Global Key Automakers’ Autonomous, Connected, and Electrification Strategies, Forecast to 2025

About 10 OEMs Target to Spend $345 Billion on ACE R&D by 2025

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The study discusses the scope of Research & Development in Autonomous, Connectivity, and Electrification (ACE) technologies that can be leveraged to transform the business for automotive manufacturers. As the automotive industry is facing narrowing margins, the need to look to other revenue streams and also keep the customer committed to the brand is paramount. This can be achieved by providing an enhanced experience across the life cycle of the customer's ownership. Moreover, manufacturers need to look beyond seeing themselves as mere product suppliers and start focusing on creating a new identity as providers of mobility services, which will open the door for lucrative new digital revenue streams.

Automotive manufacturers are currently focusing on building fully connected and completely autonomous vehicles, as drivers expect next-generation digital technologies in their cars. As autonomous and connected technologies go hand-in-hand in building efficient self-driving cars, connected car technologies will create a drift in the automotive ecosystem to help automakers make a seamless shift from semi-autonomous driving to fully autonomous driving in the future.

In order to match the market expectation, OEMs’ objective is to build cars that can change the form and function, as opposed to what is being offered now. Moreover, in the race to reduce the carbon footprint, OEMs are focusing on unique, customized strategies in building electric vehicles that help in achieving sustainability. Creating smart mobility solutions by conceptualizing the idea of sharing electric vehicles by optimizing cross-company collaboration is another area of focus for automakers to generate revenue. Hence, OEMs are in the process of building next-generation electric vehicles with autonomous driving capability, which will ultimately create a synergy between OEMs and transportation companies in developing a cost-effective business model that leads to a win-win partnership. Moreover, several OEMs are seen as partnering with companies to provide an on-demand network of cars, object recognition, and development of HAD maps. Automakers are keen on building their next-generation infotainment platforms by partnering with key players in this space.

A significant portion of these R&D investments is spent on building cutting-edge technologies in ACE segments. Key European OEMs together account for the highest investment in R&D, followed by major Asian and American automakers. The decision of having an in-house R&D team and R&D outsourcing or partnership depends on the technology competence and innovation activity of an automaker. Maintaining a right balance between in-house development and outsourcing R&D functions will be a critical factor for gaining a competitive edge in the market.

Table of Contents

1. Executive Summary
Key Findings
R&D Technology Focus Areas
ACE Technology Areas Overview
Autonomous Technologies Overview
Connectivity Technologies Overview
Electrification Technologies Overview
Investment vs. Business Impact
Current vs. Future Outlook
2. Research Scope, Objectives, Background, and Methodology
Research Scope
Research Aims and Objectives
Research Methodology
3. Definitions and Segmentation
Key OEM Groups Compared in this Research—Selection Criteria
Research & Development Segmentation
Key Technologies for Benchmarking—ACE Framework
4. OEMs’ ACE Basic Research, Advanced Research, and Product Development Activities
Key Takeaway
R&D Expenditure Trends
R&D Resource Allocation Trends—In-house Expenditure
R&D Resource Allocation Trends—Employee and R&D Spend
R&D—Technology Focus Areas
Technology Vertices—RoI Trends
Impact of Key Technology Investment Areas—R&D
5. Comparative Snapshot of Key OEMs—2025 ACE Outlook and Related R&D Activities
Autonomous—Key Takeaway
Connectivity—Key Takeaway
Electrification—Key Takeaway
OEMs’ Overall ACE R&D—Performance Benchmarking
6. Select North American OEMs—2025 ACE R&D Activities
Autonomous—Profile of General Motors
Connectivity—Profile of General Motors
Electrification—Profile of General Motors
Autonomous—Profile of Ford
Connectivity—Profile of Ford
Electrification—Profile of Ford
7. Select European OEMs—2025 ACE R&D Activities
Autonomous—Profile of Volkswagen
Connectivity—Profile of Volkswagen
Electrification—Profile of Volkswagen
Autonomous—Profile of Mercedes-Benz (Daimler)
Connectivity—Profile of Mercedes-Benz (Daimler)
Electrification—Profile of Mercedes-Benz (Daimler)
8. Select Asian OEMs—2025 ACE R&D Activities
Autonomous—Profile of Toyota
Connectivity—Profile of Toyota
Electrification—Profile of Toyota
Autonomous—Profile of Nissan Renault
Connectivity—Profile of Nissan Renault
Electrification—Profile of Nissan Renault
9. 2025 ACE R&D Activities of a Disruptor—Tesla
Autonomous—Profile of Tesla
Connectivity—Profile of Tesla
Electrification—Profile of Tesla
10. Overall Future ACE R&D Activities—Performance Evaluation
Benchmarking Autonomous Activities
Benchmarking Connected Cars Activities
Benchmarking Electrification Activities
R&D Expenditure Effectiveness
Autonomous Technology—Volkswagen Group
Connected Cars Services—Toyota Group
Electrification Strategy—Tesla Group
11. Growth Opportunities and Companies to Action
Growth Opportunity—ACE Technologies
Strategic Imperatives for Success and Growth
12. Conclusions and Recommendations
Current vs. Future Outlook
The Last Word—3 Big Predictions
Legal Disclaimer
Market Engineering Methodology


