Autonomous driving market seen at $560bn

The report forecasts a break-up in the auto industry as it is today. Alongside OEMs, service providers will also create their own fast-growing and independent industry. As early as 2025, their consumption-dependent revenues and revenues from entertainment, multimedia and information offerings could already exceed what traditional OEMs earn with optional extras. Forecasts indicate that the vehicle market itself will split into three segments: premium, low-cost and drones.
“The business models of mid-range providers like Toyota, VW, SEAT and Citroën are being called into question,” said Michael Römer, head of Digital Business Europe, Middle East and Africa at A T Kearney and co-founder of A T Kearney Digital Labs. “Following the example set by technology pioneers such as GM, BMW and Ford, automakers need to forge strategic alliances with partners outside the industry if they want to deliver attractive telematics solutions, for example.”