Growth Opportunities for Commercial Vehicle On-demand Features

Growth Opportunities for Commercial Vehicle On-demand Features

The on-demand business model in the automotive industry is revolutionizing the way customers subscribe to a particular service offered by OEMs. The model allows customers to activate or deactivate a service according to their regional (or custom) requirement. The subscription offered by automakers can be on a monthly, yearly, hourly, per kilometer basis, or a one-time payment. This business model enables OEMs to monetize and increase their revenue from the connected services that they offer. Connectivity is already prevalent in commercial vehicles, with fleets opting for features that improve vehicle management and overall productivity. These services are primarily offered on a subscription basis, which includes a standard or customized package option, depending on feet requirements. However, with the advancement of IoT, artificial intelligence, and over-the-air network speed, customers will be more than willing to ask for these features whenever they require it. Autonomous, safety and security, convenience, and smart features are likely to be offered on demand. During the initial adoption stage and because of limited penetration, these features will be slowly introduced to the market in target applications but on a subscription basis; however, once considerable volume penetration is achieved, manufacturers, suppliers, and service providers will begin offering features as per the demand and will ensure business case viability for them. This study covers the major trends, factors, and activities around the inception of commercial vehicle on-demand features, and captures the outlook in seven segments based on their expected launch dates and pricing position.