Market Insight Connected Car and Automotive Over-The- Air ... linux open source.pdf · Web API SOTA...

Market Insight

Connected Car and Automotive Over-The-Air UpdatesTaiwan Telematics Industry Association (TTIA)

© 2016 ATS Advanced Telematic Systems GmbH

Market Insights | August 2016

1985

Source: Wikimedia© 2016 ATS Advanced Telematic Systems GmbH



2015

© 2016 ATS Advanced Telematic Systems GmbH Source: www.teslamotors.com



Mercedes F 015

4© 2016 ATS Advanced Telematic Systems GmbH Source: Daimler



Mercedes F 015




Freightliner Inspiration Truck



Market Insights | August 2016© 2016 ATS Advanced Telematic Systems GmbH Dispatch

Dispatch

7© 2016 ATS Advanced Telematic Systems GmbH



Gogoro Electric Scooter

© 2016 ATS Advanced Telematic Systems GmbH Source: www.gogoro.com



By 2020, a Quarter Billion Connected Vehicles on the Road

Source: Gartner 2015

Gartner says, one in five cars on the road will have wireless connection enabling new in-vehicle services.

2015 2020

~50 MILLION >250 MILLION



Exabytes of Data Produced by Connected Cars (global)

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Source: BI Intelligence, 2016

1 Exabyte = 1 Billion Gigabytes

2013 2014 2015 2016E 2017E 2018E 2019E 2020E



About OTA Plus.

OTA Plus is a complete suite for vehicle software management,

secure transmission and deployment of software updates remotely.

optimized for speed, security and scalability

SERVER client

open source



Absender: ATS Advanced Telematic Systems

Highly specialized software company

100% focus on automotive industry.

HQ in Berlin, offices in Tokyo & Taipeh.

Member of VDA (German Automotive Association)

Contributer to industry alliances GENIVI and AGL

ATS leads OTA GENEVI activities.

Based on Open-Source & Open Standards

Featured in OTA reports 2016 (e.g. ABI Research, Frost & Sullivan)



Why OTA Plus.

Inconvenient and time consuming for the car owner.

Costly for carmaker, especially for software related recalls.

Convenient for car owner andcost efficient for carmaker.

Business opportunity for carmakerto offer new services.

t radi t ional Over-The-ai r



Over-the-air Updates will trigger significant cost savings for OEMs.

Telematics and infotainment system updates compromise most of the savings.

Cost Savings.

ihs au tomotive es t imates

$2.7 BILLION IN 2015

$35 BILLION IN 2022



50% Recalls Related to Electronics/Software, early detection and

OTA can help reduce number of Recalls

2013 Data - Per OEM $500 Warranty Accrual Per Vehicle (2% of

Sales)

Dealer Revenues from Warranty Related Work - $6.84 Billion in 2013

4%- TCO Share of Maintenance and Repair Costs - $800-900/Car

Top 10 Vehicle Issues – Infotainment Related

11% - TCO share of maintenance costs

Prognostics – Ability to detect issues before they occur across different vehicle sub-systems

Frost & Sullivan research indicates that 20% of recalls can be impacted using OTA (next 3-5 years) - billion dollar savings for OEMs

~20% Reduction in # of Recalls

~30% Reduction in Warranty Accruals

~10% Reduction in Warranty Revenues

~1-2% Reduction in Maintenance Costs

~SOTAReduction in Issues/Problems

~2%, $200-250/TruckReduction in Maintenance cost

~70% Reduction in Diagnostics Time/Truck

~22% Reduction in Downtime/Truck

Fro

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Appendix Impact of Over the Air Updates

Source: Frost & Sullivan, 2016



Background OTA Plus.

Core technology components of OTA Plus were commissioned by GENIVI,

an alliance of leading automotive OEMs and suppliers.

genivi members (selection)



“The ability […] to update the vehicles over the air is a significant part of what’s allowed us

in 18 months to go from very behind the curve to what is today one of the more advanced

autonomous or semi-autonomous driving features”

Sterling Anderson, Tesla, Director Autopilot Program; May 24, 2016

“It is looking as if 2016 will emerge as the year that automotive software updates move into

the mainstream.”

