSGi is enormous! Frost and
Sullivan estimates that by 2009, Navigation and
Digital Audio broadcasting will account for over
50% of the market

8. In-Car Infotainment: Technology Roadmap
1 9 9 0 1 9 9 5 2 0 0 0 2 0 0 5 2 0 1 0 2 0 1 5
T -D A B
S -D A B
B a s ic
N a vig a tio n
A d v a n c e d
N a vig a tio n
(R D S -T M C )
H yb rid
N a vig a tio n
N a vig a tio n
O ff-b o a rd
M o b ile
In te rn e t
M u s ic
D o w n lo a d s
V id e o
D o w n lo a d s

9. In-Car Infotainment : Drivers & Restraints
Impact
Limited dash
board space
Demand for
sound and
information
Product
differentiation
Demand for
incident free
driving
Analogue to
digital switch
High margins for
OEMs
DriversRestraints
Short
product life
cycle
OEM reluctance
towards sharing
Bus network
High retail price Delay in
introducing new
telecom
standards

10. Strategic Conclusions
! Open standard has to be made available for cost leveraging
! Open standards will allow systems flexibility in the choice of
hardware
! Open standards will reduce the impact between the short life
cycle of consumer electronics/telematics products and the long
life cycle of a vehicle.

11. Questions?