This is the fifth part of a series of blog posts we’re publishing over the next few weeks on the topic of “The In-Car Roadmap: A Definitive Guide to IVI.” Subscribe to The Multiscreen Blog to be notified when the next instalment of the series is available. A PDF version of this blog can be downloaded here.
EXECUTIVE SUMMARY
The growing adoption of Rear Seat Entertainment across luxury, MPVs and taxi/ ridesharing will accelerate as AV enters the market.
Delivering new video services will take advantage of a combination of IP, cloud and software technologies along with cellular networks to meet consumer demand.
Innovative middleware and service platforms such as ACCESS Twine™ for Car help OEMs overcome technical and IAM hurdles through extensive support for key operating systems, media sharing protocols and security controls.
Creating the foundation for video-based services today will help progressive OEMs prepare for wider adoption through BYOD apps and cloud / software updates.
This is the fourth part of a series of blog posts we’re publishing over the next few months on the topic of “The In-Car Roadmap: A Definitive Guide to IVI.” Subscribe to The Multiscreen Blog to be notified when the next instalment of the series is available. A PDF version of this blog can be downloaded here.
Executive summary
Audio is still the most favoured infotainment option for drivers and passengers alike and is going through an evolution with the addition of streaming.
The first generation of connected cars have yet to fully integrate radio, streaming and BYOD services, leading to lower consumer satisfaction.
The IVI will increasingly act as a primary interface for audio service aggregation and integration including control plane functions such as voice recognition.
Value-added features – such as audio search and caching to overcome connection outages – are a considerable consumer benefit and enabled through IVI integration.
A software and cloud-based approach increases flexibility for consumers and allows OEMs to make service and feature updates without requiring a dealer visit.
This is the third part of a series of blog posts we’re publishing over the next few months on the topic of “The In-Car Roadmap: A Definitive Guide to IVI.” Subscribe to The Multiscreen Blog to be notified when the next instalment of the series is available. A PDF version of this blog can be downloaded here.
Executive summary
4G and the adoption of 5G cellular connectivity for new car sales is growing rapidly, making the connected car the de facto standard within 5 years.
The technical characteristics of 5G signalling gives automotive platforms reliability and performance benefits for occupants compared to personal mobile devices such as tablets or smartphones.
Buyers are prepared to switch car brand loyalty to gain better connectivity and seamless access to additional services.
Modern IVI will help OEMs deliver flexible networking to achieve the best possible experience for vehicle occupants – across all platforms.
Once connected, OEMs can streamline direct communications and start building stronger relationships with driver and passengers.
This IP, cloud and app approach to IVI meets the needs of the automotive industry to manufacture vehicles that are independent of the market of eventual sale.
Across the developed and developing world, consumers expect that the Internet connectivity provided through mobile devices should offer them access to entertainment wherever they are.
As we enter a new decade, basic radio and rather awkward bring-your-own-device (BYOD) experiences are unlikely to satisfy drivers and passengers as the only forms of in-car entertainment. The car OEMs understand this and are all evaluating the best way to deliver on the potential of the connected car concept. As BMW board member, Pieter Nota, suggests: “It’s not just about having big screens in your vehicle, it’s about the content you can have on those screens and what you can offer that’s so important, in terms of things like the best possible integration of music in your vehicle.”
The combination of smart software with stable 4G and advanced 5G cellular networks unlocks a future in which the car becomes an OEM-branded communications hub that offers entertainment, BYOD access and value-added services.
The relatively low cost of shipping 4G systems in a car has already seen a rise in its inclusion in next generation vehicles. There will be around 250 million connected cars on the road by 2020, and connected functionality has moved up the list of features consumers value. A 2018 survey by mobile app developer Metova found that two out of three respondents would switch from their current entertainment service provider to one that was included with their vehicle. Buyers are increasingly prepared to change both their car brand and loyalty towards their content distributor to gain better connectivity and seamless access to in-car entertainment services. Data from Counterpoint Research suggesting that 75% of cars will be connected to the Internet by 2025, with the vast majority utilising 5G networks, supports the notion that the connected car is on its way to mass-market adoption.
