Google Has More Patents than Most Automakers on Connected and Self-Driving Cars According to Oliver
Wyman
New Automotive Manager Report Highlights This and Other Key Auto Trends
The global automotive industry is at a turning point. The automobile is undergoing a transformation, moving from a means of
conveyance to becoming a data center on wheels. For car manufacturers to maintain their leverage, they have to build alliances and
concentrate on R&D resources. This according to Oliver Wyman’s new Automotive Manager released today.
“This is one of the most exciting times in the auto industry in decades, perhaps for a century. However, the excitement also
brings challenges,” said August Joas, Head of Oliver Wyman’s Automotive Sector. “Success – and possibly survival – depends on being
nimble, flexible, and imaginative.”
The Automotive Manager report identifies five key trends affecting the auto industry: the patent race, driver assistance
systems, big data, e-vehicles, and how the industry needs to change the way they sell cars.
- The Patent Race -- Who will be the first company to put consumers behind the wheel of
autonomous automobiles -- automakers or technology companies? The race is on. In an analysis of patents involving connected and
self-driving cars, there were almost 1,200 patents filed between 2012 and 2016. Close to one-third were filed by tech companies,
led by Google. Google almost ties the leader (Audi 223) in the connected car and self-driving category, with 221 patents. Google
filed more than BMW (198) and Daimler (159) individually, and more than GM (141) and VW (75) combined. The other five in the
non-auto group were Apple, Facebook, Microsoft, Amazon, and Uber.
- Advanced Driver Assistance Systems (ADAS) -- Technology that helps drivers stay on the road,
brake in case something unexpected happens and provides parking assistance will be in half of all cars in the world by 2030
according to Celent, a division of Oliver Wyman. While these innovations are loved by consumers, they are increasingly complex
and could become the Achilles’ heel of next-generation vehicle design without proper safeguards. For example, parking assistance
systems alone rely on more than 12 ultrasonic sensors. As the complexity of these components increase, automakers will need to
reorganize their quality management controls.
- Getting Plugged In: The Future of E-vehicles Global– Many in the industry consider electric
vehicles to be the future of the automotive industry, however, uncertainties remain—and have increased significantly. Current
estimates predict e-vehicles will account for 30 percent of production share by 2025 assuming many regulators will take action.
However, taking the questionable development of the market into account, this number can vary in either direction. Legislation
changes and infrastructure are the key drivers in setting the pace for increasing electrification of cars globally. Until
progress is made on these fronts, this once promising sector is at a standstill.
- Big Data: Leaving Money on the Table -- Automotive companies could generate additional value
between $500 to $1,000 per car by analyzing and optimizing commercial patterns with big data. However, the industry needs better
strategies for managing and monetizing big data. Non-traditional players with significant data experience are waiting in the
wings to benefit and traditional automotive players need to leverage their knowledge of the end-customers to ask the right
questions to get big data working for them.
- Industry Needs New Approach to Selling Cars – Car pricing is more of an art than a science and
the industry needs an overhaul in its approach. For example, automakers need to stop rewarding customers with undifferentiated
discounts and incentives. The industry can reduce distribution cost and incentives by 30 percent without compromising sales
volume. Car dealerships need to re-examine their approach to maintain their relevance and market share, based on new roles and
responsibilities in the future automotive ecosystem.
Now in its ninth year, the Automotive Manager is a collection of articles focused on key issues facing the automotive industry.
Articles this year include big data, the impact of artificial intelligence on the automotive floor, how the automotive and
financial markets are undergoing structural changes and the future of gas stations. To download the entire report, please click
here.
About Oliver Wyman
Oliver Wyman is a global leader in management consulting. With offices in 50+ cities across nearly 30 countries, Oliver Wyman
combines deep industry knowledge with specialized expertise in strategy, operations, risk management, and organization
transformation. The firm has more than 4,500 professionals around the world who help clients optimize their business, improve their
operations and risk profile, and accelerate their organizational performance to seize the most attractive opportunities. Oliver
Wyman is a wholly owned subsidiary of Marsh & McLennan Companies [NYSE: MMC]. For more information, visit www.oliverwyman.com. Follow Oliver Wyman on Twitter @OliverWyman.
Oliver Wyman
Francine Minadeo, 212-345-6417
francine.minadeo@oliverwyman.com
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