Digital Transformation of the Automotive Industry

  • ID: 4188650
  • Report
  • 144 pages
  • Frost & Sullivan
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Digitalization Spending to Grow Rapidly to $82.01 Billion in 2020

FEATURED COMPANIES

  • BMW
  • Daimler
  • Ford
  • General Motors (GM)
  • MaaS Global’s Solutions
  • Mahindra KUV
  • MORE

In 2015, automotive industry investments in key focus areas were about $19.57 billion. Growing digitalization and advancements in technology will increase the investments to $82.01 billion by 2020. The rapid pace of digitalization is transforming the component hardware-driven automotive sector to a software and solutions-focused industry, accelerated by consumers’ evolving digital lifestyle expectations and demands for new and innovative services.

The future roadmap of digitalization in the automotive industry is expected to move rapidly from “digital services” to “car-as-a-service” to “mobility-as-a-service”, transforming the car into an element of a connected living solution by 2030. In the year 2016, digitalization underpins the transformation of business activities, process improvements, and the development of new competencies and business models across five key pillars within the automotive industry.

  • Connected Supply Chain
  • Industrial Internet of Things and Industry 4.0
  • Connected and Autonomous Cars
  • Digital Retailing
  • Mobility as a Service (MaaS)

The study, Digital Transformation of the Automotive Industry, analyzes the strategies, growth analysis, competitive landscape, business models, and future focus areas of original equipment manufacturers (OEMs) and Tier I suppliers. Digitalization in the automotive industry will have a spiral effect on other industries. OEMs and Tier Is realized that digitization along with IoT, technology partnerships, software capabilities, and customized solutions will be the way forward for the global automotive industry from the year 2016 to 2025. Growing digitalization initiatives and pilot projects with software-centric focus from automotive OEMs and Tier Is will increase automotive IT spending from $37.9 billion in 2015 to $168.8 billion by 2025 (at a CAGR of 16.1%). More than 1700 new digital startups are expected to disrupt the automotive industry supply chain. In addition to OEMs, Tier I suppliers, and technology companies initiatives, this study covers a detailed list of startups and technology companies across the five key pillars.

Key Questions this Study will Answer

  • What are the key pillars of automotive digitalization? What are the key recommendations to automotive OEMs? Discuss case studies and initiatives from OEMs, Tier Is, technology companies, and startups focusing on digitalization.
  • What are the key markets for start-ups to venture into and what is the current revenue potential of those markets?
  • Who are the key participants and what are their unique service propositions (USPs)?
  • Considering automotive digitalization, how much will the automotive industry spend from technology and software perspective?
  • What are the opportunities for digital ecosystem participants (aftermarket, Tier Is, technology companies and OEMs)?
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FEATURED COMPANIES

