Connected two-wheeler: The next big thing in the IoT?


The automotive and the Internet of Things market have a lot in common: Both domains expect further growth with CAGRs of more than 25 percent for the next five years. Close to 40 million cars will be part of the Internet of Things. However, motorbikes, scooters, e-bikes, and powersports vehicles (such as snowmobiles and all-terrain vehicles), what we call “two-wheelers”, haven’t been much in focus yet. Even at EICMA 2016, the world’s biggest trade show for the motorbike industry, only a few exhibitors announced connected features.

This is particularly interesting because end-customer demand is already there. In the U.S., around 20 percent of riders already use their smartphone during the ride (e.g. for navigation) and 25 percent do so in Australia. A growing number of riders want to use their phones on the bike. But: usage is inconvenient – and illegal in many parts of the world.

Smartphone integration solutions as a straight-forward approach to connectivity

At EICMA 2016 in November, the world’s first smartphone integration solution for motorbikes has been introduced.

What is it like to ride with this smartphone integration solution?

An app ecosystem is crucial for the success of such a solution. We put together a white paper to briefly explain the technology and to share insights on how partners can benefit from a growing and prospering market. According to Freedonia, the two-wheeler market and the smartphone industry, valued at 106 and 426 billion U.S. dollars respectively, are both expected to keep growing by more than 6 percent on a yearly basis. By 2020, analysts expect more than 19 million connected two-wheelers on the roads.

A huge market for app developers and OEMs

With the volume and the growth rates of both smartphones and connected motorbikes, interesting growth opportunities lie ahead for app developers and motorbike manufacturers. Adopting existing apps as well as creating two-wheeler-specific apps are an idea worth exploring. In addition, two-wheeler riders will become more and more demanding regarding assistance and infotainment offerings. This allows manufacturers to differentiate and sets the stage for a rapid diffusion of connectivity features.

Eleven business models for success in the connected two-wheeler market

So, how can app publishers and manufacturers make the most of this? We have conducted a cross-industry analysis on successful business model innovations from start-ups and globally well-known companies; and now we can present eleven business models to help create brand awareness, increase market share, and enable long lasting revenue streams.

Some of these models have already been applied in connected cars, in our app solution for cars, and beyond. For example, “advertisement,” which includes in-app purchases or subscriptions. However, there are also business models in adjacent industries that have a track record of creating marketing awareness. These will succeed in the two-wheeler segment, too; including “crowd funding,” “pay what you want,” and “freemium” models, just to name three.

Strategic benefits, brand awareness, and big data

Gains for partners do not stop at monetization. Marketers increasingly want to leverage this integration solutions platform for their campaigns. App companies as well as manufacturers can then interact with their users and customers in a different setup. Additionally, with permission from the riders, feedback data – a combination of sensor data and big data – can be used for other purposes, such as cross-selling, product and service improvements, and to realize R&D cost savings.

Learn more about these business models, strategic benefits, and predictions for the connected two-wheeler market in our white paper:

Download white paper

The post Connected two-wheeler: The next big thing in the IoT? appeared first on Bosch ConnectedWorld Blog.

Reference: Bosch ConnectedWorld

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