connectivity, app stores and cloud-based delivery platforms: future of european and north american...
TRANSCRIPT
Connectivity, App Stores and Cloud-based Delivery Platforms
Future of European and North American Telematics and Infotainment Market
June 2011
2
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 NowNokia 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 StacksHarman Becker Single Largest
Global Trends and Highlights – OEMs are Using Apps as a New Medium to Reach to Consumers
EV Related Apps are a Common Trend Now
e.g. GM, Ford, Nissan, BMW all have convenience apps
3
OEMs have to address challenges associated with the integration of smart phones in car
Standardi-zation
Life cycle gap
User friendly
HMI
Liability
Driver Distraction
Safety Legislati
ons
Challenges
Source: Frost & Sullivan.
In-vehicle Infotainment Market: Challenges to OEMs (Europe & U.S.), 2010
M699-18
4
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
Brought - In
Built - In
These are head-units which are installed when the vehicle is assembled.
A dedicated SIM card built into the vehicle
Bluetooth is the primary method of data transfer from the portable device to the car speakers
These are portable devices such as mobile phone or music players. The mobile phone network is used for connectivity (tethering)
These are mobile phones used as a modem or have a USB modem
Connectivity is provided by tethering consumer mobile phone or having a modem in the car
BMW Connected Drive
Ford SYNC
Source: Frost & Sullivan
Smart drive kit for iphone + smart drive app
GM OnStar**
**OnStar has some safety features built in but a variety of media features are beamed in only on request
USB Modem
ClarionMIND Pioneer in-dash unit
Aftermarket
These are aftermarket head-units that provide access to internet with use of consumer mobile phone
5M653-18
Replicate Enable Provide
Most cost effective Most rich experience
Mobile phone based appsEmbedded Apps
Example: NOKIA Terminal Mode
Positives: Low Cost of Development for OEM, Design advanced interfaces which can easily access information from portable deviceNegatives: Loosing control of infotainment, Possible High level of distractionApprox implementation time 6 months after introduction of Terminal Mode Minimal source of Revenue
Example: Ford Sync, Fiat Blue&Me
Positives: Relatively low cost of development, allows consumers to associate with brand, provides connectivity of CE devicesNegatives: Is not always the best integrated solution, possible level of distraction
Approx implantation time 2 yearsPossible source of revenue include subscription to critical services
Example: Harman 3G Infotainment System, Continental AutolinQ, InkaNet 3G, GENIVI
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 yearsHigh source of revenue
OEM Roles – Currently Divided between Replicator and Enabler, AutolinQ might be the First full Provider
6
Simple CableInterface Method
Functionality
BMW audio interface, USB cables and audio
cables.
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 Steering Wheel
Nokia Terminal Mode QNX iPod out
Fiat Blue&Me technology, Bluetooth
car kits
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.
Upcoming Nokia terminal mode
concept
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.
ipod out connectivity in BMW (Pandora)
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.
Examples
Smartphone Interfacing Technologies
Standardizing the interface is the latest trend in the infotainment market In-vehicle Infotainment Market: Description of Various Interface Technologies (Europe and North America), 2010
Source: Frost & Sullivan.
M699-18
7M5B6-18
Renault TomTom
Toyota Entune
Chevy MyLink
Entry Level Infotainment Solution
Offers voice, touch screen and central console control options
Easy to UpdateIntegrated dedicated SIM for LIVE services
Joint development by OEM and non automotive supplier
Integrated Infotainment SystemVoice and steering wheel controls based system
OnStar services platform integration
Addresses both entertainment and safety functionality
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
Current Infotainment Approaches: More focus on developing intuitive HMI to provide access to smartphone and other portable devices
8
Cloud-based Deployment ModelsToyota and Ford are Pioneering Cloud-Based Research with Toyota Specifically Focusing on Creating a Complete Mobility Platform using Microsoft Azure Cloud Platform
• Google• Using Google
Prediction API to Increase Driving Efficiency
Ford
• Microsoft• Using Azure Cloud Platform to create a mobility platform for connected services
including services for EVs
Toyota
• Salesforce.com• Using Salesforce
chatter a private social network that
will connect car, dealerships and
Toyota
Toyota Friend
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 Salesforce.com 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 Rollout2015 Full Scale Deployment2012 Launch
9M6AO - 18
Cloud based
Partial Intelligence in Car Smartphone based
Vehicle based
Revenue Opportunity: HMI – Display
Apps
All Data accessed from CloudSmartphone / in-built modem used for connectivity
Revenue Opportunity: App / embedded unit
Virtual skins loaded both on car and mobile phoneSmartphone provides connectivity
Revenue Opportunity: HMI - Display
Revenue Opportunity: HMI - Display
Apps Apps
Apps
Smartphone used for connectivity
Apps
Future Connectivity Trends: VNC based data replicator method popular today as future leans towards cloud based head unit
10
20162010 Western Europe
North America
Brazil China India Korea Russia0
1000
2000
3000
4000
5000
6000
7000
80002014
8.4M
Thou
sand
s17.2 M
OE Embedded Navigation – Growth expected across markets as connectivity gains importance among OEMs. China is leading the emerging economies.
9.3
Total Market for OE embedded Navigation Forecasts ( Unit Shipments)
Source: Frost & Sullivan
55.2%
28%
44.8%
26.7%
11.9%
11M6AO - 18
Telematics Related Apps
BMW Roadside
Assistance
Mercedes Mbrace
App
BMW Connected
App
Continental TPMS App
Vehicle Information
Apps
Audi Car Monitor
App
myChevrolet App
Ciao Fiat Smartphon
e App
Dynolicius –
Diagnostics App
Entertainment Apps
Toyota I Heart
Internet Radio App
Ford - Sync Enabled Pandora
Ford – Sync
Enabled Stitcher
BMW/Mini Connected
App
Location Based Service Apps
Toyota Park Smart
App
OnStar Mylink App
Trapster – Speed
Camera App
Viper Smart Start
Remote App
Navigation Related Apps
TomTom Navigation
App
Bosch Navigation
App
Toyota Smart G-Book App
Mercedes Smart
Drive App
Others
EV Apps – BMW
Active E, Nissan
LEAF appsZip Car –
Car Sharing
AppFauercia
Smart Fit – Seat
Related App
Green Apps – Green
Meter App
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
12
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.
Navig-ation
Live Traffic
TravelMusic
Internet Radio
Access to Smartphone Apps Inside Car
Source: Frost & Sullivan
High Apps Users: 9%
Moderate-to-Low Apps
Users: 88%
13
Embedded Systems Being Replaced by Hybrid
SystemsRevenue model in short to medium term will focus on
interfaces
Terminal Mode Type Solutions are Money
SpinnersQNX iPhone out is already commercialized by BMW
and similar implementations will follow
Mission Critical Services will be Embedded in
EuropeServices like eCall, SVT will be embedded for reliability
and accuracy sake
Vehicle Related Apps are Crucial for OEM
DevelopmentDiagnostics type apps will be developed by OEMs as this data is proprietary to
them Key Findings &
Conclusions
Apps UsageApps usage in Europe from smartphone in cars is very moderate and used on a
weekly level
Conclusions - Opportunities are High in Integrating Concepts like Terminal Mode thus Allowing a Host of Features in a Low Cost Manner inside the Car