Apps in Automotive
– Future
Opportunities and
Business Cases
November 6th 2013
Jack Bergquist – Senior Analyst
IHS Automotive
Jack.bergquist@ihs.com
Who is IHS Automotive?
Network
Planning /
Performance
Management
Supplier
Sourcing
Component
Sourcing and
Supply Chain
Light
Vehicle
Sales
Powertrain
& Alternative
Propulsion
Light
Vehicle
Production
Medium &
Heavy
Commercial
Vehicles
© 2013 IHS
Same Day
Analysis
Technology
Technology
Analysis:
Analysis:
Infotainment,
Infotainment
Hybrid-EV,
ADAS
ADAS
IHS Automotive delivers the most
comprehensive range of business and
product intelligence on automotive
infotainment and communications
technologies.
Automotive Technology Solutions Group
Infotainment
Systems
Software &
Apps
ADAS/Safety
IHS
Automotive
Technology
Solutions
Group
HMI/
Usability
Hybrid EV
Consumer
Preference
© 2013 IHS
3
Western European Smartphone App
Integration Unit Sales 2010 - 2019
Western European Vehicles Sales with Smartphone App
Integration
8000
7000
6000
Unit Sales (K)
5000
4000
Total Vehicles with Smart
Phone App Integration
3000
2000
1000
0
2010
© 2013 IHS
2011
2012
2013
2014
2015
2016
2017
2018
2019
4
Global Smartphone App Integration Unit Sales
Global Smartphone App Integration Unit Sales
35000
30000
Unit Sales (K)
25000
20000
Total Vehicles with Smart
Phone App Integration
15000
10000
5000
0
2010
© 2013 IHS
2011
2012
2013
2014
2015
2016
2017
2018
2019
5
European Telematics Sales 2010 to 2020
© 2013 IHS
6
Global Telematics Sales 2010 to 2020
Global Vehicle Sales with Smart Phone Integration
60000
50000
Unit Sales (K)
40000
30000
Total Vehicles with
Smart Phone
Integration
20000
10000
0
2010
© 2013 IHS
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
7
TakeAway
© 2013 IHS
• Largest existing app ecosystem in the industry, still TBA for MyFord Touch
• Open architecture for app development worldwide
• Rich vehicle API data source to harness, also harnessing OpenXC
• Forecasted WW cum. sales of App-Enabled Fords – 13.6M units by 2018
• Forecasted NA cum. sales of App-Enabled Fords – 10.4M units by 2018
8
TakeAway
© 2013 IHS
• Open architecture for app development worldwide
• Rich vehicle API data source to harness
• Forecasted WW cum. sales of App-Capable GMs – 30.5M units by 2018
• Forecasted NA cum. sales of App-Capable GMs – 17.2M units by 2018
9
Best Future Architecture for Automotive
Apps?
2012-2020
10-20 Apps
Driver
OEM Chosen
Chosen
Embedded Head
Unit Apps
Digital Media
Input
Fast moving with lots of
different apps – will need
a standard to be truly
effective
CE App
Store with
Auto Apps
© 2013 IHS
Apps Head Unit
Software Based
Flexible
Platform
Phone App
Integration SW
(E.G.
MirrorLink)
Smartphone
10
What Apps Have Respondents Paid Most for
on Their Smart Phones
UK - What Type of App Have Respondents Paid Most for on Their
Smartphone?
2%
2%
Germany - What Type of App Have Respondents Paid Most for on Their
Smartphone?
3%
2%1%
2%
2%
2% 2% 1%
2%
2%
2%
3%
3%
28%
4%
3%
5%
5%
45%
6%
5%
6%
6%
6%
9%
8%
10%
Games
Navigation
Health and Fitness
Business
Driver aids
Sports
Live traffic information
Social Networking
Internet television
Internet radio
News
Travel
Weather
Remote Services
Others
Source: IHS
© 2013 IHS
23%
© 2013 IHS
Games
Business
News
Live traffic information
Travel
Source: IHS
Navigation
Social Networking
Internet television
Sports
Internet radio
Health and Fitness
Others
Driver aids
Weather
Remote Services © 2013 IHS
11
What Apps Have Respondents Paid Most for
on Their Smart Phones
US - What Type of App Have Respondents Paid Most for on Their
Smartphone?
China - What Type of App Have Respondents Paid Most for on Their
Smartphone?
6%
3%
1%
2%
2%
2%
2%
01
%%
1% 1%1%
3%
3%
2%
25%
4%
2%
40%
6%
3%
5%
6%
5%
6%
7%
22%
9%
18%
12%
Games
Business
Health and Fitness
Navigation
Sports
Internet radio
Driver aids
Weather
Internet television
Live traffic information
Social Networking
Travel
Remote Services
News
Others
Source: IHS
© 2013 IHS
© 2013 IHS
Business
Live traffic information
Internet television
Social Networking
Weather
Source: IHS
Games
Driver aids
News
Internet radio
Sports
Navigation
Health and Fitness
Remote Services
Travel
Others
© 2013 IHS
12
How Often do Users Use Web Radio in the
Car?
