Description

CES 2020 came to a close with the automotive industry looking at immediate and real-world use cases around an autonomous and on-demand connected lifestyle. As the DOT updated new AV guidelines, the Frost & Sullivan team went to understand how automotive industry participants, which have traditionally been cautious and slow adopters of technologies, are going to bring about a vast change in mindset. Though relevant concepts are showcased by OEMs and suppliers, none of them have disrupted the market like Elon Musk with Tesla. After all the production issues and criticism for technology implementation via OTA, the company is being valued at $80 billion, and can be expected to become the Apple of the mobility industry.

As Frost & Sullivan clocked several miles to unearth how the industry perceives the evolution of the CASE/ACES world for the upcoming decade, 3 important themes expected to shape the future of mobility were observed:
• 5G: 5G will propel innovations that will re-define consumer experiences and spearhead the digital transformation across the automotive
industry. The true potential of this technology is yet to be imagined.
• IoT: IoT is no longer Internet of Things; it is called Intelligence of Things. As more devices get connected and become intelligent, there will be
an increasing need for the concept of platformisation across key automotive domains. It is expected to increase partnerships in the automotive
ecosystem to deploy plug-and-play solutions to fulfill immediate requirements.
• Human Digital Life: As the industry transitions from silicon-on-chip to the vehicle-on-chip era, biometrics will become the central nervous system
to create a unique customer connection. The goal will be to seamlessly customise all aspects of the customer’s mobility journey and digital
lifestyle. Mercedes-Benz’s Vision AVTR concept is a good example of the human digital life.

What Does All This Mean for the Automotive Industry?

Traditionally, the automotive industry has been a year or two late to react to what the consumer electronics (CE) industry has to offer, but certain CE industry trends have laid the foundation for what can be expected.

Televisions with 8K displays and phones with foldable screens are manifesting in the form of an intuitive HMI and immersive content and lounge experience for the automotive industry (e.g., BMW i Interaction EASE and Audi’s AI:ME), representing the 'third living space'. The OnePlus Concept One smartphone uses electric current to hide/display cameras; AR/VR glasses are revealing themselves in the form of the Bosch Virtual Visor concept to prevent sun glare; and information via HUDs and intuitive glasses help gig workers and construction/manufacturing industries.

Overall, the entire show in many ways was a concrete showcase of real-world use cases, but can one expect an Apple in the automotive world? Most claim it is Tesla. The focus is not on mere brand loyalty numbers, but on an innovation culture and a roadmap that ticks boxes pertaining to future trends. The positive side of CES 2020 is that it is heartening to see legacy brands analyse ways and means in which they can capture the Gen Z and millennial mindset to make mobility an exciting value proposition, while extending mobility services beyond the urban lifestyle to suburban and rural areas. Frost & Sullivan's exhaustive study captures the key trends from CES 2020.

Analyst: Sriram Venkatraman