COMMUNICATION SYSTEMS FOR VEHICLE EMISSIONS MONITORING. INVEST IN SPAIN Investment opportunities in the automotive sector in Spain

Transcription

1 COMMUNICATION SYSTEMS FOR VEHICLE EMISSIONS MONITORING INVEST IN SPAIN Investment opportunities in the automotive sector in Spain

2 INDEX I. INTRODUCTION II. III. IV. BUSINESS IDENTIFICATION BUSINESS ANALYSIS PROJECTED EVOLUTION AND OPPORTUNITIES V. REASONS FAVOURING THE DEVELOPMENT OF THE INITIATIVE VI. VII. CONSTRAINTS CONCLUSIONS

3 I. INTRODUCTION Rising environmental awareness, concerns about the carbon footprint of products and services where the weight of transportation plays a key role and the increase of specific regulations promote the need for more advanced systems to control and trace transportation emissions. These systems allow for a greater control of emissions, helping to achieve the CO2 emissions reduction goals proposed in the Kyoto commitments and other guidelines at regional, national and European levels. These solutions also contribute to environmental awareness and energy efficiency as they allow for drivers to understand the pollution-related operational conditions of their vehicles.

4 II. BUSINESS IDENTIFICATION Definition of the business area This business includes the activities of technological development, integration and commercialization of these systems, thus it concerns: Automotive OEM manufacturers that want to introduce this new technology in their vehicles. Service and information technology companies that want to offer this service to administrations and/or insurance companies. IT companies developing these systems. Public-private partnerships that implement and disseminate these technologies for a greater control of vehicle pollution and air quality monitoring. Business consortia or joint-ventures of agents involved in the production chain, between electronics and IT companies, automotive OEM suppliers and manufacturers.

5 II. BUSINESS IDENTIFICATION Value chain The value chain covers the manufacturing of the necessary components and electronic systems, assembly and integration, up to the provision of the final information service. Clients will primarily include public administrations, maintenance and insurance companies, although drivers of vehicles provided with the technology enabling emission and consumption control will also be included.

6 II. BUSINESS IDENTIFICATION Description of the technology The solutions to trace vehicle emissions can include different technologies and approaches. In general, these solutions incorporate the following elements: Diagnosis: using a direct connection to the vehicle's bus through the OBD-II/CAN interface. This interface enables the identification of situations of malfunctioning and gives information about the general parameters that the vehicle is circulating under (rpm, speed...) Communications: Communication technologies involved include sensor networks, CAN, LIN, FlexRay, MOST wired interfaces, and wireless WiFi and Bluetooth interfaces. Safety technologies will also be necessary to guarantee the privacy of these communications. Central system: Central systems to analyse the information received from the vehicle. This central system will incorporate SOA or OSGi architectures and data-mining technologies.

7 III. BUSINESS ANALYSIS Current Situation of the Business in Spain Relevant R&D and innovation projects which are underway or finished can provide results, technologies and solutions to be adopted in this area. Relevant Spanish companies able to integrate systems in the transportation sector: Indra, Telvent, GMV Companies such as Ficosa, C.T. SEAT, Irizar, Pegaso/Iveco, Telefónica I+D, Telvent, Indra, GMV, ETRA I+D, ATIPIC, Southwing, TSS, IDOM, Moviquity, Agnitio, OPNATEL, AT4 Wireless, AIA, CIRCUTOR, FICOSA, Infranor, MAPRO Technologies, Universities and Research Centres such as CITEAN, Universidad Politécnica y Autónoma de Madrid, Universidad de Valladolid, CIDAUT, CEDETEL, Tecnalia, CEMITEC, Universidad Politécnica de Cataluña and Universidad Barcelona, Universidad Politécnica de Valencia and Universidad de Valencia, Universidad de Murcia, CITIC, CTM Centre Tecnològic, AICIA, ASCAMM, CIDETEC, CIRCE, or Leitat.

