It is common for innovations regarding the connected car market to cover data monetization. Startups in this sector work to develop new apps and pieces of hardware/interfaces or offer a range of prognostic services. In order to make the most of this increase in data, automotive suppliers are attempting to buy and sell car data through software and hardware platforms. Over-the air, Human-machine interface and connected services all create direct revenue streams whereas Big Data analytics can help to save costs and accelerate automotive original equipment manufacturers’ return on investments.
A way of non-automotive players investing in connected cars and homes is to collaborate across different industries through equipment such as Amazon’s Alexa. Frost & Sullivan is a Growth Partnership Company that tries to work with clients in order to create innovation that can address the global challenges and growth opportunities for today’s market. The company in looking in to these connected car innovations and has produced the Global Connected Car Market Outlook 2017 as a part of the Automotive & Transportation Growth Partnership Subscription. In Frost & Sullivan’s report they predict that the connected car shipments will increase from 25 million globally to 70 million units by 2022. This expectation is supported as companies such as Maluuba iNAGO, Promptu, Sensory and Baidu work to offer natural speech assistants and AI enabled speech assistants as well as voice biometrics for the automotive manufacturing industry.
The adoption of 4G long-term evolution has led to an increase in the uptake of connected cars as well as a widening of the subscriber base for telematics services. Despite this, retention rates after free trials are still quite low. In order to appeal to more buyers, the car manufacturers are looking at new types of service models which include product-as-a-service. There are also commission-based and transaction volume based models that could mean revenue streams become more defined when companies start to adopt this business model.
