by Nada Welker | Sep 12, 2023 | Uncategorized
Visitor surge at IAA MOBILITY 2023
IAA MOBILITY 2023 witnessed record levels of international participation, with 750 exhibitors from 38 countries, making it a truly global event for exhibitors, speakers, guests, and journalists. The event showcased in excess of 300 world premieres and innovations, underscoring the exhibitors’ exceptional innovation capabilities. More than 500,000 visitors attended the event from September 5th to 10th, with over 100,000 people present at the IAA MOBILITY’s Open Space in the heart of Munich on Saturday alone. International media coverage increased by over 70 percent compared to IAA Mobility 2021, with 3,700 accredited journalists from 82 countries in attendance. This high level of international presence was also reflected in the visitor demographics, with approximately 30 percent of the attendees originating from 109 different foreign countries.
Engagement with Stakeholders, Politics, Society, and Business
The IAA MOBILITY was inaugurated by Federal Chancellor Olaf Scholz, and it featured over 500 high-profile international speakers at the IAA Conference, providing exclusive insights into the future of mobility. This included many leading CEOs from both established mobility and tech companies as well as promising startups. Notable international figures, such as Oscar winner Natalie Portman, Mars mission candidate Alyssa Carson, and climate advocate Sophia Kianni, also took the stage in Munich.
The intensive dialogues and constructive debates with various stakeholders from politics, society, and business at the Open Space and IAA Summit are crucial elements in achieving climate-neutral mobility successfully.
The recent images broadcasted from Munich vividly depict the automotive industry’s unwavering commitment to preserving Germany’s status as the “Land of the Car” while aligning with climate objectives, the welfare of individuals, and economic prosperity. The advanced concept introduced in Munich has demonstrated consistent success this year.
Magility @ IAA Mobility 2023 – Our Perspective on the New IAA Mobility
IAA Mobility 2023 served as a crucial platform for the global automotive industry to showcase its latest technologies and innovations. From the vantage point of an automotive technology consulting firm such as Magility GmbH, the following trends become particularly prominent.
Electromobility
The electrification of automobiles remains the most significant trend in the industry.
The use of electromobility is increasing worldwide due to legal regulations and financial incentives. New emissions regulations in China and Europe, along with government incentives in the USA and Europe, are making electric vehicles more attractive to consumers. Simultaneously, advanced driver-assistance systems are paving the way for semi-autonomous mobility in the near future. The utilization of shared mobility, especially among Generation Z, is expected to rise significantly. The increasingly digital and connected lifestyle of consumers is also driving higher demand for seamless mobility solutions, particularly in the micro-mobility and last-mile transportation sectors. The automotive industry must embrace comprehensive connectivity as the foundation to address this mobility revolution.
IAA Mobility 2023 showcased numerous new electric vehicles, including models from established manufacturers like BMW, Mercedes-Benz, and Volkswagen. Many Chinese OEMs are actively contributing to this trend, offering their electric vehicles at competitive prices. The significance of charging infrastructure for electric mobility was further highlighted during the IAA MOBILITY.
Vehicle batteries are becoming “virtual power plants” within a smart grid. Swiss startup Hive Power demonstrated how smart grid balancing works.
Connectivity
Connectivity is another crucial trend in the automotive industry. The growing importance of connectivity for vehicle manufacturers stems from the fact that cars are becoming increasingly digitalized devices on wheels. Connected vehicles can communicate with other vehicles, infrastructure, and the internet, opening up new opportunities for safety, convenience, and entertainment.
This transformation requires traditional automakers, initially not primarily software companies, to build their expertise and establish partnerships to acquire the necessary skills to manage the complexity of software-defined vehicles. Investments in enabling seamless connected digital experiences are necessary to meet consumer expectations. Simultaneously, automakers must address the challenges of data management and cybersecurity as the volume of data, both within and outside the vehicle, continues to grow.
To better align themselves with connectivity, automakers must strike a balance between the costs of developing mobility services and the potential revenues from digital offerings. They need to accurately assess consumer willingness to pay in different markets and segments and strategically determine where to focus their efforts. Connectivity is crucial for enabling the new era of mobility, not just a means to an end. The IAA Mobility 2023 showcased numerous new connectivity solutions.
Sustainability
The concept of “sustainable mobility” goes beyond emission reduction and the development of alternative propulsion systems. It also encompasses the more efficient use of transportation modes. In public transportation and shared mobility, better utilization can help reduce the number of vehicles in urban areas. Smart cities and vehicle connectivity offer opportunities for smarter and more sustainable traffic management.
The question of whether we can achieve entirely emissions-free driving in the future becomes intriguing due to new projects related to E-fuels and carbon capture. There are many opportunities in the mobility sector to become more sustainable and improve the lives of billions of people and the environment.