8 IV. PROJECTED EVOLUTION AND OPPORTUNITIES Projected Evolution The demand for telematic solutions and services for transportation has grown over the last few years. isuppli Corp reports that in million cars will have telematic systems installed, compared to 14.3 million in 2008, meaning that 84.6% of the cars sold in 2016 will incorporate these systems. Global sales of telematic systems and post-sale service. (Source: isuppli. Corp. Estimation December 2009).

9 IV. PROJECTED EVOLUTION AND OPPORTUNITIES Short and mid term opportunities - Public administrations, by using their environmental instruments, will be able to control the polluting emissions of vehicles on their roads and in their cities in a more reliable and continuous manner. - Insurance companies will possess tools to monitor the use of vehicles and can thus design specific pricing options for the most responsible or ecologically sustainable drivers. Also, by using these devices, insurance companies will be able to establish business intelligence processes to better understand their clients' profiles and appropriately adjust the consumption profiles and respective rates more successfully. - Manufacturers and integrators will be able to better understand the behaviour of their vehicles when faced with different types of driving, preventing possible breakdowns and improving their future models in a much more immediate manner based on this information. - Maintenance companies will also have access to this highly detailed information. - Drivers can understand how to drive more ecologically and efficiently.

10 V. REASONS FAVOURING THE DEVELOPMENT OF THE INITIATIVE The significant implementation of vehicle manufacturers, the existence of technological capacities, the promotion of the environmental regulations and the excellent professional qualifications stand out as reasons to support the initiative in Spain. SIGNIFICANT IMPLEMENTATION OF MANUFACTURERS EXISTENCE OF TECHNOLOGICAL CAPACITIES REGULATORY DRIVERS EXCELLENT QUALIFICATIONS

11 VI. CONSTRAINTS The following regulations establish the primary legal constraints: Legal framework (I) The Law of Air Quality and Protection of the Atmosphere that intends to contribute to reaching and maintaining a high protection level for people and the environment against adverse pollution effects. To do so, the regulation is based on the principles of caution and preventive actions, to control pollution at source and on the motto "whoever pollutes pays". This law has had a direct impact on vehicle registration taxes, whose amount depends on emissions measured as grams of CO2 per kilometer of the vehicle. Decision number 1753/2000/EC of the European Parliament and of the Council of 22 June 2000 establishing a scheme to monitor the average specific emissions of CO2 for new passenger cars. Thus, the European Union launched a control mechanism for CO2 emissions coming from new cars to favour the implementation of the reduction strategy for said emissions.

12 VI. CONSTRAINTS Legal framework (II) The regulation on the use of the radio electric spectrum in Spain, and specifically the National Frequency Allocation Plan (CNAF) that dictates the spectrum in Spain. The CNAF indicates the allocation to radio electric services and the uses of the different frequency bands in Spain. The Royal Decree 837/2002 of 2 August (BOE/Official State Gazette no. 185 of 3 August) incorporates the Energy Labeling Directive by the Spanish legal system and by which the information relative to fuel consumption and CO2 emissions of new cars which are for sale or for rent in Spanish territory is regulated. The European Commission decided in 2009 to force a progressive reduction of emissions that aims to reach 95 g/km on average per car manufactured for each manufacturer by 2020.

13 VI. CONSTRAINTS Technological constraints The necessary technologies are currently available in the market. However, their integration and the development of services and solutions for the end client (administration, maintenance and insurance companies) are needed. One of the primary technological barriers is the possible incompatibility of different systems that could hinder widespread dissemination.

14 VI. CONSTRAINTS Other constraints The deployment of these solutions and services will depend on the boost received by both public administrations and manufacturers. As for the administration, it will depend on the impetus of environmental agencies regarding the progress of the control of greenhouse emissions or other pollutants that can affect air quality, especially in urban areas. On the other hand, manufacturers are interested in establishing these telematic systems to increase the quality control of their products and to be able to foresee any problems and apply continuous quality control on their products.

15 VII. CONCLUSIONS Telematic systems for monitoring and controlling vehicle functions will spread enormously during the next years. These systems will likely incorporate functions such as emissions monitoring. The significant implementation of vehicle manufacturers, the existence of technological capacities, the promotion of the environmental regulations and the excellent professional qualifications stand out as reasons to support the initiative in Spain.

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