The European Remote Vehicle Diagnostics Systems Market

1. The European Remote Vehicle Diagnostics Systems Market Interactive Analyst Briefing 7th November 2002 Anil Valsan

2. Agenda • Remote Diagnostics Defined • Market Overview • Market Trends • Key Aspects of Remote Diagnostics • Strategic Impact on Key Participants • Service Evolution • Key Demand Drivers and Restraints • Market Size and Forecasts • Report Highlights • Questions

3. Data Centre Vehicle Manufacturer Customer Service Centre Data Link Mobile Services Service Centre Type of Link: Wireless Wired Physical Remote Diagnostics Defined The ability to access the vehicle’s performance parameters and trouble codes in case of malfunction using a wireless network, and provide necessary support services.

4. Market Overview • Overall market expected to grow by 39.5 percent during forecast period. • Number of units installed is expected to be 5.4 million by 2009. • Market expected to be driven by vehicle manufacturers. • Significant opportunities for a number of value chain participants.

5. Market and Technology Trends Market Trends • Revision of Competition Laws by European Commission • Issues relating to personal privacy • New model introduction • Car culture in the European market Technology Trends • Initiatives for standardisation of architecture such as AMI-C, OSGi, ERTICO • Key emerging technologies such as • 3G • Embedded systems • On-board Vs off-board systems

6. Benefits of Remote Diagnostics • Reduction in warranty costs • Quality aftersales service support to customers • Relationship with subsequent vehicle owners • Mobile asset management

7. Strategic Impact on Key Participants • Vehicle manufacturers • Aftersales service market • Diagnostics equipment suppliers • Telematics service providers • Tier One suppliers • Software companies

8. Service Evolution Remote Diagnostics Reactive Diagnostics Proactive Diagnostics Passive Periodic Continuous Vehicle Initiated Fault Notification Prognostics Preventive Maintenance

9. Key Demand Drivers and Restraints Restraints • Absence of a business model • High cost of introduction • Confidentiality of vehicle performance data • Lack of perceived needs and benefits by consumers • Threat of obsolescence of constituent technologies Drivers • Reduction of warranty costs • Data for new product development • Benefits to vehicle owners • New competition laws in European Union • Fleet management benefits

10. Market Size and Forecasts Passenger Cars • RVD for passenger vehicles to grow by 38.9 percent between 2002 and 2009 to touch € 1.8 billion • Number of vehicle manufacturers expected to introduce between 2003 and 2005 • To be initially introduced in the upper-medium, executive and luxury segments • Remote diagnostics to be packaged along with telematics services. • Main countries expected to see introduction include Germany, United Kingdom, France, Sweden and Italy

11. Market Size and Forecasts (Contd…) Commercial Vehicles • RVD for commercial vehicles to grow by 59.5 percent between 2002 and 2009 to touch € 93.4 million • To be initially introduced in the higher tonnage vehicles • Remote diagnostics to be packaged along with fleet management applications • Main countries expected to see introduction include Germany, France, the UK, Netherlands, and the Scandinavian countries

12. Report Highlights • Based on extensive primary and secondary research • Detailed roadmap and product life cycle analysis • A cost benefit analysis model for evaluating the business feasibility • Forecasts for units, prices and revenues for passenger and commercial vehicles • Includes forecasts for penetration levels for different vehicle manufacturers • Recommendations for key industry participants and analysis of implications for key industry participants • Detailed profiles and initiatives of prominent value chain participants

13. Questions? For further information please contact us Call: +44 (0) 20 7343 8383 Email: enquiries@frost.com