Key trends in the connected car market, corporate strategies, major challenges now and future, OEM and supplier profiles. Examines business models, tech trends and consumer perspectives.
While autonomous cars and V2X are making headlines, in-car connectivity is making waves in the market. Connectivity features are playing a growing role in consumer buying decisions, to the point that some are ready to postpone purchases to make sure they have the latest features. OEMs have to adjust to an emerging shift in buyer priorities that is driving deep-rooted change in vehicle purchasing.
Over the next five years, automotive connectivity will disrupt large parts of the automotive industry. Traditional product-based transactional business models will integrate a growing number of service-based experiences mirroring and developing on consumer product usage and cycles, opening the door to new entrants along the way and requiring established players to adjust their business models. The effects will ripple through the supply chain.
To understand what this means, several major questions need to be addressed:
- How will industry players adapt to these changing consumer preferecnes?
- How will automotive OEMs secure their share of the revenue stream in competition with tech giants like Apple & Google?
- What does that mean for their suppliers and partners?
- How will the industry tackle evolving problems of data ownership and security?
- Is legislation required or likely, will the playing field be tilted?
- A large number of more detailed questions - like the status of eCall in the EU, or the balance between aftermarket and factory-fitted options - will also require resolution.
“Internet of Cars: from Disruption to Dominance”looks at connected car trends, changes in structural dynamics in the automotive sector and the key challenges for the industry, with a global forecast through to 2020.
Key areas covered in report
- The consumer is king: Expectations, adoption, brand differentiators, business models
- Connected industry: The open ecosystem from value chain to value network, the new entrant challenge app ecosystems, the role of telecoms operators.
- Markets and Challenges: Connected cars intersecting with wearable tech, data ownership, cybersecurity, pricing, future-proofing, the role of the dealer aftermarket, OEM and Tier 1-2-3 capabilities and their development.
- Strategic analysis of OEMs and automotive connectivity component and system suppliers: Airbiquity, AT&T, Audi, AUPEO, BMW, Bosch, Continental, Daimler, Delphi Automotive, Elektrobit Automotive, Fiat-Chrysler Automobiles (FCA), Ford Motor Company, General Motors, Harman International, Hyundai, INRIX, Jaguar Land Rover, Jasper Wireless, Mojio, NVIDIA, NXP Semiconductors, Parrot Automotive, QNX Software Systems, SiriusXM, Tesla Motors, TomTom, Verizon Telematics, Visteon Corporation, Vodafone, Volkswagen are all covered
- Conclusion: Analysis and trends - points to watch and strategic recommendations
Key questions addressed
- What are the OEMs' future-proofing strategies?
- What is the difference in connected car markets between North America and Europe?
- What are the key current security vulnerabilities?
- What disruptive trends are reshaping the connected car market?
- What is the value of big data for connected car stakeholders?
- What in-car services are consumers willing to pay for?
- How will connectivity complement self-driving cars?
- Who will dominate the dashboard? Have phones already won, or is there room for proprietary solutions?
- How will Tier 1 suppliers meet the technology challenge - and what key services will they need to provide?
- Is legislation a help or hindrance? Is it even required?
- Where does the aftermarket fit in? What level of functionality can be provided?
Who should buy the report?
- Automotive OEMs
- Tier-1/2/3 suppliers
- Telecom operators
- Semiconductor manufacturers
- Independent software/hardware providers
- Government policy makers and transport agencies
- Tech start-ups
- Analysts and consultants
- Our experienced editorial team aims to find and synthesize a broad range of sources into a readable, accessible document that can serve as a foundation for further analysis to meet individual reader's needs and as a platform for the monitoring of ongoing developments.
- Regular surveys of extensive database of interested parties and industry executives to keep in touch with the latest thinking from the front-line of practical applications and highlight challenges to established industry thinking as it emerges.
- A team of researchers monitors major studies and thoughtful analysis of the key issues across the academic and business press and general media.
- Attendance at major conferences and events to bring insights from industry practitioners ands players and identify critical insights. We partner with the organisers of some key events.
About the author
Shamik Ghosh is a freelance automotive researcher focused on semiconductors, electronics and wireless communication in automotive applications. He has worked with Telematics Wire, where he has been responsible for the identification and tracking of key connectivity trends including connected cars, autonomous driving, smart mobility and Internet of Things (IoT). His reporting on technology and connectivity in the automotive world is widely respected and cited. He holds a Bachelor's degree in Electronics & Communication Engineering.
Table of Contents
The connected car value proposition in 2016
Chapter 1: Know your consumer - how the digital dashboard drives decisions
- 1.1. Consumer expectations from connected cars
- 1.2. In-car digital services that influence purchase decisions
- 1.3. Connectivity as automakers' brand differentiators
- 1.4. Search for a commercially viable business model: Are OEMs really making money?
Chapter 2: Connected Cars Connecting Industries - innovation, disruption and collaboration
- 2.1. Towards ‘open' ecosystem: From value chain to value network
- 2.2. Role of telcos in connected cars: Got something beyond connectivity?
- 2.3. Silicon manufacturers' share in connected car: Chips just got real!
- 2.4. In-car apps: Taking lessons from smartphone ecosystem
- 2.5. Battle for in-dash supremacy-OEMs vs. Apple-Google
Chapter 3: Connected services in developed vs. developing Economies
- 3.1. Market overview of connected cars per geography - North America, Europe, India, China, Russia, Brazil, ANZ
Chapter 4: Connected cars meet the IoT
- 4.1. Solving the “Built-in vs. Brought-In” conundrum
- 4.2. The battle for OBD-II supremacy: Hotspot for start-ups
- 4.3. Connected cars converges with smart watches
- 4.4. Automotive players dive into “deep” learning: AI, machine learning and more!
