apps in automotive – future opportunities and business cases november 6 th 2013 jack bergquist –...
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Apps in Automotive – Future Opportunities and Business Cases
November 6th 2013
Jack Bergquist – Senior Analyst IHS [email protected]
© 2013 IHS
Who is IHS Automotive?
Powertrain & Alternative Propulsion
Light Vehicle Sales
Light Vehicle
Production
Component Sourcing and Supply Chain
Medium & Heavy
Commercial Vehicles
Technology Analysis:
Infotainment ADAS
Supplier Sourcing
Network Planning /
Performance Management
Same Day Analysis
IHS Automotive delivers the most comprehensive range of business and product intelligence on automotive infotainment and communications technologies.
Technology Analysis:
Infotainment, Hybrid-EV,
ADAS
© 2013 IHS
Automotive Technology Solutions Group
3
IHS Automotive Technology Solutions
Group
Infotainment Systems
ADAS/Safety
HMI/ Usability
Consumer Preference
Hybrid EV
Software & Apps
© 2013 IHS
Western European Smartphone App Integration Unit Sales 2010 - 2019
4
2010 2011 2012 2013 2014 2015 2016 2017 2018 20190
1000
2000
3000
4000
5000
6000
7000
8000
Western European Vehicles Sales with Smartphone App Integra-tion
Total Vehicles with Smart Phone App Integration
Unit
Sale
s (K)
© 2013 IHS
Global Smartphone App Integration Unit Sales
5
2010 2011 2012 2013 2014 2015 2016 2017 2018 20190
5,000
10,000
15,000
20,000
25,000
30,000
35,000
Global Smartphone App Integration Unit Sales
Total Vehicles with Smart Phone App Integration
Unit
Sale
s (K)
© 2013 IHS
European Telematics Sales 2010 to 2020
6
© 2013 IHS
Global Telematics Sales 2010 to 2020
7
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20200
10000
20000
30000
40000
50000
60000
Global Vehicle Sales with Smart Phone Integration
Total Vehicles with Smart Phone Integra-tionUn
it Sa
les (
K)
© 2013 IHS 8
• Largest existing app ecosystem in the industry, still TBA for MyFord Touch • Open architecture for app development worldwide• Rich vehicle API data source to harness, also harnessing OpenXC• Forecasted WW cum. sales of App-Enabled Fords – 13.6M units by 2018• Forecasted NA cum. sales of App-Enabled Fords – 10.4M units by 2018
Take-Away
© 2013 IHS 9
• Open architecture for app development worldwide• Rich vehicle API data source to harness• Forecasted WW cum. sales of App-Capable GMs – 30.5M units by
2018• Forecasted NA cum. sales of App-Capable GMs – 17.2M units by 2018
Take-Away
© 2013 IHS 10
Best Future Architecture for Automotive Apps?
10-20 Apps
OEM Chosen Driver Chosen
Digital Media Input
Smartphone
Phone App Integration SW
(E.G. MirrorLink)
Apps Head Unit Software Based
Flexible Platform
Embedded Head Unit Apps
2012-2020
CE App Store with Auto Apps
Fast moving with lots of different apps – will need a standard to be truly effective
© 2013 IHS
What Apps Have Respondents Paid Most for on Their Smart Phones
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45%
10%
9%
6%
5%
5%
3%
3%
2%2%
2%2%
2%1% 3%
Games Navigation Health and Fitness Business Driver aids
Sports Live traffic information Social Networking Internet television Internet radio
News Travel Weather Remote Services Others
UK - What Type of App Have Respondents Paid Most for on Their Smartphone?
Source: IHS © 2013 IHS
28%
23%
8%
7%
6%
6%
5%
4%
3%
2%2%
2% 2%2% 1%
Games Navigation Health and Fitness Business Social Networking
Others News Internet television Driver aids Live traffic information
Sports Weather Travel Internet radio Remote Services
Germany - What Type of App Have Respondents Paid Most for on Their Smartphone?
Source: IHS © 2013 IHS
© 2013 IHS
What Apps Have Respondents Paid Most for on Their Smart Phones
12
40%
12%9%
7%
5%
5%
3%
2%
2%
2%2%
2%2%
1%6%
Games Business Health and Fitness Navigation
Sports Internet radio Driver aids Weather
Internet television Live traffic information Social Networking Travel
Remote Services News Others
US - What Type of App Have Respondents Paid Most for on Their Smartphone?
Source: IHS © 2013 IHS
25%
21%
18%
6%
6%
5%
4%
3%
3%3%
1%1%1% 1%
Business Games Navigation Live traffic information
Driver aids Health and Fitness Internet television News
Remote Services Social Networking Internet radio Travel
Weather Sports Others
China - What Type of App Have Respondents Paid Most for on Their Smartphone?