66% of consumers would switch content providers to get in-car connected content services
Although 4G is ideal for streaming low bandwidth content, the cellular connectivity that will be fitted into all new cars is likely to be 5G ready – allowing a software / SIM upgrade to take advantage of new networks as they arrive to the market.
This move to 5G is more than just a gimmick; due to the short wavelength of 5G radio signals, cars with larger and better integrated radio antennas will offer far superior reception than that of smartphones. With the car acting as a reliable 5G access point, the ability to project a Wi-Fi hotspot for occupants provides increased reliability and performance across the entire journey for driver and passengers alike.
With connectivity built-in, automobiles finally gain several real-time capabilities that aid driver comfort, safety and utility. From instant updates for traffic and route guidance, to delivering new forms of infotainment such as streaming audio services and video for rear-seat passengers, 5G means, that for example, a built-in IVI system including a service such as Netflix will perform far better than BYOD devices running a Netflix app.
IVI acts already as a connectivity hub allowing various media formats – via Bluetooth and USB drives – to be merged into a single source of entertainment. The next generation IVIs will also be a central access point to the services offered by the OEMs, allowing them to shape these in the most attractive and efficient way for the driver and passengers.
Data on the move
Always-on connectivity also allows automotive brands to gain deeper insights into car and driver usage. As part of an opt-in model, brands can now start to directly communicate with vehicle occupants for practical issues, such as car servicing reminders and promotional activities including OEM and third-party offers.
For car brands, built in connectivity combined with value added services unlocks the potential for direct-to-consumer subscription services. Early pioneers of this approach include OnStar, with its package of services such as roadside assistance, remote vehicle unlocking, and automatic crash response. This helped to showcase the potential of connectivity being available across entry level and mid-tier vehicles. Through this connectivity, OEMs can begin to streamline their direct communications and start building stronger relationships with drivers and passengers.
Infotainment unlocked
The connected car approach will also allow car brands to offer integrated infotainment services through partnerships with existing or emerging music, video-on-demand and gaming services. In a similar paradigm to the smartphone market, vehicles are likely to be a showroom with connected services that are enabled through activating pre-downloaded apps within the IVI – along with companion apps for mobile devices.
Adoption of the connected car as standard is accelerating across the industry, fuelled by consumer demand. All current consumer and car industry research points towards an evolution in which the connected car becomes the standard option. Looking to a medium-term future where electric vehicles and charging stations become the norm, the in-car entertainment experience will play a key role in how car brands are perceived.
How does the content get into the car?
Twine4Car connects the in-car infotainment system components seamlessly with BYOD devices via the in-car Wi-Fi network. It provides a decentralised control of content that enables a multi-device user experience far beyond common single device streaming applications or screen mirroring technologies. This platform approach aggregates content into a single point, offering enhanced features such as the ability to index digital content along with music and video from all devices – including USB drives, smartphones and tablets – within the car. Aggregated content can be played on any Twine4Car enabled device such as RSE units, tablets and smartphones. It allows OEMs to deploy a single IVI system across multiple brands and enables the delivery of new features simply via software updates or through changes to cloud-based interfaces rather than through physical upgrades.
This combined IP, cloud and app approach matches with the needs of the automotive industry to manufacture vehicles that are independent of the market of eventual sale. For example, a car build in a factory in Germany, sold to a dealer in Netherlands and bought by a customer that lives in Belgium, would offer an IVI experience that could be automatically reconfigured based on the owner’s preference through a simple system login process – without the need for a dealer visit.
In addition, as the vehicle’s owner changes or as new BYOD devices or content services appear, the IVI interface can be remotely updated from the cloud – without the need for new software to be pushed to the vehicle – and again, without a dealer visit. This innovative concept is ready here and now and under testing at several larger automotive manufacturers.
