Global Megatrends and their Impact on the
Future of Automotive Mobility in Latin America
What is a Mega Trend?
What is a Mega
Trend?
Mega trends are
transformative, global
forces that define the
future world with their far
reaching impact on
business, societies,
economies, cultures
and personal lives
Megatrends have local
and regional implications
and timing of impact
varies geographically
Urbanization
– City as a
Customer
Smart is the
New Green
Social
Trends
Connectivity
and
Convergence
Bricks and
Clicks
Innovating
to Zero
New Business
Models: Value
for Many
Beyond
BRIC: The
Next Game
Changers
Future
Infrastructure
Development
Health,
Wellness
and Well
Being
Future of
Mobility
2
Future
of
Energy
Mega Trend:
Urbanization
“City as a
Customer”
3
Mega CitiesBy 2025, it is Expected that 86% of the Population (567 million people) in Latin
America Will Be Living in Urban Areas.
People per Square
Kilometre
Highly Urban Countries More than 200 people
Medium-high Urban Countries 100 – 200 people
Medium Urban Countries 50–100 people
Low-medium Urban Countries 10–50 people
Low Urban Countries Less than 10 people
Mexico CityPopulation 2025:
24.6 MillionGDP 2025:
$713.5 Billion
BogotaPopulation
2025:11.4 MillionGDP 2025:
$298.0 Billion
Rio de JaneiroPopulation 2025:
13.6 MillionGDP 2025:
$327.1 Billion
Buenos AiresPopulation 2025:
15.5 MillionGDP 2025:
$327.1 Billion
Sao PauloPopulation 2025:
23.2 MillionGDP 2025:
$643.9 Billion
Mega Cities in 2025
Emerging Mega
Cities (4-8 Million
population in 2025)
SantiagoPopulation 2025:
7.1 Million
Belo HorizontePopulation 2025:
6.6 Million
GuadalajaraPopulation 2025:
5.7 Million
Source: United Nations, Department of Economic and Social Affairs Statistics; other regional and country level statistics bureaus; and Frost & Sullivan analysis.
LimaPopulation
2025:11.5 Million
Mega Cities and Emerging Mega Cities, Latin America, 2025
City as a Customer—Concept and Definition
City as a customer is an implication of urbanization,
wherein cities (and not countries) are looked at as potential
customers and hubs of investment, wealth creation, and
economic growth. Every city will be highly unique in its
infrastructure demands by offering cross-sectoral micro
implications and opportunities in the following industries:
• Mobility
• Building
• Healthcare
• Energy
• Materials
• Automation
• Security
• Retail
This, in turn, will drive:
• Companies to internally revamp in house-competencies
and products/services portfolio to target cities as
customers.
• The city infrastructure market to develop into a new
industry offering new white space market opportunities.
• Highly customized and innovative city solutions and new
urban business models.
• Cities to wield economic and investment clout that is on
par with countries.
City as a Customer
Photo credits: Dreamstime
Source: Frost & Sullivan analysis.
City as a CustomerUrbanization will Create Numerous Cross-sectoral Micro Implications and Opportunities in
Latin America.
Water and Sanitation
MarketWater treatment systems,
integrated power sources,
and zero waste for industry
SecurityData on nearby police
stations or officers along
with tracking high-value
goods and monitoring crime
MobilityCar sharing, bike sharing,
integrated door-to-door
multi-modal transport
solutions
HealthcareRemote monitoring of
patients and ability to
conduct surgeries from
remote areas
Civil Construction
IndustrySmart Infrastructure
Smart homes, green
buildings
Source: Frost & Sullivan analysis.
Mega Trend:
Connectivity &
Convergence
Connected WorldOver 80 Billion Devices will be Connected Globally in the Future. Latin America to have about 1.3 Billion Connected
Devices in 2016.
4G rollout is expected in
2012 reaching 28.9
million of connections
in 2016
Total Pay TV
subscribers expected to
reach 61.2 million by
2015
416 million 3G
broadband subscribers
by 2016
Broadband
subscribers expected
to grow at 16.6%
CAGR
29.9 million (2010)*
77 million (2015)*
Internet users
212.4 million (2010)
311.4 million (2015)
The mobile
subscriber base
705.6 million (2016)
Source: Frost & Sullivan analysis.* Data for Argentina, Brazil, Chile, Colombia, Mexico and Venezuela
Connecting the Car Wirelessly!
