The business opportunity
The global connected car market was valued at $63.03 billion in 2019, and is projected to reach $225.16 billion by 2027, registering a CAGR of 17.1%
Connected cars assist businesses such as car mobility as a service, track the mileage and fuel consumption along with providing inputs shorter routes and feedback on their driving
Moreover, automatic car diagnostics aid businesses save time and money while maximizing driver safety. Benefits offered by connected cars, including tire pressure analysis, automatically inspect the use of correct PSI, a crucial factor for fuel consumption, which may be higher if a tire is under-inflated
Some of the industry challenges are unavailability of internet connectivity and concerns involving safety and security such as hacking into in the vehicle connectivity system and unauthorized access to automobile applications.
Leading players of the connected car market include Samsung Electronics, Daimler, Apple; Google ; Alcatel Lucent; Audi AG; Tesla , AT&T ; BMW; Ford Motor; Delphi Automotive; NXP Semiconductors and General Motors Company
The business need and partnership design:
KIIC member was interested to enter the automotive connectivity and digitalization space by using its vast data to create new services, revenue streams and increase efficiency by:
Using the data for adjustable cheaper insurance products
Using the data as predictive maintenance of the vehicles and pre- break-down services
KIIC has performed a deep Automotive research, covering several sub-sectors such as: autonomous driving, Automotive connectivity technologies and more. and has facilitated the process with Otonomo who was identified as a leading solution with high business fit to our member’s brief.
Otonomo's cloud-based platform, car data is cleansed, normalized, and anonymized to protect privacy and maintain consent, and then analyzed to deliver insights to the ecosystem and support ongoing progress.
The company is backed by top VCs - global and local leaders such as - Bessemer Ventures, Dell Technologies, Maniv Mobility (Israel leader in automotive) and StageOne and global key strategic investors too - SK Group, NTT DOCOMO, Aptiv and more.
Otonomo is working with prominent global companies such as: Daimler, BMW, Ford, Renault/Citroen and more