connected vehicles - bvrla · carsharing is entering the holly grail of the rental market (e.g....

Breakout B

Connected Vehicles

Facilitator Speakers • Jack Bergquist, IHS Automotive • Mark Andrews, Driver Connex • Nigel Trotman, Alphabet GB

• Toby Poston, Head of Communications, BVRLA

Key Theme

How telematics and smartphone apps are changing the way fleets are driven and managed.

5

Connected vehicles

Toby Poston - BVRLA

7

Connectivity methods Embedded

Connectivity and intelligence built-into vehicle

Tethered

Smartphone as modem, using cable, Bluetooth or Wi-Fi

Integrated

Smartphone apps and functions integrated into vehicle

9

From Ownership to Usership – A mega trend already in motion

SMART Brings Virtual to Car Rental

1.5 million additional Car Sharers in 2013

Integrated Mobility – New Partnerships

Autonomous Driving – Next Growth Wave

Franchise – The New Sharing Retail Model

Women Prefer Leasing

Rideshare & Taxi – Changing Game

10

New Exciting Carsharing Business Models – to Sustained Growth

Carsharing at Airports

Rebranding

Diversification

Franchising

Carsharing is entering the holly grail of the rental market (e.g. car2go, Zipcar, Drivenow, Flightcar)

Blurring of the lines between traditional car rental and carsharing sectors (e.g. Hertz 24/7)

Different business models to capture various usage groups (e.g: car2go Black – 2 way, intercity, B-class)

Traditional carsharing to develop franchise / licensing agreements (e.g. Zipcar - 15 cities in 2014)

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Virtual Keys facilitated through smartphone

Telematics Services by OEMs

Virtual Kiosk to facilitate virtual Customer Care

Integrated EV charging solutions

Autonomous technology

Influence of New Technology - Smartphones is the key integrator in mobility services: Vehicle access - Consumer convenience – Process efficiency

Source: Frost & Sullivan analysis,

Mobile Apps

12

Integrated Corporate Mobility – New Solutions & New Players

Corporate Mobility

OEMs Leasing

companies

Travel Agencies

Software Platform Providers

Fleet Mgt Providers

Public Transport

Integrated solution

providers

Other suppliers

Flexible Working

Solutions

Mobility Solution

Customisation

Future Present

Mobility Solution

Integration Platforms

Mobility allowance (not car allowance)

Overview

Jack Bergquist IHS Automotive

Future Telematics and It’s Fleet Impact Jack Bergquist [email protected]

How Does Telematics Help?

© 2014 IHS 15

• Know where you’re vehicles are. • Monitor driver behaviour. • Off-Board diagnostics. • Improve efficiency. • Real-time vehicle communications. • Specialist applications.

WHAT WE DO

We offer information, analytics and expertise to organizations around the world. They depend on our insights to help them make decisions about everything from day-to-day operations to long- term investments.

© 2014 IHS 016

ABOUT IHS

ANALYTICS

EXPERTISE

INFORMATION

WHAT WE DELIVER

Our solutions integrate research, analysis and information into an end-to-end problem-solving platform that enables strategic planners, engineers and operational leaders to make critical business decisions.

017

ABOUT IHS

© 2014 IHS

OPERATIONS

ENGINEERING

STRATEGIC PLANNING

75+% 165

WHO WE SERVE

Our clients include decision-makers at every level, across virtually every industry. Whether you represent a multinational enterprise or a municipal government, we can scale our offering to the scope of your needs.

© 2014 IHS 018

ABOUT IHS

Corporations and governments in

countries

Small businesses

to

Fortune 500

70+% of the

Fortune 1000 +

IHS serves:

of the Global Fortune 500

Infotainment Matters…

71% 73%

58%

71% 77% 78%

67%

76%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Jaguar Land Rover BMW Mercedes

"How important was each of the following in your decision to buy the particular model?"

