Summary of Research Findings

Currently, automobiles are highly connected, enabling automobile manufacturers (OEM) to constantly obtain data on driving, vehicle, passengers, etc. through communication channels. Because such connection is projected to continue being strengthened, vehicle and passenger data are likely to be accumulated in the database on cloud (mobility PaaS [Platform as a Service]). Yano Research Institute considers that the competition among automakers in the future will depend on their abilities to efficiently operate and utilize such big data. In this research, the circulation of data being utilized and operated is named as the “MIC (Mobility Information Circle) to make it easier to understand.

Yano Research Institute considers that the degree of competition for existing automakers and those manufacturers aiming to enter the market depends on how fast they can establish MIC. This indicates how important the utilization and operation of automotive big data are.

When observing the above diagram “Conceptual Diagram of MIC (Mobility Information Circle),” the circle on the right side, i.e. “MIC,” indicates innovative data circulation inside OEM and group companies used in the phases of planning and designing for simulation and other purposes. In addition, a variety of apps for automobiles is likely to be developed, helping the optimization of individual preferences, which leads to the "personalization" of cars.

The left side of the diagram i.e. “MIC for services” indicates a flow of data from database on cloud to various enterprises by which to generate new services. It is the ecosystem of generating new services utilizing mobility data.

The value of automobiles as a hardware is highly likely to decline. The source of growth that will replace will be “MIC for Services.” In this area, a service development platform is forecasted to be installed to simulate whether a new service will be viable as a business.

Noteworthy Topics

”Value Transformation” in Automotive Business

In the automobile business the source of values is about to rapidly change. We have organized the transition of value transformation in the automotive business into three layers: manufacturing, data acquisition & coordination, and mobility services.

Layer 1: Manufacturing
With the advent of the vehicle OS, cars are becoming just like smartphones. With the introduction of the vehicle OS, automobile development will be horizontally separated into software and hardware, and with the shift to EVs, the number of parts will be reduced and assembly will be simplified, and the value of manufacturing will decline.

Layer 2: Data Acquisition & Coordination
Conventionally, information between OEMs and customers has been separated. However, we predict that the value of data creation will rise in the place of manufacturing, as OEMs will be able to obtain a variety of data through the connected world. In the future, it will be necessary to develop vehicles that are more suited to the needs of the customers through data-driven design and development.

Layer 3: Mobility Services
In the future, the value of automobiles as hardware is expected to decline relatively, and it will become more important for OEMs to “sell experience" through data utilization. Selling experience indicates various services utilizing mobility data and information. OEMs are expected to expand their business by creating data and converting it into services, rather than simply manufacturing and selling hardware.

Research Outline