The 4 disruptions
Connectivity is the basis for making vehicles smarter, safer, upgradeable, more comfortable, and more useful. A vehicle without connectivity is only as smart as the information that it already has. Connectivity, through cellular networks and V2X, integrates vehicles into networks that are larger and smarter than a single disconnected vehicle can ever be. And this connectivity is cheap, reliable and increasingly ubiquitous, especially in metropolitan and highly populated areas. By 2020 it is expected that >90% of new vehicles globally will come with some form of connectivity.
Cars have been sold on the promise of delivering freedom to speed along empty roads. But the reality is that drivers are imprisoned, locked behind the wheel, stuck in traffic on their daily commute. Self-driving promises to give back freedom. Freedom to do what we want whilst the vehicle takes us safely and efficiently on our daily journeys. The economic boost that will come from this new freedom is the major driver of the large scale commercial investment that is driving development in self-driving technologies globally. Self-driving cars will start appearing on our roads in numbers around 2022, although it may take an additional 10-15 years to perfect the technology and phase out the majority of human piloted cars.
China and the EU are leading the world with major policy objectives to make transport cleaner, quieter and more efficient. Currently electric vehicles are the only mass market option being developed to meet these policy objectives. The switch from the internal combustion engine to electric drive trains will change the way cars are designed and made, which will challenge the traditional automotive supply chain and create opportunities for new suppliers. Changing from the petrol pump to the electric plug creates challenges for our infrastructure, but also creates new investment opportunities. Currently at around 2% of global consumer vehicles sales, we will see a lot more choice in EVs appearing around 2020. Between 2030 and 2040 sales of ICE vehicles will become increasingly restricted.
With the rise of personal connectivity and the freedom offered by self-driving, the need for consumer ownership of vehicles goes down. Especially in urban areas, vehicles can be utilised more efficiently when shared, which further reduces the total cost of transport to the individual. This will give rise to new mobility as service models. Uber, Lyft and Didi are prototypes for what transport models will look like in the future. The major opportunity for these new models will depend on the connectivity and self-driving disruptions first reaching maturity.
Link Motion was established to solve the core problems of the automotive world: bringing connectivity into cars securely and cost-efficiently. Originally we were a software company but as our customers came to rely on us more and more for our hardware knowledge and expertise, we realized that we were no longer a software company, but that we are a computer company.
Security is the
the new safety