Market Insight. Connected Car and Automotive Over-The- Air Updates Taiwan Telematics Industry Association (TTIA)

Transcription

1 Market Insight Connected Car and Automotive Over-The- Air Updates Taiwan Telematics Industry Association (TTIA)

2 1985 Market 2016 Insights ATS Advanced August Telematic 2016 Systems GmbH Source: Wikimedia

3 2015 Market 2016 Insights ATS Advanced August Telematic 2016 Systems GmbH Source:

4 Mercedes F 015 Market 2016 Insights ATS Advanced August Telematic 2016 Systems GmbH Source: Daimler 4

5 Mercedes F 015 Market 2016 Insights ATS Advanced August Telematic 2016 Systems GmbH Source: Daimler 5

6 Freightliner Inspiration Truck Market 2016 Insights ATS Advanced August Telematic 2016 Systems GmbH Source: Daimler 6

7 Dispatch Market 2016 Insights ATS Advanced August Telematic 2016 Systems GmbH Dispatch 7

8 Gogoro Electric Scooter Market 2016 Insights ATS Advanced August Telematic 2016 Systems GmbH Source:

9 By 2020, a Quarter Billion Connected Vehicles on the Road ~50 MILLION >250 MILLION Gartner says, one in five cars on the road will have wireless connection enabling new in-vehicle services. Source: Gartner 2015

10 10 Exabytes of Data Produced by Connected Cars (global) 1 Exabyte = 1 Billion Gigabytes E 2017E 2018E 2019E 2020E Source: BI Intelligence, 2016

11 About OTA Plus. OTA Plus is a complete suite for vehicle software management, secure transmission and deployment of software updates remotely. open source SERVER client optimized for speed, security and scalability

12 Absender: ATS Advanced Telematic Systems Highly specialized software company 100% focus on automotive industry. HQ in Berlin, offices in Tokyo & Taipeh. Member of VDA (German Automotive Association) Contributer to industry alliances GENIVI and AGL ATS leads OTA GENEVI activities. Based on Open-Source & Open Standards Featured in OTA reports 2016 (e.g. ABI Research, Frost & Sullivan)

13 Why OTA Plus. traditional Over-The-air Inconvenient and time consuming for the car owner. Costly for carmaker, especially for software related recalls. Convenient for car owner and cost efficient for carmaker. Business opportunity for carmaker to offer new services.

14 Cost Savings. Over-the-air Updates will trigger significant cost savings for OEMs. Telematics and infotainment system updates compromise most of the savings. $2.7 BILLION IN 2015 $35 BILLION IN 2022 ihs automotive estimates

15 Passenger Cars Fleet Trucks Appendix Impact of Over the Air Updates Frost & Sullivan Estimates Validated through Direct Discussions 50% Recalls Related to Electronics/Software, early detection and OTA can help reduce number of Recalls 2013 Data - Per OEM $500 Warranty Accrual Per Vehicle (2% of Sales) Dealer Revenues from Warranty Related Work - $6.84 Billion in %- TCO Share of Maintenance and Repair Costs - $ /Car Top 10 Vehicle Issues Infotainment Related ~20% Reduction in # of Recalls ~30% Reduction in Warranty Accruals ~10% Reduction in Warranty Revenues ~1-2% Reduction in Maintenance Costs ~SOTA Reduction in Issues/Problems 11% - TCO share of maintenance costs Prognostics Ability to detect issues before they occur across different vehicle sub-systems ~2%, $ /Truck Reduction in Maintenance cost ~22% Reduction in Downtime/Truck ~70% Reduction in Diagnostics Time/Truck Frost & Sullivan research indicates that 20% of recalls can be impacted using OTA (next 3-5 years) - billion dollar savings for OEMs Source: Frost & Sullivan, 2016

16 Background OTA Plus. Core technology components of OTA Plus were commissioned by GENIVI, an alliance of leading automotive OEMs and suppliers. genivi members (selection)

17 17 Automotive Over-The-Air Updates is Hot Topic The ability [ ] to update the vehicles over the air is a significant part of what s allowed us in 18 months to go from very behind the curve to what is today one of the more advanced autonomous or semi-autonomous driving features Sterling Anderson, Tesla, Director Autopilot Program; May 24, 2016 It is looking as if 2016 will emerge as the year that automotive software updates move into the mainstream. Roger Lanctot, Associate Director, Strategy Analytics; April 01, 2016 Over-the-air update capability is where auto is headed. Both SOTA (software over-the-air) and FOTA (firmware over-the-air) updates [ ] continue to be a focus for the future. Goldman Sachs; June 8, 2016 OTA firmware/content updates benefit everyone involved - the OEM, the dealer and the consumer - and will be one of the fastest growth areas in the auto industry. Morgan Stanley Research; Jan 26, 2015 Sources: Goldman Sachs 2016, MIT Technology Review 2016, Strategy Analytics 2016, Morgan Stanley 2015

18 18 OTA Update Current & Future Use Cases Source: Frost & Sullivan, 2016

19 Market 2016 Insights ATS Advanced August Telematic 2016 Systems GmbH Source: Tesla

20 Appendix Definition of Over the Air Updates (OTA) Type of OTA Definition Key Comments Increasing Complexity Software Over the Air Updates (SOTA) Firmware Over the Air Updates (FOTA) Focus on updating functional software largely within the infotainment system, graphical user interface and any security patches. Currently done using dealer visits and USB upgrades delivered to customer Focus on updating software that resides in the Electronic Control Unit (ECU) inside the vehicle, e.g. Occupant Restraint Systems ECU, Transmission ECU, etc. This will help prevent recalls and also ensure high customer satisfaction Most OEMs are evaluating software updates especially in the navigation, infotainment performance improvement and apps space Tesla is the only OEM that uses FOTA across different vehicle areas directly with customers extensively because of lack of dealers According to Frost & Sullivan research, majority of OEMs in Germany and USA are evaluating SOTA over FOTA Source: Frost & Sullivan, 2016

