LONDON, April 11, 2017 /PRNewswire/ -- Over 1700 startups along with technology companies are expected to disrupt and transform the automotive industry, as we know it. Digital transformation will affect the entire automotive value chain, including design, production, distribution and retail, reshaping the traditional automotive business model. The component hardware-driven automotive industry is shifting its focus and investments on software and solutions with spending rising rapidly and reaching $82.01 billion in 2020.
Digital Transformation of the Automotive Industry is the latest addition to Frost & Sullivan's Future of Mobility Growth Partnership Service. It explores business activities, process improvements, and the development of competencies and business models across five key pillars: connected supply chain; Industrial IoT(IIoT)/Industry 4.0; connected and autonomous cars; digital retailing; and mobility-as-a-service (MaaS).
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"New business model will consider data, connectivity and customer centricity along with cybersecurity," said Frost & Sullivan Mobility Senior Consultant Sriram Venkatraman. "By 2020, Chief Digital Officers will steer the strategic and digital initiatives of OEMs across luxury and economy brands."
Some interesting upcoming market developments include:
- IT spend will increase from $37.95 billion in 2015 to reach $168.8 billion in 2025, exhibiting a compound annual growth rate of 16.1 percent
- Investment will focus on electric vehicles, new mobility services, multi-modality, artificial intelligence, and autonomous vehicles
- Security across both horizontal and vertical business layers will be enhanced as businesses integrate IoT and big data analytics
- Country-specific, digital retailing strategy for new/used cars in addition to aftermarket and servicing will emerge
Other topics recently covered under the Mobility Growth Partnership Service include:
Cloud and the Car - Use Cases, Business Models and Impact Analysis; Automotive Industry IT Spending - Key Focus Areas, Trends and Future Outlook; Automotive Dealer Management System (DMS) Market—Growth Opportunities and Digital Transformation, Forecast to 2022; State of Automotive Cybersecurity: Key Trends, Solutions, OEM Activities and Vendor Profiles; Disruptive Satellite Communication in the Automotive Industry; and Strategic Analysis of the Automotive Keyless Access Systems Market.
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Digital Transformation of the Automotive Industry
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SOURCE Frost & Sullivan