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Strategic Analysis of Automotive Digital Assistant Market,

Forecast to 2025 Despite Fierce Competition, Digital Assistants will Coexist And Become Complementary,

Providing Access to Each Other's Growing Strengths and Services

Global Automotive & Transportation Research Team at Frost & Sullivan

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November 2019

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Section Slide Number

Executive Summary 6

 Key Findings 7

 Digital Assistant Evolution 8

 Hybrid Platforms—Emerging Winner 9

 OEM Digital Assistant Partnerships 10

 Digital Assistant—Select OEM Proprietary Solution Analysis 11

 Current and Future Outlook 12

Research Scope, Objective, Background and Methodology 13

 Research Scope 14

 Research Background 15

 Research Aims and Objectives 16

 Key Questions this Study will Answer 17

 Research Methodology 18

Market Overview 19

 Digital Assistants—An Overview 20

 Automotive Digital Assistant Market Insights 21

Contents

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 Audio Vendors Focus on Advancing Noise Cancellation Tech 22

 Digital Assistant Evolution in the Automotive Environment 23

 Role of AI in Automotive Digital Assistants 24

 Emotional Intelligence AI Integration in Digital Assistants 25

 In-car AI Assistants to Assimilate with User’s Digital Lifestyle 26

 In-Car Voice Biometrics 27

 Monetizing Voice Search 28

 Application Roadmap for Digital Assistants 29

Forecast and Outlook 30

 Voice Recognition Integral Part of HMI 31

 Forecast Assumptions and Analysis 32

 Embedded Digital Assistant Market Penetration 33

 Brought-in Digital Assistant Market Penetration, 2018 and 2025 34

 Global Automotive Digital Assistant Market Penetration Forecast 35

 Digital Assistants—Regional Highlights 36

 Automotive Digital Assistant Market—Future Outlook 37

Contents (continued)

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Use Cases and OEM Examples 38

 Digital Assistant Use Cases 39

 Teslabot v2.0 40

 BMW Intelligent Personal Assistant (IPA) 41

 MBUX Voice Assistant—Hey Mercedes 42

 Ford SYNC with Amazon Alexa 43

 Digital Assistant through Customer Reviews 44

Company Profiles 45

 Industry Players Developments 46

 Nuance—Dragon Drive 47

 IBM—IBM Watson AI Assistant 48

 SoundHound—Houndify 49

 Digital Assistants in China 50

 Emotion-Aware Vehicle Assistants (EVA) 51

 Amazon Alexa in Automotive Environment 52

 Amazon Alexa is Going Deeper in Vehicles 53

Contents (continued)

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 Innovative Microsoft Solutions Digital Assistants, AI and Azure IOT 54

 Google's Growing Presence in the Automotive World 55

Growth Opportunity Analysis 56

 Automotive Digital Assistant Ecosystem Companies 57

 Growth Opportunity—Partnerships, Business Models & Acquisitions 58

 Automotive Digital Assistants—Strategic Imperatives 59

 OEM Recommendations 60

The Last Word 61

 Conclusions 62

 Legal Disclaimer 63

Appendix 64

 Acronyms 65

 Market Engineering Methodology 66

 List of Exhibits 67

Contents (continued)

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Research Scope

Source: Frost & Sullivan

Passenger Cars Vehicle Type

2019–2025 Forecast Period

2018–2025 Study Period

2018 Base Year

North America (NA), Europe, and China Geographical Scope

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Research Background

Source: Frost & Sullivan

This study summarises content from several of Frost & Sullivan’s recently published and in-progress research services in the area of passenger vehicle telematics, including the following:

• ME93-18: Global Connected Car Market Outlook, 2019 (Completed)

• K329-18: Strategic Analysis of Usage-based Insurance Market for Passenger Vehicles, Forecast to 2025-Global (Completed)

• MDF0-18: Analysis of Embedded Telematics in the Automotive Industry, Forecast to 2025 (Completed)

• K329-18: Global Automotive Navigation System Market, North America, Europe, and China: Forecast to 2025 (Completed)

• K36F-18: CES Automotive and Transportation Highlights, 2019 (Completed)

• MD7B-18: Global Automotive Operating Systems Market, Forecast to 2025 (Completed)

This study is also supplemented by ongoing interactions with vehicle manufacturers, suppliers, service providers and software providers in the area of connected vehicle services.Pr

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Research Aims and Objectives

Source: Frost & Sullivan

Aim

• The aim of this study is to research the key trends in the global automotive digital assistant market and identify various segments and discuss their potential for growth.

Objectives

• To provide a strategic overview of the global automotive digital assistant market, including key technology trends and developments.

• To provide the penetration rate of the global automotive digital assistant market for 2018 and 2025.

• To provide profiles of key market participants.

• To furnish an analysis of the current and future addressable market, available opportunities, and detailed analysis of use cases focusing on the automotive industry.

• To identify growth opportunities and companies to action pertaining to the automotive industry.Pr ev

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Key Questions this Study will Answer

Source: Frost & Sullivan

Which type of automotive digital assistant sees higher adoption in the global market?

How does the competitive landscape look like? What are the different strategies adopted by OEMs, Tier I suppliers, and security start-ups?

What are the current trends in the automotive digital assistant market?

What are the approaches automakers are adopting to include digital assistants in the vehicle?

What are the different business models adopted for vehicle voice suppliers and which one will garner value in both the current and the future ecosystems?

What future trends are likely to be seen in the automotive digital assistants market?

What are the growth opportunities for OEMs and Tier I suppliers in the automotive digital assistant space?

Automotive Digital Assistant Market: Key Questions, Global, 2018–2025

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Research Methodology

Source: Frost & Sullivan

Research Methodology: Frost & Sullivan’s research services are based on secondary and primary research data.

Secondary Research: Information is extracted from existing studies and project material within the Frost & Sullivan database. Data is also gathered from technical papers, specialised magazines, seminars, and Internet research.

Primary Research: More than 20 telephonic interviews were conducted by senior consultants/industry analysts with original equipment suppliers, regulatory authorities, and Tier I suppliers. Primary research accounts for 80% of the total research.

Company

Amazon

Apple

Continental

Sensory

Google

Harman

IBM

Microsoft

Nuance

SoundHound

Company

Audi

BMW

Daimler

Ford

Honda

Hyundai

Tesla

Toyota

Volvo

Volkswagen

Automotive Digital Assistant Market: Key Participants, Global, 2018–2025

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Digital Assistants—An Overview

Source: Frost & Sullivan

Automotive Digital Assistant Market: Overview, Global, 2018–2025

New Entrants

Huawei Xiaoyi BMW Intelligent personal assistant

Shift in Microsoft Approach

Virtual assistant solution accelerator; building customized digital assistants is Microsoft's new conversational AI strategy.

Expanding Array of Digital

Assistant Services

Access, Authenticate, Personalize and Pay

Driver Companion

OEMs—Honda(HANA) and Toyota(Yui)—are building omnipresent digital assistants, capable of recognizing occupants mental states and making recommendations

Tech Players’ Aftermarket Route

Anker's Roav Bolt device for Google assistant

Echo Auto and Anker's Roav Viva for Amazon's Alexa on board

Personalization

In-house digital assistant with ML/AI capabilities that

help it to store multiple profiles and learn the

preferences of customers

Multimodal biometrics

Convergence of voice biometrics and facial biometrics for driver monitoring systems

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Voice Recognition Integral Part of HMI

Note: All figures are rounded. The base year is 2018. Source: Frost & Sullivan

Automotive Digital Assistant Market: Vo