Trends and Growth Opportunities in the Feature On-demand (FoD) Business Models for Connected Services

Innovative Business Model of On-demand Subscription-based Services Through FoD to Generate $4.04 Billion Revenue by 2025

On-demand business model in the automotive industry is revolutionizing the way customers subscribe to a particular service offered by the OEMs. This allows the customer to activate or deactivate a service according to their regional or custom requirements.

The subscription offered by auto makers can be on a monthly, yearly, one-time payment, and also on an hourly basis. This business model enables OEMs to monetize and increase their revenue from the connected services that are being offered by them.

Currently, most of the premium OEMs offer services on subscription basis, with the trend slowly picking up with volume OEMs. This study captures all the services offered by various OEMs through the on-demand business model and also the price at which they are being offered in 2020 (base year).

This study also offers the revenue generated by each service and the total revenue from all services combined for 2020 (base year) and the forecast revenue till 2025.

Key Issues Addressed:

What are the growth opportunities for OEMs in the FoD market?
What are the drivers and restraints in the FoD market?
How are the types of services offered through FoD distributed across OEMs?
What is the revenue share of each service offered through FoD for the next 5 years compared to 2020 (base year)?
Who are the main participants/OEMs that offer FoD?

1. Strategic Imperatives

Why Is It Increasingly Difficult to Grow?
The Strategic Imperative 8™
The Impact of the Top Three Strategic Imperatives on Feature on Demand (FoD) Services
Growth Opportunities Fuel the Growth Pipeline Engine™

2. Growth Opportunity Analysis

Feature on Demand (FoD) Services Scope Analysis
Transition from Hardware to Software Business
Shifting Customer Trends Supporting Newer Business Models
Car of Future Approach
Value Creation through Lifecycle
Extent of Features and Services on Demand in the Future
Definitions and Segmentation of FoD Services
Feature on Demand Services Market Segmentation
Key Competitors for FoD Services
Key Growth Metrics for FoD Services
Growth Drivers for Feature on Demand Services
Growth Restraints for Feature on Demand Services

3. Key Trends and Technologies

Tentative Feature on Demand Services
Technology Prerequisites for On-demand Business
Changing Definition of Connectivity - FoD Lessons from Tesla
Impact of Connectivity
Effect of Connectivity in Futuristic Business Models
Evolution of E/E Architecture
Service-oriented Business Calls For Redefining E/E Architectures
Maturity of Functional Domains for Functions on Demand
Case Study - VW
OTA Trends Affecting FoD Adoption
OTA Phases and OEM Strategies
OTA Updates by Automakers (Europe)
Summary of Automaker OTA Activities
Case Study - Tesla OTA Strategy Examples
Business Model Shifts - Recommendations to Automakers
FoD Access Types and Delivery
In-Vehicle Payment Options - Cards & Digital Wallets
In-Vehicle Payment - Types of Intermediaries and Services
Key Business Models in In-Vehicle FoD Payments
OEM Payment Platform for Purchasing FoD
Service Provider Payment Platform
Future Digital Payment Options
What will be the Future of In-Vehicle Payments?
Case Study - Tesla In-Car Payments
Regulatory and Legal Challenges in Implementing FoD
Key Regulations & Standards to Impact FoD

4. Automaker Portfolios, Global

Automakers’ FoD Strategy Canvas
Domains Benchmarking, Overall
Packaging and Pricing Summary
Probable FoD Features from Automakers from Announcements and Current Offerings
Audi, FoD Services
BMW, FoD Services
Mercedes Benz, FoD Services
Porsche, FoD Services
Tesla, FoD Services
Case Study - Tesla’s Location-based Suspension
Case Study - Tesla OTA Updates
VW, FoD Services
Skoda, FoD Services
Forecast Assumptions
FoD Services, Percent Penetration Forecast by Services
Infotainment Service - Revenue Forecast by Pricing Model
Navigation Service - Revenue Forecast by Pricing Model
Wi-Fi Hotspot Service - Revenue Forecast by Pricing Model
Remote Service - Revenue Forecast by Pricing Model
Safety & Security Service - Revenue Forecast by Pricing Model
Concierge Service - Revenue Forecast by Pricing Model
ADAS & AD Service - Revenue Forecast by Pricing Model
Convenience Service - Revenue Forecast by Pricing Model
EV-specific Service - Revenue Forecast by Pricing Model
Full Self-driving Service - Revenue Forecast by Pricing Model
Feature on Demand Services - Revenue Forecast by Pricing Model
Function on Demand Services - Revenue Forecast by Pricing Model
FoD Services - Revenue Forecast by Pricing Model

5. Growth Opportunity Universe, Feature on Demand Services

Hook Model to Capture Connected Car Customers
Implications and Recommendations to Automakers
Growth Opportunity 1 - Feature on Demand to Generate Renewed Interest in Customers in Connected Services
Growth Opportunity 2 - Feature on Demand to Drive Monetization Opportunities for OEMs
Growth Opportunity 3 - Feature on Demand to Drive Opportunities for Various Payment Gateways

6. Next Steps

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

Audi
BMW
Mercedes Benz
Porsche
Skoda
Tesla
VW

License	Format	Properties	Price
SITE LICENSE PDF	The product is a PDF.	This is a site license, allowing all users within a given geographical location of your organization access to the product.	€4825EUR$4,950USD£4,020GBP
SITE LICENSE PDF and Hard Copy	The product is a PDF. A printed copy will be shipped to you.	This is a site license, allowing all users within a given geographical location of your organization access to the product.	€5312EUR$5,450USD£4,426GBP
ENTERPRISE LICENSE PDF	The product is a PDF.	This is an enterprise license, allowing all employees within your organization access to the product.	€6287EUR$6,450USD£5,238GBP
ENTERPRISE LICENSE PDF and Hard Copy	The product is a PDF. A printed copy will be shipped to you.	This is an enterprise license, allowing all employees within your organization access to the product.	€6774EUR$6,950USD£5,644GBP

Key Issues Addressed:

Table of Contents

Companies Mentioned (Partial List)

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