The automotive industry is acutely aware of the challenges posed by climate change and is working to make its products and processes more sustainable. Sustainability was a central theme at the IAA Mobility 2023. “Circular economy” is a current buzzword and was a challenging topic in the IAA Mobility Visionary Club.The concept of a circular economy holds the potential to deliver eco-friendly mobility while posing both an opportunity and a challenge for the automotive sector. At its essence, it strives to generate new without depleting fresh resources.
Such an approach enables the sustainable use of finite resources and contributes to reducing CO2 emissions. A new label for sustainable vehicles was also introduced at the IAA.
[infobox headline=”At a glance”]
- The IAA MOBILITY 2023 recorded record participation with 750 exhibitors from 38 countries.
- Over 300 world premieres and innovations were presented.
- The event attracted more than 500,000 visitors, including over 100,000 on a single Saturday.
- International media coverage increased by over 70 percent compared to 2021.
- German Chancellor Olaf Scholz opened the event, and over 500 high-profile international speakers discussed the future of mobility.
- Electromobility remains a key trend, with increasing adoption due to legal regulations and financial incentives worldwide.
- Connectivity is becoming increasingly important as cars are becoming digitally connected devices on wheels.
- Sustainable mobility goes beyond emissions reduction and alternative propulsion and includes more efficient use of transportation.
- New projects involving E-fuels and CO2 capture could enable a carbon-neutral future.
- Additional trends include software-defined vehicles, artificial intelligence, and advanced safety technologies.
[/infobox]
The automotive industry is undergoing a massive technological transformation, with electrification, connectivity, and software development shaping the future.
Other Trends at IAA Mobility 2023
Additionally, the IAA Mobility 2023 featured the following trends:
- Software-defined Vehicles: Software is becoming a critical success factor in the automotive industry. New providers of automotive operating systems, such as SONATUS from California, are emerging.
- Artificial Intelligence: Customers increasingly expect personalized products and services. Automotive manufacturers and suppliers are working to personalize their offerings with AI. Numerous new personalized products and services were showcased at the IAA Mobility 2023. For example, German company XaiTeck, which defines applications using Explainable Artificial Intelligence and Knowledge Graphs, presented its innovations.
- Security: Security is a central theme for the automotive industry. The IAA Mobility 2023 introduced various new safety technologies, with a focus on autonomous driving systems. Cybersecurity companies like Magility Cyber Security GmbH also made their presence felt.
The IAA Mobility 2023 demonstrated that the automotive industry is undergoing a massive and profound technological transformation and facing international competition. Electrification, connectivity, and electronification (software) are the most critical technological trends that will continue to shape the industry in the coming years from Magility’s perspective.
by Nada Welker | Feb 24, 2023 | Automotive Cyber Security, Automotive Industry, Cyber Security Management, Future Trends, Internet of Things, Market development & Trends, New Mobility, Smart City, strategy in change
The automotive industry is in a constant state of transformation due to the constant evolution of existing technologies and innovations, as well as new ones being added. In recent years, autonomous driving capabilities and many other vehicle and software features designed to make our roads safer and traffic more efficient have evolved more rapidly than in several decades prior. Along with this rapid change comes a number of new trends emerging in the industry. In this article, we at Magility GmbH summarize what is currently going on in the automotive industry and which megatrends you will encounter in the future.
[infobox headline=”At a glance”]
- China is the world’s largest automotive market; sales of electric vehicles doubled in 2021
- UN regulations on emissions and automotive cyber security are already partly active or will soon come into force in many countries
- Technologies and trends that were once dreams of the future are already significantly shaping activities in the automotive industry – including convergence, autonomous driving and e-drives, 3D printing, new battery technologies, among others
- Magility identifies eight megatrends that will significantly shape the activities and future of the automotive industry in the coming years
[/infobox]
Interesting data and facts
Source: Statista – Largest automotive markets worldwide in 2021, based on new registrations (in millions)
- The global market for autonomous vehicles reached a size of nearly US$106 billion in 2021. This market is forecast to reach a size of over 2.3 trillion US dollars in 2030
- In the first quarter of 2019, 61.88% of car buyers opted for a used car
- In 2021, nearly 15 million cars were sold in America
- Toyota Motor generated nearly $250 billion in revenue in 2020
- Tesla broke record by delivering over 936,172 electric vehicles in 2021
UN regulations leave a lasting mark on the automotive industry
As the automotive industry continues to grow, it is becoming increasingly important to consider its impact on the environment. For this reason, many countries, as well as automakers including General Motors and BMW, support Tesla’s call for carbon regulation.
Source: Automotive World, 2020
If the regulations are adopted, this should trigger a new wave of innovation in the industry in favor of the environment. Fortunately, this issue is being taken seriously by policymakers. During the World Environment Day celebrations, the UN announced its plan to push for stricter carbon regulations. This could have a major impact on the future of the automotive industry. In addition, governments around the world, including the U.S. and China, are planning new policies to encourage the adoption of electric vehicles and promote the use of public transportation.