List of Figures & Charts

1. Benchmarking R&D Activities of Key Automotive Manufacturers: Current and Future Outlook. Global, 2016 and 2025
2. R&D Benchmarking of Key Automotive Manufacturers: Key Industry Participants, Global, 2017
3. R&D Strategies of Key Automotive Manufacturers: ACE Framework Benchmarking Criteria, Global, 2016
4. Benchmarking R&D Activities of Key Automotive Manufacturers: Current and Future Outlook, Global, 2016 and 2025


1. Benchmarking R&D Strategies of Key Automotive Manufacturers: Key Takeaways, Global, 2015–2025
2. R&D Strategies of Key Automotive Manufacturers: RoI Trends, Global, 2015–2025
3. R&D Strategies of Key Automotive Manufacturers: Technologies Overview, Global, 2015–2025
4. R&D Strategies of Key Automotive Manufacturers: Autonomous Overview, Global, 2015–2025
5. R&D Strategies of Key Automotive Manufacturers: Connectivity Overview, Global, 2015–2025
6. R&D Strategies of Key Automotive Manufacturers: Electrification Overview, Global, 2015–2025
7. R&D Strategies of Key Automotive Manufacturers: Investments vs. Business Impact, Global, 2015–2025
8. R&D Strategies of Key Automotive Manufacturers: R&D Expenditure, Global, 2016
9. R&D Strategies of Key Automotive Manufacturers: Overview, Global, 2015–2025
10. R&D Strategies of Key Automotive Manufacturers: ACE Framework Definitions, Global, 2016
11. R&D Strategies of Key Automotive Manufacturers: R&D Expenditure Key Takeaway, Global, 2016
12. R&D Strategies of Key Automotive Manufacturers: In-house vs. Collaboration Expenditure, Global, 2015–2025
13. R&D Strategies of Key Automotive Manufacturers: In-house R&D Expenditure, Global, 2016
14. R&D Strategies of Key Automotive Manufacturers: R&D Employees and R&D Spend, Global, 2016
15. R&D Strategies of Key Automotive Manufacturers: RoI Trends, Global, 2015–2025
16. R&D Strategies of Key Automotive Manufacturers: Investment Return Trends, Global, 2015–2025
17. R&D Strategies of Key Automotive Manufacturers: Profitability Trends, Global, 2015–2025
18. R&D Strategies of Key Automotive Manufacturers: Investment Trends, Global, 2015–2025
19. R&D Strategies of Key Automotive Manufacturers: Autonomous, Global, 2015–2025
20. R&D Strategies of Key Automotive Manufacturers: Connectivity, Global, 2015–2025
21. R&D Strategies of Key Automotive Manufacturers: Connectivity, Global, 2015–2025
22. R&D Strategies of Key Automotive Manufacturers: Benchmarking Manufacturing Strategies, Global, 2015–2025
23. R&D Strategies of Key Automotive Manufacturers: Availability of Models by EV Type, Global, 2016 and 2025
24. R&D Strategies of Key Automotive Manufacturers: Availability of Models by EV Type, Global, 2016 and 2025
25. R&D Strategies of Key Automotive Manufacturers: Availability of Models by EV Type, Global, 2016 and 2025
26. R&D Strategies of Key Automotive Manufacturers: Availability of Models by EV Type, Global, 2016 and 2025
27. R&D Strategies of Key Automotive Manufacturers: Availability of Models by EV Type, Global, 2016 and 2025
28. R&D Strategies of Key Automotive Manufacturers: Availability of Models by EV Type, Global, 2016 and 2025
29. R&D Strategies of Key Automotive Manufacturers: Availability of Models by EV Type, Global, 2016 and 2025
30. R&D Strategies of Key Automotive Manufacturers: Benchmarking Autonomous Strategies, Global, 2015–2025
31. R&D Strategies of Key Automotive Manufacturers: Benchmarking Connected Cars Strategies, Global, 2015–2025
32. R&D Strategies of Key Automotive Manufacturers: Benchmarking Electrification Strategies, Global, 2015–2025
33. R&D Strategies of Key Automotive Manufacturers: R&D Productivity Indicators, Global, 2015 and 2016
34. R&D Strategies of Key Automotive Manufacturers: VW Autonomous Strategy, Global, 2015–2025
35. R&D Strategies of Key Automotive Manufacturers: Toyota Connectivity Strategy, Global, 2015–2025
36. R&D Strategies of Key Automotive Manufacturers: Tesla Electrification Strategy, Global, 2015–2025



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Release Date : 13-Nov-17

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