Press Release - Machina Research report finds automotive industry faces massive disruption from the connected car

05 October 2015

Machina Research has published a new Strategy Report "Carmakers’ strategies for the connected car", providing an important resource for telcos and other suppliers wanting to understand the motivations of their carmaker customers, and providing the automotive OEMs with insight into the strategies and constraints influencing their peer and indirect competitors.

The carmakers have thus far largely treated connectivity as an enabler of premium features which they could deploy into their ranges at their leisure as a source of new revenues and competitive advantage. Opportunities to do this are by no means exhausted, but the strategies of other players from outside the traditional OEM stable are beginning to intrude. There is every chance that the advent of the connected car will not be a simple upgrade to ‘Telematics 1.0’ but instead will unleash the disruptive forces of the internet from which the car industry has thus far been largely immune.

The report covers:

  • The socioeconomic and demographic trends impacting on OEMs, including the phenomenon of ‘peak car’ and the rise of the sharing economy
  • The carmakers’ motivations for and expectations from the deployment of connected car services, including new revenues, cost reduction and increased customer intimacy
  • The entry of new players – especially Apple and Google – into the connected car services ecosystem, and the threat that this represents to the OEMs’ own strategies.

Commenting on the findings, report author Jeremy Green said: “OEMs rightly spend a lot of time trying to match their competitors feature for feature. But it’s time for them to take a broader perspective on who their real competitors are, and who they are going to be in the near future. They need to think about whether they have what it takes to go it alone in the face of Apple and Google’s fast-evolving play for the connected car services market, and to work out what to do otherwise.”

In this Strategy Report, Machina Research shares insights and answers on the connected car: it examines the threats as well as the opportunities, and provides advice on how carmakers should prepare their organisations for the transformation.

For more information on this report, contact the author, Jeremy Green.

quick links >