Roger Lanctot, Associate Director, Strategy Analytics; April 01, 2016

Sources: Goldman Sachs 2016, MIT Technology Review 2016, Strategy Analytics 2016, Morgan Stanley 2015

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Automotive Over-The-Air Updates is Hot Topic

“Over-the-air update capability is where auto is headed. Both SOTA (software over-the-air)

and FOTA (firmware over-the-air) updates […] continue to be a focus for the future.”

Goldman Sachs; June 8, 2016

“OTA firmware/content updates benefit everyone involved - the OEM, the dealer and the

consumer - and will be one of the fastest growth areas in the auto industry.”

Morgan Stanley Research; Jan 26, 2015



OTA Update – Current & Future Use Cases

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According to Frost & Sullivan research, majority of OEMs in Germany and USA are evaluating SOTA over FOTA

Typ

e of

OT

A

AppendixDefinition of Over the Air Updates (OTA)

Def

init

ion

Key

Com

men

ts

Increasing Complexity

Software Over the Air Updates (SOTA) Firmware Over the Air Updates (FOTA)

Focus on updating functional software largely

within the infotainment system, graphical user

interface and any security patches. Currently

done using dealer visits and USB upgrades

delivered to customer

Focus on updating software that resides in the

Electronic Control Unit (ECU) inside the vehicle,

e.g. Occupant Restraint Systems ECU,

Transmission ECU, etc. This will help prevent

recalls and also ensure high customer satisfaction

Most OEMs are evaluating software updates

especially in the navigation, infotainment

performance improvement and apps space

Tesla is the only OEM that uses FOTA across

different vehicle areas directly with customers

extensively because of lack of dealers




OTA-enabled Vehicles Forecast by Region

World market, vehicles enabled

Source: ABI Research 2016, Automotive OTA Updates

Growth by region of OTA-enabled vehicles depends on e.g. regulations, market size and car ownership patterns.

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OTA will lead to additional revenues and considerable cost savings

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Source: IHS 2015

OTA will trigger for car OEMs cost savings for recalls and warranty as well as additional revenue from functional updates

OTA will trigger cost savings for recalls and warranty for car OEMs of more than $35 billion annually in 2022.

Plus $7.2 billion in additional revenue streams from functional upgrades!

-40

-30

-20

-10

0

10

2016 2017 2018 2019 2020 2021 2022

Bill

ion

s U

S-$

Additional Revenue per year

Cost Savings per year

$35.3B

$7.2B

$42.5B



The market environment supports the „Mega IVI“ Linux-based strategy

Source: IHS Automotive, 2015

Linux OS in automotive will dominate the market in 2022 with 77 million units sold.

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Market Share Estimates for IVI OS



Benefits of Linux OS for OEMs

Why are more automakers choosing Linux-based operating systems?

Open Source

Future Cost Saving Advantages

Availability from multiple suppliers at every level in software hierarchy

Auto industry desire to control and set own systems architecture

Control over direction and features

IHS, 2013

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OTA Plus Open SourceATS Positioning inside GENIVI / AGL



GENIVI Alliance

Non-profit automotive industry

alliance

Founded: 2009

www.genivi.org

OEM members:

OTA Plus positioning, GENIVI

OTA Plus based on GENIVI SOTA

GENIVI SOTA developed by ATS for JLR / GENIVI in

2015• 100% Open Source OTA server implementation

• Hosted on GENIVI Github

•Maintained by ATS

GENIVI SOTA Client integrated by default in GENIVI

Development Platform

Supporting GENIVI to launch a SOTA server instance•Will be available to all GENIVI developers

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Genivi OTA Architecture.

External Resolver

Web API

SOTA Core Server

SOTA Protocol

RVI Server node

Web ServerAdmin Browser

Vehicle

Module Loader

Software Loading Manager

SOTA Client

Package Manager

HMI

inc

lud

ed

in

th

e s

ota

pro

jec

t

OTA SERVER

Core technology components available from open source Genivi OTA project.



