Apps in Automotive – Future Opportunities and Business Cases 3/31/2017 5:04 PM Apps in Automotive – Future Opportunities and Business Cases November 6th 2013 Jack Bergquist – Senior Analyst IHS Automotive Jack.bergquist@ihs.com

Who is IHS Automotive? 3/31/2017 5:04 PM C u s t o m S o l u t I o n s Same Day Analysis Network Planning / Performance Management Supplier Sourcing Component Sourcing and Supply Chain Light Vehicle Sales Technology Analysis: Infotainment ADAS Powertrain & Alternative Propulsion Technology Analysis: Infotainment, Hybrid-EV, ADAS Light Vehicle Production IHS Automotive delivers the most comprehensive range of business and product intelligence on automotive infotainment and communications technologies. Medium & Heavy Commercial Vehicles

Automotive Technology Solutions Group IHS Automotive Technology Solutions Group Infotainment Systems ADAS/Safety HMI/ Usability Consumer Preference Hybrid EV Software & Apps

Western European Smartphone App Integration Unit Sales 2010 - 2019

Global Smartphone App Integration Unit Sales

European Telematics Sales 2010 to 2020

Global Telematics Sales 2010 to 2020

Largest existing app ecosystem in the industry, still TBA for MyFord Touch Open architecture for app development worldwide Rich vehicle API data source to harness, also harnessing OpenXC Forecasted WW cum. sales of App-Enabled Fords – 13.6M units by 2018 Forecasted NA cum. sales of App-Enabled Fords – 10.4M units by 2018 Take-Away

Take-Away Open architecture for app development worldwide Rich vehicle API data source to harness Forecasted WW cum. sales of App-Capable GMs – 30.5M units by 2018 Forecasted NA cum. sales of App-Capable GMs – 17.2M units by 2018 Take-Away

Best Future Architecture for Automotive Apps? 2012-2020 10-20 Apps Driver Chosen OEM Chosen Embedded Head Unit Apps Apps Head Unit Software Based Flexible Platform Digital Media Input Fast moving with lots of different apps – will need a standard to be truly effective Phone App Integration SW (E.G. MirrorLink) CE App Store with Auto Apps Smartphone

What Apps Have Respondents Paid Most for on Their Smart Phones

What Apps Have Respondents Paid Most for on Their Smart Phones

How Often do Users Use Web Radio in the Car?

Would Users Prefer to Have Embedded Navigation or Smartphone Based Navigation?

What Apps do Users Use Most Regularly in the Car?

What Apps do Users Use Most Regularly in the Car?

Is Privacy an Issue for Consumers?

Would Respondents Still Buy a New Car if it Didn’t Offer Apps?

Downsides to Apps in Automotive for Developers Cost to integrate multiple SDKs. Lack of direct revenue opportunities. Loss of branding. Slower update cycles. Limits on usability and increased time and cost to create a “safe” HMI.

Benefits for App Developers for Apps in the Car Brand awareness? Drive more customers to your place of business / smart phone app? Direct revenue from app sales / vehicle manufacturer? Advertising? Others?

Panel – Automotive Apps Harnessing Car Connectivity Moderator – Jack Bergquist, Senior Analyst, IHS Automotive Ralf Hug – Consultant, Trajectory Group Theo Kamalski - Manager Regulatory Affairs and Patent Engineer Business Unit Automotive Robert Hrabak – Connectivity Specialist, General Motors