Challenges Impacting the Automotive Industry

January 2014 Nicolas Meilhan

Principal Consultant - Automotive & Transportation

Challenges impacting the Automotive Industry

How can OEMs leverage Megatrends to differentiate

themselves from their competitors?

2

Environmental Challenge EU commission decided to take the lead on CO2 emissions reductions globally and has

imposed stringent targets to the automotive industry in Europe associated to high penalties

- CO2 regulation targets in EU, Brazil ,USA & China -

Roads to 95 g CO2/km

Engine

Efficiency

Smaller

cars

Lightweight

materials

Hybrid &

Electric cars

3

•Toyota developed noise cancelling

system for its Crown hybrid

•The system was developed to cancel

the annoying hum of the engine at

low rpms when driving around town.

•The noise cancelling system nearly

eliminates engine sound within the

passenger compartment

Environment Challenge – Enabling Technology Active Noise Cancelling can help in improving engine efficiency as well as removing annoying

noises especially in electric cars quiet environment

Engine Efficiency Hybrid & Electric cars

•BMW used Active Sound Design to

give the MINI Cooper 4 cylinder a V8

Sound

•“The subjective in-vehicle impression

was comparable to the sensation of an

accelerating car with a stronger engine”

BMW

4

Note: Images are only for illustration.

Source: Frost & Sullivan

Social Challenge New customer groups such as Generation Y or Baby Boomers have very different

expectations when it comes to their car

It is critical for OEMs to address Gen Y specific needs in order to reconcile this generation

with the car and preserve their vehicle sales in the medium term

New Car Registration

- by age group, 2001, 2002, 2007, and 2012 -

Europe New Customer groups - 2012 -

39% 37%

24%

40% 36%

24%

48%

33%

20%

62%

24%

13%

0%

10%

20%

30%

40%

50%

60%

70%

50 and older 35-49 18-34

2001 2002

2007 2012

5

Social Challenge – Enabling Technology Natural speech recognition is highly valued by the Generation Y when it comes to controlling

the car – they are willing to pay € 218 to have it while baby boomers would only pay € 73


€ 228 € 218

€ 210 € 209 € 196

€ 188 € 175

€ 158 € 149 € 146 € 141

€ 121

€ 140 € 125

€ 84 € 73 € 66

€ 115

€ 62

€ 84 € 73

Full touch center stack

Natural speech recognition

Capacitive touch screen

Proximity sensing Multi-touch gesture recognition

Touch screen with haptic feedback

Reconfigurable instrument cluster

18-35 36-55 56-65

Amount Willing to Pay for Future Control Options - by age group, 2012-

6

Mood

Stress levels

Mental health

Sense of optimism

Attitude

Security

Safety

Personal values

Personal fulfilment

Self image / self

actualisation

Sight / vision

Touch & feel

Smell / breathing

Sound

Temperature

Wellness

Source: Frost & Sullivan, 2012

Health, Wellness and Wellbeing Challenge

While life is becoming more stressful, cars will play a significant role to reduce this stress by

improving life on board though the activation of multiple senses – sound, vision, touch & feel

Mind

Body Soul


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Health, Wellness and Wellbeing Challenge – Enabling Technology Active safety features can contribute to enhancing wellbeing while driving by combining

human senses to enhance the driving experience – audio & visual warnings for example 1

7%

17

%

7%

36

%

8%

4%

12

%

25

%

38

%

29

%

8%

17

%

18

%

9%

35

%

8%

4%

9%

19

%

38

%

33

%

10

%

Audio warning

Visual warning

Haptic warning

Audio and visual

warnings

Audio and haptic

warnings

Visual and haptic

warnings

Audio, visual and

haptic warnings

Fully automatic

control

Automatic control

with override

Semi-automatic

control

None

Preferred Method of Warning and Extent Willing to Let Vehicle Take Over Control: Europe, 2013

Most stressed Total sample

Preferred Method of Warning Override Preference

Base: Filtered respondents —Most stressed when vehicle malfunctions (n=1010), Less stressed when vehicle malfunctions (n=1,506),

Total sample (n=2,516).

Q9. How concerned do you get when you are driving? Please rate your level of stress in the following scenarios.

Q11. To what extent are you willing to let the vehicle take over driving controls (steering, braking and/or acceleration), in the following

emergency situations?

Q12. What is generally your most preferred method for such warnings in the following situations?

