Frost & Sullivan Connected Car

Landscape Assessment

December 4th 2014

Franck Leveque, Automotive & Transportation Vice President

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Safety - Free Public eCall is Critical, savings of €20 Billion if Implemented but

Auto Industry is still Looking for Business Models

Reduction in 2500 Fatalities (EU-25)

Reduction in Crash Response Times

50% in Rural Areas

40% in Urban Areas

Benefits to Cost Ratio: 0.5 to 2.3*

Realistic Implementation

Looks Possible beyond

2017

PSAP Infrastructure

Upgrades, OEM Time

OEMs can better Monetize

using private telematics

Tethering is still being debated

EU’s proposed roaming ban will

enable growth

In-band modem technology still

debated

BMW Assist

MB eCall

Connect/

e-Touch

SYNC

OnStar 2015

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Safety – SIMtd project was crucial to pilot important V2V applications. Several OEMs are

expected to roll out V2V applications in 2015/2016 timeframe

Intersection

Movement Assist

Forward Collision

Warning/Blind Spot

Control Loss

Warning

Emergency Brake

Light Warning

Road Works

Warning

Bad Weather

Warning

Intersection Collision

Avoidance

Traffic Sign

Recognition

OEMs are looking at Safety

as a key Value Proposition

from V2V First

Local governments are

working with OEMs on a

public private partnership to

drive V2X

School Zone

Warning

Curve Speed

Warning

Road Departure

Warning

Dynamic Speed

Limit Info

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Clean – The annual cost of congestion in Europe is in excess of 100 billion Euros.

Services like smart parking have shown the ability to decrease this by more than 20%

Impacts of Smart Parking

Fewer Miles Driven Looking for

Parking

Reduction in parking congestion in peak and

off peak hours by ~22% and ~12%.

Decrease in parking and traffic congestion,

potential to increase GDP by ~ 2%

Parking analytics backs data based

decisions- demand-based pricing.

Improvement in city’s sales tax revenue by

~11.5 - ~12.0%

Smart city pilot project in Pisa, Italy an

intelligent parking system and analyze

historical traffic data via a big data

service

Specific regions in Europe suffer in

excess of 92 hours per year waiting

time in traffic –e.g. Rome has the

highest time wasted in traffic

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Clean – UBI programs that include mileage and driver behavior analysis impacts safety

and congestion reduction positively with 20-25% and 5-10% respectively

Pay How You Drive is Currently

Most Popular in Europe

PHYD

Driver Behavior Mileage-based

PAYD+Crash

Management

PAYD

Combination of

Miles+PHYD

Telematics Insurance

MHYD

• The AA

• Allianz

• Aviva

• AXA

• CIS

• Coverbox

• Direct Line

• Equity

• iKube Young Drivers

• Ingenie

• Insure the Box

• MAPFRE

• Polls Direct

• Reale Mutua

• RSA

• Sabre

• Uniqua

• Young Marmalade

• WGV

Over 25 million UBI Subscribers by 2020 in Europe

UK and Italy will be Biggest Markets

Clear environment benefits by limiting driving miles

Improved safety by measuring driver behavior

OEMs are getting in because of the CRM Impact

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Secure – Over 50 vulnerable attack points exist in the modern day ECU driven

smartphone on wheels and the concern is both in-car and back-end security

Remote Hacking

Short Range (e.g. RFID)

In-Car Hacking (e.g. USB)

Remote Hacking

Long Range (e.g. DSRC)

Remote Lock/Unlock Manipulation Vehicle Theft

Firmware

Manipulation Malware Injection Feature Activation/

Disabling

Copyrights Valuable IP Licenses/Agreements

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Secure – Most Important Action Item for OEMs currently is to create Virtualized Layers

by which they can secure and stonewall mission critical vehicle systems

Ways to Secure

Digital Certificates

for Apps

Data Retention

Policies

Data Ownership &

Services for User

Firewalls Separating

Critical Components

Secure/Hardened

Operating System

Virtualization HW

Partition Layers

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UBI

Infotainment

Connected

Services Driver

Behaviour

Warranty

Optimisation Prognostic

Repair Mgt

Customer

Satisfaction &

Loyalty

Product

Development &

Testing

FOTA/SOTA &

Electronics

Lifecycle Mgt

Retail

Supply Chain

Optimisation

ENVIRONMENT SAFETY

ACCESSIBLE AFFORDABLE

Re

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nu

e

Ge

ne

rati

on

P

rofi

t G

en

era

tor

The Business Model of Connected car is like an “Iceberg” - The impact is

significant, but the most important part is immersed !

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Contact details

Franck LEVEQUE Vice President & Business Unit Leader

Automotive & Transportation

Direct: +49 (0)69 770 33 21

Mobile: +49 (0)151 27 67 08 24

Fax: +49 (0)69 23 45 66

Email: franck.leveque@frost.com