The three UN regulations 155, 156 and 157 are particularly important for all companies in the automotive industry in the coming years. They are there to ensure an international standard for cyber security and software updates.
UN Regulation 155 addresses cybersecurity and cybersecurity management systems, while UN Regulation 156 addresses software updates and software update management systems. Finally, UN Regulation 157 addresses Automated Lane Keeping Systems (ALKS) and the security risks associated with them. These regulations provide a foundation for automotive companies to ensure that their vehicles are adequately protected against cybersecurity risks. According to the United Nations Economic Commission for Europe (UNECE), the regulations will play an important role in mitigating cybersecurity risks in vehicles as well as updating automated driving systems. Japan has already announced that it will implement the regulations, and the European Union also plans to make them mandatory. In addition, the regulations contain a number of standards that must be met to ensure the safety of road vehicles. These are taken from the ISO/SAE 21434 and ISO 26262 standards.
Former technologies of the future are already a reality in the automotive industry today
The transformation of the automotive industry is a complex and ongoing process that involves a shift from traditional manufacturing to the development of software-defined vehicles. This shift has been driven by increasing competition from new entrants, such as technology companies like Tesla and Waymo, and growing demand for electric and autonomous vehicles. Many technologies were dreams of the future for deployment just a few years ago; by 2022, many of them became real.
In 2022, we have seen more traditional automakers invest in electric and autonomous vehicle technology, and companies such as General Motors and Ford have announced major investments in these areas. This trend is likely to continue as automakers try to keep up with the industry’s changing environment and meet the demands of consumers who are increasingly interested in sustainable and high-tech vehicles.
We have been providing regular updates on the coming and ongoing changes in the automotive industry on our Magility blog for the past few years. Digitization and connectivity will play an increasingly important role, with vehicles becoming more connected and intelligent than ever before. This will lead to a shift from selling vehicles to selling mobility services as automakers seek to provide customers with a more holistic transportation experience.
Finally, the road to the software-defined vehicle is also an important topic in the industry, as advances in technology are leading to a new generation of vehicles that are more software-driven than ever before. This means that software development and engineering will become increasingly important in the automotive industry, and automakers will need to develop new capabilities and skills to keep pace with these changes.
Overall, change in the automotive industry is an ongoing process driven by a variety of factors, including technological progress, changing consumer preferences and increasing competition.
Convergence of industries
The convergence of the automotive and technology industries is turning vehicle manufacturers into software companies. As vehicles become more connected and intelligent, the importance of software development and engineering in the automotive industry continues to grow. In addition, the importance of customer involvement in the development of services and apps is also becoming increasingly important in the automotive industry. As vehicles become more connected and intelligent, the demand for personalized services and apps that cater to individual needs and preferences will increase. This means that automotive manufacturers will need to involve customers in the development process to gather feedback and suggestions and ensure that the services and apps they develop meet the needs of their target group.
Over the course of the last year, major mergers, acquisitions and partnerships have been almost on the agenda in the automotive industry. These deals range from the very big ones, such as Ford’s acquisition of Argo AI, to more niche collaborations, such as the partnership between GM and Lyft. Automakers have also been making efforts in the area of customer engagement, offering more services and add-ons, some of which are integrated into the vehicle environment. For example, Ford’s new service, which makes it much easier for consumers to integrate new functions or even repairs for their vehicle. In addition, automakers are increasingly relying on customer engagement to boost sales and brand loyalty. BMW, for example, offers an “Owner’s Circle” program that gives customers access to exclusive discounts, events and seminars. Volkswagen offers an “Online Owner’s Manual” that helps customers navigate their car’s features, decide when maintenance is due, and even set up their car’s Bluetooth connection. Ford’s Sync Connect app allows customers to remotely connect to their vehicle and start the engine, monitor the vehicle’s status and even control climate settings. Toyota’s “Toyota+Alexa” program lets customers ask Alexa to start their car, unlock and lock the doors, or flash the headlights with simple voice commands. Nissan has a “Carwings” app that gives customers access to real-time and historical data about their vehicles, such as speed, location and fuel level. The possibilities are endless as automakers continue to explore innovative ways to engage their customers.
Autonomous driving and electric drives
New features and technologies for autonomous driving have been introduced and launched, such as Tesla’s full self-driving option. In addition, numerous automakers’ plans have been made public, such as Volvo’s to offer a Level 4 autonomous driving feature in the not-too-distant future. Thanks to new technologies and in particular the rapid development of artificial intelligence (AI), self-driving vehicles will have a steep development curve. Over time, the majority of new vehicles will be self-driving or at least have self-driving features. AI is already being used in vehicles today for functions such as automatic braking and collision avoidance. Google’s self-driving cars are a good example of this. These cars are equipped with a variety of sensors that allow them to detect obstacles in their environment, such as pedestrians and other cars, and use the internal communication system to adjust driving behavior accordingly.
