Connected Cars – Ericsson Whitepaper
Succeeding in the midst of economic and societal transformation
A connected revolution on the roads
To say that connected cars will disrupt the current automotive market is to understate the situation. Connected cars will drive the transformation of global wireless data networks, making it unnecessary for many of us to own a car at all.
It will also radically alter global transportation. Naturally, with connected cars changing so much of society at large, business models, revenue sources and ecosystems will also change.
The connected car market is forecast to reach $166 billion by 2025 (1), and some sources suggest it may surpass $200 billion. Whatever the size of the connected car market, it will utterly transform the automotive industry, and automakers — also referred to in this report as original equipment manufacturers (OEMs) — will need to adapt in order to succeed in this radically new world of transportation.
Ericsson partnered with Arthur D. Little to identify use cases with significant revenue potential over the next five years. In this report, we aim to help inform current players in the automotive market as they develop business strategies and models for this enormous, rapidly changing market.
A brave new world of smarter, safer driving
Our individual experience of travel is set to change radically, along with the automotive industry itself.
There are many drivers propelling the industry towards connected cars, but the primary focus is:
Consumer safety/premium
Connected cars are expected to be far safer than today’s cars and, according to a survey that PwC conducted in the US, Germany and China, safety and navigation features are the most compelling connected car services driving interest.
Studies indicate that connected cars could reduce annual accident fatalities by an astonishing 94% (2). From the customer perspective, improved safety and navigation features are the most important connected car services driving the demand for connected cars, which will later evolve into highly automated driving (HAD) and co-operative vehicles.
Connected Cars – Ericsson Whitepaper
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