Mobile ecosystems conquer automotive head units and infotainment systems. GM for instance is offering various in-vehicle APIs as well as remote APIs. This means that in-car as well as remote services will no longer depend on the OEM’s choice and innovation roadmap, but will be open for everyone.
For the car as a connected ecosystem, service designers and developers are key. At the baseline it is the jumpstart of a new service ecosystem that just depends on people’s creativity to find attractive business models. According to a PWC market analysis (clusters mobility management, vehicle management, entertainment, well-being, autonomous driving and safety), the market potential will nearly quadruple from 31,87 billion in 2015 to 115,20 billion in 2020.
As the future is not forecasted but made, we are careful with forecasts (especially if boiled down to two decimals), but one thing is for sure: Unleashing market dynamics off course equals free competition, to create apps that people love and therefore use. Opening APIs and App Store distribution defines a clipping point for an innovation rally. The challenge is to create meaningful apps with great user experience.
It is not just up to the OEMs and the current players which Apple promoted in the first round of CarPlay (Podcasts, Spotify, Sticher, etc). There is also movement in the retrofit market. Startups like Automatic open up the car information system, while Navdy brings connected services to the drivers. Having a gateway to the car is a launchpad for smart infrastructures and cities.
Up to now, this market suffered from a chicken-and-egg problem: Offering intelligent infrastructure services would never reach a relevant market penetration, and nobody had an interface to the service. Now, finally, the situation is changing.
Besides automotive OEM and classical suppliers, we expect a major growth in the service variety from outside the industry. It’s a launchpad for reinventing city infrastructures. A chance for connecting buildings and construction with the ambient world. A chance to rethink traditional role models in traffic and transportation. Here are some quick examples (which will pretty sure sound like a „order a pizza“ use case from a 2020 perspective):
moovel, flinc, mytaxi and Uber are predecessors of a new kind of interconnected mobility, which can perfectly integrate connected private cars and fleets. Now it is easy to integrate the average car owner into intermodal offers – as a user or as a provider – and this will change the mobility service landscape again. Making the car part of the internet of things and services will change the way we consider and experience mobility. We expect a large variety of services booming during the next years.
With the words of Gary Hamel: “The age of revolution beckons us to expand our horizons”. We see a blue ocean for new business models beyond the component and traditional onboard services on a systemic level as well as for redefining mobility usage on a process level.
Floating fleets will emerge and become an integral part of mobility. The smarter the integration in mobility and urbanity ecosystems become, the more services will also influence the future business models by the OEMs.
Although we are sure that the private car will remain a vital part of the mobility business, additional revenue streams (focussing on use and service, not on sold vehicles) will emerge and gain importance. Especially urban areas in the western hemisphere and boom towns will lead this (r)evolution.