ATS OTA Plus Architecture.

External Resolver

Web API

SOTA Core Server

SOTA Protocol

RVI Server node

Web ServerAdmin Browser

SERVER

Auth Plus

Secure Provisioning

Auth Plus / HTTPS Server

Package Dependencies

Delta Manager

Enterprise Log

Monitor

Cluster Management

Reporting

BI /Analytics

Module Loader

Software Loading Manager

RVI Client

Partition Manager

HMI

Vehicle

Logistics &Provisioning

Charging &Billing

Package Manager

Auth Plus / HTTPS Client

Additional OTA Plus components for a production ready solution.



OTA Plus positioning, AGL

OTA Plus Client integrated by default in AGL

Reference Platform

Integration with OSTree demonstrated at ALS in

Japan, July 2016

Working to integrate OTA Plus with AGL Build-/

Toolchain• Integration with CI / Test framework

• Creation of updates from new AGL Reference Platform releases

Aim to have all AGL Reference Platform images OTA

enabled by Jan 2017• Reference devices will check for updates on boot

• All AGL RP devices will automatically update to latests AGL RP version

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Automotive Grade Linux (AGL)

Linux Foundation Workgroup

Founded: 2012

www.automotivelinux.org

OEM members:



US will lead OTA with Europe not far behind

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Source: Frost & Sullivan 2016Map by Presentation Magazine

North America expected to be the largest market for OTA, followed by Europe and a strong market in China on the long-run

North America sees high competition between US-vendors, while Europe offers an opportunity for local vendors

Europe• Key vendors here include ATS

Advanced Telematic Systems, Germany.

• Expected to be the 2nd biggestOTA market.

Japan• Japanese OEMs are pioneers in

navigation map OTA updates via infotainment systems.

• Hitachi automotive systems and Clariondeveloping SOTA to update ECUs to beavailable in 2018.

• Toyota has been offering SOTA appupdates since 2011 using a 3rd partyTweedle Connect.

China• Expected to be one of the biggest

markets, due to the proliferation ofconnected cars.

North America• Majority of the OTA vendors are

present, a few are Movimento, Redbend and Airbiquity.

• Expected to be the biggest OTA market, attributed to high number ofconnected cars and stringent recalllaws.



Appendix Existing OTA suppliersOwnership and country of headquarters of market leaders in automotive OTA software (excerpt with major players)

Source: ATS Research 2016, ABI Research 2016

North American multi-billion dollar corporations went shopping to dominate a key technology for future cars

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Company DealDeal Size

[USD]Buyer HQ

AirWatch Sold 1.54B VMWare, 2014

Autonet Mobile Sold IP Undisclosed Lear, 2015

Red Bend Sold 200M Harman, 2015

Symphony Teleca Sold 780M Harman, 2015

Arynga Sold Undisclosed Intel (Wind River), 2016

Movimento Independent ./. Private/VC

ATS Advanced Telematic Systems Independent ./. Private/VC



Thank you.

• Questions?

Please visit www.advancedtelematic.com

Or get in contact with the author/s:

Ed Liao

[email protected]

Timo Littke

[email protected]

• ATS Advanced Telematic Systems

ATS Advanced Telematic Systems is a German automotive-focused software company specializing in open source and open standards based software solutions for the mobility industry.

ATS developed OTA Plus, the only open source client/server solution for over-the-air software updates for OEMs and Tier1s.

ATS collaborates with international industry alliances of leading automotive OEMs and suppliers: it is the first cloud-only service provider to be accepted into the German Association of the Automotive Industry (VDA), and leads the OTA activities inside GENIVI and Automotive Grade Linux.

32

http://www.advancedtelematic.com/

mailto:[email protected]

mailto:[email protected]

Market Insight Connected Car and Automotive Over-The- Air ... linux open source.pdf · Web API SOTA...

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