2/24/2016 

Technology-driven trends will revolutionize how industry players respond to changing consumer behavior, develop partnerships, and drive transformational change.

McKinsey -- Today’s economies are dramatically changing, triggered by development in emerging markets, the accelerated rise of new technologies, sustainability policies, and changing consumer preferences around ownership. Digitization, increasing automation, and new business models have revolutionized other industries, and automotive will be no exception. These forces are giving rise to four disruptive technology-driven trends in the automotive sector: diverse mobility, autonomous driving, electrification, and connectivity.

Most industry players and experts agree that the four trends will reinforce and accelerate one another, and that the automotive industry is ripe for disruption. Given the widespread understanding that game-changing disruption is already on the horizon, there is still no integrated perspective on how the industry will look in 10 to 15 years as a result of these trends. To that end, our eight key perspectives on the “2030 automotive revolution” are aimed at providing scenarios concerning what kind of changes are coming and how they will affect traditional vehicle manufacturers and suppliers, potential new players, regulators, consumers, markets, and the automotive value chain.

This study aims to make the imminent changes more tangible. The forecasts should thus be interpreted as a projection of the most probable assumptions across all four trends, based on our current understanding. They are certainly not deterministic in nature but should help industry players better prepare for the uncertainty by discussing potential future states.

1. Driven by shared mobility, connectivity services, and feature upgrades, new business models could expand automotive revenue pools by about 30 percent, adding up to $1.5 trillion.

The automotive revenue pool will significantly increase and diversify toward on-demand mobility services and data-driven services. This could create up to $1.5 trillion—or 30 percent more—in additional revenue potential in 2030, compared with about $5.2 trillion from traditional car sales and aftermarket products/services, up by 50 percent from about $3.5 trillion in 2015.

Connectivity, and later autonomous technology, will increasingly allow the car to become a platform for drivers and passengers to use their time in transit to consume novel forms of media and services or dedicate the freed-up time to other personal activities. The increasing speed of innovation, especially in software-based systems, will require cars to be upgradable. As shared mobility solutions with shorter life cycles will become more common, consumers will be constantly aware of technological advances, which will further increase demand for upgradability in privately used cars as well.

Read the rest here: http://www.mckinsey.com/industries/high-tech/our-insights/disruptive-trends-that-will-transform-the-auto-industry

CNET -- Ford's had a change of heart. When every other automaker went running for smartphone apps that connected to a vehicle via an in-car modem, Ford chose to hold off, claiming the smartphone was the method for providing vehicles with Internet-based functionality. That's all changed with the release of Sync Connect, which will launch with the 2017 Ford Escape unveiled at the 2015 Los Angeles Auto Show.

"There's a recognition that we need to be multifaceted in regards to connectivity," said Don Butler, Ford's director of connected vehicles and services. "With where we see the industry going, built-in connectivity will become an increasing part of what we do. I think the approach that we've taken at Ford has been consistent with our customers and their needs."

Sync Connect is similar to apps from other automakers in that it allows the owner to access certain vehicle functions and information from the owner's own smartphone. Available features include remote lock and unlock, vehicle status including tire pressures and fuel level, vehicle location and remote start.

Its standout feature is the ability to remote start a vehicle according to a schedule. You can, for example, program your car to start at 7:15 every morning for your 7:30 departure. Other automakers offer remote-start capabilities, but none let you schedule it ahead of time. Ford also believes its user interface will help set it apart from its competitors.

The app will also receive over-the-air updates, which require the car to be running. However, you won't lose infotainment functionality while that happens. According to Ford, the updating takes place on a module that operates independently of the Sync 3 infotainment system, so the driver won't miss anything while it's happening.

Read the rest of the story here: http://www.cnet.com/news/ford-announces-sync-connect-smartphone-app/

HARMAN International Industries announced a strategic partnership to extend Dirac’s digital audio solutions and superior tuning technology to HARMAN’s best-in-class automotive audio and infotainment system applications.

Through this partnership, HARMAN will also become a worldwide distributor of Dirac’s sound technologies to automotive sound system suppliers and car manufacturers, bringing together HARMAN's legacy of premium audio and Dirac’s mission to develop technologies for the ultimate sound experience. 

This collaboration builds on HARMAN’s existing partnership with Dirac that provides the Bowers & Wilkins premium in-car surround system for the Volvo XC90 with Dirac’s advanced sound optimization technology Dirac Unison™. HARMAN will implement Dirac’s advanced digital audio technologies to enhance the in-car entertainment experience for consumers and enable automakers to further differentiate and elevate their sound systems across brands and car lines. 

“Dirac continues to be a leader in the development of audio quality optimization technologies, and we are pleased to integrate their exceptional solutions with HARMAN’s superior audio systems to bring best-in-class audio to our automotive partners around the world,” said Michael Mauser, Executive Vice President and President, Lifestyle Audio at HARMAN. “Integrating Dirac technologies into HARMAN’s products will further create great lifestyle experiences for today's connected generation through premium automotive audio and infotainment systems.”

“HARMAN has become the premier audio and infotainment provider for automotive applications, and we’re thrilled to work closely together and add our digital audio solutions to the most compelling automotive audio portfolio in the world,” commented Mathias Johansson, CEO of Dirac. “The team at Dirac will be fully vested in developing new digital audio solutions for the automotive market segment as we collaborate with HARMAN to bring the highest level of value and innovation to the most sophisticated automotive environments.”

HARMAN automotive partners will now have the opportunity to license Dirac’s advanced technologies for sound optimization directly within eligible models, including room correction, sound field synthesis, active room treatment and more. Additionally, HARMAN will work closely with Dirac R&D engineers to ensure seamless integration of Dirac’s existing and new technologies into automotive audio and infotainment system applications. 

Automotive IT -- Despite greater focus on digital technologies throughout the auto industry, carmakers are  still struggling with digitalization, according to a new study.

The study, conducted by management consultants Batten & Company, found that the auto industry lags behind most other industry sectors in the implementation of digital technologies.

For their research, the consultants developed a so-called “digital automotive index” that measures 70 factors. They then compared the pressure from customers, suppliers and competitors to digitize with the actual degree of digitalization in the industry.

According to the study, only Mercedes-Benz, VW and BMW scored well in the study. Land Rover and Kia were at the bottom of the 20-brand ranking.

“All are talking about digitalization, but many managers aren’t focusing on what is essential: What does an automaker need in concrete terms to address in a targeted and solution-oriented way the growing digitalization pressure ,” said Tobias Goebbel, Batten managing partner.

Read the rest of the story here: http://www.automotiveit.com/study-automakers-struggle-with-digitalization/news/id-0049757