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The rising demand for mobility-on-demand services is one of the biggest factors propelling the adoption of automotive digital services in Germany. In the major metropolitan cities of the country, people are increasingly preferring ride hailing and sharing services over traditional public transport, with almost 750,000 people using various car sharing services and over 8 million interested in the concept of car sharing. Moreover, the numerous advantages associated with mobility-on-demand services, such as no repair and maintenance costs, parking expenses, and insurance costs, are making people avoid buying personal vehicles in the country.

Mobility-on-demand services are further divided into car sharing and ride hailing and sharing services. Of these, the ride hailing and sharing services recorded higher adoption in 2017 in Germany. This is mainly attributed to the higher preference of customers for these services, on account of the rising penetration of ride sharing and hailing companies in major urban areas and their higher convenience as compared to the car sharing services, especially for daily commuters in the country.

The other major factors fuelling the growing demand for automotive digital services in Germany are the increasing vehicular security and safety concerns and the burgeoning need for telematics-enabled trucks in the country. Since the last few years, many automobile manufacturers have been incorporating advanced safety features in their vehicles, in order to make them alluring to the customers. The government of the nation is enacting stringent measures related to vehicular safety, such as the mandating the integration of ADAS systems in passenger vehicles, which are further pushing the need for automotive digital services.

The escalating need for in-vehicle connectivity features is another important factor contributing to the growing demand for automotive digital services in Germany. The sales of automobiles equipped with various in-vehicle connectivity features has increased massively in the country, over the last few years, and this trend is expected to continue in the near future, owing to the rapid development of vehicles fitted with advanced vehicle and passenger safety features and ADAS systems. As a result, the German automotive digital services market is expected to register huge growth in the years to come.

Thus, it can be concluded that due to the rising need for advanced safety and driver assistance features in vehicles and increasing popularity of mobility-on-demand services, the requirement for automotive digital services will surge in Germany in future.

How Would Digitization Help Germany Achieve Vision Zero?

 

The digital transformation in the automotive industry has given wings to advancements in motor vehicles. Moreover, it personalizes the consumers’ experience by allowing for the customization of the products and services to their needs[KP1] . The digitalization of the connected supply chain reduces the cost and increases consumer engagement by collecting and using the data gathered from their internet-enabled vehicles, to give them what they desire.

 

Demand for Digital on-Demand Mobility Services in Germany

 

Germany leads the race of having the highest number of cars among European countries, with Munich, Cologne, and Hamburg having made the list of cities with the heaviest traffic. Therefore, car sharing companies are offering cars in good conditions with affordable ride prices to decrease the congestion and facilitate residents with the convenience of personal cars. As per the German CarSharing Association, these services are available in over 800 communities and cities in the country, thus reflecting their massive popularity among residents.

 

It requires effective planning to import or buy a car, considering a variety of expenses, including registration, number plate fees, insurance, fuel, taxes, and maintenance expenses, apart from the purchase price itself. Individuals who live and work in the same city might find it too expensive to have a personal car for limited use. The alternative solution to this problem is renting or sharing a car from an agency, and thus, save a lot of money.

 

Demand for ADAS and Associated Digital Services in Germany

 

The Deutsch automotive industry is witnessing the increasing adoption of level 0 to level 2 advanced driver assistance systems, with features such as braking assist, lane-keeping assist, blind-spot indication, parking assist, and adaptive cruise control. The shift from manual driving to fully automated driving requires OEMs to be prepared for ADAS level 3 and above.

 

Moreover, ADAS offers security and safety to passengers by preventing deaths and injuries caused by accidents. The crucial ADAS applications include pedestrian detection, lane departure warning, blind-spot detection, and automatic emergency braking, which have been made mandatory in all new European cars from 2022 onward.

 

Demand for Digital Automotive Predictive Maintenance Alerts in Germany

 

Automotive digital services also facilitate predictive car maintenance, without any guesswork, to determine if the vehicle requires maintenance or replacement. Advanced self-diagnostic systems built into the vehicle’s digital instrument cluster give alerts to drivers instantly whenever there is a problem, thus prompting them to proactively service the vehicles.

 

This ultimately reduces mechanical failures, which is an important step of Europe wants to bring road accident deaths to 0 by 2050, as well as vehicle recalls. For instance, the use of telematics and predictive analysis by Michelin’s system enables tire monitoring for automobiles deployed at ports and quarries. Digitally collecting data while the vehicle moves and feeding it into the asset monitoring system of the fleet allows fleet companies to conduct real-time performance analysis, to facilitate predictive maintenance.

 

Therefore, ADAS, mobility on-demand, and predictive maintenance are among the most-demanded digital automotive services in Germany, which is reflecting of the huge strides the auto sector has taken in recent years and will continue to take in the future.