Automotive
Transformation
The industry will experience a decade of transformation that will create a new mobility ecosystem, including Autonomous, Connected & Electric vehicles, Industry 4.0 driven flexible manufacturing and new digitally-driven omnichannel dealerships.
Autonomous Connected & Electric Designs
Software & data defined
The combination of environmental regulation and digital transformation will drive Autonomous, Connected & Electric (ACE) vehicles.
Autonomous - AI and IoT sensors are making the Autonomous Vehicle (AV) possible. Over the next eight years, two major uses will emerge: autonomous highway driving for private vehicles, and robo-taxi fleets for urban areas.
Connected - 40% of vehicles are internet connected today. This will rise by 30% a year, especially with 5G.
Electric - Manufacturers racing to introduce electric vehicles (EVs) and will invest more than $300 billion over the next 10 years. Some 400 new models should appear by 2025. Over 55 % of all new car sales could be fully electrified by 2030.
Hardware designs will become simpler as the number of components reduces from 30,000 to around 1,000. However automaker will need to develop battery, electric motor and new material design skills.
Drives software development, cloud, networking, artificial intelligence, analytics, security and workplace.
Industry 4.0 Manufacturing
Automated & intelligent
ACE Vehicles will profoundly impact production operations and the supply chain as the traditional highly complex engine is replaced by a relatively simple electric motor and battery pack.
Most automakers are integrating EVs into their manufacturing using two strategies: dedicated EV production or a mixed setup, which make both.
Flexible-cell manufacturing (FCM) replaces the assembly line conveyor that moves one car after another with automated guided vehicles (AGVs) that transport car bodies individually to the assembly workstations.
Utilises Industry 4.0, IoT sensors and cameras, robotics, artificial intelligence, networking, cloud and security.
Digital-first dealers
Seamless online to offline
For today’s car buyers the often impersonal, sales-target-driven atmosphere of many traditional, physical automotive dealerships can be frustrating. Around 70% of car buyers consider the dealership a major touch point to physically experience the car, but online sales could make up 10 to 25% of global sales by 2025.
The dealership experience must be a frictionless, and digitally enhanced extension of the customer experience online – with price transparency, seamless customer journeys, and fast delivery. Six areas have been identified for improvement; finance, part-exchange, add-ons, used cars, after-sales and the human touch.
This includes online and offline digital engagement, cloud, networking, security, workplace and analytics.
Invisible Service
Frictionless & convenient
Nearly half of all drivers (45%) want service to be integrated seamlessly into their daily life: they don’t want to have to go in person to a workshop or dealer service location.
Aftersales service providers need to create a digital “invisible” service that is a seamless, personalized and engaging experience across all touchpoints that today’s customers expect. This leverages the connected car for remote diagnostics and predictive maintenance.
This includes online and offline digital engagement, IoT, cloud, networking, security, workplace and analytics.
Mobility-as-a-Service
Convenient & flexible
ACE vehicles open up new business models for vehicle usage, these including car-sharing, ride-hailing and car subscription. Revenues from mobility services are projected to reach almost €1.2 trillion —with profits reaching as much as €220 billion, by 2030.
Mobility services leverage the connected car and personal mobiles to create a convenient and flexible way to use rather than own an vehicle.
Requires the integration of networking, cloud, AI & analytics and security.