Navigation system

Audio / video system

Strategic Vision New Vehicle Experience Survey 2013 (data relates to 2012-2014 model years)

MAJOR Trends in Automotive Technology

© 2014 IHS 20

IHS AUTOMOTIVE driven by POLK

• Much of the connected car innovation is now taking place outside of the OEM’s command and control. In some ways, OEM’s are becoming the supplier of a connected screen to external content eco-systems.

TREND

Some Recent QUOTES from Automotive Executives

© 2014 IHS 21


• “The solution for the connected car lies more in his hands, than in the automaker's hands.”

Jim Farley, EVP Global Marketing, Sales, & Service, Ford Motor Company, pointing to Tarun Bhatnagar, Director of Google Maps for Business

• “The real value of the connected car is outside the automaker.”

Jim Farley, EVP Global Marketing, Sales, & Service, Ford Motor Company

• “GM intends to cultivate a relationship with developers…and establish a community

where developers can join in exploring what’s possible with in-vehicle apps.” Phil Abram, Chief Infotainment Officer, General Motors

• “Technology to us is an enabler. Not an end game.” • “As long as you manage technology, it will be your friend.”

Marios Zenios, Vice President - UConnect Systems and Services, Chrysler Group LLC

© 2014 IHS 22

What does the Future Hold?

The History of Automotive Infotainment

© 2014 IHS 23


1930 1952

1955 1969

1970 1985

1981 1995

2014

© 2014 IHS 24

0%

10%

20%

30%

40%

50%

60%

2012

2013

2014

2015

2016

2017

Mar

ket S

hare

(%)

Date iOS (iPhone) Android Windows Blackberry Other OS

North American Market Share for Smartphone OS - 2013 to 2017

Source: IHS © 2013

North American Market Share for Smartphone OS - 2013 to 2017

Source: IHS © 2013

0%

10%

20%

30%

40%

50%

60%

70%

80%

2012

2013

2014

2015

2016

2017

Mar

ket S

hare

(%)

Date iOS (iPhone) Android Windows Blackberry Other OS

Western European Market Share for Smartphone OS - 2013 to 2017

Source: IHS © 2013

Smart Phone Connectivity

© 2014 IHS 25

Smart Phone Connectivity Forecasts

© 2014 IHS 26

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Uni

t Sal

es (K

)

Date CarPlay Google Projected Mode AHA MirrorLink Applink

Smart Phone Connectivity Forecasts - 2011 to 2020

Source: IHS © 2013 IHS

Smart Phone Connectivity Forecasts - 2011 to 2020


Impact of Smart Phone Connectivity on Fleets

• CarPlay and Google Auto don’t leverage car data.

• Future editions of MirrorLink will allow limited data from the car.

• MHL and other connections allow no data integration.

• Smart phone offerings can be used for insurance, or location based telematics services.

• Could embedded apps with a tethered phone option could offer more

functionality

© 2014 IHS 27

Infotainment Infrastructure

© 2014 IHS 28

10-20 Apps OEM Chosen

Driver Chosen

Digital Media Input

Smartphone

Phone App Integration SW (ML

/ Apple / Google)

Apps Head Unit Software Based

Flexible Platform

Embedded Head Unit Apps

2012-2020

CE App Store with Auto Apps

Fast moving with lots of different apps – will need a standard to be truly effective

Embedded TCU

Key Takeaways for Smartphone Connectivity

© 2014 IHS 29

• Essential to offer a competitive system. Take Away

• Multiple standards will need to be supported. Take Away

• Let the CE sector focus on CE apps. Take Away

Embedded Telematics 2010 to 2020

© 2014 IHS 30

0

20000

40000

60000

80000

100000

120000

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Uni

t Sal

es (K

)

Date

Total Embedded Telematics Hybrid Telematics Sales (K) Embedded Telematics Sales (K)

Embedded Telematics Forecast - 2010 to 2020


Embedded Telematics Forecast - 2010 to 2020


© 2014 IHS 31

• Data will become an automaker’s greatest asset in cost savings, revenue opportunities, and customer relationship management as OEMs begin to harness Big Data in the Connected Car.

