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NEWS ARCHIVE / News

2013-05-06
The installed base of container tracking systems grew 54 percent in 2012
According to a new research report from the analyst firm Berg Insight, the number of active remote container tracking units deployed on intermodal shipping containers was 137,000 in Q4-2012, up from 89,000 a year earlier. Growing at a compound annual growth rate (CAGR) of 49.1 percent, this number is expected to reach 1.0 million by 2017. The penetration rate of remote tracking systems in the total population of containers is estimated to increase from 0.7 percent in 2012 to 4.1 percent in 2017. Berg Insight’s definition of a real-time container tracking solution is a system that incorporates data logging, satellite positioning and data communication to a back-office application. The market for container tracking solutions is still in its early stage. Aftermarket solutions mounted on high value cargo and refrigerated containers are the first use cases to adopt container tracking. Orbcomm has after recent acquisitions of StarTrak, PAR LMS and GlobalTrak emerged as the largest vendor of wireless container tracking devices. Omnitracs, ID Systems and Skybitz are prominent vendors focusing on inland transportation in North America, which is so far the most mature market for container tracking solutions. Envotech, Pointer Telocation, Savi Technology, PearTrack Systems, Honeywell Global Tracking and Kirsen Global Security are examples of companies which have been successful in offering dedicated solutions targeting the global end-to-end container transport chain. “The installed base of intermodal containers worldwide has now reached 20 million, which represents a significant market opportunity for the telematics industry”, said Johan Svanberg, Senior Analyst, Berg Insight. He adds that several prominent wireless M2M operators including Orbcomm, AT&T, Everything Everywhere and Telenor even have assumed the role of end-to-end solution providers of container tracking. Container telematics can help stakeholders to comply with regulations and meet the high demands on security, information visibility and transportation efficiency that comes with global supply chains. “It has been challenging to find the right business models to suit the diverse range of players in the intermodal transportation chain, but technology advancement, declining hardware prices and market awareness are starting to come together to make remote container tracking solutions attractive” concluded Mr. Svanberg.

2013-04-19
PND shipments declined to 28 million units in 2012 as competition from nav apps intensified
According to a new research report from the analyst firm Berg Insight, global shipments of Personal Navigation Devices (PNDs) declined from 33 million units in 2011 to 28 million units in 2012. Even though part of the decline can be attributed to lower consumer spending in Europe resulting from the continuing sovereign debt crisis, other developments are also affecting the PND market. The installed base of PNDs is already high, especially in mature markets. Retailers have reduced shelf space and marketing for PNDs in favour of higher margin consumer electronics products. Competition from other navigation solutions, notably navigation apps for smartphones is furthermore growing. Over time, PNDs will also start to face more competition from factory installed in-dash navigation systems as more car brands launch next generation low cost systems. Shipments of PNDs are still growing in markets such as Eastern Europe, South America and India, but not fast enough to compensate for the decline in mature markets. Berg Insight therefore forecasts that global PND shipments will decline to about 17 million units in 2017. Higher smartphone adoption and broader availability of attractively priced services are key factors for growing usage of mobile navigation apps. “The number of mobile subscribers worldwide using a turn-by-turn navigation app on their handset at least once per month grew from 105 million in 2011 to 150 million in 2012”, said André Malm, Senior Analyst, Berg Insight. He adds that more than half of the current active navigation subscriber base uses free apps that are bundled with handsets or service plans from mobile operators. In most developed markets, smartphones from major vendors now come bundled with free navigation apps. Google and Nokia were the first to launch free navigation and have later been followed by Apple and BlackBerry. In response to the proliferation of free navigation apps, many mobile operators have switched to bundled freemium navigation services to offset the cost for end users. App developers and operators are now trying to monetise services by introducing advertising and premium features. Users can customise their app to suit their personal preferences by purchasing new features and content add-ons. Complementing core navigation with features including traffic information, speed camera alerts, parking space information, local search and local offers can make navigation apps useful on a daily basis for more potential customers. “Stimulating usage is important for app developers and mobile operators that want to pursue additional revenues from advertising”, commented Mr Malm.

