Disrupting the Automotive Industry
Changes in customer behaviour and technology have a considerable impact on car manufacturers. We see the digitization of the whole automotive sector, with the focus on direct-to-consumer strategies. New business models and income streams are opening up as they concentrate less on being a hardware provider but instead deliver mobility services and unified experiences along the entire customer journey in the future – from configuring new cars, searching for used ones, offering payment and warranty services to providing personalized offerings for spare parts and accessories.
IoT-Devices on Wheels
Being equipped with GPS, 5G connectivity and telemetry sensors, modern vehicles are aware of their position and their status and know how to best support their passengers. Cars communicate with traffic infrastructure and their surroundings – such as pedestrians and other vehicles – through V2X technology. This enables them to react to changing traffic conditions automatically, increasing passenger safety and utility. Depending on those conditions, they can inform colleagues or spouses about running late or reschedule appointments.
In Car Commerce and Services
In combination with the cars’ telemetry, many mobility service can be automated. The cars’ internal systems can make service appointments and order spare parts as well as accessories. Vehicles alert drivers about low fuel or battery levels, direct them to the nearest fuel or changing station and pay at the same time. They also find restaurants on the way and order products in advance. Using built-in voice interfaces such as Amazon Echo, passengers interact with apps and services, get their shopping done, plan their next holidays or search for a parking spot close to a local store.
Electronic Mobility and Function-on-Demand
The rise of electronic mobility also drives innovation for car manufacturers. Software updates can be pushed to the vehicles, enabling new features. With Function-on-Demand, they also introduce a new on-demand service level: Drivers choose to upgrade the available light technology, driving assist systems, infotainment, and engine capability as a subscription service, tailoring the driving experience to match their needs.
Intermodal Mobility Concepts
Consumers are focussing on combining different modes of transportation to match their needs. In shared mobility concepts, they purchase mobility instead of hardware: this ranges from temporary usage of vehicles like Car2Go, classic car rental to other modes of transportation such as bikes and electronic scooters to public transport such as busses, trains and aircrafts.
Experts and CEOs of car builders estimate that level 5, fully autonomous cars will be available within the next 5-10 years. Advances in AI support this ambitious forecast. Autonomous cars enable a whole new range of services such as infotainment, because the vehicle turns into a personal, mobile living room.
Scalable Cloud Infrastructure
To enable these future mobility concepts, car manufacturers need a cloud-based infrastructure to deliver those services. One example are software updates: new features can be pushed to the vehicle via a broadband connection without having to drive to a local garage first.