Automakers are preparing to put more self-driving vehicles on the road. Ford, for example, has been testing autonomous vehicles on Pittsburgh streets for the past year. This also shows that automakers and technology companies are making great efforts to translate the technical possibilities that already exist in theory today into practical solutions.
OEM interest in the emerging electric vehicle market is also very high, with many manufacturers announcing plans to launch new e-vehicle models in the coming years.
Electric vehicle sales have continued to rise in recent years as more consumers opt for sustainable and environmentally friendly vehicles. According to our Magility research, electric vehicle sales have actually doubled in 2021, despite the economic downturn caused by the COVID-19 pandemic and increasing supply chain difficulties. This trend is likely to continue as automakers invest more in electric vehicle technology and consumers become increasingly aware of the environmental benefits of these vehicles.
[infobox headline=”EV sales doubled in 2021″]
- More than 6.5 million e-vehicles sold worldwide in 2021
- Sales growth in 2021 based on e-vehicle sales alone
- Tesla has achieved the status of a mega-tech company; many new e-vehicle manufacturers followed since
[/infobox]
The automotive industry relies heavily on suppliers to obtain the parts and components needed for vehicle production. Currently, the industry faces a number of challenges related to suppliers and their ability to deliver parts on time.
A major challenge is the shortage of semiconductor parts, which are essential for the production of modern vehicles equipped with advanced technologies. The COVID-19 pandemic has disrupted global supply chains, resulting in shortages of these critical components. As a result, automakers have had to adjust production schedules and curtail production, impacting the entire supply chain.
In addition to the semiconductor shortage, there are other challenges facing suppliers and the automotive industry. These include rising raw material costs, trade conflicts and increasing demand for components for electric vehicles.
To meet these challenges, automakers and suppliers are looking for new ways to improve the supply chain and ensure parts are available on time. This includes investing in new technologies, improving communication and collaboration between suppliers and automakers, and developing alternative supply chain strategies.
3D printing in the automotive industry
One of the technology trends that has taken hold in the automotive industry is 3D printing. Some car manufacturers are making considerable investments in the further development of 3D printing technology. Audi and also Porsche have integrated 3D printing into the production of their vehicles. By using 3D printing, long lead times in manufacturing can be reduced and manufacturers can get their models to market faster. Many automakers, including Toyota and Honda, are currently experimenting with 3D printing parts for autonomous cars.
Batteries: From lithium to LiFePO4 and new developments
There have also been developments in battery technology that could have a significant impact on the future of the industry. First there was a lot of hype about lithium-ion batteries. Lithium-ion batteries are lightweight and easy to produce, which argues for their use in autonomous vehicles, for example. But while they may still be a good choice, automakers are exploring other battery types. This includes the use of rare earth minerals, as in lithium iron phosphate (LiFePO4).
LiFePO4 batteries are best suited for Tesla cars because they have higher overvoltage tolerance during charging, longer shelf life, better cold resistance, and are cheaper compared to other lithium batteries. In addition, LiFePO4 batteries are safer and more stable than lithium-ion batteries, and they combine high energy density with long run times and consistent discharge voltage, making them ideal for use in UPS systems. Disadvantages of LiFePO4 batteries include low voltage rating, high self-discharge rate, lower energy density, poor performance at low temperatures, and difficulty charging in some devices. In addition, LiFePO4 batteries must be protected from overcharging and aging.
A new type of battery that uses nanomaterials to store more energy could have significant implications for the future of the auto industry. This type of battery is called a nanomaterial-based battery. It has been researched several times and is used in some applications, including electric vehicles. This type of battery has the potential to revolutionize the automotive industry by providing the necessary energy storage capacity for the entire industry. The nanomaterial-based battery could also reduce the cost and environmental impact of conventional lithium-ion batteries due to its higher energy storage capacity. In addition, this type of battery could enable the development of smaller, lighter and more efficient vehicles due to its high power-to-weight ratio.
