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Understanding the Connected Vehicle Value Chain

  • September 2014
  • 20 pages
  • Frost & Sullivan
Report ID: 2385662

Summary

Table of Contents

Unlocking the Value of the Connected Vehicle

We spend a significant amount of time commuting each day as we go about our daily lives; time that we would rather spend doing other things. With the advent of ubiqiutous connectivity, we are now able to do just that using our smart devices within our cars; activities like watching a streaming video clip on-the-go or reading our emails. The connected vehicle market has a fragmented ecosystem with automaker OEMs having a significant influence on the entire connected vehicle value chain. This report studies the various key stakeholders within the connected vehicle ecosystem and identifies opportunities to pursue in the connected vehicle market.

Introduction
In today’s world, where more than a billion people are connected through online networks like Facebook who spend a total of billion man minutes per month interacting through mobiles, laptops, and other devices, the demand for connectivity in vehicles is stronger than ever. The integration of social connectivity with our lifestyles has started to result in the fear of missing out on any opportunity for social interaction. This factor has resulted in users demanding closer integration of vehicles and social connectivity features, primarily in developed markets.

With the advent of Internet-based entertainment, users are starting to shift from traditional in-vehicle entertainment features such as music CDs and DVDs, to more dynamic entertainment features such as streaming audio/video in their vehicles. In addition to streaming content for entertainment, the demand for constantly changing information such as traffic updates, weather updates, and maps (navigation, street view, local businesses, and points of interests), along with the demand for a safe and convenient driving experience, is also establishing the case for vehicles to be connected to the Internet as well as its surroundings. Development of connected vehicles has received a push, not only from users, but also from governments and automotive original equipment manufacturers (OEMs), because of its potential to enhance mobility experience, safety, and customer service management.

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