20161115-普华永道咨询_深圳_-Connected_car_report_2016__Opportunities,_risk,_and_turmoil_on_the_road_to_autonomous_vehicles_64页_1mb

2016 Connected Car Report Summary

Core Content

This report from PwC Strategy& explores the opportunities, risks, and challenges in the development of connected cars and autonomous vehicles. It highlights the transformation of the automotive industry driven by technological innovation, shifting consumer behavior, and new market entrants. The report is based on extensive market research, interviews with industry experts, and engagement with automotive manufacturers, suppliers, and technology companies.

Main Viewpoints

• The automotive industry is undergoing a major technological transformation with connected cars and autonomous vehicles at the forefront.
• Connected cars are not just a product but a set of technologies that will redefine the business model of traditional automakers and suppliers.
• The value chain is shifting from hardware to software and from products to services, which will impact profit distribution and industry leadership.
• New entrants from the technology sector are challenging traditional players with faster innovation cycles and data-centric business models.
• Consumer expectations are changing, especially in urban areas, where the ownership of cars is becoming less common and shared mobility is on the rise.
• The shift to connected and autonomous vehicles is likely to create significant economic and strategic implications for all stakeholders in the automotive industry.

Key Information

1. Market Trends

• Connected car sales are currently dominated by premium brands (70% of global sales), but by 2022, this share is expected to fall to 50%.
• The connected car market is projected to grow rapidly, with connected car packages and new mobility services becoming more prominent.
• China is expected to be a key market for connected cars due to its large and growing middle class, digitally sophisticated consumers, and potential for innovation.

2. Economic Impact

• OEM profits are at risk due to falling margins from legacy features and increasing R&D costs.
• By 2030, profits available to traditional automakers and suppliers may drop from 70% to less than 50% of the industry total.
• New entrants such as Google, Apple, and Alibaba are likely to capture a significant portion of the $120 billion balance of profits.

3. Technological Developments

• The connected car includes features like Internet access, sensors, and the ability to interact with other vehicles and entities.
• Autonomous vehicles are expected to transform the driving experience by reducing costs and improving safety.
• Supply-side technologies such as ADAS, HMI, and cloud services are becoming more critical, and may be provided by new technology companies rather than traditional suppliers.

4. Consumer Behavior

• Urban customers in Western markets are moving away from car ownership due to affordability, lifestyle changes, and the availability of ride-sharing and public transport.
• Millennials are more likely to prioritize shared mobility over car ownership due to cost and living arrangements.

5. Regulatory and Policy Changes

• Regulators are likely to introduce laws to ensure the safety of autonomous vehicles as the technology matures.
• Cities are promoting shared mobility and discouraging private car use through policies like congestion pricing and bike lanes.

6. Monetization Strategies

• The report outlines five key ways to monetize connected services:
  • Sales of connected car packages to consumers, often bundled with new cars.
  • Use of connected car data to improve internal efficiency, quality, and product differentiation.
  • Defense of list price levels through differentiation and customer loyalty.
  • Establishment of a comprehensive ecosystem of consumer services with revenue sharing.
  • Creation of systems for using customer data to monetize through future business models, especially in mobility and multi-modal transportation.

7. Industry Transformation

• Traditional OEMs and suppliers need to significantly accelerate their transformation to keep up with new entrants.
• The connected car is expected to become the "fifth screen" in people's lives, similar to mobile phones and personal computers.
• Internal management transformation is necessary for companies to become more agile and competitive in the new digital environment.

Conclusion

The automotive industry is at a critical juncture as it transitions from traditional models to connected and autonomous vehicles. This shift brings both opportunities and risks, with new players and technologies poised to reshape the market. Companies must rethink their strategies, invest thoughtfully, and adapt to the changing landscape to remain competitive and capture value in this evolving ecosystem.