Connectivity, App Stores and Cloud-Based Delivery Platforms:  Future of European and North American Telematics and Infotainment Market

Connectivity, App Stores and Cloud-Based Delivery Platforms: Future of European and North American Telematics and Infotainment Market



A presentation on the European and North American telematics and infotainment market, by Frost & Sullivan's automotive & transportation analyst team.

A presentation on the European and North American telematics and infotainment market, by Frost & Sullivan's automotive & transportation analyst team.



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  • Some of the top trends in the market currently areOEM development of apps and OEMs creating head units of the future which can support apps like the Toyota Entune supported by companies like Tweedle group. But the basic element is to allow brought-in apps to be accessed by the vehicle head unit and thus creating a case for customer where an extension of his digital life can be seamlessly enabled inside the car. Terminal mode is getting into the second phase after initial interest from Tier 1 suppliers like Harman Becker, Continental, Clarion Group a consortium is being formed to get into commercial implementation. This is expected to be the most important development that will enable OEMs to allow consumer electronic devices to be connected and controlled seamlessly in the car using vehicle HMI controlsConvenience apps are the way to go when it comes to electric vehicles especially catering to areas like reduction of range anxiety coming through various areas like interior pre-conditioning, charging status monitoring. GM, Ford, Nissan, BMW are all examples of OEMs that have developed apps on various mobile OS platforms like Apple, Blackberry, Android
  • Many OEM roles can be envisioned for the future – replicators who will use solutions such as Nokia terminal mode to merely be interfaces for consumer devices inside the car. The second role where currently OEMs like Ford fit with its solution such as Sync are part providers in the sense that some basic features are inside the car but other features are through connectivity enabled from the cloud using consumers personal data connection. Finally the content provider full role which is high capital investment is not a uniform choice but limited to few suppliers like Continental who are pushing hard with the Android enabled AutolinQ solution.
  • Here we see three types of infotainment approaches these can be classified as open infotainment platforms as they are and will be scalable and updatable during the lifetime of the car.Chevy Mylink is GM’s version of Ford SYNC but the difference here lies with the popularity of ONSTAR. the onstar app which is available on mobile phones will allow interaction between the phone and vehicle head unit. We will also see Mylink across all GM brands and buick calls is intellinkONSTAR is the key here and if GM can leverage the successful ONSTAR and also use it for entertainment purposes then this has the potential to be very successfulToyota Entune is what we call an HYBRID system where intelligence is shared between the phone and the vehicle head unit. Here the app is loaded both onto the vehicle head unit and the phone. They interact and work in tandem to provide features to the user. With Toyota’s announcement of partnershjip with MSFT for cloud based services (AZURE). In the future we could see a complete transition into cloud based head unitTomTom is very interesting because it provides connectivity at low cost. The carminattomtom range has been very succesful and has had retention rates of more than 30% on the clio. Renault has been able to use its LIVE services and provide them into the CARMINAT range as well using a dedicated SIMYet the system is still low cost and given tomtom’s popularity and its ecosystem it has the ability to shorten development cycles for infotainment products.
  • Where is the interest for OEMsIf cloud computing is the future then it is clear that the head unit does not need lot of computing power. What would be required is a simple interface and communication module this is the long term visionRight now there is interest to build systems which share intelligence with the head unit and phone. Toyota Entune is an example where both mobile and car work in tandem this is to ensure safety and entertainment are handled in a proper mannerCreating interfaces for access for smartphone and other devices is the most attractive trend in the short term as development time is minimal and it also allows consumers to bring in existing devices. We are seeing maximum interest in this area taking ford sync to jaguar playbook offerings.
  • The buzz word is apps – what is important over here to understand that OEMs want to increase awareness among consumers that OEMS can also design apps specifically for car usage.BMW especially stands out here because they have managed to create this awareness among users. The company did research and found that 40% of their users have iphone. Hence their main concentration is on the iphone which has led to development of ipod out and specifically the Pandora app which has been embedd into the conceted drive with its own interface. The advantage that OEMs have is the vehicle data which can be used to create useful apps for diagnostics, PAYD, etc. This would be the ultimate goal and to reach here OEMS are first trying out with simple value addition apps. The ideal method to do this is to create API for existing popular apps used by consumers and allow them to control it via existing vehicle HMI such as steering wheel controls etc. This way OEMS can ensure SAFE and SECURE usage of mobile phones and also create interest about its brand.

