connected car implications in automotive digitalization

Confidential. © 2019 IHS MarkitTM. All Rights Reserved.Confidential. © 2019 IHS MarkitTM. All Rights Reserved.

Connected Car implications

in automotive digitalization

Beatriz Minamy, Connected Car

[email protected]

Confidential. © 2019 IHS MarkitTM. All Rights Reserved.

What is a connected car?

• A connected car is a car that has the capacity to

send and receive data wirelessly (telematics)

• The system that allows the data exchange is

called Telematics Control Unit (TCU) and it

includes and embedded SIM card.

• The TCU can be fitted in the head unit or in a

standalone module.

• General Motors was the first automaker that

brought the connected car features with Onstar

in 1996 in collaboration with Motorolla.

2

Cadillac DeVille 1997 – Opel On Star


TCU evolution 65% volume increase in 7 years

3

• Total TCU production will increase

from 32M to 53M in just 5 years.

• Europe will continue to lead the way,

but growth rates will accelerate in

China and Japan/Korea.

• 80%+ of TCUs will be equipped with

some Wi-Fi connection in 2019,

although it may not be consumer

facing.

2019 TCU production by region (millions)

© 2019 IHS Markit

Note: Telematics Services Component Forecast, May 2019 revision

Source: IHS Markit

0

2

4

6

8

10

12

14

16

18

20

Europe North America China South America Japan/Korea India

2019 2024


Bandwidth: 4G LTE grows globally, 5G enters automotive in 2020

4

• Even as TCU shipments add 20M+

units from 2019-24, 4G enabled

systems and lower will become

marginalized in the marketplace.

• 4G LTE will make up a significant

portion of the market while more

advanced technologies develop.

• The first 5G deployments in

automotive are expected late 2020,

early 2021.

TCU bandwidth share, global

© 2019 IHS Markit


Source: IHS Markit

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2019 2020 2021 2022 2023 2024

2G+ 3G 3G+ 4G 4G LTE 4G+ 5G


Regional differences in TCU bandwidth

5

• North America and China lead the

way with 4G LTE-enabled TCUs.

• Roughly 40% of European TCU

production is 2G+, 3G, or 3G+, but

this will shrink steadily in favor of 4G

LTE.

• Similarly, Japan/Korea is quickly

seeing adoption of 4G LTE to replace

3G modems.

TCU bandwidth share regional comparison, 2019

© 2019 IHS Markit


India, South America hidden due to low volumes

Source: IHS Markit

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

North America Europe China Japan/Korea

2G+ 3G 3G+ 4G 4G LTE 4G+ 5G


LG Electronics, Continental lead automotive TCU shipments

6

• TCU modules are currently dominated

by LG Electronics and Continental –

totaling nearly half of all TCUs.

• Samsung/Harman comes in at third

with just under 10% market share.

• As the TCU market explodes, the

supply chain will change dramatically

to meet new volume and technological

demands.

2019 TCU module supplier market share, by revenue

© 2019 IHS Markit


Top 10 suppliers shown

Source: IHS Markit

LG Corp

Continental

Samsung

Magneti Marelli

Valeo

Panasonic

Bosch

Hyundai MOBIS

Novero

Huawei Other (<3%)


What are the implications of connected cars?

7


Digitization is becoming increasingly important to the car’s value proposition

8

• Changing the automotive architecture

➢ ECU consolidation & light weighting

• Over-the-air (OTA) updates is becoming an

increasingly important capability for:

➢ Life vehicle cycle, software & services

update

➢ Bug fix

➢ Recall avoidance

• Data monetization, software as a service,

collaboration with partners

• Enabling ADAS through V2X

• Cybersecurity

• Customer insights

The automotive ecosystem goes beyond automakers


VW Passat 2019 – MIB3

9

• 3rd generation of the Modular

Infotainment Matrix

• Digital Cockpit; 11.7 Inch digital

instruments and the Infotainment

systems of the MIB3 are merged into a

new unit.

