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In-Vehicle Smartphone
Integration Report 2011

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SELECTED FINDINGS INSIDE

Secure your place in the smartphone integration

market and plan for future tech. innovation

Essential analysis of smartphone

integration dynamics and the
strategies of key industry players
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In-Vehicle Smartphone Integration Report 2011

Leading automakers strategies to secure your place in the in-vehicle
smartphone integration market and plan for future technological innovation

In-Vehicle Smartphone
Integration Report 2011

real opportunities
Identify and dene the
in the worldwide CSP markets

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Leading automakers strategies to secure your place in the smartphone

integration market and plan for future technological innovation.
Over 80% of Telematics Updates stakeholders have a burning need for intelligence
on in-vehicle mobile device integration and consumer demands. Challenges
exist for many within the telematics industry as they endeavour to deal with the
exponential rise of sophisticated smartphone technology. This comprehensive 156
page guide to smartphone integration will facilitate your business development,
strategic planning and resource allocation necessary to capitalize on this lucrative
business opportunity.

Purchase the report and benefit from

In-Vehicle Smartphone Integration

Smartphone integration

In depth case studies of existing OEM smartphone applications from OnStar,

OEMs smartphone functionality needs; to enhance customer relationships,

retention and maximise after sales opportunities in North American, Chinese

and European markets. Learn what telematics solutions you need to provide
and thrive financially.
The OEM decision making process to engineer smartphone functionality into
their vehicles so you can keep pace with evolving OEM perceptions.

OEMs have attempted several different approaches to integrating

smartphones. Essentially, there are three basic approaches that
are differentiated by the location from which the apps run. They
include building everything into the head unit, running apps in the
smartphone, or running apps in the cloud and using the head unit as a
terminal.
Figure 12: Key functions associated with integration approach
Head unit

Link

Connectivity

Bluetooth

HmI control

USB

HmI control

Connectivity

VNC

Applications

Smartphone

Connectivity

In-Vehicle Smartphone Integration

Figure 12 above shows some of the functions that are important to the
integration approach in a basic schematic format, which will be used
in some of the following sections to illustrate the difference between
approaches.
Figure 13: Functions of HmI controller
Screen(s)
Buttons/switches

Our survey suggests that the top application for an embedded in-car
HmI controller
system would be real-time traffic reports, followed by speed
camera
warnings, navigation and internet radio.
Voice recognition

Figure 9: top four automotive-related apps needed outside of the vehicle

Touch screen

Integration with
infotainment

Voice Output

Speed camera warning

TV/streaming video
Realtime traffic
Ticket booking/reservation
Messenger/chat type apps

In some implementations, the HMI of the solution may be fairly basic,

for example, just a rendered display. In others, it may be more complex,
extending to secondary or even tertiary displays in the car, and
integrating voice control and voice output.

Buddy finder applications

In principle, there is no reason why this control cannot come from the
smartphone itself, however, this depends on the interface specification
between the various systems. The actual implementation often
depends on what the OEM is trying to achieve. If the OEM wants a
In-Vehicle
Smartphone
Integration
branded range of applications,
perhaps
with some
bespoke services,
its tempting to take an embedded approach. If an OEM is merely
enabling a customers phone to access smartphone applications, its
0%
10%
20%
30%
40%
50%
more cost-effective for the OEM to limit involvement to just enabling
theapplications
application. based in smartphones,
Our survey suggests that, for
Auto location blogging

Facebook or other social

Augmented reality Pol

Assessment of OEM smartphone

Answers on: What are OEMs looking for when identifying partners for ventures in
the smartphone integration space? Establish your place in this profitable market.

Application Integration Approaches

The connected vehicle

Toyota, Mercedes-Benz USA, BMW and Mini. Learn how to allocate your
resources and capitalize on this lucrative business opportunity.
Examination of driver distraction concerns and the potential legislation
surrounding it so you can account for this in your strategic planning.
Insider Intelligence from the in-vehicle smartphone eco-system. Executive
interviews are supplemented with a wider survey across the Telematics Update
community to facilitate your business development.
Projections of future smartphone architecture in the vehicle with input from
industry decision makers so you can plan your future technological direction.

Navigation apps
Internet radio

this group of respondents rated chat-type applications highly, along

with the ability to book tickets or make reservations. Facebook and
navigation-type apps rated highly.

36

Figure 10: top four automotive-related apps needed in and outside of the vehicle
Speed camera warning
TV/streaming video
Realtime traffic
Ticket booking/reservation
Messenger/chat type apps
Buddy finder applications
Auto location blogging

Audi has also discussed introducing specially developed smartphone

apps that can upload photos taken with a GPS cell phone to the
navigation system, which can show the co-ordinates for the location
of the photo. For electric vehicles such as the A1 e-tron, the driver can
view the status of the rechargeable battery on their cell phone display
at all times. The driver can also check whether the doors and windows
are closed, or if there is any service information. Controlling interior
temperature by cell phone is also possible.