100% of new cars sold in Europe have a cellular modem
75% of cars will be connected to the internet by 2025
250m connected cars expected to be on the road in 2020
ACCESS Insight
ACCESS Twine™ for Car (Twine4Car) supports automotive OEMs in creating successful multi-device in-car platforms that facilitate flexible driver and passenger consumption of media services. It enables exploration of new customer engagement approaches through the HMI and business models to create recurring revenue streams. Twine4Car allows OEMs to start with the services they wish to deploy today and add new services over time as the industry moves towards more advanced levels of autonomous driving.
Subscribe to The Multiscreen Blog to be notified when the next instalment of this blog series is available.
This is the second part of a series of blog posts we’re publishing over the next few months on the topic of “The In-Car Roadmap: A Definitive Guide to IVI.” Subscribe to The Multiscreen Blog to be notified when the next instalment of the series is available. A PDF version of this blog can be downloaded here.
Executive summary
IVI and connectivity are key buying criteria (especially for millennials) that will grow with the arrival of autonomous vehicles.
IVI and linked mobile apps offer powerful two-way communication for OEMs to finally engage directly with vehicle owners that transcend the dealer network.
Embracing digital services – such as an in-car streaming solutions – will allow for new types of engagements and revenue streams.
A dual strategy of supporting key mobile device brands – such as Google and Apple – while still retaining control of the in-vehicle experience offers the most benefits for the automotive industry.
This approach will allow the automotive industry to capitalise on new partnerships with content and service providers while strengthening customer engagement and brand loyalty.
For most consumers, purchasing a car is the second largest capital outlay after buying a house.
There are a host of reasons that people choose the car they buy, ranging from ‘curb appeal’ to what the brand means to the driver. Does it feel special sitting in the driver’s seat? Will the kids love sitting in the back? Does it come with all the extras I want at the right price? Of course, all these factors matter, but increasingly the in-car entertainment system can be the decider. So, getting the IVI system right really matters for OEMs.
Although increasing showroom sales are critical, a connected OEM branded In-Vehicle-Infotainment (IVI) system also helps to build longer-term relationships with the driver and passenger along with generating new, recurring revenue streams. At the same time, it enables the OEM to define the in-car experience rather than ceding control to Silicon Valley media tech giants. All of which means that the in-car entertainment experience has never mattered so much to people in cars and those that make them.
Capturing the market
Research companies report that in-vehicle infotainment and connectivity capabilities are becoming a major requirement; according to 2016 IHS Automotive research (which focused on the US market), up to 40% of millennials said they wanted in-car IVI based apps that ‘help to enhance the driving experience.’ Additionally, Gartner L2 reported in 2016 that 40% of surveyed consumers would switch their car brand for more connectivity, up from 20% in 2014. As autonomous vehicles start to emerge – freeing the driver to participate in more activities – IVI will take on an ever more important role in the vehicle purchasing decision making process.
The connected age
The overall vehicle experience has evolved in recent years through the arrival of more advanced in-vehicle technologies. The simple radio and cassette decks from the 1970’s have been updated in modern vehicles with cellular enabled in-car Wi-Fi offering streaming audio, GPS-based location services, and for rear passengers, the option of live and on-demand video. But IVI is more than just a consumer benefit. With the combination of touchscreen and voice-based interface, on-board software and cellular communications; automotive brands will finally have a powerful touchpoint direct to the car owner. This two-way interaction goes beyond the dealer network relationship and allows brands to engage directly with end-customers to share information, collate data and provide additional value-added services.
The OEMs can increase the possibility of success in IVI by working with telcos to create multiple data plans to cater for differing levels of content access. Additionally, new content and data models in which certain services are already included in the cost of the car could be interesting and popular in some markets.
Adding value
According to the 2018 Deloitte Global Automotive Consumer Study, between 50% and 63% of car owners would be interested in additional connected services provided by car manufacturers. The list includes maintenance updates and vehicle health reporting; updates regarding traffic congestion and suggested alternate routes; and access to parking information, including availability, booking and payment. The same study suggests that 59% of consumers were not contacted by the manufacturer after purchasing their vehicle.
