The impact of autonomous vehicles – part 5

The impact of L4 and L5 AVs on automotive ancillaries and other industries.

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Explore the impact of L4 and L5 AVs on automotive ancillaries and other industries.

In the previous section, we explored the impact of L4 and L5 AVs on key players within the ecosystem – OEMs, component parts suppliers, and dealers. Now, we will explore the impact on automotive ancillaries and other industries.

Industry Impact Opportunities for IT service providers
Auto servicing and repairs
  • Fewer trips to the body shop due to fewer accidents
  • Mechanics’ traditional expertise will become less relevant as cars become more connected and software-dependent
  • Calibrate preventive maintenance and avoid more expensive repairs down the line
  • Real-time diagnostics of connected cars may enable prior intimation of failure points (before inspection).
  • IT service provider may support analytics systems that would collect data from vehicle software system for key alerts
  • Notification for taking preventive actions to avoid breakdown.
Insurance service providers
  • Demand for insurance will ultimately decrease as risks of vehicle accidents fall
  • Insurance service providers may introduce usage-based insurance policies (UBIs), which charge consumers based on how many miles they drive, and how safe their driving habits are.
  • Analytics systems that capture and analyze user/consumer-specific data, which will help insurer to decide premium amounts
Professional driving/fleet owners
  • Little to no human touchpoints within the professional driving services
  • Fleet owners will manage their fleet of vehicles and service routes with optimal efficiency through use of telemetric technologies.
  • Will manage telematics systems to facilitate communication and gather data from vehicles.
Industry-driving bodies
  • Industry-driving body in each geography and around the globe will have to lobby not only with DoT, but also ministries of telecom and justice to bring about apt changes to support mainstreaming AVs.
  • The changes will take into consideration standard features required at each level of AV, communication protocols, operating modes, etc.
  • May collaborate with industry body to identify and develop communication protocols considering the number of vehicles that will have to connected
  • May collaborate with OEMs to ensure compliance with protocols.
Public transport and parking infrastructure
  • Public transport will scale to provide service on routes that are not efficient today
  • Parking lots will evolve into “parking as a service” and will be distributed across the country and cities to provide quick services.
  • May support integration of advance automated parking systems with other systems.
DoT/local government bodies/NHTSA
  • Reduce revenue from traffic tickets as driverless cars will comply with traffic rules and laws
  • Automated disability of cars through connected system in case of traffic violations
  • Liability framework that will direct the ticket to responsible party – owner, OEM, software providers, etc.
Other industries
  • Fast-food chains, QSRs, motels, which derive significant business from overnight stays and pit-stops on long road journeys may see a decline due to “driverless” AVs
  • L4 and L5 AVs will have a strong presence of in-vehicle media and entertainment. In-vehicle location services and news could be used as a differentiator initially but will be expected as hygiene eventually.

Read the subsequent sections of this series where we summarize the role of IT (products and services) and present a point-of-view on the new responsibilities of key players within this ecosystem.

This blog is co-authored by Neeraj Mathur, he is an Automotive and Manufacturing domain expert and works on delivering business solutions to Automotive & Manufacturing customers of Capgemini through innovations and business process assessments. You can reach him at neeraj.mathur@capgemini.com.

Satishchandra Nayak is an Business Process expert who works on delivering practical Innovation to Automotive and Manufacturing customers of Capgemini.  You can contact him at satishchandra.nayak@capgemini.com.


Read the previous issues

Part 1
Part 2
Part 3
Part 4

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