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

Related Content

  • January 3, 2017
    Collaborations with technology providers offer European automotive OEMs new growth opportunities
    Improvements in advanced driver assistance system (ADAS) sensors are driving automation features in original equipment manufacturer (OEM) vehicles, according to Frost & Sullivan’s new research, Market Analysis of Premium European OEMs ADAS and Automated Driving Strategies. By collaborating with leading technology providers in the autonomous driving space, OEMs have an opportunity to transform into mobility service providers and introduce levels 4 and 5 autonomous cars earlier than expected. With several
    Read More
  • December 20, 2016
    Transition to keyless automotive access systems fuels growth opportunities
    The rising popularity of mobility services such as car sharing, rental and leasing is stoking significant interest in keyless access systems, according to Frost & Sullivan research. Following the saturation of radio frequency technology, Bluetooth low energy (BLE), biometrics and near-field communication (NFC) are poised to emerge as the next wave of wireless technologies in the automotive industry. This evolution from legacy vehicle access system to advanced access systems opens the market to specialist co
    Read More
  • November 23, 2016
    Car OEMs target 2021 for rollout of SAE Levels 4 and 5 of autonomous driving
    New OEM smart mobility divisions, growing safety concerns relating to semi-autonomous driving, and recognition by national governments of the environmental and societal advantages of driverless vehicles will accelerate the deployment of more autonomous forms of driving, according to ABI Research. Its report, The Market Potential for Semi-Autonomous Driving, expects that semi-autonomous systems will continue to dominate the market over the next decade, with SAE level 2 and 3 systems accounting for 86 per
    Read More
  • April 14, 2015
    Automotive players targeting corporate mobility
    Offering services that facilitate an integrated door-to-door business travel management solution is one of the main focus areas for growth and investment in 2015 in the automotive industry, according to Frost & Sullivan. With the business travel market worth US$1.3 trillion (GBTA), there is an increasing trend towards companies using online booking tools and cloud based services to plan, book, and expense/account business trips. Automotive market players are working to have their share of the future corpora
    Read More

Highlighted Content