Chapter 5: Regulatory landscape for Internet of Cars - is legislation the answer?
- 5.1. The Pan-European eCall Mandate: No more delays please!
- 5.2. The Russian ERA GLONASS
- 5.3. The Brazilian CONTRAN 245 legislation on Stolen Vehicle Recovery
Chapter 6: Connected car market challenges - a bumpy road ahead
- 6.1. Future-proofing connected cars: Redefining software recalls
- 6.2. Connected car cybersecurity: Making an impenetrable car
- 6.3. Search for an appropriate pricing model: Think beyond subscriptions
- 6.4. Making sense of big data: Who owns it?
- 6.5. The missing link in connected car value chain: Auto Dealerships
Chapter 7: Conclusive core statements
Chapter 8: Strategic recommendations
Chapter 9: Strategic company analysis
- Delphi Automotive
- Elektrobit Automotive
- Fiat-Chrysler Automobiles (FCA)
- Ford Motor Company
- General Motors
- Harman International
- Jaguar Land Rover
- Jasper Wireless
- NXP Semiconductors
- Parrot Automotive
- QNX Software Systems
- Tesla Motors
- TomTom (Tom2)
- Verizon Telematics
- Visteon Corporation
- 1. Table of recent announcements and trials
- 2. Table of recent mergers and acquisitions
- 3. List of contributors
Table of figures
- Figure 1: Twitter response from a consumer
- Figure 2: Consumer's willingness to switch OEMs (McKinsey & Company)
- Figure 3: GM OnStar: From product to platform (GM)
- Figure 4: Connected Car services before, during and after the journey (Daimler)
- Figure 5: Competing the connected consumer (McKinsey & Company)
- Figure 6: Connected Car market by 2022 (Machina Research)
- Figure 7: Evolving business models in telematics (Ericsson)
- Figure 8: Connected Car Open vs. Closed Ecosystem (Roland Berger)
- Figure 9: Connected Car Stakholders (BC-FIPA Canada)
- Figure 10: MNO's Connected Car revenue model (Park Associates)
- Figure 11: Connected Car Team at AT&T's Drive Studio (AT&T)
- Figure 12: Global forecast Embedded SIM (GSMA)
- Figure 13: Automotive vs. Telecom Industry (Machina Research)
- Figure 14: Semiconductor content in modern vehicles (PwC)
- Figure 15: Broad R-Reach Automotive Grade Ethernet (Broadcom)
- Figure 16: Ford's Developer Program
- Figure 17: Apple CarPlay User Interface
- Figure 18: Android Auto User Interface
- Figure 19: MirrorLink User Interface
- Figure 20: Forecast on automotive screen projection (IHS Automotive)
- Figure 21: InkaNet User Interface (SAIC Motors)
- Figure 22: Importance of Connected Car Services India vs. Mature Markets (Capgemini)
- Figure 23: Mahindra & Mahindra joining Open Automotive Alliance
- Figure 24: Built-In vs Brought-In telematics systems (GM)
- Figure 25: OBD-II dongle (Automatic Labs)
- Figure 26: Apple iWatch
- Figure 27: Tesla iWatch App (Eleks Labs)
- Figure 28: MINI Augmented Vision (BMW)
- Figure 29: Auto companies need to develop software capabilities (BCG Analysis)
- Figure 30: eCall Diagram (HeERO)
- Figure 31: ERA GLONASS Diagram (GLONASS Union)
- Figure 32: Brazilian CONTRAN 245 mandate implementation (DENATRAN)
- Figure 33: Twitter response by consumer
- Figure 34: Connected Car security vulnerabilities (SBD)
- Figure 35: Connected Car services payment models (SEAT)
- Figure 36: In-car Transactions (SAP)
- Figure 37: Connected Car Data Infographic (FIA)
- Figure 38: Connected Car Data Points (INRIX)
- Figure 39: BMW “Genius Bars”
- Figure 40: Remote hacking of Chrysler Jeep Cherokee
- Figure 41: BlueLink Smartwatch App (Hyundai)
- Figure 42: Tesla Model S “Ko-HAF” prototype vehicle (Bosch)
- Figure 43: OTA Keys for Car Sharing (Continental Automotive)
- Figure 44: Delphi's automated driving prototype Audi SQ
- Figure 45: Tesla Model S Infotainment Systems
- Figure 46: NXP-NTU Smart Mobility Test Bed (NXP Semiconductors)
- Figure 47: Verizon Vehicle
- Figure 48: RNB6 infotainment system (Parrot Automotive)
- Figure 49: Choreo Connected Car Platform (Airbiquity)
- Figure 50: Audi Virtual Cockpit (NVIDIA)
- Figure 51: Mojio OBD-II dongle
Table of tables
- Table 1: Connected Car Services .
- Table 2: “Monetizing Points” for Automotive OEMs
- Table 3: Connected Car Stakeholders
- Table 4: Automotive App Development Strategies .
- Table 5: Apple CarPlay vs. Android Auto
- Table 6: OEMs and their connectivity type
- Table 7: MirrorLink powered car models
- Table 8: eCall deployment status
- Table 9: ERA GLONASS implementation stages .
- Table 10: Software Recalls performed by OEMs recently
- Table 11: Connected Car security vulnerabilities