Outlook – Megatrends in the Automotive Industry
At Magility, we have identified eight megatrends that are already having a lasting impact on the entire automotive industry and all its manufacturers and suppliers, and will do so even more so in the coming years:
- OEM transformation from pure vehicle manufacturer to software company
- Vehicle development towards the software-defined vehicle with use in automated driving, for applications with artificial intelligence or connectivity
- Lifecycle Management – Development of various Diagnostics as a Service
- Conversion to smart factories
- Challenge of charging infrastructure for EV manufacturers
- New requirements for battery management – with increasing sales and use of EVs
- Vertical integration in EV production
- Sustainability in the product lifecycle – ESG issues become essential
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by Nada Welker | Jul 8, 2022 | Automotive Cyber Security, Automotive Industry, Cyber Security Management, Future Trends, Know-How and inspiration, Market development & Trends, News from magility, strategy in change
At the 26th International Automotive Electronics Congress 2022 in Ludwigsburg, the top industry event for electronics experts and decision-makers in the automotive sector, the focus was on the path to the software-defined car. What does it take in the automotive industry to develop the software-defined car safely, efficiently and sustainably? What are the automotive industry’s current pain points in this multi-layered challenge? What role do regulations play? Do we need cross-border standards to get there? And what role do consumer experiences play? How are the individual players in the automotive industry meeting the current challenges, and why are open source approaches and cooperation particularly important now? Many questions, but also controversial discussions, characterized the traditional congress at the Forum am Schlosspark. Despite many answers, also many questions remained unanswered. The conclusion: There is still a lot to do!
The software-defined car
Up to now, software has been and still is to a large extent very closely linked to the hardware module or electronic control unit (ECU) in the vehicle, which takes over a very specific functionality there. In the “traditional car”, the software hardly evolved during the life of a vehicle and any necessary updates required a visit to the workshop. In the software-defined car, functions are defined by the software rather than the specific hardware modules, similar to applications we run on our smartphones or computers. This allows the functions to evolve and improve throughout the life of the vehicle and even add new functions and features as necessary within the hardware limits. With the software-defined vehicle, new features and services or apps are enabled in the vehicle as needed, either individually or for a limited time. This creates multiple opportunities for new business models, and software-as-a-service becomes tangible for car users. The value of a vehicle can even be increased during its life cycle by adding features at a later stage. Manufacturers’ focus on user experience is becoming a critical success factor. Data can be transmitted over-the-air (OTA), the vehicle can communicate with the infrastructure, collect and send data to the cloud, and receive data. Mobility services, automated driving and the further development of e-mobility are only made possible by software. So the car continues to evolve into a software-centric electronic device on wheels. This no longer has much to do with the original way an automobile worked. The automotive industry is still in the midst of transformation and must open itself up to an even greater extent to market participants from and cooperations with the software and communications industry.
The most important topics and statements of the speakers
After the opening by Alfred Vollmer, Editor-in-Chief of “Automobil-Elektronik” and initiator of the Automotive Electronics Congress, Ricky Hudi took over the moderation and handed over to the first speaker of the day, Porsche CEO Oliver Blume, who spoke about Porsche’s vision of the future and appealed to the emotions of the audience. In this regard, when it came to software-defined vehicle, the use of an open operating system that works with AI and enables the vehicle to connect to different ecosystems around the world was particularly important to him. He also clearly stood for the recognition of the human factor and emphasized the importance of bringing employees along in the transformation and placing them at the center of concepts for success. After all, he said, the transformation cannot be mastered without motivated employees who share the company’s vision and brand values and understand and internalize the necessary steps on the way to the software-defined vehicle.
The future strategy at Mercedes-Benz was the focus of the keynote speech by Magnus Österberg, Head of Software at the Stuttgart-based automaker. It became quite clear: Mercedes-Benz claims market leadership in the luxury segment. The new MB.OS operating system (to go into series production in 2024) and the software development center in Sindelfingen play a decisive role in achieving the ambitious goals. However, Österberg was also critical: “We are leaders in the field of electrical engineering, but there is still a long way to go before we become market leaders in the field of software.”
The world’s largest automotive supplier has managed the transformation from a pure hardware company to a software company, said Mathias Pillin (President Cross Domain Computing Solutions at Bosch). Today, however, the biggest challenge of a Tier 1 is to make it clear to the OEM that not only hardware, but also software has an independent value. It is the software, he said, that makes it possible to process data from a connected vehicle in the quantity and quality to provide individual services and functions.
Dipti Vachani, SVP Automotive and IoT at arm, sees an interplay between hardware and software: “Software-defined vehicles need specific computing power and hardware tailored to the workload of the car. To achieve this, software development today must be integrated into the vehicle development process at a very early stage and meet different demands for performance and compatibility. This compatibility across the entire vehicle is and remains a major challenge for manufacturers. For her, the interlocking further development of hardware and software is the top priority.
Panel discussion “Semiconductors: The Base of the Software-defined Car”.
Moderated by Alfred Vollmer (Automotive Electronics), Jens Fabrowsky (Bosch), Calista Redmond (RISC-V International), Dipti Vachani (arm), Lars Reger (NXP) and Magnus Östberg (Mercedes-Benz), discussed the position of semiconductors in the automotive sector. Commenting on the reports and rumors that OEMs are now building their own chips, Lars Rieger of NXP said, “Let’s dispel the myths a bit. Tesla gets 99% of its chips from companies like us. All they have done is develop an AI accelerator.” And on semiconductor shortages, he commented, “98% of all automotive semiconductors will be above 20 nm in the next 15 years.” Arm’s Dipti Vachani emphasized that innovation has not slowed down due to Corona and that the industry is moving like never before. Magnus Östberg argued that the industry should become more professional in dealing with risks. All the panelists were equally clear that scaling must become the focus of attention.