• New GUI for Home and Navigation

• “Always on” via the online connectivity

unit (OCU) as it features its own eSIM

(dual SIM card ) which is the interface to

WE connected services

• Streaming services, Online radio, Wifi-

hotspot, mobile key…Source: VW newsroom


VW WE the new umbrella brand for mobility products

10

VW WE concept store – co-working espace in Berlin

We Connect

We Connect Fleet

We Park

• Driver needs to register to the Volkswagen system (WE app the authorized via infotainment)

VW WE Experience

* Collaboration with local shops

We Deliver *

We Experience *

VW WE mobility services


Headunits increasingly support display output

• In 2024, 7.x-8.x-inch CSDs will

make up 59% of the market

• Average display size

➢ 2019: 7.5 Inch

➢ 2024: 8.0 Inch

• Most popular resolutions in 2019:

➢ 800 x 480

➢ 1280 x 720

➢ 1024 x 600

Global infotainment headunit production by type (millions)

© 2019 IHS Markit

Note: Infotainment Headunit Component Forecast, May 2019 revision

Source: IHS Markit

0

5

10

15

20

25

30

35

40

45

Audio Display Audio Navigation

2019 2020 2021 2022 2023 2024

14M

38M 37M

Hardware & UX/UI implications

Center Stack Display


More bigger and better displays across segments

12

Honda e-prototypeM - byte

D - SUV B HB


Citroën 19_19 Wireless car

UX Experience: Less & less interaction with interface

13


Combined Android OS will gain nearly 10% of market share

over the next 5 years

Infotainment headunit operating system share

© 2019 IHS Markit

Note: Infotainment Headunit Component Forecast, May 2019 revision

Source: IHS Markit

36%

26%

30%

23%

5%

2%

3%

13%

24%

27%

0%7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2019 2024

AliOS

Android Automotive

Generic Android

Automotive Grade Linux

Microsoft

QNX

Linux

Polestar 2, Android Automotive OS

(SOP 2020)

Smartphone UX/UI experience & connectivity expectation

14


Thermal• A/C Compressor

• A/C Condenser/Drier

• A/C Hose & Tube

• Active Grille Shutter System

• Cabin Air Filter

• Charge Air Cooler

• Cooled EGR

• Engine Cooling

• Engine Oil Cooler

• Engine Oil Filter Module

• External Transmission Oil

Cooler

• Heated Steering Wheel

• Heater Core

• Hybrid EV Thermal

Architecture

• Hybrid EV Thermal Battery

Cooling – Cooling System

• Hybrid EV Thermal E-Motor &

Electronics

• Hybrid EV Thermal HVAC

Module

• Hybrid EV Thermal

Supplementary Heating

• HVAC – Flap Actuator

• HVAC – Module

• HVAC – Module + Blower

• HVAC – Controls

• Intelligent Engine Cooling

• Seat Thermal

• Water Pump

Component Research Programs

Electrical/Electronics• 12-36/48 Volt Market Study

• Central Body Control Module (CBCM)

• Engine ECU

• Keyless Entry System

• Power Window System

• Transmission ECU

• Wiring Harness

Interior• Airbag ECU

• Airbag Module

• Door Trim Panel

• Floor Console

• Instrument Panel

• Power Sunroof

• Seat Adjuster

• Seat Assembly

• Seat Backrest Frame

• Seat Cover

• Seat Cushion Frame

• Seat Ergonomics

• Seat Material

• Seat Power & Memory

• Seat Recliner

• Sunroof System

Lighting• Front Lighting

• Front Lighting ECU

• Headlamp

• Tail Lamp

Chassis• Brake Caliper

• Brake Pad

• Brake System

• Park Brake System

• Power Steering System

• Shock Absorbers and Struts

Powertrain & E-Mobility• Alternative Propulsion -

Supplier

• Catalytic Converter

• Diesel Fuel Filter

• E-Motor

• Energy Storage Device

• Exhaust Cold End

• Exhaust Manifold

• Fuel Injector

• Gasoline Fuel Pump

• Intake Manifold

• Particulate Filter

• Power Electronics

• Powertrain Sensors

• Selective Catalytic

Reduction (SCR)

• Throttle Body

• Torque Management Device

• Turbo/Supercharger

• Variable Valve Timing (VVT)

UI/UX• Center Stack Display

• Head-Up Display (HUD)

• Instrument Cluster

Connected Car• Headunit Systems

• Telematics hardware – V2X

• Cockpit domain controllers

• Telematics service providers

• Over the air updates

• Software platforms

• Data monetization

• UBI

ADAS• Camera Sensors (Sales/Production)

• Camera Sensors + Apps (Sales/Prod)

• Lidar Sensors (Sales/Production)

• Lidar Sensors + Apps (Sales/Prod)

• Radar Sensors (Sales/Production)

• Radar Sensors + Apps (Sales/Prod)

connected car implications in automotive digitalization

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