Digital transformation of the automotive industry set to pave way new revenue streams.

Position:RESEARCH
 
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Frost & Sullivan's "Intelligent Mobility" event to discuss new growth opportunities as digital mobility services are expected to generate 2 trillion by 2025 globally.

The rapid pace of digitalisation is transforming the component hardware-driven automotive sector to a software- and solutions-focused industry. In future, all aspects of the mobility value chain will be digitalisee!: From the shortening of product life cycles due to higher software dependency, over the transformation of car dealerships to the actual sales process and maintaining the relationship with the customer--everything will be coined by the opportunities and challenges digitalisation offers. Frost & Sullivan breaks this overall trend down into five pillars: The Future of Mobility and OEM mobility strategies, Industry 4.0, connected and autonomous car, digital retailing, Connected Supply Chain and Mobility as a Service (MaaS).

"Autonomous cars only will account for a 84 billion dollar market by 2030", estimates Franck Leveque, Frost & Sullivan Partner Mobility. "50 percent of these 84 billion Dollars will be software related, which exemplifies perfectly how the mobility sector converges with other industries," he continues. Similar trends can be observed for retailing. By 2020, the retail store footprint will be 15 to 20 percent less than the current average store size and future garages will incorporate technology at various levels. The goal is an engaging digital experience to increase customer loyalty.

Today already, 40 million people use app-enabled carpooling services, and the usage of ridehailing apps has grown rapidly to over 70 million users. "Frost & Sullivan's mobility research has highlighted the continued trend of the automotive industry investing in...

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