  • BMW
  • Daimler
  • Ford
  • General Motors (GM)
  • MaaS Global’s Solutions
  • Mahindra KUV
  • MORE
1. Executive Summary—Introduction to Digitalization in the Automotive Industry
  • Executive Summary—Key Findings
  • The Five Pillars of Digitalization in the Automotive Industry
  • Four Key Functional Areas Impacted by Digital Transformation
  • Investment in Digital Transformation in the Auto Industry
  • New Automotive Digital Ecosystem—Over 1700 new Digital Startups to Disrupt Industry Supply Chain
  • Snapshot of Major Automakers Investment and M&A Activity
  • IoT Platform for the Automotive Industry
  • Automotive OEMs—IoT Platforms
  • Automotive Digital Retailing—Vision 2020
  • What Digitizing the Retail Environment Enables
  • Automotive Industry Digitalization Underpins Aftermarket Evolution
  • Connected Cars and Autonomous Vehicles—Trends
  • Connected and Autonomous Cars—Growing Software Dependency
  • Data Monetization—Direct and Indirect Revenue Opportunities
  • Product as a Service—Connected Cars
  • Roadmap Towards Integrated Mobility is Digital
  • OEMs Moving Towards Car as a Service (CaaS)
  • Industry 4.0—The Four Functional Facets
  • Digitalization in Manufacturing—Automotive Industry 4.0 Approach
  • Conventional (Current ) vs. Digitized (Future) Supply Chain
  • Recommendations to Automotive OEMs
2. Research Scope, Objectives, Methodology, and Background
  • Research Scope and Objectives
  • Key Questions this Study will Answer
  • Research Background
  • Research Methodology
  • Digital Transformation Framework
  • Digital Transformation Framework—Digital Ecosystem
  • Digital Transformation Framework—Business Models
  • Digital Transformation Framework—Business Functions
3. Pillar 1—Digital Retailing
  • Future of Automotive Retailing is Digital
  • New Customer Journey is Already Digital
  • Digital Solutions Supporting Individual Building Blocks
  • Degree of Digitalization in Car Retailing—2010 to 2020
  • Future Automotive Retail Ecosystem
  • Global Automotive Aftermarket eRetailing—Overview
  • Aftermarket eRetailing Penetration by 2022
  • Connected Supply Chain—Impact on Service Aftermarket
  • Digitalization Reshaping Leasing and Vehicle Financing
  • Gamification Leads to Next Level of User Engagement Models
  • Exhibit A—Rockar: Leader in Digital Retailing in Europe
  • Exhibit B—Rockar Hyundai: KPIs
  • Exhibit C—BMW’s eCommerce Strategy
  • Exhibit D—eCommerce in Automotive Aftermarket: BMW Web Store
  • Exhibit E—Mahindra KUV Launch Digital Marketing Highlights
4. Pillar 2—Mobility as a Service
  • Automotive Companies Unrealized Transportation Opportunities
  • Industry Drivers—On Demand Mobility Services
  • Mobility as a Service—Trends
  • Digital Transformation to Drive Integrated Mobility Platforms and Apps
  • New Business Models Underpinned by Technology
  • Mobility as a Service—Services, Business, and Pricing Models
  • Market Evolution of Vehicle Sharing Technologies
  • Digitalization Enabling the Shift to Car as a Service
  • Blockchain and Mobility Solutions
  • Exhibit F—Daimler Moving Towards Car as a Service
  • Exhibit G—MaaS Global’s Solutions “The Whim App”
  • Exhibit H—Technology Enabled Mobility Integration Platform
  • FordPass Platform—Parking Service to Autonomous Taxi Service
  • Mobility as a Service Market—2015 vs. 2025
5. Pillar 3—Connected and Autonomous Cars
  • Connected Car—Regional Trends and Highlights
  • Connected Cars & Technology Startups
  • Rollout of 5G from 2020 will Accelerate Digitalization of Vehicle
  • 5G and Satellite Communication—Use Cases
  • Incremental Updates based on Navigation Data Standard (NDS)
  • Connected Living—The Alphabet Ecosystem
  • Smartphone Interfacing Technologies
  • Input HMI Related Trends—Displays and Touch Screens
  • Input HMI Related Trends—Voice & Handwriting Recognition
  • Output HMI Related Trends—HUD and Instrument Cluster Display
  • Key Developments in Voice Recognition
  • Automotive Industry—Rise of Automation
  • Natural Language Processing & Machine Learning for Self Driving Cars
  • Self Driving Technology Trends
  • Software and Self Learning Cars—2016 to 2025
  • Self Learning is not Autonomous—It is Beyond
  • Self Learning Technology—OEM Analysis
  • True Type Learning Algorithm Based Self Learning Car
  • Self Learning Revenue Opportunities
  • Re-thinking Automotive with Big Data
  • Autonomous Supply Chain—M&A Opportunity for OEMs & Tier Is
6. Pillar 4—Industry 4.0
  • Industry 4.0 and the Automotive Industry
  • Industry 4.0 in Automotive Manufacturing
  • Big Data—Enhancing the Quest for a Lean Enterprise
  • Impact of Industry 4.0 on MES Platforms
  • MES Solutions—Automotive Industry
  • Future of Automotive Manufacturing
  • Industrial Robotics—Implications for Automotive Manufacturing
  • IIoT Driving a New Industrial Revolution Manufacturing
  • Cyber Security—The New Normal in Production Design
  • GM Digitalization Initiatives to Reduce Factory Downtime
  • BMW Approach for Digitalization of Production Facilities
  • Mercedes-Benz’s Approach to Connected Factory
  • General Electric—IIoT Platform Seems to be Most Preferred Solution
7. Pillar 5—Connected Supply Chain
  • Future of Automotive Supply Chain—Connected Supply Chain
  • Automotive Supply Chain Network Architecture
  • Connected Supply Chain Network Features—2016 vs. 2018
  • Conventional (Current ) vs. Connected (Future) Auto Supply Chain
  • Conventional (Current ) vs. Connected (Future) Auto Supply Chain (continued)
  • Logistics Optimization
  • Total Supply Chain Management Cost—Potential for 25–50% Reduction
  • Supply Chain Operations Reference Level-1 Strategic Metrics
  • Supply Chain Operations Reference Level-1 Strategic Metrics (continued)
  • Supply Chain Operations Reference Level-1 Strategic Metrics (continued)
  • Automotive Cash to Cash (C2C) Cycle Time
  • Connected Supply Chain—Effectiveness and Efficiency
  • Measuring Connected Supply Chain Success
8. Competitive Analysis—OEM Activities in the Digitalization Space
  • Automotive OEMs—IoT Platforms
  • Automotive OEMs Big Data Analytics Initiatives
  • Automotive OEMs Technology Initiatives
  • Automotive OEM Mobility Strategies
  • Digital Transformation Building Blocks—Ford
  • Business Models—Ford
  • Ford Mobility Experiments
  • Volkswagen Digital Lab and Enhanced Digital Platform
  • General Motors (GM)—Digital Transformation Elements
  • Future Digitalization of Service Technologies
  • Key Digital Initiatives by OEMs
9. Automotive Digital Transformation—Growth Opportunity Analysis, Conclusions, and Recommendations
  • Automotive Digital Transformation—Strategic Imperatives
  • Digital Transformation Solution Accelerators for Automotive Companies
  • Digitalization and Mobility Companies
  • Manufacturing—Connected Factory will Transform the Supply Chain
  • Connected Supply Chain and Enterprise Operations Ecosystem
  • Key Conclusions
  • Recommendations to Automotive OEMs
  • Legal Disclaimer
10. Appendix
  • Product
  • Operations
  • People
  • Information Management
  • Customer Journey
  • Leadership
  • Market Engineering Methodology
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  • BMW
  • Daimler
  • Ford
  • General Motors (GM)
  • MaaS Global’s Solutions
  • Mahindra KUV
  • Rockar Hyundai
  • Volkswagen
Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown
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