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Sound related technologies can help vehicle manufacturers in addressing

the challenges they are currently facing – CAFE, Baby Boomers & Wellbeing

Description

• Smaller cars

• Engine efficiency

• Electric & hybrid cars

• Baby Boomers

• Lower income

Enabling sound technologies Key Challenges

• Driving experience

• Enhanced safety

• Light weight audio

• Active Noise Cancellation

• Active Sound Design

• Voice Recognition

• Value for money audio

• Advanced personalisation

• ADAS 3D sound alert

Fuel efficiency

Wellbeing

onboard

New customer

groups

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Key issues related to the enabling sound technologies

Enabling sound technologies

• Lightweight audio

• Active Noise Cancellation


• Voice Recognition

• Value for money audio

• Advanced personalisation

• ADAS 3D sound alert

Key issues

• Reducing audio system weight without compromising on

sound quality

• Managing booming noise when improving engine

efficiency

• Limiting background noises to improve voice recognition

performance

• Offering premium sound on entry-level vehicle

• Atmosphere signature per brand / model / driver

• Enhancing driver multi-sensory experience

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Key issues relative to sound technologies in the car Current solutions & limitations

Current Solutions Limitations & Needs

Can I reduce audio system weight without

compromising on sound quality? Less speakers? DSP?

How to cancel booming noise when improving

engine efficiency? Soundproofing? ANC?

How can I reduce background noises to improve

voice recognition performance? Alternative materials?

How to offer premium sound on entry-level

vehicles? Removing speakers?

What level of personalisation can I bring to my

driver when it comes to car atmosphere ? Sound signature?

How can I enhance driver multi-sensory

experience? Light & sound?

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Arkamys offers a comprehensive product portfolio that can improve in-car

sound experience through a strong value proposition

In-Vehicle

Infotainment

Noise, Vibration &

Harshness ADAS

Product

Portfolio

• Sound Enhancement

• Music classification

• Multi-sensory experience

• ECNR

• Automatic tuning tools

• Active Noise

Cancellation


• Noise reduction –

wind, rattle,

• 3D sound alert – blind spot

detection, lane departure

warning

• Pedestrian warning sound

Key

Benefits

• Processing power

optimisation

• Removal of tweeters and

woofers

• Automatic tools to reduce

tuning period

• Training and support for

sound engineers

• Audio enhancement features

as key audio USP

• Atmosphere personalisation

Cost & Weight

Reduction

Reduced

Development Time

Enhancing Driver

Experience

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Arkamys Audio DSP Cost / Benefit Analysis – Weight & Cost Savings Sound staging by Arkamys on a middle range vehicle case save 3.5 gCO2/km and as high as

60 M€ / year

Bose vs. Arkamys configuration

Weight

Power

consumption

- 0.136 L/100km - 204€

- 60 W/h - 0.12 L/100 km Amplifier, central speaker,

2 tweeter, subwoofer -190€

- 4,7 kg - 0.016 L/100 km - 4,7 kg +0.014 L/100km

Total => Total =>

Configuration Hifi Mid BOSE – 10HP Sound staging by Arkamys – 6 HP

# Cost Weight # Cost Weight

Amplifier 8 channels DSP 90€ 2,5 kg - -

Arkamys Sound Staging - - 5 € -

Tweeters 4 4*10€ = 40€ 4*60g = 240g 2 2*10€ = 20€ 2*60€ = 120g

Woofer 4 4*20€ = 80€ 4*500g=2 kg 4 4*20€ = 80€ 4*350g=1.4kg

Central speaker 1 60€ 0.5kg - - -

Subwoofer 1 25€ 1 kg - - -

Total 10 295€ 6.24 kg 6 105€ 1.52 kg

10 kg = 0.9 gCO2/km 100 W/h = 0.2 L/100 km 120 gCO2/km = 4.5 L/100 km Diesel 1kg = 3€

- 3.6 gCO2/km - 61 M€ Total => Total (300,000 car)=>

- Fuel consumption -

- 14€

- Costs -

Bose vs. Arkamys configuration

Weight

Bill of material

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How can Arkamys help you?

Arkamys product portfolio

In-Vehicle

Infotainment

Noise,

Vibration &

Harshness

ADAS

Key I

ssu

es

Can I reduce audio system weight without compromising

on sound quality?

How to cancel booming noise when improving engine

efficiency?

How can I reduce background noises to improve voice

recognition performance?

How to offer premium sound on entry-level vehicles?

What level of personalisation can I bring to my driver

when it comes to car ambiance ?

How can I enhance driver multi-sensory experience?

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Key challenges

Eco

no

mic

imp

act

for

OE

M

Fu

el

Effic

ien

cy

Ne

w C

usto

me

r

Gro

ups

We

llbe

ing

on

bo

ard

Key B

en

efi

ts

Cost & Weight

Reduction

Processing power optimisation

Removal of tweeters and woofers

Reduced

development

time

Automatic tools to reduce tuning period

Training and support for sound engineers

Enhancing

driver

experience

Audio enhancement features as key

audio Unique Selling Point

Atmosphere personalisation

Arkamys value proposition vs. OEMs key challenges

Impact Low High