The connected car



By 2030 the proportion of vehicles worldwide that are connected will increase sharply from less than 5% to 37%. And connectivity will expand progressively beyond online services for connected cars to software updates for the entire vehicle system, including critical safety functions such as driver assistance. 

Connected vehicles can provide a unique customer experience, enhance B2B business opportunities, and improve products and internal processes by delivering cost and revenue benefits to all participants in the automotive ecosystem.   

Yet today most ecosystem businesses have not fully realized the opportunity to offer compelling services based on connectivity, or to monetize data from connected vehicles. This represents a significant lost opportunity when companies in other industries are aggressively generating value from data. 

Berylls perspective


Customer Expectations

Driven by digital experiences in consumer electronics, automotive customers now demand in-vehicle digital and connected services and experiences.

However, most OEM connected services and entertainment systems do not meet customer expectations: poor execution of services and communication issues severely limit uptake among car owners. OEMs need to collaborate with tech companies like Apple, Google, Tencent or Baidu in the integration of third-party apps and services, as customers will not accept OEM proprietary platforms and ecosystems.

New vehicle-specific services need to be defined and bundled intelligently to devise profitable business models reflecting both limited customer willingness to pay and recurring costs for service licenses.

Competitive Landscape

The competitive landscape for software-defined vehicles is evolving rapidly, with traditional automotive companies, technology companies and start-ups all vying for a share of the market. 

To remain successful companies must follow four strategic pathways:  

  • Continuously invest in their capabilities to develop new and innovative features including artificial intelligence and machine learning. 
  • Form strategic partnerships with other organizations including suppliers, technology companies, and academic institutions.
  • Adopt new development methodologies, such as Agile development and DevOps.
  • Invest in the development of digital platforms and tools to support hardware and software development. 

Technological progress within the connectivity domain exceeds the speed of development in other more traditional automotive domains by a significant margin.   

To cope with these challenges OEMs must: 

  • Change the vehicle architecture to a centralized and zonal architecture with relatively few high-performance computing  platforms that can upgrade their systems continuously. 
  • Integrate standardized software platforms with abstracted interfaces like Android Open Source Project to allow the infotainment stack to keep up with increased development speed at optimized cost. 

On market-specific product expectations and regulations, OEMs are facing heterogeneous demands. Customer location is key: Korean and European customers use different services, while Chinese and US customers have different expectations for an easy-to-use and well-designed user interface.

To limit variety, development cost and complexity OEMs need to:

  • Build flexible, modular E/E systems with abstracted interfaces to ensure reactivity to changing market demands.
  • Partner with local suppliers and service providers to ensure regional customer expectations can be met.

In recent years the legislative landscape governing technology in the US, Europe, and China has evolved rapidly as regulations respond to evolving trends.     

As a result OEMs need to adapt their existing business models, services, and technologies to comply with these new guidelines. For example: 

  • The growing “right-to-repair" movement has resulted in laws that require automakers to provide consumers and independent repair shops with wireless access to the car's telematics and other technologies.  
  • The EU Digital Services Act has increased liability for online marketplaces and intermediaries, increased regulation of online platforms, increased transparency requirements, strengthened data protection rules, and greatly intensified regulation of online service providers.  
  • The EU Data Governance Act provides improved access to private sector data for the public sector, and mandates fairness of data access and use in business relationships and introduces new rules allowing customers to switch between different cloud data-processing services providers. 
  • Vehicle-to-everything (V2X) technology standards are emerging which will force automakers to equip vehicles with additional hardware and software components. 
  • Cybersecurity regulations worldwide increasingly require OEMs to ensure technical compliance of their fleets with new laws and to establish cybersecurity management systems within their development organizations.  
Data driven services

Automotive companies have long struggled with the monetization of data. Many OEMs have ownership of large amounts of exclusive vehicle and customer data, but new regulations are breaking down exclusive control of data and giving external stakeholders more access. This means that promises of billion-dollar revenue windfalls from data monetization are unlikely to be realized.  

Nevertheless, at Berylls we believe that OEMs can profit most effectively from structured internal data usage for B2B and B2C data-driven services and products. They can leverage that data for product development and internal process optimization and to provide the best customer experience at all touchpoints.  



We have successfully worked on connectivity projects for large OEMs, suppliers, technology companies and service providers. Here are three recent examples of our work. 

Service offering

Helping clients address connectivity challenges

Berylls offers a state-of-the-art toolset to help auto industry customers stay on top of the latest developments and trends in this rapidly evolving field.
Market analysis
We provide clients with in-depth research and analysis of the connected car market, including information on key providers, market trends and emerging technologies. Our experts help clients stay informed about the competitive landscape and identify new opportunities for growth.
Connected Services Operating Model Design
Today most OEMs still develop connected functions and services within engineering-focused development teams. The result is that market requirements are often not met. To remedy this marketing and sales staff supported by legal and finance teams must be integrated in the product teams. Teams which can develop and deploy use cases over the whole vehicle life cycle are rare in automotive, or else are in a constant battle to integrate with legacy organizations. Most OEMs have never really embraced Agile as a working model, instead introducing half-baked methods and tools that only made their organizations bigger, slower and more expensive. We help clients assess and redesign their connectivity operating model, and we put capability management processes in place that include training, partnering and hiring.
Connected Services Business Models Development
Today most OEMs make do with mediocre connected functions and services leading to a low realization of monetization potential. At the same time technology companies are pushing into the market with customer-centric services that extend their digital ecosystems into the vehicle itself. As the importance of such services evolves, OEMs need to find the right product content that will differentiate connected functions and services, and future-proof business models. Instead of trying to monetize vehicle raw data externally, OEMS should leverage connected data pools to build differentiating client-facing services as well as developing internal use cases in engineering, production, sales and aftersales. New digital business models can also be based around cybersecurity, V2X, data refinement, and sharing models. We work with clients to jointly elaborate and validate new business models, support first prototype development and help find suitable partners where needed.
Data Legislation Impact Assessment
Legislation and regulation will continue to impact how manufacturers handle and monetise customer data. We advise clients on data privacy and security, including EU data acts and standards as well as antitrust laws. We help clients understand how legislative change impacts existing or planned business models and service portfolios, and how to evolve these with improved technology or processes.




Christian Kaiser

After 25 years in various OEM & software companies, Berylls offers me the opportunity to drive the digital transformation as a trusted partner. Our team of global industry experts creates solutions with focus on our customers software challenges.

Associate Partner

Sebastian Böswald

Berylls provides me with the opportunity to help lead the transformation of one of the key industries of our economy. It is a company built around like-minded people, bringing passion and joy to every aspect of my job.

Associate Partner

Sebastian Bräuer

The automotive industry is in the midst of the biggest transformation in 100 years. For me, Berylls combines everything to be part of the solution to this challenge. A highly motivated team of automotive experts, creativity and entrepreneurship.
Featured Insights
The voice with a difference
Automobility Index

The WTCAR covers the 100 most relevant and promising listed companies worldwide.

See Index
Berylls Podcast

The latest in automobility for when you're on the road.

Spotify Homepage