Source: IHS © 2013 IHS
© 2013 IHS
How Often do Users Use Web Radio in the Car?
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UK
US
Ger
man
y
Chi
na
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Whenever I'm in the car Frequently (3-5 times a week) Occasionally (1-2 times a week) Never
Country
Per
cent
age
of R
espo
nden
ts
How Often do Respondents Who Have Access to Internet Radio in Their Car Listen to it? - By Country
Source: IHS © 2013 IHS
© 2013 IHS
Would Users Prefer to Have Embedded Navigation or Smartphone Based Navigation?
14
UK
US
Ge
rma
ny
Ch
ina
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
App on smartphone Embedded in car's dashboard/head unit Others
Country
Pe
rce
nta
ge
of
Re
sp
on
de
nts
Would Respondents Prefer to Have Navigation and/or Traffic Apps on Their Smartphones which can be Connected to Their Car or Already Embedded in the Head unit? - By Country
Source: IHS © 2013 IHS
© 2013 IHS
What Apps do Users Use Most Regularly in the Car?
15
18%
13%
10%
6%6%6%
5%
4%
3%
3%
28%
Google Maps/Navigation Facebook Mail for Outlook Facebook Pages Manager Candy Crush Angry Birds Adobe Reader BBC News TomTom Twitter Others
UK - Please Rank Your Top 3 Apps in Terms of Frequency of Use on Your Smartphone Whilst in the Car
Source: IHS © 2013 IHS
16%
14%
10%
10%5%8%
4%
4%
4%
4%
21%
Google Maps/Navigation What'sApp Messenger Facebook Adobe Reader wetter.com NAVIGON GPS Navigation 2 Facebook Pages Manager YouTube Angry Birds Others
Germany - Please Rank Your Top 3 Apps in Terms of Frequency of Use on Your Smartphone Whilst in the Car
Source: IHS © 2013 IHS
© 2013 IHS
What Apps do Users Use Most Regularly in the Car?
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12%
10%
10%
9%
6%6%
5%
4%
4%
4%
30%
Tencent WeChat/Tencent QQ Mail for Outlook AutoNavi Navigation Baidu Map Navigation Quickoffice Angry Birds Careland Navigation Navigation Dog QQ Music Plants vs. ZombiesOthers
China - Please Rank Your Top 3 Apps in Terms of Frequency of Use on Your Smartphone Whilst in the Car
Source: IHS © 2013 IHS
16%
11%
9%
9%
7%5%5%
3%2%
2%
30%
Google Maps/Navigation Facebook Pandora Candy Crush Facebook Pages Manager Angry Birds Adobe Reader TomTom - Eco Routes
Document Free (Mobile Office Suite) iHeartRadio/iHeartAuto Others
US - Please Rank Your Top 3 Apps in Terms of Frequency of Use on Your Smartphone Whilst in the Car
Source: IHS © 2013 IHS
© 2013 IHS
Is Privacy an Issue for Consumers?
17
UK
US
Ger
man
y
Chi
na
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Want app usage information to remain private Be willing to share app usage information in exchange for free services Not sure
Country
Per
cent
age
of R
espo
nden
ts
Would Respondents Mind if Information from Their Car Apps Was Used By Car Makers, Dealers, etc. in Exchange for Free Services? - By Country
Source: IHS © 2013 IHS
© 2013 IHS
Would Respondents Still Buy a New Car if it Didn’t Offer Apps?
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Male Female0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
No, would not affect my decision, would still buy the carYes, even if all the vehicles I was considering had some available apps, I would have a strong pref-erence for the vehicle with the most, or best selec-tion of appsYes, would affect my decision, would reconsider buyingYes, would affect my decision, would not buy the car
© 2013 IHS
Downsides to Apps in Automotive for Developers
• Cost to integrate multiple SDKs.
• Lack of direct revenue opportunities.
• Loss of branding.
• Slower update cycles.
• Limits on usability and increased time and cost to create a “safe” HMI.
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© 2013 IHS
Benefits for App Developers for Apps in the Car
• Brand awareness?
• Drive more customers to your place of business / smart phone app?
• Direct revenue from app sales / vehicle manufacturer?
• Advertising?
• Others?
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© 2013 IHS
Panel – Automotive Apps Harnessing Car Connectivity
• Moderator – Jack Bergquist, Senior Analyst, IHS Automotive
• Ralf Hug – Consultant, Trajectory Group
• Theo Kamalski - Manager Regulatory Affairs and Patent Engineer Business Unit Automotive
• Robert Hrabak – Connectivity Specialist, General Motors
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