TREND

Big Data – The Key to an Ongoing Telematics Business Model?

© 2014 IHS 32

Current Status Future Expectations Volume & Velocity • 480TB collected in 2013 (total market)

• 15MB/sec (total market) • 11.1PB collected in 2020 (total market) • 350MB/second (total market)

Variety & Veracity • Diagnostics & Location • Data is not diverse enough to ensure full reliability – decisions are unsure

• Diagnostics, Location, UX/Features, ADAS/Autonomy • Data is commodity, reliability is high, but costly

Value • Value of Data: $245 million in 2013 • Telematics Revenue: $3.1 billion in 2013 • SW Warranty Cost: $12.3 billion in 2010

• Value of Data: $14.5 billion in 2020 • Telematics Revenue: $16 billion in 2020 • SW Warranty Cost: $100 billion in 2020

Challenges • Technology & Infrastructure is building out • Defining the strategy and Big Data roles • Building optimized architecture • Gaining end-user support, opt-in • Privacy: Who owns data, pipe, security?

• Millions of data points/sec, millions of cars • Roles defined clearly, partnerships formed • Big Data in the Car creates value, revenue • End-user opt-in in exchange for services • Ownership & analytics solutions in place

Big Data – The Key to an Ongoing Telematics Business Model?

Telematics Dongles

© 2014 IHS 33

• Allows full access to vehicle data. • Options with embedded connectivity, or Bluetooth. • No specialist fitting required. • Can’t always fit them conveniently. • Aren’t crash proof.

Top OEMs - BMW

© 2014 IHS 34

• Large colour display now standard in many markets. • Aim to make telematics standard by 2015 • Multiple connectivity options.

Top OEMs - Ford

© 2014 IHS 35

• Sync increasingly offered as standard. • Low price point. • Limited functionality.

Top OEMs – General Motors

© 2014 IHS 36

• Smart phone control of vehicle functions. • Embedded telematics will be standard. • Proven record of working with third parties in the USA.

Key Information Comments Platform Design Hardware platforms

Software platforms Application platforms

More standardization More system knowledge More program knowledge

Network Architecture

Bus connections Diagnostics connections

CAN, MOST, FlexRay May not be disabled

Attack Access Points

OBDII OBDII w/wireless module Telematics link(s) Bluetooth to Phone Wi-Fi network link(s)

Need physical access Bluetooth, Wi-Fi, cellular 2.5G, 3G, 3.5G, 4G, 4.5G Bluetooth 2.1, Smart Router & Direct

Minimal Security Features

Little auto risk previously Many security holes Low security knowledge Different from typical IT systems

Few access point previously In current systems Low priority and need earlier Embedded, IT & wireless

What Makes Future Infotainment Vulnerable to Security Threats?

Key Information Comments Car Information Access to infotainment ECUs

Access to ECU software Re-flash ECU software Access to car security system Security keys

Bridge to core auto ECUs Re-flash ECU software From crash to lethal weapon Results in vehicle theft Access to other equipment

Driving Information

Unauthorized location tracking Driving pattern information Unauthorized EDR access

Privacy & stalking issues Value for insurance Accident information

Personal Driver Info

GPS location history Speed vs. speed limit history Time of day history

Value to 3rd parties Value to 3rd parties Value to 3rd parties

What Is Feasible via Security Breaches?

Security Attack Goals Comments Property Theft Steal vehicle

Steal valuable auto components Via unauthorized access Via unauthorized access

Industrial Espionage

Steal OEM’s intellectual property Spy on OEM’s expertise

Software & hardware Intellectual property value

Damage Harm driver and passengers Harm auto OEM’s reputation

Accidentally or for-profit Accidentally or for-profit

Deception Circumvent HW-SW functionality Manipulate auto equipment Manipulate contracts & agreements

Speed, features, chip tuning Toll device, digital tachograph Lease, warranty

Privacy Location tracking Event data recorders

Stalking, VIP tracking Accident investigations

Auto Security Threat Overview

Key Information Comments Legal Risks Cost of lawsuits

Cost of negligence In 10s of millions of dollars Possibly 100s of millions of dollars