Yet most new cars sold are still not equipped with a modern ‘connected’ IVI. Although this is changing, many existing car owners and passengers still rely on bring-your-own-device (BYOD) offerings based on smartphones and tablets to broaden their in-car entertainment experience beyond the radio and CD player. This option is far from ideal; it suffers from intermittent connection, can be poorly integrated with the car’s entertainment systems and does not provide experiences tailored to individual journeys. It is important when specifying next-generation IVI that OEMs and Tier-1s look for integrated BYOD solutions that provide greater benefits for both automotive brands and the consumer.
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Integrated apps
Developing integrated apps that can span both IVI and BYOD is critical. Tighter integration between vehicle functions, such as satellite navigation, cellular Wi-Fi, audio systems and rear passengers’ screens, enables advanced in-vehicle features such as instrument cluster integration and rear seat casting to be much more streamlined for the enjoyment of all car occupants.
By offering value-added features, brands can retain control of the user experience through car owners obtaining a superior experience by installing the OEM’s IVI equivalent app on BYOD devices. This dual strategy offers brands a way to keep direct contact with owners as vehicles are resold into the secondary markets, especially if the sale is outside the dealer network.
At the same time, this model also builds stronger relationships and greater loyalty amongst the next generation of car buyers. Offering a branded, value-added app tied to each vehicle creates a direct touch communication path which is directly in the control of the OEM. This means the OEM can reach every car owner, globally, with localised content.
Vehicle app stores
The opportunity to have a set of apps that not only span multiple models and devices but can also be made available from a dedicated vehicle app store, represents an innovation that car brands can use to avoid a dependence on either the Google or Apple app store. The combination of the manufacturer branded IVI alongside integrated branded apps on BYOD, provides the ability to deliver additional value-added services that are both simplified and more reliable.
Alongside popular streamed music applications such as Pandora and Spotify, brands can now look at offering additional content services such as Video-on-Demand (VOD), live TV and premium content that can be delivered as part of a monthly subscription or within an advertising supported model. Global brands such as Amazon, Hulu and Netflix – along with regional champions such as iROKOtv in Nigeria, Hotstar in India and ClaroVideo in Brazil – are all vying for subscribers and are looking at the in-car market as an intact space for business growth.
A world of content
It will be vital for OEMs to create content propositions which entail both large international SVOD and streaming services with local broadcaster content across several countries. ACCESS has built a substantial partner portfolio for automotive, which allows for a mix of content in a white-label product. This allows for an OEM to hold the customer relationship across all its facets.
Are you ready?
By 2040, there will be over 2 billion cars in use and it is likely that autonomous vehicles will make up most new car sales. Brands that can deliver true value-added benefits to drivers and passengers will be able to capitalise on an untapped market. Those that don’t will be letting a great opportunity slip through their fingers.
40% of millenials want IVI apps to enhance the driving experience40% of drivers would switch cars for greater connectivity50% of car owners want OEMs to provide additional connected services
ACCESS Insight
The car industry is embracing next generation IVI through standard-based application and connectivity platforms. Leading this shift is ACCESS Twine™ for Car (Twine4Car), which enables automotive OEMs to provide branded Infotainment services on the car head-unit (HU) and rear-seat entertainment (RSE) displays. With software development kits for Android, iOS, QNX and Linux, OEMs can now also extend their branded IVI experience to customer brought in devices (BYOD) to form a seamless offering. Twine4Car spans the gap between the automotive and the content industries by enabling a content portfolio, helping to increase the safety, the comfort, and the flexibility of content consumption for drivers and passengers. Through our extensive contacts and experience, ACCESS can also act as the single point of contact for the OEM, engaging with app store providers, broadcasters, media owners and the OEM’s Tier-1 suppliers to enable the integration and provisioning of state-of-the-art content and streaming services.
Subscribe to The Multiscreen Blog to be notified when the next instalment of this blog series is available.
This is the first part of a series of blog posts we’re publishing over the next few months on the topic of “The In-Car Roadmap: A Definitive Guide to IVI.” Subscribe to The Multiscreen Blog to be notified when the rest of the series is available. A PDF version of this blog can be downloaded here.
