Driven by government mandates on safety and emission regulations, OEMs are investing billions of dollars in R&D for advanced vehicle technology features, according to a Frost & Sullivan analysis.
The R&D spending is fueling brisk growth in autonomous systems, artificial intelligence, in-vehicle connectivity, safety features, electric propulsion and other technology.
“Major automotive OEMs, suppliers, as well as small technology startups, are expected to partner or collaborate with the aim of reducing the price point of top features, offering new business models such as connectivity through the cloud and data-based services to end users,” Frost & Sullivan explained.
For examples, look no further than GM’s recent acquisition of Cruise Automation, a deal reportedly worth more than $1 billion. Other examples include:
- GM/Ford co-development of a 10-speed transmission
- Honda NXS offering steer-by-wire
- Technology companies such as Waymo, NVidia and Baidu entering the automotive space to develop autonomous software
- Gentex and Delta ID collaborating to develop an iris scanner for vehicle authentication and security
- Partnerships between Cisco and Hyundai for high-speed connectivity with SK Telecom, BMW and Ericsson achieving 5G in car connectivity at over 100 mph
- Bosch opening a new unit for electromobility, focusing on battery technology
- Honda-Hitachi partnership to develop motors for electric vehicles
- Mercedes-Benz, BMW and Audi introducing technologies such as active lane-change assist and gesture recognition
- Tesla setting industry standards in EV technology, in-car connectivity and semi-autonomous driving technology.
“While the majority of features identified are currently available only across select vehicle models owing to high technology costs, they have significant potential through R&D, collaboration, and knowledge sharing to reach peak performance, adoption and penetration across multiple vehicle models,” said Frost & Sullivan Mobility research analyst Ajay Natteri Mangadu.