Business & Customer Loss

Loss of customer contracts Cost of upgrading software Future business loss

Possibly 100s of millions of dollars In 10s of millions of dollars Until new product is re-established

Reputation Impact

Most severe for auto OEMs Public likely to shun autos with any

software problems

From $100M to $1B+ Whether real or not Even after fixes have been done

Summary Successful software security attacks have the potential to be among the most costly auto recall events

Legal risk will be substantial Product update cost may be low to extreme

high Reputation impact will be severe

Auto Security Attacks: Financial Risks

2010 2015 2020

Embedded Security in Cars: EU-2003; US-2013; AP-2014

Emerging Software Solutions

Security Conference

Security Research and Hacking

USCD & U-WA In-Car Access

Backend & Layered Client SW Security

CAN Firewall & ECU SW Monitor

Defcon: Auto presentations-2010

Auto Industry Research

•Government: EVITA, NHTSA •Consortium: ACES, others likely

Hardware & Software Solution

IT Server & Layered Client HW-SW Security

USCD & U-WA Remote Access

Other Auto Cyber Hacking

Auto Incident Response Center

Testing New Auto Security SW & HW

Products

MCUs with Built-in HW Security

Auto Cyber Security Evolution

Thank You – Any Questions?

© 2014 IHS 42

Jack Bergquist

Jack was bought into IHS from the former IMS Research Automotive team where he headed the infotainment and telematics research segment. During his time at IMS Research Jack authored several in depth industry reports, along with publishing and spearheading the use of consumer surveys within the team. Post IMS Research, Jack was responsible as the European infotainment expert for IHS Automotive’s Technology team, where he was also in charge of global forecasting for the core infotainment database. Whilst in these roles Jack had extensive experience presenting at a number of leading industry events, as well as presenting at all hands internal client, and industry body meetings. Jack has recently joined the EMEA Advisory team where he will continue to work on projects in the infotainment and wider automotive technology space. Methodological-Skills IT (MS Office, SPSS) Data Analysis Competitive Analysis Market Analysis Primary Research

© 2014 IHS 43

London, England

Consultant II to EMEA Advisory Services

• University of Sussex (UK) • Masters in Automotive

Engineering.

Project Experience Serveral Infotainment and ADAS projects Consumer surveys Infotainment market analysis Various cross team projects with mobile technology

Driver Apps

Mark Andrews Driver Connex


what’s new?


Many of the most innovative apps in 2014 will only be used by a few hundred or thousand people. That’s because they’ll be enterprise apps developed for employees to use.


driver apps within fleet - why?

SAVE TIME & MONEY

COMMUNICATION HOLISTIC MOBILITY


a simple communication flow?


a simple communication flow?

MULTIPLE STAKEHOLDERS

MULTITUDE OF EMPLOYEES DRIVING FOR

BUSINESS

ON DEMAND EXPECTATIONS

INCREASED REPORTING


what role can driver apps play?


apps v black box telematics?

COST FLEXIBILITY ACCEPTANCE


❶ mobility needs of my organisation? ❷ current means of addressing? ❸ future mobility solutions?


mobile device always on and always with you mobile interface is now expected pushing the boundaries of telematics (and fleet) mobile invites continuous innovation grey fleet represents an interesting area to start

key takeaways?

Fleet Management

Nigel Trotman Alphabet GB

Challenges and Opportunities for Fleet Managers Nigel Trotman, Strategic Fleet Consultant, Alphabet and ACFO National Councillor

BVRLA Technology Congress, 1st July 2014

Changing Times

7/2/2014 Topic/Department/Place 59

Data Flows


Driver

Employer

Vehicle

Fleet Company

Challenges

02.07.2014 Topic/Department/Place 61

DATA

PRIVATE?!

Non-specialists

Specialists

Opportunities


“True TCO”

Debate

connected vehicles - bvrla · carsharing is entering the holly grail of the rental market (e.g....

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