How Often do Respondents Who Have Access to Internet Radio in Their Car Listen to it? - By Country
100%
90%
80%
Percentage of Respondents
70%
60%
50%
40%
30%
20%
10%
China
Germany
US
UK
0%
Country
Whenever I'm in the car
Source: IHS
© 2013 IHS
Frequently (3-5 times a week)
Occasionally (1-2 times a week)
Never
© 2013 IHS
13
Would Users Prefer to Have Embedded
Navigation or Smartphone Based Navigation?
Would Respondents Prefer to Have Navigation and/or Traffic Apps on Their Smartphones which can be
Connected to Their Car or Already Embedded in the Head unit? - By Country
100%
90%
80%
Percentage of Respondents
70%
60%
50%
40%
30%
20%
10%
China
Germany
US
UK
0%
Country
App on smartphone
Source: IHS
© 2013 IHS
Embedded in car's dashboard/head unit
Others
© 2013 IHS
14
What Apps do Users Use Most Regularly in
the Car?
UK - Please Rank Your Top 3 Apps in Terms of Frequency of Use on Your Smartphone Whilst in the Car
17%
28%
13%
3%
3%
10%
4%
5%
5%
Google Maps/Navigation
Facebook
Mail for Outlook
6%
Facebook Pages Manager
6%
Candy Crush
Angry Birds
Adobe Reader
BBC News
TomTom
Twitter
Others
© 2013 IHS
Source: IHS
Germany - Please Rank Your Top 3 Apps in Terms of Frequency of Use on Your Smartphone Whilst in the Car
16%
21%
4%
14%
4%
4%
10%
4%
8%
5%
Google Maps/Navigation
Source: IHS
© 2013 IHS
What'sApp Messenger
Facebook
Adobe Reader
wetter.com
10%
NAVIGON
GPS Navigation 2
Facebook Pages Manager
YouTube
Angry Birds
Others
© 2013 IHS
15
What Apps do Users Use Most Regularly in
the Car?
US - Please Rank Your Top 3 Apps in Terms of Frequency of Use on Your Smartphone Whilst in the Car
17%
30%
11%
2%
2%
9%
3%
5%
9%
5%
Source: IHS
Google Maps/Navigation
Facebook Pages Manager
Document Free (Mobile Office Suite)
7%
Facebook
Angry Birds
iHeartRadio/iHeartAuto
Pandora
Adobe Reader
Others
Candy Crush
TomTom - Eco Routes
© 2013 IHS
China - Please Rank Your Top 3 Apps in Terms of Frequency of Use on Your Smartphone Whilst in the Car
12%
30%
10%
10%
4%
4%
9%
4%
5%
Tencent WeChat/Tencent QQ
Careland Navigation
Source: IHS
© 2013 IHS
Mail for Outlook
Navigation Dog
AutoNavi Navigation
QQ Music
6%
6%
Baidu Map Navigation
Plants vs. Zombies
Quickoffice
Others
Angry Birds
© 2013 IHS
16
Is Privacy an Issue for Consumers?
Would Respondents Mind if Information from Their Car Apps Was Used By Car Makers, Dealers, etc. in Exchange for Free Services? - By Country
100%
90%
80%
Percentage of Respondents
70%
60%
50%
40%
30%
20%
10%
China
Germany
US
UK
0%
Country
Want app usage information to remain private
Source: IHS
© 2013 IHS
Be willing to share app usage information in exchange for free services
Not sure
© 2013 IHS
17
Would Respondents Still Buy a New Car if it Didn’t
Offer Apps?
100%
90%
80%
No, would not affect my decision, would still buy
the car
70%
Yes, even if all the vehicles I was considering had
some available apps, I would have a strong
preference for the vehicle with the most, or best
selection of apps
60%
50%
Yes, would affect my decision, would reconsider
buying
40%
Yes, would affect my decision, would not buy the
car
30%
20%
10%
0%
Male
© 2013 IHS
Female
18
Downsides to Apps in Automotive for
Developers
• Cost to integrate multiple SDKs.
• Lack of direct revenue opportunities.
• Loss of branding.
• Slower update cycles.
• Limits on usability and increased time and cost to create a “safe”
HMI.
© 2013 IHS
19
Benefits for App Developers for Apps in the
Car
• Brand awareness?
• Drive more customers to your place of business / smart phone
app?
• Direct revenue from app sales / vehicle manufacturer?
• Advertising?
• Others?
© 2013 IHS
20
Panel – Automotive Apps Harnessing Car
Connectivity
• Moderator – Jack Bergquist, Senior Analyst, IHS Automotive
• Ralf Hug – Consultant, Trajectory Group
• Theo Kamalski - Manager Regulatory Affairs and Patent Engineer
Business Unit Automotive
• Robert Hrabak – Connectivity Specialist, General Motors
© 2013 IHS
21