The study discusses the scope of Research & Development in Autonomous, Connectivity, and Electrification (ACE) technologies that can be leveraged to transform the business for automotive manufacturers. As the automotive industry is facing narrowing margins, the need to look to other revenue streams and also keep the customer committed to the brand is paramount. This can be achieved by providing an enhanced experience across the life cycle of the customer's ownership. Moreover, manufacturers need to look beyond seeing themselves as mere product suppliers and start focusing on creating a new identity as providers of mobility services, which will open the door for lucrative new digital revenue streams.
Automotive manufacturers are currently focusing on building fully connected and completely autonomous vehicles, as drivers expect next-generation digital technologies in their cars. As autonomous and connected technologies go hand-in-hand in building efficient self-driving cars, connected car technologies will create a drift in the automotive ecosystem to help automakers make a seamless shift from semi-autonomous driving to fully autonomous driving in the future.
In order to match the market expectation, OEMs' objective is to build cars that can change the form and function, as opposed to what is being offered now. Moreover, in the race to reduce the carbon footprint, OEMs are focusing on unique, customized strategies in building electric vehicles that help in achieving sustainability. Creating smart mobility solutions by conceptualizing the idea of sharing electric vehicles by optimizing cross-company collaboration is another area of focus for automakers to generate revenue. Hence, OEMs are in the process of building next-generation electric vehicles with autonomous driving capability, which will ultimately create a synergy between OEMs and transportation companies in developing a cost-effective business model that leads to a win-win partnership. Moreover, several OEMs are seen as partnering with companies to provide an on-demand network of cars, object recognition, and development of HAD maps. Automakers are keen on building their next-generation infotainment platforms by partnering with key players in this space.
A significant portion of these R&D investments is spent on building cutting-edge technologies in ACE segments. Key European OEMs together account for the highest investment in R&D, followed by major Asian and American automakers. The decision of having an in-house R&D team and R&D outsourcing or partnership depends on the technology competence and innovation activity of an automaker. Maintaining a right balance between in-house development and outsourcing R&D functions will be a critical factor for gaining a competitive edge in the market.
Key Topics Covered:
1. Executive Summary
- Executive Summary - Executive Summary-Key Findings - Executive Summary-R&D Technology Focus Areas - Executive Summary-ACE Technology Areas Overview - Executive Summary-Autonomous Technologies Overview - Executive Summary-Connectivity Technologies Overview - Executive Summary-Electrification Technologies Overview - Executive Summary-Investment vs. Business Impact - Executive Summary-Current vs. Future Outlook
2. Research Scope, Objectives, Background, and Methodology
- Research Scope, Objectives, Background, and Methodology - Research Scope - Research Aims and Objectives - Key Questions this Study will Answer - Research Methodology
3. Definitions and Segmentation
- Definitions and Segmentation - Key OEM Groups Compared in this Research-Selection Criteria - Research Development Segmentation - Key Technologies for Benchmarking-ACE Framework
4. OEMs' ACE Basic Research, Advanced Research, and Product Development Activities
- OEMs' ACE Basic Research, Advanced Research, and Product Development Activities - Key Takeaway - R&D Expenditure Trends - R&D Resource Allocation Trends-In-house Expenditure - R&D Resource Allocation Trends-Employee and R&D Spend - R&D-Technology Focus Areas - Technology Vertices-RoI Trends - Impact of Key Technology Investment Areas-R&D
5. Comparative Snapshot of Key OEMs-2025 ACE Outlook and Related R&D Activities
- Comparative Snapshot of Key OEMs-2025 ACE Outlook and Related R&D Activities - Autonomous-Key Takeaway - Connectivity-Key Takeaway - Electrification-Key Takeaway - OEMs' Overall ACE R&D-Performance Benchmarking
6. Select North American OEMs-2025 ACE R&D Activities
- Select North American OEMs-2025 ACE R&D Activities - Autonomous-Profile of General Motors - Connectivity-Profile of General Motors - Electrification-Profile of General Motors - Autonomous-Profile of Ford - Connectivity-Profile of Ford - Electrification-Profile of Ford
7. Select European OEMs-2025 ACE R&D Activities
- Select European OEMs-2025 ACE R&D Activities - Autonomous-Profile of Volkswagen - Connectivity-Profile of Volkswagen - Electrification-Profile of Volkswagen - Autonomous-Profile of Mercedes-Benz (Daimler) - Connectivity-Profile of Mercedes-Benz (Daimler) - Electrification-Profile of Mercedes-Benz (Daimler)
8. Select Asian OEMs-2025 ACE R&D Activities
- Select Asian OEMs-2025 ACE R&D Activities - Autonomous-Profile of Toyota - Connectivity-Profile of Toyota - Electrification-Profile of Toyota - Autonomous-Profile of Nissan Renault - Connectivity-Profile of Nissan Renault - Electrification-Profile of Nissan Renault
9. 2025 ACE R&D Activities of a Disruptor-Tesla
- 2025 ACE R&D Activities of a Disruptor-Tesla - Autonomous-Profile of Tesla - Connectivity-Profile of Tesla - Electrification-Profile of Tesla