Frost & Sullivan Forecasts Rise of Branded In-Car Digital Assistants

Frost & Sullivan is predicting that digital assistants will become an increasingly important component of automotive branding in the next five years. Digital assistants allow drivers to control various navigation, safety, and entertainment features with simple voice commands to minimize the number of distractions they face while on the road.

They also provide an opportunity for car manufacturers, who can integrate digital assistants into the design of their vehicles to deliver more personalized driver experiences. Major manufacturers like BMW and Mercedes-Benz have already launched their own in-car assistants, and the practice is expected to become more common as technology continues to improve.

“Digital assistants have become a key differentiator for manufacturers,” explained Frost & Sullivan Mobility Research Analyst Anubhav Grover. “Branded digital assistants will help automakers strengthen their brand and convert one-time sales into continual service-centric relationships.”

The prediction comes courtesy of a new Frost & Sullivan report that examines the in-car digital assistant market leading up to 2025. The report indicates that North America will have the highest rates of digital assistant adoption, while the Asia-Pacific region (and China in particular) will exhibit the most growth potential.

With regards to technology, Frost & Sullivan expects to see more hybrid solutions that combine cloud and embedded services, and the increased adoption of augmented reality and other new technologies. It also suggests that car manufacturers will partner with third-party technology companies to help develop their assistants, just as Mercedes and BMW have partnered with Cerence (or Nuance, prior to Cerence’s recent spinoff).

“Digital assistant developers are building strategic partnerships with telecom providers and communication module makers to enhance on-road safety and in-vehicle data-rich services,” said Grover. “Flexible business models such as ‘choice of network’ for consumers will further improve customer retention and revenue generation.”

Frost & Sullivan also stressed that data security will be vital in smart cars that need to protect the personal information of their drivers.