Frost & Sullivan's Mobility team identifies actions that will support companies transforming their business model
LONDON, April 11, 2017 /PRNewswire/ -- Over 1700 startups along with technology companies are expected to disrupt and transform the automotive industry, as we know it. Digital transformation will affect the entire automotive value chain, including design, production, distribution and retail, reshaping the traditional automotive business model. The component hardware-driven automotive industry is shifting its focus and investments on software and solutions with spending rising rapidly and reaching $82.01 billion in 2020.
Digital Transformation of the Automotive Industry is the latest addition to Frost & Sullivan's Future of Mobility Growth Partnership Service. It explores business activities, process improvements, and the development of competencies and business models across five key pillars: connected supply chain; Industrial IoT(IIoT)/Industry 4.0; connected and autonomous cars; digital retailing; and mobility-as-a-service (MaaS).
To sign up for a complimentary one-hour interactive session with Frost & Sullivan's thought leaders, please click here.
"New business model will consider data, connectivity and customer centricity along with cybersecurity," said Frost & Sullivan Mobility Senior Consultant Sriram Venkatraman. "By 2020, Chief Digital Officers will steer the strategic and digital initiatives of OEMs across luxury and economy brands."
Some interesting upcoming market developments include:
- IT spend will increase from $37.95 billion in 2015 to reach $168.8 billion in 2025, exhibiting a compound annual growth rate of 16.1 percent
- Investment will focus on electric vehicles, new mobility services, multi-modality, artificial intelligence, and autonomous vehicles
- Security across both horizontal and vertical business layers will be enhanced as businesses integrate IoT and big data analytics
- Country-specific, digital retailing strategy for new/used cars in addition to aftermarket and servicing will emerge
Other topics recently covered under the Mobility Growth Partnership Service include:
Cloud and the Car - Use Cases, Business Models and Impact Analysis; Automotive Industry IT Spending - Key Focus Areas, Trends and Future Outlook; Automotive Dealer Management System (DMS) Market—Growth Opportunities and Digital Transformation, Forecast to 2022; State of Automotive Cybersecurity: Key Trends, Solutions, OEM Activities and Vendor Profiles; Disruptive Satellite Communication in the Automotive Industry; and Strategic Analysis of the Automotive Keyless Access Systems Market.
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
Digital Transformation of the Automotive Industry
Corporate Communications – Europe
P: +49 (0)69 77033 43
Twitter: @Frost_Sullivan or @FS_Automotive
Linkedin: Future of Mobility – A Frost & Sullivan Forum
SOURCE Frost & Sullivan