R&D on autonomous, connected and electric vehicles creates growth opportunities, says research

As the automotive industry faces narrowing margins, the need to look to other revenue streams and keep the customer committed to the brand for their next purchase is paramount, says Frost & Sullivan. Automotive manufacturers are therefore focusing on research and development (R&D) on autonomous, connected, and electrification (ACE) technologies to build fully connected and completely autonomous vehicles. To thrive in this highly competitive, evolving market, manufacturers need to look beyond seeing themselv
September 18, 2017 Read time: 2 mins
As the automotive industry faces narrowing margins, the need to look to other revenue streams and keep the customer committed to the brand for their next purchase is paramount, says 2097 Frost & Sullivan. Automotive manufacturers are therefore focusing on research and development (R&D) on autonomous, connected, and electrification (ACE) technologies to build fully connected and completely autonomous vehicles. To thrive in this highly competitive, evolving market, manufacturers need to look beyond seeing themselves as product suppliers and focus on becoming providers of mobility services. This will open the door for lucrative, new digital revenue streams.


Frost & Sullivan’s research, Global Key Automakers’ Autonomous, Connected, and Electrification Strategies, Forecast to 2025, finds that between 2015 and 2025, 10 key automotive original equipment manufacturers (OEMs) are expected to spend about US$345 billion on ACE R&D. The study provides a strategic overview of the R&D activities of key OEMs, including key technology development, investment plans, expenditure trends, current expertise, and impact on business performance. Major players such as Volkswagen (VW), Toyota, BMW, General Motors, Ford, Mercedes (Daimler), Nissan-Renault and Tesla, and their ACE technology strategies, are provided.

Location Based Systems

For more information on companies in this article

Related Content

  • Promising growth for electric vehicle telematics market
    March 23, 2012
    According to a study by Pike Research of the market opportunity for telematics in plug-in electric vehicles (PEVs), the annual revenue from sales of EV telematics will reach US$1.4 billion by 2017. Pike Research says that for electric vehicles, telematics can deliver information on electric usage, pricing, and state of charge to owners as well as helping drivers to check on the battery, the charge rate and even assist them to find the nearest charging station. The technology is likely to play a crucial role
    Read More
  • EV charging infrastructure market predicted to grow by almost 50 per cent by 2025
    May 19, 2017
    The global electric vehicle charging infrastructure market is expected to reach US$45.59 billion by 2025, growing at a CAGR of 46.8 per cent from 2017 to 2025, according to a new report by Grand View Research. Governments around the world are encouraging the adoption of electric vehicles and incentive programs, such as tax rebates, grants, and subsidies, have been launched to promote the same. The increasing adoption of electric vehicles is expected to be more in the passenger cars segment, in comparison wi
    Read More
  • Sales of microelectric vehicles will be boosted by 85 per cent by 2013
    May 29, 2012
    Greener agendas, emission-based taxation, parking charge exemptions, and mass-produced electric vehicles are all working together to increase the sales of microelectric vehicles to 0’118,000 units by 2017 within the North American market new analysis from Frost & Sullivan predicts. This represents a compound annual growth rate (CAGR) of 39.30 per cent between 2010 and 2017. By 2013, the total count of microelectric vehicles in North America is likely to increase to 150 types, with the introduction of 34 new
    Read More
  • Autonomous car data released
    January 14, 2016
    California’s Autonomous Vehicle Testing Regulations require every manufacturer authorised to test autonomous vehicles (AV) on public roads to submit an annual report summarising the disengagements, or deactivation of the autonomous mode, of the technology during testing. Eleven manufacturers are currently testing autonomous vehicles on the state’s roads, seven of which (VW/Audi, Mercedes Benz, Google, Delphi Automotive, Tesla Motors, Bosch, and Nissan) were required to submit their first disengagement re
    Read More

Highlighted Content