Connected Corners

So you’ve been reading…

… that Connected Vehicles are no longer bound to Hollywood movies… but in fact have moved beyond the imaginative rides of Herbie the Love Bug, Knightrider’s KITT & Dark Knight’s Tumbler into the realms of reality

The newswires are abuzz with –

– Gartner predicting that by 2020 there would be around 250 Million Connected Vehicles on the road

– GM announcing 1 Million of it’s Connected Vehicles on road whilst boasting the potential earnings of rather modest $350 Million from related Connected Services by 2018

– Certain Wireless Carriers increasingly reporting Millions of new connections from Wireless Internet-Connected vehicles

– Daimler begins testing a self-driving, mass-produced truck on public roads; displaying confidence in the technology

– Ford is actively exploring many use cases of Connected Vehicles including data from Connected Vehicles that could help Reduce insurance rates for safe drivers

– GSMA & SBD research says the Global Connected Vehicles market would be worth €39 Billion by 2018

One thing these recent stats from leading Automakers, Analyst Houses and Wireless Carriers alike make crystal clear is that there exists an enormous economic potential associated with the Connected Vehicle

When vehicles become connected, it transforms into an entire ecosystem of related connected services that offer a variety of new experiences to consumers and reveals a treasure trove of revenue opportunities for businesses across industry verticals going way beyond the Automakers themselves

Connected Car Value Players

Key players involved in connected solution design and deployment vary by geographic region and their technological potentials

Achieving global standardization across all connected models is desired, it may not be realistic given the complexities & varying paces of innovation

As innovative solutions are engineered constantly, so is the industry discovering newer monetization models

Connected Car Monetization Models

Concept of Activity Based Revenue

At the Lowest Common Denominator we could derive Core Activities from it’s related Embedded Modules

Each of these modules could comprise of singular or group of interconnected sensors and radio equipment

Provider of the individual activity could either be a single entity (e.g. Vehicle OEM), Joint partnership between 2 Related Entities (e.g. Vehicle OEM and Wireless Carrier) or through Connected Solution Aggregator(s) / Partner(s) – CSAP; which brings together entities from various industry verticals to design a Scalable End-to-End Connected solution

The CSAP model provides virtually Unlimited & Untapped monetization opportunities

Vehicle OEMs for example can find renewed revenue source in provision of Connected Vehicle Security services whilst Wireless Carriers can add these Cars as another High ARPU generating source

Newer Revenue sources are yet to be discovered from emerging joint ventures creating innumerable connected solutions for end consumers

In Part 2 we’ll explore the key segments who stand to benefit from connected vehicle paradigm and the extended IoeT monetization models