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Digital Transformation of the Automotive Industry Set to Pave Way for New revenue Streams


News provided by

Frost & Sullivan

05 Apr, 2017, 08:32 GMT

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Frost & Sullivan's "Intelligent Mobility" event to discuss new growth opportunities as digital mobility services are expected to generate ~$2 trillion by 2025 globally

LONDON, April 5, 2017 /PRNewswire/ -- The rapid pace of digitalisation is transforming the component hardware-driven automotive sector to a software- and solutions-focused industry. In future, all aspects of the mobility value chain will be digitalised: From the shortening of product life cycles due to higher software dependency, over the transformation of car dealerships to the actual sales process and maintaining the relationship with the customer – everything will be coined by the opportunities and challenges digitalisation offers. Frost & Sullivan breaks this overall trend down into five pillars: The Future of Mobility and OEM mobility strategies, Industry 4.0, connected and autonomous car, digital retailing, Connected Supply Chain and Mobility as a Service (MaaS).

"Autonomous cars only will account for a 84 Billion Dollar market by 2025", estimates Franck Leveque, Frost & Sullivan Partner Mobility. "50 percent of these 84 billion Dollars will be software related, which exemplifies perfectly how the mobility sector converges with other industries," he continues. Similar trends can be observed for retailing. By 2020, the retail store footprint will be 15 to 20 percent less than the current average store size and future garages will incorporate technology at various levels. The goal is an engaging digital experience to increase customer loyalty.

To download the Intelligent Mobility brochure and register to attend the event, please visit www.frost.com/intmob.

Today already, 40m people use app-enabled carpooling services, and the usage of ridehailing apps has grown rapidly to over 70m users. "Frost & Sullivan's mobility research has highlighted the continued trend of the automotive industry investing in dedicated collaborations," explains Shwetha Surender, Program Manager Mobility. "As information services, in particular, become more sophisticated, the potential to integrate and aggregate mobility services is increasing." This allows customers to plan, book and pay for their journeys on the smartphone in real time. To make this effective, partnerships between both private and public transport providers are essential. The revenue potential of such digital mobility services is expected to rise to ~$2 trillion by 2025 globally, explaining the continued interest from the private sector.

Consumers' evolving digital lifestyle expectations and demands for new and innovative services will affect all components of the digitalisation of the industry, however, it will be most visible within the emergence of Mobility as a Service (MaaS). Increasingly, a readiness to combine different modes of transportation is shaping the industry. The lines between public and private transport are becoming blurred in favor of a multi-modal integrated transportation system encouraging the emergence of models such as smart ticketing, multi solutions and aggregated booking.

During its upcoming annual industry event "Intelligent Mobility", taking place on 29th of June at the Jumeirah Carlton Hotel in London, Frost & Sullivan will offer visionary insights into the future of mobility from leading OEMs and tier-one suppliers, prominent industry thinkers, policymakers and disruptors from companies like Jaguar Land Rover, Facebook, Renault–Nissan Alliance, the Financial Times, Mahindra & Mahindra, Transport for London, the Centre for Connected and Autonomous Vehicles, and many more.

Besides focusing on the Digitalisation of the Automotive Industry, Intelligent Mobility will bring together industry experts on the Future of Mobility Trends, Freight Delivery and Connected and Autonomous Vehicles. Moreover, the event will shed light on carefully selected auto tech startups and their particular business models to showcase the extent of disruption the industry faces. The conference will be complemented by a debate at the House of Lords and the Frost & Sullivan Intelligent Mobility Awards Banquet, a black tie evening and gala dinner.

A limited number of complimentary passes are available to members of the media. For more information on Frost & Sullivan's Intelligent Mobility event, please e-mail Jana Schoeneborn, Corporate Communications, at jana.schoeneborn@frost.com.

View Frost & Sullivan's video on new mobility business models and the future of Intelligent Mobility here: https://goo.gl/eacFZL

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Contact us: Start the discussion

Contact:
Jana Schöneborn
Corporate Communications – Europe
P: +49 (0)69 77033 43
E: jana.schoeneborn@frost.com

Twitter: @Frost_Sullivan or @FS_Automotive 
Facebook: FrostandSullivan 
Linkedin: Future of Mobility – A Frost & Sullivan Forum
http://www.frost.com

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