The automotive sector has a 150-year history with its production lines having manufactured over 2 billion vehicles – and it’s still going strong. However, times are changing as this global industry realigns itself to a new, always connected, consumer-centric digital era.
But of course, it’s an industry that has always anticipated change to find new ways to make the most of advances in technology. Commentators increasingly describe the modern car as a “computer with wheels” and use this as a reason to expect new market entrants from Silicon Valley to take car leadership away from the incumbent automobile manufacturers and Original Equipment Manufacturers (OEMs). We believe that’s an extrapolation too far.
With the average car having over a million lines of code, OEMs are already making “computers with wheels”. It’s the job of the OEMs and their sub-system suppliers to make sure that car passengers and drivers get the best experience possible from the next generation of digitally driven and connected cars.
Major shifts such as the rise of autonomous vehicles are looming. Yet, in the here and now, the industry is dealing with major challenges that, if handled successfully, will define the respective fortunes of each car brand.
Emerging trends
The first trend is a perennial issue that has vexed automotive industry executives from day one – how to convince car buyers to pick their product versus a rival brand? With most new cars purchased by 25-35-year olds’, this internet savvy generation are demanding more features and related services from car makers. The situation is getting more complex as urbanisation prompts millennials to own less cars per household; instead turning to pay-as-you-drive models and ride-sharing in which the rear seat experience is far more important.
This leads to another trend, as automobile manufacturers vie to build closer relationships with consumers that go beyond the dealer network. The rise of ride-sharing services such as Uber was confirmed when its stock market capitalisation overtook that of Ford several years ago. The automotive industry is aware that on-demand transportation and related services offer a highly lucrative business opportunity that they are well placed to capitalise upon. This car transportation as-a-service model is not new, but the key to tapping into this market is based on accruing data and building brands; an area where the automotive industry is lagging behind the firms born in the internet era.
Another key shift has come from the Chinese market. China is the largest manufacturer of cars and yet at the same time, is well behind the G7 countries in terms of per capita car ownership – so there’s plenty of potential growth. Venture capitalists have also invested billions in Chinese EV companies, although according to the research company PitchBook, VC investment has dropped by 90% within the 12 months from mid-2018 to mid-2019.
Car production in 2018
The trend that heralds the greatest impact is of course autonomy. For infotainment this really changes everything. Front seat legal issues over consuming video will change, making video consumption the no. 1 in-car entertainment medium. As ever, the industry will also need to ensure that current and future generation of vehicles meet all the requirements for safety, security, entertainment and connectivity that are vital to serving both consumers and businesses.
Learning from the digital revolution
Alongside these challenges, the world outside automotive can offer some valuable insights. Mobile connectivity has revolutionised almost every societal interaction and at its core are software apps and the cloud. The automotive industry should note Nokia and RIM’s failure to respond to rapid shifts in consumer demand and their reluctance to move away from their respective Symbian and Blackberry platforms at a time when Apple had transformed the market with the launch of the iPhone. The modern automobile is increasingly a software driven experience. As BMW board member, Pieter Nota, highlights: “Increasingly, people want to bring their digital lives, their digital systems, into the car with them.” Embracing this shift represents a major opportunity – but standing still will allow competitors to transform tomorrow’s automotive market.
The connected age
This shift is most evident in the In-Vehicle-Infotainment (IVI) platforms that are increasingly acting as the connection point between car manufacturer, consumers and additional services. The modern generation of IVI provides anything from connected entertainment and audio offerings, to navigation, booking and payment services. In the future, IVI will offer an interface for additional services such as streaming video and location-based advertising. The opportunity is broad and increasingly global from Netflix to Youku Tudou; consumers want localised content with flexibility to change as markets evolve.
Catering to the connected consumer is not a goal that can be achieved in isolation. OEMs will need to work with telecommunication service providers to build data plans to cater for differing levels of content access. Additionally, new content and data models in which certain services are already included in the cost of the car could be interesting and popular in some markets.
Consumers travelling within cars offers valuable real estate and a potential battleground, as Silicon Valley brands such as Apple and Google vie to convince automotive brands to let them into the vehicle. However, if the smartphone market is anything to go by; the internet giants driven either by advertising revenue or a walled-garden user experience may not prove the best ally for car brands keen to strengthen and ultimately monetise their customer relationships.
