There are significant opportunities for automotive industry players interested in the connected car sector — particularly when it comes to in-vehicle marketplace, according to Frost & Sullivan.
“With commutes becoming longer, the number of purchases made on the move has increased,” said Suhas Gurumurthy, Mobility Senior Research Analyst at Frost & Sullivan. “The likelihood of in-car ads converting to purchases of products and services is especially high in automated vehicles, which makes (the) marketplace a scalable model.”
They say the increasing focus on personalization is motivating companies to apply “multi-sided platforms” like marketplace with contextual services, which is meant to create a consistent, cross-channel experience.
By 2020, the in-vehicle marketplace is expected to be available in 80 per cent of premium vehicles sold. More importantly, the new generation of this platform will take advantage of customer data and be customized to each vehicle owner (or occupant).
“With more than 60 per cent of consumers willing to share data, OEMs and data consumers will have significant opportunities to generate recurring revenues,” said Gurumurthy. “They will be looking to invest in advanced data analytics companies, apply AI algorithms, identify new use cases, and build applications on top of platforms to enhance services.”
Gurumurthy also said connected vehicle makers will want to build partnerships with telecom providers and other companies that can help them improve safety, and offer “data rich” in-vehicle services.
“Flexible business models such as choice of network for consumers will further improve customer retention and revenue generation,” said Gurumurthy.