Connectivity, App Stores and Cloud-Based Delivery Platforms:  Future of European and North American Telematics and Infotainment Market Connectivity, App Stores and Cloud-Based Delivery Platforms: Future of European and North American Telematics and Infotainment Market Presentation Transcript

  • Connectivity, App Stores and Cloud-based Delivery PlatformsFuture of European and North American Telematics and Infotainment Market
    June 2011
  • Global Trends and Highlights – OEMs are Using Apps as a New Medium to Reach to Consumers
    OEM Developed Apps are a Reality Now
    Fiat, GM, Ford, BMW, Mercedes, VW all Join the Fray
    Brought-in Apps like Pandora going Standard
    Toyota Entune Infotainment offers Multiple Apps
    Terminal Mode Type Solutions are Ultra Critical Now
    Nokia has established partnerships with several OEMs
    Touch Screens Important Feature Desired by Consumers
    EU and NA consumer study shows 80% consumers favoring
    Tier 1 Suppliers are Actively Developing Next Generation Infotainment Stacks
    Harman Becker Single Largest
    EV Related Apps are a Common Trend Now
    e.g. GM, Ford, Nissan, BMW all have convenience apps
  • OEMs have to address challenges associated with the integration of smart phones in car
    In-vehicle Infotainment Market: Challenges to OEMs (Europe & U.S.), 2010
    Life cycle
    Source: Frost & Sullivan.
  • Internet in the Car: From an automakers perspective Brought-In method the most cost effective and way to bring internet radio into the car
    Beamed - In
    Built - In
    A dedicated SIM card built into the vehicle
    These are head-units which are installed when the vehicle is assembled.
    USB Modem
    GM OnStar**
    BMW Connected Drive
    Connectivity is provided by tethering consumer mobile phone or having a modem in the car
    These are mobile phones used as a modem or have a USB modem
    Bluetooth is the primary method of data transfer from the portable device to the car speakers
    Brought - In
    Pioneer in-dash unit
    Smart drive kit for iphone + smart drive app
    Ford SYNC
    These are aftermarket head-units that provide access to internet with use of consumer mobile phone
    These are portable devices such as mobile phone or music players. The mobile phone network is used for connectivity (tethering)
    **OnStar has some safety features built in but a variety of media features are beamed in only on request
    Source: Frost & Sullivan
  • OEM Roles – Currently Divided between Replicator and Enabler, AutolinQ might be the First full Provider
    Most cost effective
    Most rich experience
    Mobile phone based apps
    Embedded Apps
    Example: Ford Sync, Fiat Blue&Me
    Example: Harman 3G Infotainment System,
    Continental AutolinQ, InkaNet 3G, GENIVI
    Example: NOKIA Terminal Mode
    Positives: Low Cost of Development for OEM, Design advanced interfaces which can easily access information from portable device
    Negatives: Loosing control of infotainment, Possible High level of distraction
    Approx implementation time 6 months after introduction of Terminal Mode
    Minimal source of Revenue
    Positives: Relatively low cost of development, allows consumers to associate with brand, provides connectivity of CE devices
    Negatives: Is not always the best integrated solution, possible level of distraction
    Approx implantation time 2 years
    Possible source of revenue include subscription to critical services
    Positives: Safest and best way for integrated experience, strong association with brand, flexible system allows to upgrade and keep in line with technology
    Negatives: Cost associated is usually high, proprietary systems
    Approx implementation time 5 years
    High source of revenue
  • Smartphone Interfacing Technologies
    In-vehicle Infotainment Market: Description of Various Interface Technologies (Europe and North America), 2010
    Standardizing the interface is the latest trend in the infotainment market
    Simple Cable
    Bluetooth Steering
    Nokia Terminal
    QNX iPod out
    Interface Method
    Phone gets connected to car through a cable. Only functionality available through simple cable is accessing music from phone. It allows hassle-free and easy connectivity, but limits functionality.
    Bluetooth in car pairs with Bluetooth-equipped cell phones and allows telephony, access to contacts and music using steering wheel controls. It has wireless connectivity, but performs limited functions.