Figure 43: Audi Roadside Assistance app

screenshots
Courtesy iTunes

Facebook or other social

In the US, Audi offers the Roadside Application that connects

Augmented reality Pol
customers directly with Audi and its roadside assistance partner,
Navigation apps
Signature Motor Club. The app is available on iPhone, Android and
Internet radio
BlackBerry devices. The application leverages the Audi customers pre20%
30%
40%
50%
60%
0%
10%
registered vehicle information, a smartphones GPS capabilities and an
intuitive interface to ease calls for roadside assistance. The app works
In terms of apps to which respondents would like ubiquitous access,
accessing
an Audi vehicles basic information, which is stored as
internet radio scores highest, along with navigation,byreal-time
traffic
part of the broader roadside assistance service and includes vehicle,
reports and streaming video.
Audi Roadside Assistance and a dealer locator.
Its questionable how representative our cross sample is of the general
In 2010,phone
Audi released
public3. For people between 18 and 25 years old, a mobile
and an iPhone app called CarMonitor that monitors,
analyses
and stores
connectivity in general are more important than a car,
according
to a key performance characteristics for a drivers vehicle,
whether
pure performance, eco-friendly driving or providing trip logs.
car, for
conducted
study, iCar: The younger generation and the networked

The app uses the vehicle OBD-II port to access real-time performance data,
30
which the app then analyses, also in real-time. Characteristics include
engine Revolutions Per Minute (RPM) which is especially useful with
older vehicles that do not have an RPM gauge. It also provides emissions
information, including the amount of CO2 a driver is saving by adjusting
driving performance. Drivers using the iPhone CarMonitor app also have
the option of uploading the data collected to www.MyAudiLabs.com and
sharing driving performance with the VW Labs Community.

Figure 44: Audi Car monitor app

Courtesy Audi

104

Who should buy this report?

This report is essential to Tier 1 companies eager to supply telematics solutions to OEMs. Tier 2
companies in software and application development can identify where they can make money in the invehicle smartphone eco-system. Automotive OEMs not yet leading the field can learn from OEMs with
smartphone applications already in place.

Report Methodology
We interviewed 19 leading stakeholders within the telematics industry including Mercedes, Hyundai,
ONX, Volvo, Microsoft and Verizon. Interviews comprised of extensive case studies and conversations
examining the evolution of telematics giants smartphone strategies and what they have learnt. In
addition a targeted survey canvassed more than 100 industry experts around the world and was
supplemented with carefully-selected and well-researched secondary source material.

Turn the page now for the ground-breaking selected findings from this report!
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In-Vehicle Smartphone Integration Report 2011

Leading automakers strategies to secure your place in the in-vehicle
smartphone integration market and plan for future technological innovation

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Exclusive selected findings...

Microsofts Walter Sullivan believes there are prospects
for embedded communications in the car. He said:

Nearly 50% of companies

are making a substantial
eort in the development of
smartphone resident apps

There are some markets where there

is limited ability to establish the data
connection over Bluetooth from the car
via a tethered connection...Having the
embedded approach is one way to get
around that.

Standards and legislation are required in

each of the following areas:

80% 49% 29%

Driver
distraction
parameters

Validation/
certification

Input controls

YouTube and
Pandora will be
able to skip Flash
entirely and begin
streaming audio
and video using
HTML5

Hyundais Michael Dietz explains that the companys

Blue Link-branded telematics solution is about more
than the technology:

Blue Link is a telematics offering that

enables us to develop a direct relationship
with our consumers. At the end of the day,
its all about forming the relationship.

30%

of respondents said simplified

in-car app interface is the
most important element of a
smartphone interface when
making their next vehicle
purchase

Companies across the telematics industry

are focusing their development budget on:

46% 38% 32%

Smartphone
resident apps

Embedded
apps and
comms in
head unit

Embedded
apps using
smartphone
connectivity

OEMs revealed two key drivers behind

strategies to integrate apps into the vehicle:

meeting customer expectations

improving product attractiveness

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In-Vehicle Smartphone Integration Report 2011

Leading automakers strategies to secure your place in the in-vehicle
smartphone integration market and plan for future technological innovation

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Contents
IN-VEHICLE SMARTPHONE INTEGRATION ......................... 1
TABLE OF FIGURES ..........................................................5
FOREWORD .................................................................... 8
EXECUTIVE SUMMARY ................................................... 10
INTRODUCTION AND METHODOLOGY ............................ 13
WHAT IS THE CONNECTED CAR EXPERIENCE AND WHY IS
IT IMPORTANT? ............................................................. 15
Connected Car or Connected Driver?...................................... 15
How Does the Smartphone Change the Landscape?............... 16
What Would Seamless In-Vehicle Smartphone
Integration Look Like?........................................................... 16
Why Are There So Many Dierent Approaches? ...................... 18
Where Does the Revenue Come From? ................................... 19
Customer Choice? Or More Complexity?................................. 19
Influence of Smartphone Solutions on the Purchasing Decision ..21
Aftermarket Activities ...........................................................24

