With the connected car topic the automotive industry is about to experience a technological leap that will substantially change mobility. Automotive manufacturers are increasingly considering the integration of information technology and external services in their cars. Against this background, PAC conducted a survey among 250 CxOs in European automotive companies (in France, Germany, Italy, the Netherlands, Spain, Sweden and the UK) with more than 50 employees. The study explores the strategies of the automotive industry to develop and launch connected car technologies and services and deals with the following questions: - What is the status quo in terms of the development of connected car services and which areas are in the focus? - Which trends and changes are important? - What are the (main) challenges? - What role do politics and standardization play regarding connected car offerings? - What are the strategies and objectives that automotive companies pursue? - How important are external services? - What are upcoming investment plans and who are the decision makers?

1. © PAC
Connected Car in Europe
2015
Strategies and technologies for connected driving
Executive Summary

2. © PAC
Sponsors
2015Connected Car in Europe2
The creation and distribution of this study was supported by: BearingPoint, Cognizant Technology
Solutions, IAV GmbH, T-Systems International GmbH and Wipro Technologies
Premium sponsors:
Gold sponsors:

3. © PAC
Introduction
With the connected car topic the automotive industry is about to
experience a technological leap that will substantially change
mobility. Automotive manufacturers are increasingly considering the
integration of information technology and external services in their
cars.
Under connected car technologies we understand all (hardware &
software) technologies within a vehicle that enable (one- or two-
way) communication between the vehicle and a third party (e.g.
driver, environment, other vehicles) as well as all infrastructure and
back-end technologies that are required in order to complete a
connected car business case.
Under connected car services we understand all information- and
communication-related services that are offered (to a driver or a
vehicle) from outside the vehicle by original equipment
manufacturers (OEMs) or third-party service providers.
This study explores the strategies of the automotive industry to
develop and launch connected car technologies and services.
The projects include topics such as cloud computing, big data,
vehicle connectivity, Internet of Things, or autonomous driving.
Leading car manufacturers as well as software and hardware
suppliers have put their heads together to push and ensure a
successful service value chain for connected car scenarios.
2015Connected Car in Europe3
Against this background PAC conducted a survey among 250
CxOs in European automotive companies (France, Germany,
Italy, the Netherlands, Spain, Sweden and the UK) with more than
50 employees.
The study deals with the following questions:
● What is the status quo in terms of the development of
connected car services and which areas are in the focus?
● Which trends and changes are important for (future)
connected car offerings?
● What are the (main) challenges that automotive companies
are facing in general and in terms of connected car offerings?
● What role do politics and standardization play regarding
connected car offerings?
● What are the strategies and objectives that automotive
companies pursue?
● How important are external services and the cooperation
with different players?
● What are upcoming investment plans and who are the
decision makers?

4. © PAC
Executive summary I
The study shows that there are currently two ‘waves’ of
connected car offerings on the European automotive
market: There is one group of early adopters that have
already brought their offerings to the market or are currently
busy rolling out their solutions and services. This group
represents around 35% of all participants. And there is a
‘second wave’ of companies (55%) whose connected car
offerings are currently in the design and development
phase.
This shows that the topic has already reached a serious
level of maturity and is on its way to become one of the
driving forces for the automotive industry.
Solutions and offerings that are currently available on the
market are basically concentrating on connectivity within
the vehicle. In the medium term, the ‘second wave’ will
bring more solutions around “car-to-x connectivity” onto
the market.
2015Connected Car in Europe4
Connected car solutions will become a driving force for
the automotive industry!
2
14
30
11
8
22
13
No connected car
offerings yet
Early phase of research &
development activities
Design and
implementation
Final testing
Integration into products
Rollout
Operation
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.................................................
0 10 20 30 40
Shares in percentage of all companies, n = 250
(Single choice)
©PAC2015
At which stage of the value chain is your company
currently active in terms of connected car offerings?

5. © PAC
Executive summary II
2015Connected Car in Europe5
Standardization is key for successful connected car
solutions!
European automotive companies confirm that for successful
connected car solutions industry-wide standards for
technologies, software development and service provision
need to be applied and accepted.
However, opinions on how to do this and which standards to
apply are quite diverse. While on the supplier side
standardization helps to make collaboration processes with
partners more efficient and reduces dependencies on
individual manufacturers, standardization for manufacturers
always includes a risk in terms of market positioning and
opportunity generation. Therefore manufacturers rather try to
establish their own technology or process as standard than to
adapt to a competing one, as long as the application of a
standard does not imply any other benefits for them.
Another interesting outcome of the survey is the conclusion
that more and more companies are now going to focus on the
business aspects of connected car offerings (including
pricing models and user experience), while activities so far had
often been focused on the technological realization alone.
45
50
49
47
51
53
47
37
38
36
35
34
31
29
26
9
Lack of standards across
manufacturers and suppliers
New competitors entering
the market
Integration of different
technologies and service
provider eco−systems
Management of internal
change at manufacturers
Ensuring vehicle safety
and security requirements
Enabling connected car services
across vehicles at multiple
different life cycle stages
Customer perception of
new service provision
Availability of connectivity
infrastructure
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.........................................................
.........................................................
0 20 40 60 80 100
Shares in percentage of all companies, n = 250
(’No challenge’ not shown)
Major challenge
Minor challenge
How do you rate the
challenges for your company?
©PAC2015

