Earning money with the connected car

Dr. Christof Engelskirchen | 31 Jul 2020

Über den Autor

Dr. Christof Engelskirchen

A thought leader whose opinions are highly regarded by the automotive industry. As our Group’s Chief Economist Christof looks out for current and emerging trends in the automotive and adjacent industries and puts them into context for our clients and us.

UK looks to introduce autonomous driving system from 2021

31 July 2020

As the automotive world embraces the connected car and the benefits the technology offers, Christof Engelskirchen, chief economist at Autovista Group, chats with David Coleman, director of automotive strategy at Deloitte, to discuss the most exciting developments and business cases for OEMs.

Q: The rise of the connected car is one of the automotive industry’s megatrends. What does the connected car mean for you?

A: The connected car is one of the most exciting developments in vehicle technology in recent times. It enables data communication between the vehicle and the internet, as well as between the vehicle and infrastructure and/or other cars. Vehicle connectivity supports a range of services to the customer but is also critical to provide data to improve the vehicle, its systems and components.

Q: How do OEMs and suppliers approach the connected car? For example, many OEMs have adopted the Android Auto operating system (OS). Is this a good strategy?

A: A key battle in the automotive world is for ownership of the customer – i.e., the customer’s engagement, usage data, profile data, loyalty, etc. – and the battle is playing out between the tech giants and OEMs across OSs and services.

For OSs, OEMs need to choose between open-source solutions, such as Android Auto OS, or home-grown alternatives developed by the OEMs themselves. Open-source options offer speed to market, cost efficiency and a path towards potentially broader cooperation with tech giants. On the other hand, a home-grown OS offers complete customisation and control, and potentially broader monetisation options via Car as a Platform (CaaP). For example, OEMs could collect a fee from developers to build services on the OEM-owned platform and access customers directly, as well as take a commission on purchases made over the platform, or on in-app advertising.

Q: Have you calculated the business case for the connected car? What was the result?

A: The business case to invest in connected services is positive, but its value lies far beyond what is directly monetisable to the customer. Significant value is generated through connected sensors in the vehicle, measuring system and component performance, temperature, vibration, humidity, speed, and other data. AI and analytics techniques can use sensor data to help predict failures of systems and parts before they occur. Using this approach, OEMs can identify defects earlier in the vehicle lifecycle, fixing them in the factory, and limiting costly recalls. In one recent example, Deloitte helped Daimler generate savings in the tens of millions annually via connected sensor data analytics.

You can read the full interview with David Coleman here. In it, he talks about the end-use cases of connected cars and what data manufacturers can gather, as well as predicting the services that drivers may pay good money for, and discussing potential delays to the technology as the industry faces an economic crisis.

Artikel die Sie auch interessieren könnten

What is total cost of ownership?

30 Apr 2021

What is total cost of ownership (TCO)? Daily Brief editor Phil Curry explains the terminology and its importance as a cost-comparison tool. https://youtu.be/eAdDKMIsWxQ To get...

Are EVs as green as they seem?

30 Apr 2021

The last year has been dominated by a single health emergency that brought the world to its knees. But for decades, scientists and campaigners have...

Updated whitepaper: How will COVID-19 shape used-car markets?

23 Apr 2021

The latest edition of Autovista Group’s whitepaper: How will COVID-19 shape used-car markets? considers the third-wave of coronavirus infections across Europe, and looks at the lessons learned a year...

Ja, ich möchte mich für den Autovista24-Newsletter anmelden

* Pflichtfeld

Ja, ich möchte folgende E-Mails erhalten:
Autovista24: europaweite Nachrichten und Insights - Täglicher Versand von Autovista Limited, auf Englisch

In unseren E-Mails verwenden wir Pixel, die uns zeigen, wenn Sie unsere E-Mails öffnen, weiterleiten oder Links anklicken. Dies hilft uns, die Leistung und Wirksamkeit unserer E-Mails zu messen. Wir kombinieren dies mit den Informationen, die Sie bei der Newsletter Anmeldungen angeben haben und Ihren Browsing-Informationen, damit wir unser Marketing besser auf Sie zuschneiden und verbessern sowie Ihre Benutzererfahrung auf unserer Website personalisieren können. Indem Sie sich anmelden, stimmen Sie der Verwendung Ihrer Daten zum Zweck der Zusendung der ausgewählten E-Mails und der Verwendung von Zählpixeln zu. Sie können Ihre Zustimmung zum Erhalt unserer E-Mails und dem Verwenden der Zählpixel jederzeit widerrufen, indem Sie dem Link zum E-Mail-Präferenzzentrum folgen, der in jeder E-Mail enthalten ist, die Sie erhalten. Weitere Informationen über die Verarbeitung Ihrer persönlichen Daten finden Sie in der Eurotax Datenschutzerklärung.