Video and rear seat entertainment
The potential for new video-based services is a massive and untapped opportunity for the automotive industry. The rise is happening now, ahead of the arrival of AV. It’s happening at a time when demand for minivans/sport utility vehicles (SUV) is increasing in tandem with growing use of ridesharing designed vehicles that need to differentiate services for the rear seat passenger. For the automotive industry, delivering upon the video opportunity requires navigating complexities such as managing content deals, securing access and balancing between the rival Internet giants and media companies keen to reach the 286 million connected passenger cars that are expected to be added globally during the 2019 – 2025 period (2019 Counterpoint Research).
As we enter this inflection point of the automotive industry, we believe that successfully designing cars for three and six years out will be an incredible challenge. This is why we are reducing the content access challenge by functioning as a one-stop shop for OEMs, by acquiring content rights for TV, VOD, audio, games and apps for global usage. By enabling OEMs to focus on the service with a single point of contact for multiple markets, it is our belief that we are bringing a unique offering to the market.
Future Insight
Within this complex landscape, ACCESS, an industry leader which has deployed its technology in over 1.5 billion devices, including over 30 million cars worldwide, offers an informative series of guides on how the automotive industry can benefit from innovative IVI platforms. This series provides guidance on solving the many IVI challenges the automotive industry faces today and explains how to become better placed to meet short and longer-term strategic goals. This multi-part guide covers key areas, including:
Enabling the car industry to embrace the next generation IVI and how it impacts the buying decision.
The importance of in-vehicle connectivity for delivering content and services for the modern consumer.
The evolution of entertainment including next-generation radio, video and interactive options.
A deeper look at the potential of video within the automotive landscape and how it can be harnessed to provide a compelling differentiator and value add.
An overview of the potential service delivery models with a focus on simplifying implementation of next generation infotainment and futureproofing system to ensure longevity in a highly adaptive landscape.
How the automotive industry can successfully partner with key brands such as Apple, Disney, Google, Hulu, Netflix, Spotify, Tencent and other leaders across multiple types of relevant services delivery models.
The series also offers deep insight into how the visionary car manufacturers are creating breakthrough new services using ACCESS Twine™ for Car, along with guidance on critical considerations such as security, privacy, technical integration and emerging standards. Perhaps the most important message for OEMs and Tier-1s is that if the industry does not embrace next generation IVI, someone else will – with dire consequences for today’s market leaders.
Enabling the car industry to embrace Next Generation IVI
1 Year: Twine for Car will enable video content in vehicles, it will focus on RSE and BYOD; HMI for control and front seat playback when EV charging.
3 Years: We will see more sophisticated HMI involvement and higher usage of autonomous vehicles. The user experience will be customised, with content specifically created for the car. The growing app ecosystem will be open to third parties, while 5G will help propel the use of video on-the-go.
10 Years: Twine for Car will enable all services, ranging from audio to a full living room experience in autonomous cars. Key features for video will include content specifically created for each journey and car user. New business models will enable video playback on several screens, providing ‘surround video’ as part of a truly immersive user experience.
Executive summary
New generation of car buyers want more connected car features and the automotive industry is adapting to meet this demand.
In-Vehicle-Infotainment offers valuable real estate to enable new value-added mobile services – yet, the automotive industry is in danger of losing out to the internet giants.
The rise of Electric Vehicles (EV) and Automated Vehicles (AV) offers a foundation for the automotive industry to realign its offering to capitalise on exciting new opportunities and recurring revenue business models.
The untapped potential of video and rear seat entertainment services is set to explode as the needs of millennial drivers and increase in ride sharing impacts the market.
An attractive initial approach is to provide a substantial app store so that car users can use their existing subscriptions to access the 3rd party content services they love and cherish.
With technology present in over 1.5 billion consumer electronic devices and tens of millions of cars, ACCESS is perfectly positioned to help the global automotive industry develop innovative new services for today that are ready for tomorrow.
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