Strategic Analysis of the Impact of Big Data on the European and North American Automotive Industry
 

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Strategic Analysis of the Impact of Big Data on the European and North American Automotive Industry Presentation Transcript

  • 1. Frost & Sullivan: Big Data’s Predictive Functions to Help Identify and Deliver Opportunities in the Automotive Industry Research PREVIEW for the Strategic Analysis of the Impact of Big Data on the European and North American Automotive Industry @FS_Automotive
  • 2. Big Data will bring about differentiation based on varied metrics, such as brand awareness, digital engagement of customers, response time, and vehicle configurability satisfaction. By 2020, approximately 35 million vehicles in North America and Europe will make relevant data sets available for OEMs to assimilate and convert them into actionable insights. Frost & Sullivan expects 60% of OEMs to establish their Big Data strategies and offerings within the next 2 years.1 2 3 Post-2015/2016, the industry will witness the foray of integrated service providers with expertise in providing end-to-end services across the automotive value chain, i.e., from consulting to implementation. 4 Key Findings, North America and Europe, 2013–2020 Source: Frost & Sullivan Summary of Findings The shift toward Big Data strategies is taking place because of the need to reduce spiraling warranty costs and to create a data sharing network between the dealer, customer, and OEMs.
  • 3. ND31-18 Global Data Traffic and Big Data Market Revenue Potential Digital content is doubling every 18 months – most of the data in the world today has been created in the last two years alone Source: Frost & Sullivan analysis Global Data Traffic in Zettabytes, 2010-2025 Global Big Data Market in $ Billion, 2010-2025 2010 2020 2025 2015 $3.56 $87.85 $122.6 $47.37 2010 2020 2025 2015 1.2 34.1 100.2 7.6 Global Data Traffic and Big Data Market Revenue Potential, Global, 2010 - 2025 20252025
  • 4. ND31-18 Connected Cars Accelerating Big Data Opportunities ~35 Million vehicles in 2020 will make available relevant data sets for OEM’s to assimilate and convert them into actionable insights Note: All figures are rounded. The base year is 2013. Source: Frost & Sullivan analysis. Connected and Non-Connected Cars, North America and Europe, 2013 and 2020  As of 2013 Frost & Sullivan expects less than 2 per cent of vehicle data to be useful for monetization  Meaningful data sets is expected to grow from 10MB to 5GB in an average connected car by 2017/2018. 2020 ~34.0–34.5 million 2013 ~8.5–9.0 million
  • 5. ND31-18 Why Big Data in the Car Industry – The Business Case Key driver for implementing a three pronged big data (internal, external and connected) strategy is the billion dollar cost savings it can provide OEMs/year, and new revenue generation opportunities it can generate across the industry eco system Digital Leads Warranty Costs Reduction, Predictive Maintenance User & Dealer Satisfaction Internet Aggregators Advanced Mobility services, Dynamic Navigation and Parking Product Performance Analysis, Production and Supply Chain Images and logos are only for representation Source: Frost & Sullivan analysis.
  • 6. ND31-18 Impact of Big Data on Vehicle Pricing Transaction pricing to become transparent as internet aggregators enter the market, vehicle pricing transparencies is expected to disrupt dynamics of the industry Foray of internet aggregators could lead to OEM/Dealer’s losing control over the potential flow of information which plays a crucial role during the consideration and purchase decision of customers. Transparent Pricing on New Cars Pricing Analysis made available by country, state, city or even local dealership Digital Profiles of Used Cars Electronic tagging of used cars, creating history and profiling Profiles are segmented by leveraging several data points to obtain a deeper understanding of the customer. Disruptive Influence that Big Data can have Big Data Helping Create New Services Highest and lowest price of a car for the same specification will be brought down by at least 5 to 10 percent. Mystery Shopping Jobs of Pricing Analysts Influencing Customer Decisions
  • 7. ND31-18 Key Societal, Technology and other Challenges for Big Data Implementation Harnessing relevant and prioritized vehicle and user data are key answers to industry challenges Understanding the customer from the web (car vs. lifestyle preferences) – Customer Analytics and CRM The need for better data quality – High data transfer cost per vehicle for downloading information Whose benefitting from the ecosystem – Monetizing data and sharing value amongst ecosystem partners Big Data: Relevant & prioritized information – What data you process and what data you don’t Shortage of skill set for data analytics and data governance – Data Scientists Data privacy issues on the type of data being shared – Government limitations and driver concerns Images and logos are only for representation Source: Frost & Sullivan analysis.
  • 8. ND31-18 OEM Product Planning OEM Warranty and Aftersales/Dealers Connected Services Providers Fleet Related Services OEM Marketing Component failure prediction Optimizing vehicle performance Apps and HMI usage analytics Feature demand by regions Demand sensing – production scheduling Dynamic parts pricing Predicting recall scenarios Proactive diagnostics Feature packaging (option/standard) Tailored auto financing Used car valuation Parts inventory management Service contracts upselling Targeted digital marketing Social media usage analytics Brand loyalty analytics Cross-brand ownership analytics Deals and rebates Product feature campaigning EV related services Crowd-sourced traffic, parking, and weather Traffic management Road infrastructure and public transport Multimodal journey planning Disaster management Eco-driving and driver training Usage-based insurance Fleet optimization Dynamic route planning Freight pricing Driver behavior analysis Asset tracking Prognostics Forward-looking, innovative services Current services which will benefit from Big Data Where it Can Help—Big Data Features and Services A successful crowd-sourced product offering like Waze, which was acquired by Google for $1 billion (without a revenue model), is a classic example of Big Data success. Source: Frost & Sullivan
  • 9. ND31-18 Big Data Explicit Savings from a Vehicle Frost & Sullivan expects an annual savings of ~$700—800 per from leveraging Big Data
  • 10. Details of the Full Analysis
  • 11. Section Slide Numbers Executive Summary 4 Research Scope, Objectives, Background, and Methodology 11 An Overview of Big Data Basics—North America and Europe 17 Big Data for the Automotive Industry 24 Automotive Big Data Market Analysis 32 Key Opportunities in the Auto World Using Big Data and Related Case Studies 37 Additional Big Data Success Case Studies 49 Key Conclusions and Future Outlook 55 Appendix 59 The Hot Topics Covered and Upcoming 65 List of Studies—Past, In-progress, and Planned for 2014 67 The Full Analysis Features the Following Content
  • 12. Interested in Full Access? Connect With Us Jeannette Garcia Corporate Communications- North America (+1) 210.477.8427 jeannette.garcia@frost.com Research Authors Niranjan Manohar Program Manager Automotive & Transportation http://www.frost.com/reg/people-finder- result.do?id=10554 @FS_Automotive Facebook https://www.facebook.com/FrostandSullivan LinkedIn Group https://www.linkedin.com/company/frost-&-sullivan SlideShare http://www.slideshare.net/FrostandSullivan Twitter https://twitter.com/FS_Automotive Katja Feick Corporate Communications- Europe (+1) 210.477.8427 jeannette.garcia@frost.com
  • 13. Global Perspective 40+ Offices Monitoring for Opportunities and Challenges
  • 14. Industry Convergence Comprehensive Industry Coverage Sparks Innovation Opportunities Automotive & Transportation Aerospace & Defense Measurement & Instrumentation Information & Communication Technologies HealthcareEnvironment & Building Technologies Energy & Power Systems Chemicals, Materials & Food Electronics & Security Industrial Automation & Process Control Automotive Transportation & Logistics Consumer Technologies Minerals & Mining