6. © PAC
Executive summary III
2015Connected Car in Europe6
Connected car solutions are joint product developments
with partners!
Connected car represents a long-term strategic topic and will
not disappear from the companies’ portfolios anymore. 80% of
the large enterprises and even 95% of all vehicle
manufacturers confirm this statement.
In general, most European automotive companies feel well
prepared in terms of in-house competencies. However, they
are also aware that they are not able to implement these
solutions and services exclusively on their own. Consequently,
automotive manufacturers and suppliers consider product
development as a joint project with external service
providers. Companies are especially asking for external
support in terms of testing, software development and the
development of new security functionalities as well as
infrastructure.
The first contact for automotive companies is often a business
partner among the group of consulting & IT service
providers. Also automotive companies maintain tight
relationships and collaboration partnerships with electronic
device manufacturers, such as Google, Samsung or Apple.
71
61
50
64
47
49
35
25
12
24
29
37
21
24
20
8
13
6
Software development
Security
Testing
Infrastructure
Systems integration
Training
Analytics
Cloud
Consulting
........................................
........................................
........................................
........................................
........................................
........................................
........................................
........................................
0 20 40 60 80 100
Shares in percentage of all companies that
consider joint product development with
external service providers, n = 173
(’Less/no demand’ not shown)
Very strong demand
Strong demand
In which area do you see
demand for external support?
©PAC2015

7. © PAC
Executive summary IV
2015Connected Car in Europe7
There are still many investment obstacles for connected
car solutions!
The current investment focus is basically on security
technologies, infotainment as well as in-car
connectivity. In order to trigger such investments,
corporate management still acts as major driving
force for many companies. Given the strong share of
medium-sized and owner-driven companies in this
sector, this is not a surprising result. In large enterprises
investments are more often driven by business units
while corporate management as well as IT rather take
the roles of budget owner.
Besides investments plans, there are still major
obstacles for many manufacturers and suppliers.
Basically, this is because for many small and medium-
sized companies, connected car is not the only topic
they are currently working on, but one among many
others, such as e-mobility, lightweight bodywork or
reusable and flexible chassis. This means the topic is
important but there are also many other topics competing
for budgets.
64
50
28
27
23
19
18
Connected car is
not a focus topic.
Unclear costs of change
Security challenges
Political resistance
Unclear customer expectations
Difficult technology
selection process
High operational costs
...................................................
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...................................................
...................................................
...................................................
0 20 40 60 80
Shares in percentage of all companies, n = 250
(’No’ not shown)
©PAC2015
Wich issues are obstacles to your company
investing more in connected car offerings?

8. © PAC
Premium Sponsors – Profiles

9. © PAC
Company profile BearingPoint
BearingPoint consultants understand that the world of business changes constantly and that the resulting complexities
demand intelligent and adaptive solutions. Our clients, whether in commercial or financial industries or in government,
experience real results when they work with us. We combine industry, operational and technology skills with relevant
proprietary and other assets in order to tailor solutions for each client’s individual challenges. This adaptive approach is
at the heart of our culture and has led to long-standing relationships with many of the world’s leading companies and
organizations. Our 3350 people, together with our global consulting network serve clients in more than 70 countries and
engage with them for measurable results and long-lasting success.
2015Connected Car in Europe9

10. © PAC
Company profile Cognizant Technology Solutions
Cognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business process
outsourcing services, dedicated to helping the world's leading companies build stronger businesses. Headquartered in
Teaneck, New Jersey (U.S.), Cognizant combines a passion for client satisfaction, technology innovation, deep industry
and business process expertise, and a global, collaborative workforce that embodies the future of work. With over 75
development and delivery centers worldwide and approximately 211,500 employees as of December 31, 2014,
Cognizant is a member of the NASDAQ-100, the S&P 500, the Forbes Global 2000, and the Fortune 500 and is ranked
among the top performing and fastest growing companies in the world.
Visit us online at http://www.cognizant.com or follow us on Twitter: Cognizant
2015Connected Car in Europe10

11. © PAC
Company profile T-Systems International GmbH
T-Systems is Deutsche Telekom’s corporate customer arm. Drawing on a global infrastructure of data centers and
networks, T-Systems operates information and communication technology (ICT) systems for multinational corporations
and public sector institutions. T-Systems provides integrated solutions for the networked future of business and society.
Some 50,000 employees at T-Systems combine industry expertise and ICT innovations to add significant value to the
digitization strategies and core business of customers all over the world. T-Systems generated revenue of around
EUR 9,5 billion in the 2013 financial year.
2015Connected Car in Europe11

