Revenue Forecast

The revenue estimate of the base year is $0.35 billion, with a CAGR for the study period of 46.6% from 2023 to 2030.

The Impact of the Top 3 Strategic Imperatives on Feature on Demand (FoD) 

1. Innovative Business Models

Why: 

• FoD is a new business model original equipment manufacturers (OEMs) are adopting to increase revenue beyond their traditional subscription models.
• Customers may not consider certain packages or services relevant when they purchase a vehicle. The FoD model enables customers to subscribe to specific functions or features as necessary even if they have not initially opted for them when they purchase their vehicles.

Frost Perspective: 

• Premium OEMs were the first to introduce FoD services, ensuring a steady stream of recurring revenue. Mass market OEMs are now adopting this trend to capitalize on its benefits. 
• With the increased implementation of cloudbased architecture, more volume OEMs will adopt FoD solutions in the coming years. By 2030, this market will generate billions of dollars in revenue for OEMs.

2. Competitive Intensity

Why: 

• FoD requires an architecture that enables the activation and deactivation of features or functions at any time. OEMs need a cloudbased approach for this architecture so they can control it from anywhere in the world.
• Modern vehicles with advanced technology have motivated OEMs to offer added features to differentiate their product from their earlier models or competitors.

Frost Perspective: 

• Global vehicle electrification and advanced driver assistance features will increase in the next 5 years. With new vehicle architecture concepts already in place, OEMs must ensure their new architectural modules facilitate the implementation of FoD solutions.
• Customers’ awareness of and demand for infotainment, navigation, remote control, safety and security, ADAS/AD, performance, and comfort and convenience will drive the FoD market.

3. Internal Challenges

Why: 

• The main challenge for automakers will soon be the transition to modern vehicles, such as electric and autonomous, and the integration of various new technologies into these vehicles to differentiate themselves in the automotive market.
• The cost and technical hurdles automakers or OEMs face in integrating advanced features will increase the overall cost of vehicles.

Frost Perspective: 

• OEMs can offer more features through a subscription-based model, which keeps the vehicle’s overall price manageable and provides customers with the flexibility to select and pay only for the features they need.
• Automakers can partner with service providers to fill gaps in expertise or resources that certain FoD features require, helping them offer these features at competitive prices.

Scope of Analysis

• Automakers drive the automotive FoD market and dominate innovation and revenue generation.
• The study provides an overview of the FoD market for global premium and mass market OEMs and a segment/category analysis.
• The research provides the market penetration of various FoD segments across different OEMs and a market evaluation.

Key Questions This Study Will Answer

• What are the growth opportunities for OEMs in the FoD market?
• What are the main drivers and restraints of the FoD market?
• What are the FoD types and trends across various OEMs globally?
• What are automakers’ future strategies in the FoD space?
• What is the revenue growth of the FoD market globally until 2030?

Key OEM Brands in This Report

Segmentation

FoD Categories

• Connectivity
  • Connectivity includes infotainment, navigation, Wi-Fi hotspot, concierge, maintenance alerts, and other EV-specific features under FoD services.
  • Examples include internet radio, voice assistants, point-of-interest (POI) search, real-time traffic information, driving data, charging station information, and hotel reservations.
• ADAS/AD
  • ADAS/AD offers various features that enhance safety and comfort and which the driver can typically turn on or off.
  • These features include ADAS features (Level 2 and above), such as ACC, lane departure warning, lane-keeping assist (LKA), automatic emergency braking, traffic jam assist, and blind spot monitoring.
• Comfort and Convenience
  • Comfort and convenience features enhance the overall driver and passenger experience inside the car.
  • These features include heated and ergonomic seats, climate control, noise cancellation, adjustable suspension, ambient lighting, memory seats and mirrors, and wireless charging pads.
• Remote Services
  • Remote services are features that can control and interact with the car from a distance, enhancing convenience or security features typically through a smartphone or web application (app).
  • These features include lock and unlock, remote start engine, remote lights, vehicle locator, and remote climate conditioning and charging for EVs.
• Safety and Security
  • Safety and security features use technology to protect drivers, passengers, and vehicles by sending alerts and taking necessary actions during incidents such as theft or accidents.
  • These services include geofencing; emergency calls (eCalls); stolen vehicle tracking; curfew, valet, and speed alerts; and vehicle slowdown.
• Performance
  • Performance focuses on aspects of a car that create a thrilling and engaging driving experience.
  • Example includes MB’s performance upgrade feature using software that increases EV acceleration for a certain subscription fee.

Competitive Environment

Key Competitors

• Connectivity
  • BMW
  • MB
  • Tesla
  • Audi
  • Toyota
  • VW
  • Skoda
  • Ford
  • Porsche
• Remote Services
  • BMW
  • MB
  • Audi
  • Toyota
  • VW
  • Skoda
  • Porsche
• ADAS/AD
  • BMW
  • Tesla
  • Audi
  • Skoda
  • Ford
  • Porsche
• Safety & Security
  • BMW
  • MB
  • Audi
  • Toyota
  • VW
  • Skoda
  • Ford
  • Porsche
• Performance
  • MB
• Comfort & Convenience
  • BMW
  • Audi
  • Skoda
  • Ford
  • Porsche

Revenue Forecast