2013-04-10
Mobile Location-Based Advertising will be worth € 6.5 billion in 2017
According to a new research report from the analyst firm Berg Insight, the total value of the global real-time mobile location-based advertising and marketing (LBA) market will grow from € 526 million in 2012 at a compound annual growth rate (CAGR) of 65 percent to € 6.5 billion in 2017. This will then correspond to 32.8 percent of all mobile advertising and marketing. This means that location-based advertising and marketing will represent around 5 percent of digital advertising, or more than 1 percent of the total global ad spend for all media. SMS, mobile search and coupons are today important high-volume LBA formats. The ability to precisely target prospective customers using real-time location is currently one of the most promising additions to the advertising toolbox. “Key drivers for LBA include the growing adoption of both outdoor and indoor location technologies, as well as the increasing consumer acceptance of location-based services in general”, said Rickard Andersson, Telecom Analyst, Berg Insight. Location targeting in combination with other contextual and behavioural segmentation greatly enhances the relevance of mobile advertising. “Major brands are so far the main spenders, but LBA has also opened the mobile channel for small local merchants. Local businesses can extend their marketing initiatives with mobile components such as location-sensitive coupons using online self-services, while big box retailers leverage enterprise LBA solutions for conquesting and to combat showrooming”, said Mr. Andersson. The LBA value chain is still forming and there are a large number of players involved in the ecosystem. Since the value chain is fragmented and the industry has not yet reached maturity, many different roles are involved. Companies range from LBA specialists such as Verve, Placecast and xAd, to LBS players including Telmap, Telenav and Waze, and operators such as AT&T, SFR and the new UK joint venture Weve. There is furthermore an abundance of location-aware applications and media which serve geo-targeted ads, with examples such as Foursquare, Shopkick and SCVNGR. Other stakeholders include coupons and deals providers including Vouchercloud, Yowza!! and COUPIES, search solutions such as Yell and Yelp, and proximity marketing providers like Proxama, NeoMedia and Scanbuy. A number of traditional mobile advertising players are also active in the LBA space, for example Millennial Media, Madvertise and Nexage, as well as major digital and telecom players such as Google, Apple and Facebook.

2013-03-04
Berg Insight to participate in telematics conferences during March-June
Berg Insight analysts will participate in the Telematics for Fleet Management Europe 2013 conference in Amsterdam March 19-20 as well as the Connected Cars 2013 being held in Amsterdam June 25-26. Take the opportunity to meet with us at these events. Find out more about the events we are partnering with on the link below.
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2013-02-21
108 billion mobile applications will be downloaded in 2017
According to a new research report from the analyst firm Berg Insight, the number of mobile application downloads worldwide doubled during 2012 and reached 60.1 billion, up from 29.5 billion in 2011. The growth will continue and annual downloads will reach 108 billion by 2017. Berg Insight estimates that revenues from applications, including direct revenues and in-app ad revenues, reached € 6.4 billion in 2012. Berg Insight forecasts app revenues to grow at a compound annual growth rate of 17 percent to reach € 14.1 billion in 2017. Apple’s App Store is the clear leader in monetisation of mobile apps and will keep the number one position during the forecast period. Google Play and Windows Phone Store are anticipated to be number two and three respectively in 2017. The increase in app downloads during 2012 comes mainly from Apple App Store, Google Play and some of the third party app stores. Third party app stores pushed Android to become the leading platform in terms of app downloads during 2012. While many Western third party app stores are struggling, the situation is different in other parts of the world. “Third party app stores are especially popular in China and other markets where Google Play hasn’t become the default on-device app store” said Johan Svanberg, Senior Analyst, Berg Insight. Monetisation is however particularly challenging in these markets, even though free to download strategies such as in-app advertising and in-app payments are promising and have been moderately successful. The most important trends on the app market today are the popularity of free to download apps and multiplatform support. Furthermore, publishers commonly incorporate social features, where some build their own social platforms and others use existing social networks in order to expand their application user base and increase engagement. “Every app can find its own way to success, but common strategies today among many of the top revenue generating app developers are to publish apps featuring a social layer on more than one platform using free to download monetisation” adds Mr. Svanberg. The mobile app market is highly competitive, but the economical upside can be great for the successful publishers. “Like almost no other digital product, mobile apps represent a global opportunity with more or less instant worldwide distribution” concludes Mr. Svanberg.

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