Connected car solutions will become one of the major business drivers for the automotive industry in the future
Connected car solutions already have a significant impact on existing vehicle development and aftermarket sales. This is one of the results of a comprehensive survey across the European automotive sector that PAC conducted in 2014/2015. The market for connected car solutions has already reached a ‘second wave’ of maturity, with a first generation of connected car solutions, such as infotainment and environmental information services, already rolled out and operated by manufacturers and services providers, and a second generation of services, such as security, after-sales and driving assistance, currently being in development and testing phases.
Automotive manufacturers and suppliers consider connected car solutions as a strategic long-term topic for their business development with customers identifying these technologies as a mandatory requirement for future vehicle acquisitions and manufacturers aiming to use their technological edge as a main differentiator. Consequently connected car offerings are going to play a major role in the positioning strategies of OEMs and suppliers in the near future.
One objective of the study was to analyze the European automotive market as a whole, in order to determine the status quo of this region and identify geographical differences. While there certainly are differences, there are also similarities. All over Europe, manufacturers and suppliers are basically dealing with the same challenges at the moment. These arise in the domains of standardization, lack of competencies, re-definition of business models as well as the development of a consistent user experience. In tackling these challenges most companies in the European market are open for external support, mainly in terms of software development and testing.
From a technology point of view, the market is currently shifting from in-car connectivity to car-to-x connectivity, and companies are going to put a stronger focus on the design and provision of third-party services. At the same time the study highlights that piloted driving is still a spark on the horizon of the automotive industry. On its way to become a major topic, many legal, technological as well as business issues still need to be solved. However, this is most likely going to happen.
Connected car represents one of the most important topics for the automotive industry in Europe and an opportunity to establish a sustainable positioning on the global market. To achieve this, even closer collaboration between manufacturers and suppliers, but also between automotive and IT companies, will be necessary.
For the study “Connected Car in Europe” PAC conducted a survey among 250 CxOs in European automotive companies (in France, Germany, Italy, the Netherlands, Spain, Sweden and the UK) with more than 50 employees. The study was supported by BearingPoint, Cognizant Technology Solutions, IAV GmbH, T-Systems International GmbH and Wipro Technologies.
The infographic and an executive summary of the study are available for free download at: https://www.paconline.com/connected-car-europe-strategies-and-technologies-connected-driving