21 21 OTA-enabled Vehicles Forecast by Region World market, vehicles enabled Growth by region of OTA-enabled vehicles depends on e.g. regulations, market size and car ownership patterns. Source: ABI Research 2016, Automotive OTA Updates

22 Billions US-$ 22 OTA will lead to additional revenues and considerable cost savings OTA will trigger for car OEMs cost savings for recalls and warranty as well as additional revenue from functional updates 10 Additional Revenue per year Cost Savings per year $7.2B 0-10 $42.5B $35.3B OTA will trigger cost savings for recalls and warranty for car OEMs of more than $35 billion annually in Plus $7.2 billion in additional revenue streams from functional upgrades! Source: IHS 2015

23 23 Market Share Estimates for IVI OS The market environment supports the Mega IVI Linux-based strategy Linux OS in automotive will dominate the market in 2022 with 77 million units sold. Source: IHS Automotive, 2015

24 24 Benefits of Linux OS for OEMs Why are more automakers choosing Linux-based operating systems? Open Source Future Cost Saving Advantages Availability from multiple suppliers at every level in software hierarchy Auto industry desire to control and set own systems architecture Control over direction and features IHS, 2013

25 OTA Plus Open Source ATS Positioning inside GENIVI / AGL

26 26 OTA Plus positioning, GENIVI OTA Plus based on GENIVI SOTA GENIVI SOTA developed by ATS for JLR / GENIVI in % Open Source OTA server implementation Hosted on GENIVI Github Maintained by ATS GENIVI SOTA Client integrated by default in GENIVI Development Platform Supporting GENIVI to launch a SOTA server instance GENIVI Alliance Non-profit automotive industry alliance Founded: OEM members: Will be available to all GENIVI developers

27 included in the sota project Genivi OTA Architecture. Core technology components available from open source Genivi OTA project. External Resolver HMI Admin Browser Web Server Module Loader Package Manager Web API SOTA Core Server Software Loading Manager SOTA Protocol RVI Server node SOTA Client OTA SERVER Veh icle

28 ATS OTA Plus Architecture. Additional OTA Plus components for a production ready solution. Package Dependencies Logistics & Provisioning Charging & Billing External Resolver Admin Browser Web Server Secure Provisioning Auth Plus HMI Web API Module Loader Package Manager Partition Manager Reporting Enterprise Log SOTA Core Server Delta Manager Software Loading Manager BI /Analytics SOTA Protocol Monitor RVI Server node RVI Client Cluster Management Auth Plus / HTTPS Server Auth Plus / HTTPS Client SERVER Veh icle

29 29 OTA Plus positioning, AGL OTA Plus Client integrated by default in AGL Reference Platform Integration with OSTree demonstrated at ALS in Japan, July 2016 Working to integrate OTA Plus with AGL Build-/ Toolchain Integration with CI / Test framework Automotive Grade Linux (AGL) Linux Foundation Workgroup Founded: OEM members: Creation of updates from new AGL Reference Platform releases Aim to have all AGL Reference Platform images OTA enabled by Jan 2017 Reference devices will check for updates on boot All AGL RP devices will automatically update to latests AGL RP version

30 US will lead OTA with Europe not far behind North America expected to be the largest market for OTA, followed by Europe and a strong market in China on the long-run Europe Key vendors here include ATS Advanced Telematic Systems, Germany. Expected to be the 2nd biggest OTA market. China Expected to be one of the biggest markets, due to the proliferation of connected cars. North America Majority of the OTA vendors are present, a few are Movimento, Redbend and Airbiquity. Expected to be the biggest OTA market, attributed to high number of connected cars and stringent recall laws. Japan Japanese OEMs are pioneers in navigation map OTA updates via infotainment systems. Hitachi automotive systems and Clarion developing SOTA to update ECUs to be available in Toyota has been offering SOTA app updates since 2011 using a 3rd party Tweedle Connect. North America sees high competition between US-vendors, while Europe offers an opportunity for local vendors Source: Frost & Sullivan 2016 Map by Presentation Magazine 30

31 Appendix Existing OTA suppliers 31 Ownership and country of headquarters of market leaders in automotive OTA software (excerpt with major players) Company Deal Deal Size [USD] Buyer HQ AirWatch Sold 1.54B VMWare, 2014 Autonet Mobile Sold IP Undisclosed Lear, 2015 Red Bend Sold 200M Harman, 2015 Symphony Teleca Sold 780M Harman, 2015 Arynga Sold Undisclosed Intel (Wind River), 2016 Movimento Independent./. Private/VC ATS Advanced Telematic Systems Independent./. Private/VC North American multi-billion dollar corporations went shopping to dominate a key technology for future cars Source: ATS Research 2016, ABI Research 2016

32 32 Thank you. Questions? Please visit Or get in contact with the author/s: Ed Liao Timo Littke ATS Advanced Telematic Systems ATS Advanced Telematic Systems is a German automotive-focused software company specializing in open source and open standards based software solutions for the mobility industry. ATS developed OTA Plus, the only open source client/server solution for over-the-air software updates for OEMs and Tier1s. ATS collaborates with international industry alliances of leading automotive OEMs and suppliers: it is the first cloud-only service provider to be accepted into the German Association of the Automotive Industry (VDA), and leads the OTA activities inside GENIVI and Automotive Grade Linux.