10
Wireless Cars Over the Air Updates
Vehicle Telematics
Integrated with
Connected Living
Connected Platforms Connected Cars
• 4G LTE
• Wi-Fi Hotspots
• Smartphone Tethering
• End to End Software
Management
• 50% potential savings in
recall spending
• Vehicle to home charging
• Geo-fenced home automation
• Vital vehicle functions in the
car (e.g. Infotainment, vehicle
maps)
Cloud Interface
Why Big Data in the Auto Industry – The Business Case
11
Digital Leads
Warranty Costs Reduction, Predictive
Maintenance
User & Dealer Satisfaction
Internet Aggregators to Enter Market
Product Performance Analysis, Production
and Supply Chain
Advanced Mobility services, Dynamic
Navigation and Parking
12
Future Autonomous World Anything that Moves, Could be Autonomous in the Future
1414
Source: Frost & Sullivan
Connected Home – 31% Connected Work –15% Connected City – 54%
• Home Automation
• Home Energy
• Home Health
• Home
Entertainment
• Mobility - Mobile
email, Unified
Communication
• Mobile Working
• Enterprise Social
Networking
• eGovernance
• eCitizens
• Personal and Freight
Mobility
• E-learning
• Mobile banking
Sub Trend: Future Connected Living EcosystemConnected life contains three important aspects of connected home,
connected city, and connected work
Connected Living Total Market: $730 Billion in 2020
Mega Trend:
Bricks and Clicks
15
Evolution of Bricks and Clicks Model in New Car RetailingRetail Model Will Evolve From a Single/Multiple Channel to an Integrated
Cross Channel Model
Source: Frost & Sullivan analysis.
Conventional dealership model Online car
configuratorGoogle search Mobile Apps
Bricks (pre-2000) +Advent of Clicks (post-2010)
Interactive Stores
(motion sensor displays)
Mobile Stores
(Ambient mobile retail)
Flagship stores
(modern retail)
The Future - Bricks and Clicks (2015 and
Beyond)
16
Emerging New Retail Formats in the Automotive Industry
Digital Flagship Stores Lifestyle Stores Pop Up Stores
On-line retailing 3rd Party Online StoresMobile retailing
Mega Trend:
Future Of Mobility
1818
19
Car sharing & pooling
Car Leasing Car Rental
Demand Responsive
Transport (taxi, BRT)
Dynamic Parking
Intracity & Intercity Public
Transport
Extended Eco System
Partnerships
Freight Mobility
Micro-Mobility Solutions
Connected Living
Trains/Flights integration
PHYD Insurance
Energy Management
Apps, Journey Planning, Big
Data
Concierge services
Future Integrated Mobility Solutions Will Provide
Door to Door Seamless Mobility
Future of Mobility
Micro-mobility
Integrated
mobility
Global car
sharing
New Business Models (E.g. Taxi Apps)
Connected
cars
Telematics
based insurance
Autonomous
Cars
Overview of Micro Mobility Models by Key Global
Mainstream OEMs - About 115 micro mobility models
globally, 50% to go into production by 2015-2016GM Ford Chrysler Renault VW Audi BMW Daimler Fiat PSA Hyundai Honda Toyota Nissan Suzuki Geely
1-W
heel
Four-
Wheel
Thre
e-W
heel
Tw
o-W
heel
4 4 1 5 8 11 12 4 2 20 10 13 7 7 5 2Total
Source: Frost & Sullivan analysis.
Car sharing Business ModelsWith consistent growth in the market, the carsharing business
model is evolving into new segments
Car sharing Business Model
- A to B to A
- A to B
- X to X- Free
- Fee
- PAYD
- ICE
- EV
- Hybrid
- B2C
- B2B
- Corporate
- Cooperative
- For-Profit
- Non-Profit
- 24X7
- City Centers
- Day/night
- Dedicated
- Public
- Host
Vehicle
Infrastructure
Parking
Structure
Membership
Customer
Confinements
-P2P
- Traditional
- Hybrid
Type
Source: Frost & Sullivan analysis.Note: Highlighted in red are models that are gaining prominence
Future of Parking Dynamic in operation with innovations in the areas of reservation, navigation, payments and sensor
assisted real-time parking sessions
Source: Frost & Sullivan
Peer-to-Peer ParkingParking Analytics
and Big Data
Real-time parking
and wireless sensor
integration
Parking Enforcements
- Camera based
Mobile apps for
parking reservation
Parking Payment by using
NFC and QR code
In-vehicle parking
reservation payment
Future of
Parking
Increasing footfall
and consumer
spend
Competitive
advantage
New Collaborative Business Models – “Mobility for
Loyalty”OEMs are Evolving Mobility Models into a Total Lifestyle Solution
Increased service
use/membership
Touch points and
product promotion
Integration into
lifestyle
service/product
Synergies –
attractive
collaboration
Discounts and
loyalty rewards
Mobility
Services
Retail/
Leisure
Consumers
Gains: Convenience Brand Financial
Conclusion: Is the Future of Mobility
James Bond.................
25
...............................or Jason Bourne!
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