User experience as a central feature of the software-defined vehicle
The vehicle as the ultimate mobile device: a major topic at the congress. According to Stephan Durach, SVP Connected Company Development at BMW, hardware is increasingly taking a back seat, while intuitive, natural interaction in the car is becoming more and more important. At BMW, this is implemented in the form of a virtual assistant or intelligent navigation. However, it would remain exciting to see what would happen with Apple’s Car Play system, for example, should conflicts of interest arise on the subject of user interface.
When it came to the topic of user experience, three speakers were very much in agreement: Dirk Walliser, SVP Corporate Research & Development at the ZF Group, got to the heart of the matter in his very interesting presentation. The software-defined vehicle is much more than just software. It is much more about the user experience. As far as the cost structure is concerned, however, it is still not clear who will bear the costs for additional software functions in the future: The OEM or the customer?
At Harman International, the focus is also on the consumer experience. For Christian Sobottka, President of the Automotive Division, customers rightly expect to find everything they use on their smartphones in their cars within a very short time. And Riclef Schmidt-Clausen, SVP Domain Intelligent Cockpit & Body at Cariad, noted that smartphone manufacturers clearly still lead the way in user experience. Reaching this level in the automotive industry is a major challenge, he said.
Collaboration as the key to success?
Christoph Hartung (ETAS) spoke about how this challenge could be solved quickly in his presentation, which also contained quite provocative statements: There is no more hierarchical industry than the automotive industry, and AUTOSAR (an initiative to create an open software architecture for ECUs) was founded in 2003 because the industry was “deep in the sh***” at that time. Currently, we are again in a similar situation with the further development of the user interface in the software-defined vehicle, says Hartung – but the willingness to cooperate is basically there in the industry. Karsten Michels, Head of Productline at Continental Automotive, put it similarly, but less provocatively: “Collaboration is the key, we’re all in the same boat.”
Calista Redmond, CEO of RISC-V International brought the topic of open source collaboration model to the stage with a lot of enthusiasm. RISC-V is a free and open ISA that aims to enable a new era of processor innovation through open standards collaboration.
Other presentations by top-notch speakers on exciting insights enriched the congress.
The setting and the atmosphere
For the 26th time already, the doors of the congress opened, which every year is the central meeting point for almost 600 industry experts, mainly from the automotive electrics/electronics sector. The “Great Reunion of the Industry”, as the congress is also fondly called, takes place at the Forum am Schlosspark in Ludwigsburg. For the first time, the event was held exclusively in English – whether this contributed to the quality of the congress is something we at magility critically question. Criticism was also voiced among the participants that with a proportion of German-speaking visitors of certainly at least 90%, a great deal was “lost in translation”. Visitors were able to visit the accompanying trade exhibition before the lecture rooms and find out about the latest developments from exhibitors in the industry live and make contacts. At the culinary networking event in the evening in the neighboring riding hall, the mood was relaxed; many finally saw each other in person for the first time after two years of pandemic.
We were struck this year by the slight increase in the number of female visitors, both on and off stage. With a share of about 3% of the total number of visitors, however, there is still plenty of room for improvement!
The number of female attendees was clearly reflected in the visit to the ladies’ toilets. Conclusion: At this congress the men have to queue 😉
magility Insights
We from magility met many business partners at the congress, had interesting conversations and were pleased to be able to network in person again. As always, the congress was smoothly organized. Thematically, it was more about “in the vehicle” and less about networking and infrastructure, which plays an equally important role in the software-defined vehicle for us at magility. The topic of fleet clearly came up short for us and the subject matter of the speakers has changed only minimally from the time before Corona. Cooperations are important, almost all participants agreed on that. This was also the case before Corona. However, few cooperations were presented this year, which may be an unintended side effect of the Corona pandemic with its contact restrictions.
For us from magility, the presentation by Huawei was very impressive, in which it was explained what has already been implemented and achieved there in the last 3 years. Huawei introduced its first electric car Seres Huawei Smart Selection SF5 only last year and the speed with which Huawei is on the move in the further development of intelligent automotive solutions should shake up all other market players. In their presentations the German companies talked even more about what should be implemented.
