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

  • March 30, 2016
    Webinar investigates truck telematics global growth opportunities
    The Frost & Sullivan webcast on 5 April at 1500 BST will present the 2016 truck market outlook and will investigate the evolving global connected truck telematics industry discussing top market, technology and regional trends impacting market dynamics in 2016. Besides truck OEMs, after-market telematics providers, tier-1 suppliers, start-ups become considerable stake holders in the connected truck value chain. Start-ups focusing on mobile-based freight brokering, ELD (Electronic Logging Device) hardware and
    Read More
  • January 7, 2015
    Investments in autonomous driving are accelerating, says report
    Google and various automakers have increased their activity and investments toward the goal of self-driving vehicles, while Google has shifted from its previous strategy to now focus on fully driverless vehicles for the future. If successful, it will have significant implications for the auto industry, according to IHS Automotive, based on findings in its new report, Autonomous Driving: Question is When, Not If, which is an update to a previous report issued early in 2014. OEMs remain geared toward aug
    Read More
  • April 7, 2017
    EV manufacturers to focus on range, recharging and inductive charging
    The electric vehicle (EV) market is booming, according to Frost & Sullivan researchers. Approximately 25 new electric vehicle models are likely to be launched later this year with Chevrolet Bolt and Tesla Model 3 being the most anticipated. The availability of incentives and subsidies in the market, significant investment by original equipment manufacturers, new entrants, and lower battery prices are factors propelling double-digit growth. However, the lack of standardisation in charging technology, absence
    Read More
  • February 22, 2017
    Freight industry shifting toward a TaaS business model, say researchers
    As the freight industry leaves behind traditional brokering practices to adopt digital and automated platforms, the connected truck telematics market is going through a period of intense evolution, according to the latest research from Frost & Sullivan. It claims digital freight matching solutions will bring about visibility in a disparate landscape, give rise to a truck-as-a-service (TaaS) business model and drive numerous partnerships. It is vital to be aware of key market developments, prime movers, and
    Read More

Highlighted Content