THE CONNECTED VEHICLE: PRODUCTS AND SERVICES ...25

Safety and Security............................................................... 25

Remote Vehicle Monitoring and Control ................................. 25
Remote Services ...................................................................26
Electric Vehicle (EV) ..............................................................26
Connected Navigation ..........................................................26
Infotainment ........................................................................26
Other Automotive .................................................................26
Other Non-automotive .......................................................... 27
How Many Apps Do We Need? ............................................... 27
How is Product Strategy Developed? .....................................30

SMARTPHONE INTEGRATION:
CHALLENGES AND SOLUTIONS ......................................32
A Brief History of Phone Integration Over the Ages ................. 32
Integrating Telematics .......................................................... 32
Building in Hands-free .......................................................... 33
Smartphone Integration Decision Framework ........................ 34
Application Integration Approaches ...................................... 35
Applications Embedded in the Head Unit ..............................36
Applications Based in the Smartphone .................................39
RealVNC ...............................................................................39
Terminal Mode .....................................................................42
Remote Skin ......................................................................... 43
Simple UI .............................................................................44
iPod Out............................................................................... 45
HTML5.................................................................................. 47
Cloud-Based Applications.....................................................48
In-Vehicle WiFi Access...........................................................49
Summary of Integration Methods ..........................................49
Future Models of Integration ................................................. 51
Where Will Apps Be Resident in Future? ................................. 52
Certification ......................................................................... 55

KEY STRATEGIC ISSUES .................................................59

Pace of Change..................................................................... 59
Whose Customer is it Anyway? ..............................................60
Whos in the Driving Seat? ....................................................62
Economics ........................................................................... 63
Competition Versus Co-operation .......................................... 65

REGULATION .................................................................67
Driver Distraction .................................................................69
Does Inhibiting Smartphone Functionality Make It Safe? Or Just
Safer? .................................................................................. 71
So, What is Distracted Driving? ............................................. 72
User Interface Initiatives to Minimize Driver Distraction ......... 75
Touch Screen Interface ......................................................... 75

Voice Recognition ................................................................. 75

Gesture Control .................................................................... 77
Approaches to Increase Situational Awareness...................... 77
User Interface Regulation...................................................... 78
Who Has Responsibility For Safe Operation?.......................... 78
Analysis of OEM strategies.................................................... 81
Solution Design and Integration Considerations ....................83
Organizing for Success ......................................................... 85
Regional Considerations .......................................................86
PREDICTIONS/VISION ...........................................................89
Convergence ........................................................................89
Future Communications Technologies 4G and LTE?.............. 91
Improved Product Strategy.................................................... 91

CONCLUSIONS..............................................................93
Some predictions for the future ............................................94
Prediction: The Hybrid Approach With Some Cloud Will Win! ...... 95

ASSESSMENT OF OEM SMARTPHONE APPLICATIONS

AND CASE STUDIES ...................................................... 98
Acura ...................................................................................98
Audi .....................................................................................99
BMW: Case Study ................................................................101
BMW My Remote App ......................................................... 102
BMW ConnectedDrive Oce Functions ................................ 103
Roadside Assistance App.................................................... 104
BMW Application Integration .............................................. 104
Chrysler ............................................................................. 106
Fiat .................................................................................... 107
Ford ................................................................................... 108
SYNC Versions: ................................................................... 108
General Motors and OnStar: Case Study ............................... 111
Texting and Facebook in the Car ...........................................112
OnStar and Smartphone Applications ..................................113
Chevrolet MyLink Smartphone Applications .........................114
OnStar App for Chevy Volt ....................................................115
Future OnStar Services ........................................................ 117
Hyundai: Case Study............................................................119
In-Vehicle Platform ..............................................................121
Smartphone Integration...................................................... 122
Jaguar/Land Rover .............................................................. 123
KIA ..................................................................................... 124
Mazda................................................................................ 125
Mercedes-Benz Case Study ................................................. 126
Mercedes-Benz USA and mbrace ......................................... 126
Media Interface .................................................................. 129
Mercedes Europe................................................................ 130
MINI ....................................................................................133
MINI Connected PlugIn ....................................................... 134
Nissan ............................................................................... 136
Porsche...............................................................................137
Saab .................................................................................. 138
Smart................................................................................. 138
Toyota Entune: Case Study .................................................. 139
Review of Entunes Suite of Applications ..............................141
Approach to In-Vehicle App Development ............................ 143
In-Vehicle Implementation .................................................. 143
Future Developments.......................................................... 143
Volkswagen........................................................................ 144
Volvo Cars ...........................................................................145

APPENDIX A: SMARTPHONE MARKET INFORMATION .... 147

Breakdown of Smartphone Market in US and Europe ........... 147

What Do Customers Do With Smartphones?......................... 149

OTHER INFORMATION .................................................. 151

Data from Survey ................................................................. 151

ACKNOWLEDGEMENTS................................................ 157
ABOUT THE AUTHOR ................................................... 158

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In-Vehicle Smartphone Integration Report 2011

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smartphone integration market and plan for future technological innovation

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