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Gold Sponsors – Profiles

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Company profile IAV GmbH
Welcome to IAV, Your Partner for Automotive Engineering
No matter where you are, you’re certain to find vehicles that include a number of IAV innovations. And no wonder – after
all, we’re a leading engineering partner for all major car manufacturers and suppliers across the globe. There’s a good
reason for that – over the past 30 years, we’ve built up a unique spectrum of competencies.
Our expertise is not only vast, it is also accessible everywhere. You’ll always find IAV experts close by – more than
5,000 of them are spread around the world, committed to giving you first-rate support wherever you are – from our sites
in Germany and throughout Europe, to Asia and the Americas.
Whether you need our support in the field of combustion engines or alternative drives, or whether you are looking for a
strong partner for electromobility, electronics, or software, we’ll work with you to develop innovations in driver
assistance, lightweight construction and safety. In other words, we are competent in all automotive areas, from the initial
idea to mass production, and from sub-compacts to trucks.
Our formula for success? We’re car enthusiasts ourselves, so we always see the world through the eyes of your
customers. That’s why our name stands not only for technical perfection, but also for intelligent driving pleasure. You’ll
be pleased with our work too. The combination of excellent developers and state-of-the-art equipment ensures that your
projects are finished with precision. We’re at your side – from our first discussion to the start of production.
That’s our promise to you.
2015Connected Car in Europe13

14. © PAC
Company profile Wipro Technologies
About Wipro
Wipro Ltd (NYSE:WIT; NSE: WIPRO) is a global information technology, consulting and outsourcing company with more than 150,000
workforce serving 1000+ clients, including a number of Fortune 500 and Global 500 corporations in 175+ cities across 6 continents. The
company posted revenues of $7.3 billion for the financial year ended Mar 31, 2014.
With a track record of over 25 years, Wipro's business success has been driven by keeping the customer at the core of everything it
does. Combining its deep expertise in technology with an equally clear understanding of customer industries, Wipro attempts to deliver
business value to customers consistently. The consistency is driven by our pioneering efforts in service quality and predictability, through
methodologies like Six Sigma, PCMM and Lean. The underlying tenets that drive this overall culture are that of speed, simplicity and
excellence.
Wipro helps customers do business better by leveraging our industry-wide experience, deep technology expertise, comprehensive
portfolio of services and vertically aligned business model. Our 55+ dedicated ‘Centers of Excellence’ enable us to harness the latest
technology for delivering business capability to our clients.
Wipro is globally recognized for its innovative approach towards delivering business value and its commitment to sustainability. Wipro
champions optimized utilization of natural resources, capital and talent. In 2014, Wipro was recognised as global leader in the software &
service category, member of the Dow Jones Sustainability World Indices for the fifth year in a row. Wipro was also named as a World's
Most Ethical Company by Ethisphere Institute for the third successive year. Today we are a trusted partner of choice for global
businesses looking for technology interventions.
In today’s world, organizations will have to rapidly reengineer themselves and be more responsive to changing customer needs. Wipro is
well positioned to be a partner and co-innovator to businesses in their transformation journey, identify new growth opportunities and
facilitate their foray into new sectors and markets by delivering technology driven business outcomes.
2015Connected Car in Europe14

15. © PAC
Appendix

16. © PAC
Disclaimer, usage rights,
independence and data protection
The creation and distribution of this study was supported by BearingPoint, Cognizant Technology Solutions, IAV GmbH,
T-Systems International GmbH and Wipro Technologies.
For more information, please visit www.pac-online.com.
Disclaimer
The contents of this study were compiled with the greatest possible care. However, no liability for their accuracy can be
assumed. Analyses and evaluations reflect the state of our knowledge in February 2015 and may change at any time.
This applies in particular, but not exclusively, to statements made about the future. Names and designations that appear
in this study may be registered trademarks.
Usage rights
This study is protected by copyright. Any reproduction or dissemination to third parties, including in part, requires the
prior explicit authorization of the sponsors. The publication or dissemination of tables, graphics etc. in other publications
also requires prior authorization.
Independence and data protection
This study was produced solely by Pierre Audoin Consultants (PAC). The sponsors had no influence over the analysis of
the data and the production of the study.
The participants in the study were assured that the information they provided would be treated confidentially. No
statement enables conclusions to be drawn about individual companies, and no individual survey data was passed to
the sponsors or other third parties. All participants in the study were selected at random. There is no connection
between the production of the study and any commercial relationship between the respondents and the sponsors of this
study.
2015Connected Car in Europe16

17. © PAC
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research & advisory firm in the field of software and IT
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About us
2015
Philipp Schalla
Senior Consultant
+49 (0)89 23 23 68 23
p.schalla@pac-online.com
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Managing Director PAC
Germany
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