Impact of connected, electric and shared vehicles on automotive service providers

The automotive sector is undergoing rapid evolutions thanks to technological and digital breakthroughs, to environmental constraints and new consumption models. Revenues from the automotive sector are shifting from the car itself to an ecosystem of services: beyond the development of new “mobility services” (such as ridesharing or carsharing), it is being enriched with services that improve the overall user experience: the sales (with leasing, on-demand, and usage-based products), the traveling experience (extended and personalized onboard contents and services) and the vehicle O&M (predictive maintenance, on-demand roadside assistance, in-home maintenance, etc.).

At the interface between the car and the user, automotive services are offered by an increasing variety of players. While car manufacturers integrate more and more service in their cars, encouraged by the development of leasing, ICT companies leverage their customer knowledge to enter the car market, and traditional insurance or repair & maintenance players look to reinvent their product line. In this fastchanging context, players face many uncertainties regarding which business models shall benefit most from these developments and which may be negatively affected. They focus on winning business models (e.g. B2B2C, B2C, bundles, etc.), on the partnerships they have to form to develop an access to the customer, an access to data (technically and legally), and on the way to make the customer perceive the service’s value in the future.

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