The Impact of the Top 3 Strategic Imperatives on Automotive OEMs’ CASE Strategies

Transformative Megatrends

Why

• Sustainability and environmental concerns drive changes in consumer preferences, which impact electric vehicle (EV) adoption, shared mobility, and connectivity.
• OEMs adapt to meet the demand for sustainable, connected, and autonomous vehicles (AVs).
• Stricter emission standards and safety regulations push OEMs toward electrification and AV development.
• Sustainability concerns influence OEM decisions.

Frost Perspective

• Sustainability concerns drive innovation, altering business models and creating a more sustainable and connected transportation ecosystem.
• OEMs will prioritize cleaner energy sources, invest in sustainable materials, and enhance battery recycling.
• They must ensure AVs are energy-efficient and consider their environmental impact during production and operation.
• OEMs will integrate sustainability considerations into connected systems, driving innovation and the industry’s commitment to a greener future.

Competitive Intensity

Why

• Competition significantly influences automotive OEM strategies in the CASE mobility space.
• Rivalry among OEMs drives innovation in connected features.
• The race to develop self-driving technology is intense, with players competing to achieve Level 4 (L4) and beyond.
• The EV market has pure-play EV makers competing with traditional OEMs, with several Asian players offering innovative products at unmatched prices.

Frost Perspective

• The industry navigates the intense competition by adapting to disruptive technologies and forming strategic partnerships and alliances with direct competitors and digital suppliers to remain competitive.
• The acquisition of incumbents and start-ups helps balance cost-efficiency and differentiation, restructuring their supply chains and increasing profitability.
• OEMs are dedicating substantial resources to R&D for CASE vehicles; however, the success of these efforts remains uncertain.

Industry Convergence

Why

• The line between car companies and tech companies is blurring.
• Technologies such as AI, software development, and advanced materials science are becoming core competencies for automakers.
• The growth of car-sharing (CS) services and subscription models challenges traditional car ownership. This convergence with the sharing economy could lead to a shift in how people access and use vehicles.

Frost Perspective

• The convergence of autonomous and shared mobility helps the individual spaces develop. AV tech is under development mainly for application in shared mobility, ensuring its extensive testing, with the vast volumes of data that autonomous fleets generate helping to fine-tune the tech.
• The convergence with the telecommunications industry opens new possibilities for in-car experiences. Faster data transfer enhances safety features and connected infotainment systems.

Scope of Analysis

• The study profiles 6 global automotive OEMs based on their CASE mobility strategies.
• The research illustrates how each OEM has strategized CASE adoption, the extent of its efforts on the ground, and its timelines, planned investments, partnerships/in-house capabilities, and future outlook.
• The study helps understand the extent to which automotive OEMs prioritize CASE strategies in their product value chains.
• It investigates how CASE adoption fits within regular automotive OEM operations and plans.
• The research provides a detailed benchmarking of all the OEMs’ capabilities, initiatives, and plans in each of the 4 CASE areas.
• The report lists key takeaways/conclusions for each OEM, region, and global trend and provides insights into traditional OEM CASE adoption strategies.

Growth Drivers

Environmental Concerns
Pollution and climate change concerns drive the adoption of EVs and automotive value chain digitalization. OEMs strive to create cleaner alternatives to gasoline-powered vehicles.

Urbanization and Traffic Congestion
Urbanization is increasing traffic congestion globally. Shared mobility services and AVs offer significant potential to improve traffic flow by reducing vehicles on the road and optimizing routing.

Technological Advancements
AI, sensor technology, and connectivity are essential for CASE adoption, with advancements enabling the development of connected vehicle (CV) systems.

Changing Consumer Preferences
Consumers are increasingly interested in on-demand transportation options. Shared mobility services address this need without the problems of car ownership. Additionally, AVs promise safety and convenience.

Government Support
Governments globally are investing in CASE technologies through R&D funding, infrastructure investment, and regulatory changes. Government regulations and incentives promote EV adoption.

Growth Restraints

Key Competitors 

Global

• Ford
• General Motors
• Honda
• BMW
• Toyota
• Volkswagen

North America

• General Motors
• Ford

Europe

• BMW
• Volkswagen

APAC

• Honda
• Toyota