Connected car makers should acquire or invest in technology companies to generate growth opportunities
SANTA CLARA, California, May 2, 2019 /PRNewswire/ -- Recognizing the huge opportunities in the connected car sector, participants from sectors such as smartphones and gaming are developing advanced in-vehicle technologies. Automakers and Tier I companies are partnering with third-party Artificial Intelligence (AI)-based assistants or building native intelligent assistants to transform user experience (UX). The rising focus on personalization is also driving companies to apply multi-sided platforms like marketplace with contextual services. By 2020, in-vehicle marketplace will be available in 80% of premium vehicles sold, and the new generation of this platform will leverage customer data and be customized to each vehicle occupant.
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"With commutes becoming longer, the number of purchases made on the move has increased. The likelihood of in-car ads converting to purchases of products and services is especially high in automated vehicles, which makes marketplace a scalable model," said Suhas Gurumurthy, Mobility Senior Research Analyst at Frost & Sullivan. "With more than 60% of consumers willing to share data, OEMs and data consumers will have significant opportunities to generate recurring revenues. They will be looking to invest in advanced data analytics companies, apply AI algorithms, identify new use cases, and build applications on top of platforms to enhance services."
Frost & Sullivan's recent analysis, Global Connected Car Market Outlook, 2019, analyzes the way companies will align their strategies with the connected, autonomous, shared, electric (CASE) model. It also presents the key players in automotive OS, navigation, IoT, and cybersecurity, as well as the growth opportunities for OEMs and Tier I companies.
"Connected car makers will be eager to build strategic partnerships with telecom providers and communication module makers to augment on-road safety and offer in-vehicle, data-rich services," noted Gurumurthy. "Flexible business models such as choice of network for consumers will further improve customer retention and revenue generation."
For additional revenue opportunities, connected car makers can:
- Either acquire or invest heavily in technology companies that have aligned their vision with the CASE strategy.
- Reduce development cycles for faster introductions of new and improved features.
- Focus on growth regions such as China, where demonstration and testing of C-V2X technologies are carried out by companies such as Group PSA, Autotalks, and Savari. In Europe, mobility is undergoing a major transformation with Nuance opening a UX lab in Germany and Cubic Telecom providing EV connectivity solutions for e.GO fleets.
- Implement firmware over-the-air (FOTA) updates to promote new features and on-demand feature updates.
- Acquire third-party service providers or build capability in-house to develop new telematics services.
- Utilize cloud platform capabilities such as AI and machine learning (ML) to evolve services.
- Enable seamless connectivity of all devices and deliver connected services such as car-to-home automation.
Global Connected Car Market Outlook, 2019 is part of Frost & Sullivan's global Automotive & Transportation Growth Partnership Service program.
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Global Connected Car Market Outlook, 2019
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SOURCE Frost & Sullivan