A study of “connected car” technologies shows innovation racing ahead as auto makers unveil new digital services and autonomous driving features. The connected car is an automobile designed with direct access to the Internet, enabling automated links to all other connected objects, including smartphones, tracking devices, traffic lights, other motor vehicles — and even home appliances. Volkswagen and Daimler led the industry in a year that saw high general levels of innovation in infotainment systems and safety-assistance technology. The forecast of annual sales of connected car technologies tripling to €122.6 billion by 2021.
Both premium and volume auto makers clearly see connected car technologies as essential to their futures. They also realize that overall vehicle prices aren’t rising as rapidly as the prices charged for digital capabilities. This means returns on investments in traditional car components are shrinking.
Over the next five years, the connected car could disrupt the entire automotive ecosystem. The industry will undergo fundamental change as semi-autonomous driving emerges, followed by an eventual shift to full autonomous driving. Auto makers that have always seen themselves as product suppliers will take on a new identity as providers of mobility services. This will open the door to lucrative new digital revenue streams, especially as they begin to explore opportunities in other digital areas such as entertainment, commerce, and monitoring a driver’s health and fatigue level.
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Source:by Richard Viereckl, Dietmar Ahlemann, Alex Koster, Sebastian Jursch. - Strategy&
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