    Terminal mode connects phone to car through a cable and allows all smartphone functions in the car.
    It gives blown up functions, but may cause distraction.
    Similar to terminal mode, QNX iPod out currently allows music access in car through ipods and iphone. Pandora Radio is the first application in BMW.
    BMW audio interface, USB cables and audio cables.
    Fiat Blue&Me technology, Bluetooth carkits
    Upcoming Nokia terminal mode concept
    ipod out connectivity in BMW (Pandora)
    Source: Frost & Sullivan.
  • Current Infotainment Approaches: More focus on developing intuitive HMI to provide access to smartphone and other portable devices
    Chevy MyLink
    Integrated Infotainment System
    Voice and steering wheel controls based system
    OnStar services platform integration
    Addresses both entertainment and safety functionality
    Toyota Entune
    Connected services platform enable delivery of mobile applications and services safely and securely into the car
    Voice, smartphone App controls and touch screen
    OEM controlled app environment
    Offers voice, touch screen and central console control options
    Easy to Update
    Integrated dedicated SIM for LIVE services
    Joint development by OEM and non automotive supplier
    Renault TomTom
    Entry Level Infotainment Solution
  • Cloud-based Deployment Models
    Toyota and Ford are Pioneering Cloud-Based Research with Toyota Specifically Focusing on Creating a Complete Mobility Platform using Microsoft Azure Cloud Platform
    Using Google prediction API, Ford is trying to understand driving habits and apply predictive analytics based on patterns to suggest optimized driving routes, types to the driver (all cloud-based)
    Toyota and Microsoft have partnered to create a Toyota Smart Center using Microsoft Azure cloud platform to power next generation connected services including services for the EV as well general mobility related services
    Partnership with to utilize its private social network to power a connected communication channel between car, driver, Toyota and dealerships to enable vast variety of alerts and services including critical ones for EVs
    2012 Global Rollout
    2015 Full Scale Deployment
    2012 Launch
  • Future Connectivity Trends: VNC based data replicator method popular today as future leans towards cloud based head unit
    Vehicle based
    Cloud based
    Revenue Opportunity: HMI - Display
    Revenue Opportunity: HMI – Display
    Smartphone used for connectivity
    All Data accessed from Cloud
    Smartphone / in-built modem used for connectivity
    Partial Intelligence in Car
    Smartphone based
    Revenue Opportunity: HMI - Display
    Revenue Opportunity: App / embedded unit
    Virtual skins loaded both on car and mobile phone
    Smartphone provides connectivity
  • OE Embedded Navigation – Growth expected across markets as connectivity gains importance among OEMs. China is leading the emerging economies.
    Total Market for OE embedded Navigation Forecasts (Unit Shipments)
    17.2 M
    Source: Frost & Sullivan
  • OEMs are Currently working on Developing API to Control Entertainment Apps on Smartphones through vehicle HMI and at the same time working on Free LBS Apps
  • Europe : Current Usage of Apps
    • Apps that keep people generally informed are most popularly used. Yet, awareness and usage of apps is low-to-moderate.
    • Apps used inside the car are generally car-related – with navigation being the most popularly used.
    • High Apps Users – though a small segment of the population – are likely the target for car-related apps, given their daily usage of multiple apps.
    Access to Smartphone Apps Inside Car
    Source: Frost & Sullivan
  • Conclusions - Opportunities are High in Integrating Concepts like Terminal Mode thus Allowing a Host of Features in a Low Cost Manner inside the Car
    Apps Usage
    Apps usage in Europe from smartphone in cars is very moderate and used on a weekly level
    Embedded Systems Being Replaced by Hybrid Systems
    Revenue model in short to medium term will focus on interfaces
    Vehicle Related Apps are Crucial for OEM Development
    Diagnostics type apps will be developed by OEMs as this data is proprietary to them
    Key Findings & Conclusions
    Terminal Mode Type Solutions are Money Spinners
    QNX iPhone out is already commercialized by BMW and similar implementations will follow
    Mission Critical Services will be Embedded in Europe
    Services like eCall, SVT will be embedded for reliability and accuracy sake