opportunities and new business models: software-updates over …€¦ · opportunities and new...

Opportunities and new Business Models: Software-Updates Over-The-Air

Hideo YamashitaTelematics Taiwan 20165. October 2016

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Moving toward open mobility.

German automotive-focused software company specializing in open source and

open standards based software solutions for the mobility industry.

Highly specialised on server side technologies, but delivered also embedded

software projects with in-house resources and external partners.

Developed OTA Plus, the only open source client/server solution for over-the-air

software updates for OEMs and Tier1s.

First cloud-only service provider to be accepted into the German Association of the

Automotive Industry (VDA), and leads the OTA activities inside GENIVI and

Automotive Grade Linux.

Headquartered in Berlin, ATS operates a regional hub in Tokyo.

1985

Source: Wikimedia© 2016 ATS Advanced Telematic Systems GmbH

2015

Source: www.teslamotors.com© 2016 ATS Advanced Telematic Systems GmbH

Google Self-Driving Car Project

© 2016 ATS Advanced Telematic Systems GmbH Source: www.google.com/selfdrivingcar/

Gogoro Electric Scooter

Source: www.gogoro.com© 2016 ATS Advanced Telematic Systems GmbH

Freightliner Inspiration Truck

Source: Daimler© 2016 ATS Advanced Telematic Systems GmbH

The Rise of New Mobility

Source: Based on Morgan Stanley Research 2015

OWNED AUTONOMY

• High tech, individually operated

• Tesla, Mobileye

SHARED ECONOMY

• Low tech, shared asset•Uber, Lyft, Sidecar, etc.

SHARED AUTONOMY

• “Robo Taxi”• Google, Apple, Uber 2.0

Owned Shared

Human Driver

Autonomous

TODAY

• 100 yr. old model •OEMs, Suppliers, Rentals

© 2016 ATS Advanced Telematic Systems GmbH

ALLnew cars sold with

internet connectivity by 2025

© 2016 ATS Advanced Telematic Systems GmbH Source: IHS, SBD, GSMA, Accenture calculation

Driven by urbanization and macroeconomics, global vehicle sales will continue to grow, although at a slower pace

Current and future annual vehicle sales, millions HIGH DISRUPTION SCENARIO

Source: McKinsey & Company 2016, Automotive Revolution Perspectives Towards 2030

2015 2030


Who are the key players in the market?

© 2016 ATS Advanced Telematic Systems GmbH ATS Research, Aug 2016

0

100

200

300

400

500

600

Apple Google Alibaba Toyota Motor Daimler VW Uber Baidu BMW GM Ford Continental Tesla

Ma

rke

t V

alu

e [

B U

SD

]

OTA Use Cases

© 2016 ATS Advanced Telematic Systems GmbH Source: ABI Research 2016, Automotive OTA Updates

MOBILITY

Parking Reservation

Concierge Services

Payment Solutions

App Stores

Targeted Adverts

VEHICLE

Remote Diagnostics

Remote Repair

Driver Assist

Real-Time Parking

Car 2X

Remote Lock/Unlock

SW Updates

E-Call

LOCATION

Traffic and Location Data and

Updates

Car Tracking and Recovery

Hybrid Nav

Geo-fencing

Urban cities, partnering with companies

like Moovel (owned by Daimler) are

creating multi-modal transport options

including parking and payments across

vendors. Over time, as predictive,

personalized analytics grow, it is

expected targeted advertising will

follow to allow recurring revenue

streams.

Dealer visits will be reduced by remote

diagnostics, SW updates and repairs

driven by cloud-sourced cumulative

vehicle data. E-call systems will

continue to grow, with the EU requiring

it in all new cars from April 2018.

Vehicle to infrastructure capabilities

are developing, including security

focused areas like Geo-fencing ( which

can also be used in advertising to

target customers) and car tracking for

stolen vehicles, as well as the

continued developments in map and

traffic analysis.

Current andExpected

OTA Relevance and importance

Market Insight | August 2016 Source: ABI Research 2016, Automotive OTA Updates

IndustryAccelerators

OTA Business Models

Market Insight | August 2016 Source: ABI Research 2016, Automotive OTA Updates

Recurring Revenue Generator

Race underway to avoid commoditization and

marginalization

Google, Apple, and Chinese adding more comp from

HW and SW

Dealers will already be squeezed out of supply chain

Cost Center and Traditional Sales

Average age of cars is 11.4 years in US

Branding risk from both recalls and Android/ Apple

UX in the car

Complexity and build-approach adding costs; not all

valuable to each consumer

It is estimated that OTA will save up to 60% of the

current time used to complete a dealer led

update.

OEMs are not expected to charge for FOTA

changes, until they are prepared to offer opt-in

enhancements à la Tesla.

Current andExpected

How to make money with a notebook, smartphone or car?

Online-ShopSurfing &

SearchClick

$

Booking PageSurfing &

SearchClick

$

RestaurantSurfing &

SearchClick & Drive

$


Business Models for Connected Cars and Future Mobility?

Purchase UseValue Added

Service

Operation & Maintenance

Sales / New Purchase

? ? ? ? ?


1 OTA strategic part for upcoming models

Large opportunities in cost savings

Multiple revenue models require focus

Significant technical challenges

Make or buy full control vs lock-in?

2

3

5

4

Influencing variables for OEMs strategy in OTA


© 2015 ATS Advanced Telematic Systems GmbH – Confidential –

Thank you.

ATS Advanced Telematic Systems GmbHadvancedtelematic.com

Hideo [email protected]

mailto:[email protected]

OTA will lead to additional revenues and considerable cost savings

30Source: IHS 2015

-40

-30

-20

-10

0

10

2016 2017 2018 2019 2020 2021 2022

Bill

ion

s U

S-$

Additional Revenue per year

Cost Savings per year

$35.3B

$7.2B

$42.5B


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