Automotive

Accelerating the shift to new mobility services

Megatrends in Automotive: Toward a change of paradigm

The automotive industry has made a strong recovery since the last crisis with worldwide sales outpacing 90 million vehicles in 2017. Under the surface, however, deep transformation trends are taking shape, promising to drive very disruptive changes.

These transformations open the door to massive shifts in the industry’s structure. They are also opening the way to strategic opportunities for automotive players to be at the heart of tomorrow’s mobility systems and to find new avenues for growth.

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$2tn

share of the economy depends on Automotive today
$ = USD / (source: Deloitte)

86%

of consumers ask for smart in-vehicle experience

4 terabytes

of data are delivered by autonomous cars daily

$750bn

may be monetized each year from car data in 2030
$ = USD / (source: McKinsey)

The traditional automotive industry models of human-driven, personally owned vehicles may be radically challenged in the coming years. In the emerging ecosystems, each company will have to rethink where to play and how to win.

Thilo Stieber,

Vice President Portfolio & Innovation, Global Head of Automotive, Atos

Four transformation challenges and opportunities for the future of Automotive

Rethink
the mobility experience

While the driving experience was considered a key factor of choice a decade ago, the car’s ‘killer app’ is now the in-vehicle experience. To succeed in this new era, automotive companies have to develop personalized in-vehicle services. The potential impact is immense: keep hold of customers, increase engagement and loyalty.

More here

Develop
more agile operations

In today’s fast-changing market, automotive players face evermore varied segments with increasingly shorter lifecycles. This calls for considerably modernized, automated and more agile design and production processes. The potential benefits are huge: improving productivity by another 30%, reducing scrap by 80% and shortening process time by 50%.

More here

Leverage
innovative business models

For decades, automotive models have revolved around one-time vehicle sales and aftermarket revenue. But by 2030, 30% of business may rely on data-enabled services and shared mobility. Carmakers investing in shared fleets services are a signpost of this trend. This may radically transform automotive business ecosystems.

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Provide
predictive security and compliance

More complex and interconnected vehicles, plants, systems and components, fragmented supply chains, and rising environmental laws mean danger at every turn. This makes it vital that native security and compliance are put at the heart of automotive industry strategies. The reward: making trust a business differentiator.

More here

Take a look at the key technologies that will shape the future of Automotive:

TRANSFORMATIONAL • ADOPT

Hybrid Cloud is reviving Cloud initiatives by enabling seamless integration of private and public Cloud platforms. With this model, organizations can exploit the benefits of public Cloud: pay-per-use, ‘infinite’ bursting resources, agility and innovation. Automotive players must adapt their IT processes and prepare for related security implications.

TRANSFORMATIONAL • TRIAL

Digital Business Enablement Platforms allow data and services to be distributed across third parties. Automotive players should put these platforms at the heart of their digital strategy to attract ecosystems partners and create multi-sided marketplaces

HIGH • TRIAL

Additive Manufacturing or ‘3D Printing’ facilitates rapid prototyping and low-volume production. Beyond its potential in new model design and testing acceleration, automotive players must consider its broader adoption for small series manufacturing, spare part management and vehicle personalization.

MEDIUM • TRIAL

Data Management Platforms enable firms to analyze customer behavior and manage interaction across all channels and touchpoints. Well beyond marketing applications, automotive players should consider making it a cornerstone for their next-generation digital service platforms.

TRANSFORMATIONAL • ASSESS

Artificial Intelligence promises to second human cognitive capabilities with virtual assistants, chatbots, knowledge engineering, smart machines and autonomous vehicles. It will impact customer experience, business models and operations along the entire value chain. Automotive players must prepare for the business, human and legal impacts.

HIGH • ASSESS

Blockchain is a potential game-changer for conducting business with parties without prior trust relationships. Beyond vehicle identity management and history audit, it could revolutionize supply chain management, automated contracting and the microservice economy.

MEDIUM • ASSESS

Prescriptive Security uses real-time dark web monitoring, AI and automation to detect potential threats and stop them before they strike. Applications range from cyber-protection to car safety, fraud management and compliance. Automotive players should explore integrating it into their IT/OT Security Operation Centers and the vehicles themselves.

LOW • ASSESS

Augmented and Virtual Reality are blurring real and virtual worlds, allowing customers, partners and employees to engage with digital services within the context of their current environment. Automotive players should explore potential use cases in driver experience, sales and maintenance as well as on the shop floor.

TRANSFORMATIONAL • EXPLORE

Autonomous Vehicles have the potential to disrupt the industry as we know it. Beyond driving assistance, driverless vehicles could ultimately provide completely new forms of passenger mobility or automated freight transportation and platooning. Technological, business and legal implications are huge and must be explored now.

MEDIUM • EXPLORE

Quantum Computing promises to break traditional combinatory analysis limitations, bringing advances in High-Performance Computing for vehicle design and manufacturing. It will also elevate risk by potentially breaking current cryptographic standards. Automotive players must start preparing for both quantum computing and quantum-safe cryptography.

1Hybrid Cloud 2Digital Business Enablement Platforms 3Additive Manufacturing 4Data Management Platforms 5Artificial Intelligence 6Blockchain 7Prescriptive Security 8Augmented Reality 9Autonomous Vehicles 10Quantum Computing
  • Mainstream
  • Early Adoption
  • Adolescent
  • Emerging

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