A report developed by Frost & Sullivan’s Mobility Team states that all the leading global automobile companies must partner with different technology players to perform research and development on autonomous, connected, and electrification technologies to accomplish a two-fold growth opportunity.
Owing to reducing margins witnessed by the automotive sector, there is an intense requirement to seek some other revenue paths. Along with this, it is also crucial to keep the customers committed to the brand for their upcoming purchases.
The global automotive manufacturers are now furiously working on the development of ACE technologies (autonomous, connected, and electrification) to build its full fledge version and introduced in the global landscape. To survive in the aggressively evolving, competitive market, automakers will have to think beyond the product supply, and focus on the evolving mobility services. This move will considerably create lucrative opportunities through digital revenue streams.
The research forecasted in 2015–2025, a total number of 10 automotive OEMs are projected to invest approximately $345 Billion on ACE R&D.
In order to bridge the market demand, OEMs’ current aim is to develop cars that can transform the functions totally, if compared to what is presently available.
The company also stated that OEMs should emphasize on partnering with various players such as leasing companies, charging infrastructure owners, utilities, mobility providers, and other service providers to set up a capable e-mobility market.
Decentralized research and development tasks are expected to play a crucial role in accomplishing a superior sustainability. According to the high volume and premium vehicle maker’s viewpoint, connected car technologies are also mandatory to contend in the global market.
Contrasting the global regional outlook, Japan-based OEMs emphasize on in-house R&D of competence, whereas American and European manufacturers are concentrating on partnering with various tech players, by following the collaborative-based development strategy. The American OEMs are investing less in the basic research, while on the other hand Asia and Europe based OEMs are contributing equal share on both basic and advanced research.
The players that are betting big on connected technology, electrification, and autonomous technologies are projected to gain profitable returns by 2018–2019. The supplementary yet robust technologies such as machine learning and artificial intelligence are attributed to hold 80% share of business opportunities and revenue.
In addition, the protection of development and employee retention are some of the activities that are anticipated to boost the development of various connected and autonomous car technologies.