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The Role of ICT in a Connected Car Future

  • September 2015
  • 63 pages
  • Frost & Sullivan
Report ID: 3326331


Table of Contents

The Role of ICT in a Connected Car Future : Emerging Opportunities for ICT Providers in the Connected Car Sector

The evolution of connected car services has thrown the door open for several ICT opportunities. This research service highlights the ICT opportunities resulting from connected car deployments and analyses the drivers and restraints of the connected car market. It investigates the key ICT components that enable connected car services in line with possible changes to car OEMs' business models, particularly the challenges around connectivity that require a deep understanding of future progress. It also identifies a few ICT companies to watch in the connected car space; these participants are likely to become key technology market leaders in this sector.

Executive Summary

eCall type initiatives have triggered deep thinking among car manufacturers (OEMs) on business model transformation, as connected car services can be created as a result of connectivity and intelligence.

- The market is also buoyed by available technology options to make connected cars or intelligent mobility systems within smart cities possible. On the other hand, cultural and technological obstacles are the most immediate barriers to connected car service adoption.

- The extent to which car OEMs are ready to change their business models can be determined by how close they desire to be to their customers. On one extreme, a car OEM can offer its own branded connectivity package. In the middle ground, the car OEM can offer both connectivity and other value added services at a higher price. On the other extreme, a car OEM might consider becoming a mobile virtual network operator (MVNO) that owns and controls the access and infotainment services it offers to its customers.

- Another option for car OEMs to consider is to change from a car seller to a service provider. This could be in different forms, in selling mobility as a service or even “data” as a service.

- Frost & Sullivan believes the biggest winners among ICT stakeholders in the connected car market are those with: extensive infrastructure knowledge, software tools to enable efficient use of data and insights, and services that help car OEMs simplify their operational processes.

- Frost & Sullivan identified several companies to watch in this space. These are Vodafone, AT&T, Qualcomm, Intel, Ericsson, and Guardtime.

- The ICT industry also needs to progress alongside various industry trends, particularly through finding ways around security and privacy, integration of new innovations such as machine learning for a selfhealing intelligent transport system and the complete inclusion of various elements within a smart city system.

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