Exploring revenue potentials of the Connected Vehicle segment
Continuing from Part 1, where we explored the monetization framework for Connected Vehicles, Part 2 dwells into the key segments & extended IoT monetization potentials
Concept of CSAP
The Connected Solution Aggregators & Partners (CSAP) provides the industry with an End-2-End solution…which includes hardware (sensors), connectivity (wireless), support (dealer network, 24X7 roadside maintenance, call center access) and predictive insights as a Simplified Solution with One Fee
B2C
Key Marketable Benefits
Enhanced Visibility of ‘real time’ vital vehicular Insights, Enriched Personalized Media Streaming, Live Video Streaming, Dynamic Navigation & POI, Enhanced Smart Safety & Security
Future Vision
Near future versions of connected vehicles envisions Semi-Autonomous driving, Self-Re-routing based on live traffic conditions, Self-Parking (finding a spot and retrieval), Maintenance ‘self-check-in’ and of course the Holy Grail of it all… Fully Autonomous Driving
Consumer Willingness
Pending the maturity stage of these enhanced services; the consumer may be willing to pay a fee to access them. In fact, according to McKinsey Connected Car Consumer Survey in 2014, car connectivity features are a critical purchasing factor for more than half of new-car buyers, 28% of new car buyers prioritize car connectivity features over other features such as engine power or fuel efficiency, and 13% would NOT even buy a car that is not connected to the Internet today
B2B/G
Whilst consumers are on the forefront of receiving benefits from Connected Vehicle, Business & Govt. entities would benefit in many ways than one
Key Marketable Benefits
Repurposed Vehicular Data, Time and Location Data & User Behavior Insights to Businesses & Govt. entities that have direct vested interest in other aspects of the consumer’s life
Solution Packaging
There are numerous methods by which Vehicle OEMs / CSAP could package the above Data & Insights. One common method is for Vehicle OEMs to package an ‘Enhanced Connected Safety, Experience & Maintenance’ option in a fixed/continuous term contract with Fleet companies
Similarities to Internet of Everything (IoT)
As with any other IoT solution, the true source of revenue lies within re-purposing the Data & Insights produced by the hardware rather than the hardware margin itself. Drawing analogy to Connected Thermostat; it is the customers’ heating and cooling usage behavior data repurposed to utility companies that would be more profitable than the thermostat itself
In the above scenario the Wireless Carrier, Truck Manufacturer, National Dealer Networks and Analytics House partner (CSAP) to provide Connected Fleet Solution that empowers Transportation Industry vertical with Real Time Diagnostics, Preemptive Fault Correction and Active Maintenance as a Monetized Service
This CSAP group provides the industry with an End to End solution that includes onboard sensors, wireless connectivity, national dealer network access, 24X7 roadside maintenance, call center access as well as predictive analytics as Unified Connected Solution for One Contractual Fee
This same CSAP group could also choose to license their solution to other entities globally thereby defining a Standard by means of Smart Fleet Maintenance as a Service
Extended IoT Revenue Potential
From a technical perspective, IoT is a collection of connected objects that have built-in sensor(s), data storage, communication, and relational capabilities
This broad definition includes everything from a simple fitness band through to complex smart electricity meters that communicate real-time usage at household level over Wireless Networks
Now imagine a range of ‘Connected Solutions’ extending beyond the ‘Dashboard & Wheels’ bringing an Untapped source of Revenue Opportunities for Vehicle OEMs, Wireless Carriers or Analytics Houses involved
– Connected Vehicles automatically regulates home temperature via Smart Thermostat depending on proximity to domicile
– User’s Smartwatch unlocks the vehicle and sets their personalized preferences upon entry
– Connected Home Locks & Garage Doors that can be controlled remotely from the Connected Vehicle
– Connected Home Security Camera(s) provide live feed & alerts to a remotely connected vehicle
IoT fabric will inevitably connect billions of objects with each other centered around the end consumer’s lifestyle
Each will bring with them their own Ecosystem of Solutions & Revenue streams that when integrated with the Connected Vehicle ecosystem can unlock further Revenue potentials for the stakeholders
For Example
Interoperability with the extended IoT (Connected Personal & Home) could look like –
Each of these case scenarios could have a unique revenue model attached to it, thereby imparting benefits to all of it’s value chain providers involved
So…
We are barely scratching the surface of the Connected Vehicle segment
This category continues to evolve with new innovations, pilot programs, technological breakthroughs and new partnerships at breakneck pace
With all these benefits, Connected Vehicle category no doubt also brings innumerable opportunities for monetization to parties involved
Newer monetization models are yet to be discovered as technology evolves, wireless networks become faster, sensors become more integrated, cloud infrastructure becomes more scalable and Govt. policies increasingly become ‘more friendlier’ to autonomous vehicles
Now for the wait until we can truly sit back & relax whilst the vehicle drives itself…
