What's Happening?
A new study by Roland Berger, the Connected Vehicle Systems Alliance (COVESA), and Geotab indicates that connected vehicle services are poised for mass adoption after overcoming major industry hurdles. The study, based on insights from 27 industry experts, reveals that technology challenges, costs, and user-friendliness issues have been largely addressed since 2015. The number of respondents citing a lack of connected vehicles as a primary blocker has dropped significantly, and customer acceptance has improved. However, the main barrier remains the lack of functioning business models, with experts recommending strategies such as embedding costs within vehicle prices and developing differentiated models for fleet managers and consumers.
Why It's Important?
The potential growth of connected vehicle services is significant for the automotive industry, as it represents a shift towards prioritizing digital services as core products. This transformation could lead to increased revenue streams for OEMs and suppliers, with suppliers being more optimistic about the revenue potential. The study suggests that achieving widespread adoption will require radical transformations in the industry, including developing standardized platforms and fostering industry-wide collaboration. This shift could enhance safety, optimize costs, and offer consumers more choice, ultimately driving innovation and customer satisfaction.
What's Next?
To successfully roll out connected services, automotive OEMs and suppliers need to adopt new operating models that integrate value creation with software development and traditional engineering. The study outlines a three-pronged approach to achieve this, emphasizing the importance of cross-functional teams and industry collaboration. As customer acceptance continues to rise, targeting different customer groups with tailored approaches will be crucial. The industry must focus on creating value for consumers rather than solely generating revenue, ensuring that connected services are useful and work seamlessly.