The road to the software-defined vehicle is without a doubt one of the key challenges for the German automotive industry that needs to be tackled with verve and without delay. Here in the Stuttgart metropolitan region, we have the best prerequisites for helping to shape the mobility of the future on a solid basis if we approach the new market participants with an open mind, see cooperation as an opportunity, and rely at least in part on uniform software development. Not everyone has to cook their own soup. But together we have the chance to turn the soup into a star menu! Let’s do great things together! We at magility are happy to help!
by Nada Welker | Feb 1, 2021 | Automotive Industry, Future Trends
Convergence is one possible solution for securing a company’s existence on the market and opening up new markets at the same time. It is made possible by merging companies from different sectors of the economy. Current examples can be found in the merger of the automotive and IT industries, which we at magility announced years ago.
The automotive industry is currently seeing the most activity
According to a study by Deloitte, safety and communication systems are among the central areas for convergence technologies. Electric mobility is the main focus here. The interaction of the Chinese IT-company Baidu and the Chinese Daimler partner Geely, for example, paid off right at the beginning of the year with a remarkable increase in the share price of +20%.
Chinese government promotes electromobility
Supported and promoted by the Chinese government, the electromobility sector within the Chinese automotive industry can no longer complain about a lack of courtship. On the contrary: as described in the Automobil Industrie newsletter, companies like Baidu are flirting with starting their own e-vehicle production or see themselves as contract manufacturers.
Convergences create jobs
The South Korean technology group LG is entering into a similar liaison with the Canadian-Austrian automotive supplier Magna. Around 1000 jobs are to be created in a joint venture called LG Magna e-Powertrain, which will in future manufacture main components for electric cars such as chargers or electric-powered motors.
OEMs must look for partners
This should give the original equipment manufacturers (OEMs) pause for thought, since it seems that only those who join forces with partners from outside their industry in good time will be able to secure their market position in the future. For LG Electronics, at least, the calculation has worked out so far. The South Korean technology giant holds 51% of the shares in the new joint venture, which is said to be worth about one billion US dollars. According to a report in the Handelsblatt, LG shares shot up to a record high on the day of the announcement.
Apple as icing on the cake for partners from the car industry
The South Korean car manufacturer Hyundai also experienced a stock market high when it announced a possible partnership with Apple. The news hit like a bomb, but was withdrawn shortly afterwards. With its alleged plans for its own car and its interest in developing autonomous driving, Apple definitely represents a coveted cherry on the cake for a cross-industry tête-à-tête with the automotive industry.
Other giants are also at the start
However, search engine giant Google is also at the starting line with its sister company Waymo. The latter is developing technologies for autonomous vehicles and is way ahead in the race with Tesla, while ride service provider Uber only recently pulled out of the development of autonomous vehicles and sold its shares to the US start-up Aurora. This company specialises in the production of systems for autonomous driving and will gain access to the Uber platform in the future, as the ride service provider is investing around 400 million euros in Aurora as a strategic partner. The founders of Aurora, Chris Urmson, former head of Google’s robot car programme, Sterling Anderson, formerly responsible for the Autopilot system at Tesla, and AI expert Drew Bagnell are enjoying great popularity. Their start-up’s second round of funding included none other than retail and cloud services giant Amazon.
Business is booming
Amazon, by the way, also bought the Californian specialist in the field of autonomous driving, Zoox, with an investment worth billions. Daimler, on the other hand, secured the US chip manufacturer nVidia with its subsidiary Mercedes-Benz. The partnership is to produce software for autonomous driving controlled by artificial intelligence. BMW has teamed up with Intel and its camera software specialist Mobileye for this reason. And IBM wants to create synergies in the market with the takeover of Red Hat. But struggling companies also see advantages in mergers. According to the motto “Together we are strong”, PSA and Fiat-Chrysler are trying to regain a foothold in the markets by merging. The name of the new joint venture is Stellantis.
The fun has its price
As promising as industry convergences may be, they also have disadvantages. For example, cross-industry mergers are considered time-consuming and cost-intensive. The Deloitte study estimates that it takes at least five years until the companies involved in a merger have jointly developed the convergence technologies they are aiming for. And the investments are usually in the billions. VW, for example, invested 2.6 billion US dollars in the start-up Argo Al, in which Ford holds a majority stake.
Innovation through convergence
However, the convergence of technologies, products and services from different industries, which continues to increase due to the Internet of Things and digital networking, can only work successfully with a well-functioning network of partner companies.
Digital networking enables and forces companies to bring ever more comprehensive service offerings and more complex products to the market.
Classic product strategies are moving into the background. Mergers become the driver for innovations. Know-how is networked and brought together where it is needed. New possibilities for business models are emerging and industry boundaries are blurring. Start-ups are becoming increasingly important in this context.
Convergence requires more security
Of course, with the convergence of industries, the importance of security against cyber attacks is growing in equal measure. Magility has already reported several times on the vulnerabilities in connected vehicles as well as in smart and cognitive buildings. The largest known successful hacker attack to date on software from the US company Solarwinds confirms the urgency empheasized by Magility Managing Director Dr Michael Müller to consider and implement appropriate security concepts in good time.
