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

  • May 9, 2013
    Eight out of eleven OEMs focusing on global mobility market
    According to Frost and Sullivan, eight out of eleven major global original equipment manufacturers (OEMs) are focusing on the global mobility market, investing in a range of key solutions including products like electric vehicles (EVs), micro-mobility, and services like car-sharing and leasing. New mobility strategies of key global OEMs are gathering pace and the future of mobility is already here. The report, Competitive Benchmarking and Comparative Analysis of the Mobility Strategies of Key Global OEMs, o
    Read More
  • April 21, 2017
    Global powertrain market experience immense growth, say researchers
    The latest report from Frost & Sullivan indicates that the global powertrain market is experiencing immense growth as new low-emission technologies such as engine downsizing and rightsizing; direct injection; turbocharging; transmission electrification; and electric vehicle (EV), hybrid and gasoline engines transform the industry. Original equipment manufacturers (OEMs) are embracing platform strategy as a tool to improve the energy efficiency of powertrain systems and to achieve fleet level CO2 compliance
    Read More
  • February 20, 2014
    Are Detroit OEMs heading towards extinction if Apple acquires Tesla?
    Analyst comment from Frost & Sullivan indicates that the business consulting firm believes that Detroit OEMs are in trouble if Apple acquires Tesla and thinks that the rumours surrounding this potential acquisition have some fire behind them. According to automotive and transportation team leader Paraná Tharthiharan: "Apple has an arm that researches automated driving technology and Tesla is also interested in automated driving. Hence, the speculations carry more weight than mere rumours, as if about cel
    Read More
  • February 1, 2012
    Advanced in-vehicle user interface - future developments
    Dave McNamara and Craig Simonds, Autotechinsider LLC, look at human-machine interface development out to 2015. The US auto industry is going through the worst crisis it has faced since the Great Depression. But it has embraced technologies that will produce the best-possible driving experience for the public. Ford was the first OEM to announce in-car internet radio and SYNC, its signature-branded User Interface (UI), is held up as the shining example of change embracement.
    Read More

Highlighted Content