We at magility would be happy to show you the way to the secure further development of your company’s business models.
by Nada Welker | Dec 21, 2020 | Automotive Industry, New Mobility
With the electrification of vehicle drives, a large part of the environmental impact seems to have been eliminated in one fell swoop. But aren’t we casting out the devil called CO2 with the Beelzebub called electrosmog? Tesla is leading the way, as the innovative vehicle manufacturer has been relying on electric cars as well as electricity storage and photovoltaic systems since it was founded in 2003. Thanks to thorough lobbying, politicians are also convinced of the necessity of electrified powertrains. Corresponding press reports and coordinated public relations work, as well as tax breaks and purchase premiums, are in turn finding favor with consumers and closing the loop – pushing the plug into the socket of electrified vehicle production, so to speak.
New Dimension of Environmental Pollution
However, doubters of electromagnetic compatibility (EMC) already fear that this socket could turn into a Pandora’s box for vehicle occupants in the long term. Headaches, palpitations, sleep disturbances or nausea can be the result for so-called electrosensitive people. However, so far neither national nor international studies have been able to establish a direct link to the symptoms described. The Bund für Umwelt- und Naturschutz Deutschland (BUND), on the other hand, speaks of a new dimension of environmental pollution and refers to studies that show correlations of diseases in all living beings with the influence of artificially generated electromagnetic fields.
Electromagnetic Fields Are Everywhere
As we reported a year ago, electromagnetic radiation is considered by the World Health Organization (WHO) to be harmless, even in the long term, as long as it occurs only on an everyday scale. Artificial and natural light sources such as lightning or sunlight, for example, are electromagnetic in nature and therefore ubiquitous in our environment. According to a report of the Fachverband für Strahlenschutz e.V., functional disturbances of cardiac pacemakers or defibrillators due to a possible sensitivity to low-frequency electric and magnetic fields cannot be excluded. With regard to malignant diseases including cancer, however, no significant increase has been proven so far, for example with the use of mobile communications. However, if we take a look at current developments in connection with electrification in vehicle interiors, a queasy feeling quickly creeps in. A concrete example, are child seats that can be networked with the vehicle or other mobile devices, and are also equipped with a wide variety of sensors to monitor the vitality of the little ones, for example, or to ensure that the child seat is installed safely. This is a sensible development, but at the same time it is causing a massive increase in electromagnetic radiation in the vehicle, and next to our children’s heads.
Manufacturers Must Come Up with Something
A real headache for skeptics is the fact that a closed vehicle behaves like a Faraday cage. It is very pleasing and desirable that high voltage built up outside the passenger compartment as a result of lightning strikes is kept away from the occupants and gets dissipated. Electromagnetic fields built up inside the vehicle, on the other hand, cannot escape to the outside either. For this reason, main power cables, for example, are to be routed to the outside in the future. Other ideas being considered by manufacturers include encapsulated drives and filters that help compensate for high voltages.
Elektrosmog through Electrification and Connectivity
But consumers can also actively protect themselves from high radiation exposure. When it comes to making phone calls or networking the vehicle with the Internet of Things (IoT), the old truism applies: less is more. However, since called spirits cannot be banished so quickly, one of the best precautions against high radiation exposure is currently the use of an external antenna. It is best to use a hands-free telephone system. But a wired headset also reduces exposure, since the radio connection of the terminal is then not directly on the user’s head. Making phone calls in tunnels often leads to a loss of connection. The cell phone works at maximum power here and often runs noticeably hot. However, the off switch is a highly effective way of reducing radiation exposure.
Professional Protection – High-Tech Startups Show How it’s Done
Since switching off is not always an option, start-up companies such as VHOLA are thinking about EMF (Electromagnetic Fields) protection products and are developing appropriate technologies. For example, VHOLA offers an in-vehicle solution that controls EMR (Electromagnetic Radiation) levels in the passenger cabin via energy management optimization. This takes into account local aspects such as cabin occupancy, passenger preferences, and even driving conditions. This embedded solution runs over the entire lifetime of the vehicle. It is targeted at automotive OEMs and their Tier1s that develop powertrain systems. The VHOLA Aftermarket Radiation Detector is used to detect electromagnetic radiation in the cabin. Target groups are found in the B2B sector, for example in public transportation. In turn, the R&D assistance tool helps reduce design cycle time and provides high quality assurance in the design phase. To detect errors in energy management at an early stage and to improve the design of future vehicles, VHOLA offers a Big Data solution.
At magility, we are keeping a close eye on developments. With the introduction of 5G at the latest, OEMs and Tier1s will have to deal with EMF. Through our High-Tech Startup Network, we can follow live the approaches to solving this complex and also not entirely unemotional topic. You have got more in-depth questions about EMF or you are interested in the High-Tech Startups of our network? Simply contact us right here. We will be happy to help you with our experts.
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