Connectivity technology in two-wheelers is rapidly advancing, moving beyond basic features to encompass advanced rider assistance systems (ARAS), integrated services, and vehicle-to-everything (V2X) communication. At the forefront of this evolution is embedded connectivity, powered by telematics control units (TCUs) with eSIM capabilities, delivering seamless, round the clock connectivity that significantly enhances the rider experience. While tethered connectivity remains common, it is increasingly being eclipsed by the superior capabilities of embedded systems, particularly in the electric two-wheeler (E2W) segment. Companies are quickly adapting to this shift, integrating more sophisticated features to meet the growing demands for convenience, safety, and performance.
What strategies are your teams implementing to capitalize on the shift towards embedded connectivity in electric two-wheelers?
To learn more about these best practices and discover growth opportunities, check out our latest analysis “Growth Opportunities in Connectivity Technology in the Two-wheelers” by clicking here.
Role of ARAS and V2X
ARAS and V2X are pivotal in elevating two-wheeler connectivity. ARAS technology, though nascent, is rapidly advancing and becoming a standard feature in high-end models. V2X technology is set to revolutionize safety and communication, allowing two-wheelers to interact with other vehicles and city infrastructure, thereby reducing accidents and enhancing the riding experience.
Embedded Connectivity to Redefine Two-wheeler Technology
As the penetration rate of connected two-wheelers is projected to soar, with E2Ws reaching 80% and internal combustion engine (ICE) two-wheelers 60% by 2028, embracing embedded connectivity has become highly critical. This technology not only enables advanced features like real-time diagnostics, geofencing, and over-the-air (OTA) updates but also positions two-wheelers as part of the broader Internet of Things (IoT) ecosystem. This integration further allows original equipment manufacturers (OEMs) to offer subscription-based services, creating new revenue streams and enhancing customer value.
Impact of Connectivity Technology on the Industry
Connectivity technology is redefining the competitive dynamics in the two-wheeler space, where start-ups and established OEMs are competing for prominence. The blend of software-driven E2Ws with embedded connectivity is driving innovation, elevating safety, efficiency, and convenience. As these advancements unfold, companies focusing on connected solutions are discovering fresh opportunities in data monetization, fleet management, and customer engagement.
Are you adopting best practices to integrate V2X communication in your vehicles to enhance safety and support smart city initiatives?
Emerging Best Practices in Two-wheeler Connectivity
- Integration of Advanced Connectivity Features
The rapid evolution of connectivity technology is driving the adoption of integrated systems in two-wheelers. Tethered and embedded connectivity solutions are enhancing the rider experience by providing real-time data, improving safety, and offering seamless interaction with various devices. The growing integration of these technologies in both electric and internal combustion engine (ICE) two-wheelers is expected to reach significant penetration rates in a few years.
Companies to Action
Ather Energy has been pioneering embedded connectivity in the E2W segment with advanced features like predictive maintenance and fleet data analytics.
- Rise of V2X and IoT in Two-Wheelers
The integration of V2X and IoT technologies in two-wheelers is already revolutionizing the industry. These advancements are creating new avenues for data monetization, enhancing rider safety through ARAS, and supporting the development of smart cities. The shift towards these technologies is only bound to accelerate as traditional OEMs enter the E2W space, further driving innovation.
Companies to Action
Gogoro is at the forefront of leveraging V2X technology with its eScooters, which communicate with each other and with cloud networks to optimize battery-swapping and update software in real-time.
- Emergence of Subscription-Based Connectivity Models
As connectivity technology becomes more advanced, two-wheeler manufacturers are exploring subscription-based models to offer premium features and services. These models will allow riders to unlock specific features as needed, creating new revenue streams for OEMs and service providers. This shift is particularly prevalent in software-centric E2Ws, where OTA updates can continuously enhance vehicle capabilities.
Companies to Action
LiveWire’s S2 Mulholland, equipped with embedded connectivity is expected to lead the way in offering subscription-based services through OTA updates.
- Delivering Enhanced Safety and Security
The increasing concern for rider safety is driving the development of connected safety systems in two-wheelers. The integration of ARAS, real-time diagnostics, and emergency response features is becoming standard in premium models, with the goal of reducing accidents and improving overall rider security.
Companies to Action
BMW Motorrad is integrating connected safety features, such as eCall services which automatically sends location data to the BMW Motorrad call center, ensuring prompt assistance and increasing rider safety.
What best practices is your organization focusing on to maintain a competitive edge in the fast-growing electric two-wheeler industry through connectivity innovations?
To learn more about these best practices and discover growth opportunities, check out our latest analysis “Growth Opportunities in Connectivity Technology in the Two-wheelers” by clicking here.
About Frost & Sullivan
Frost & Sullivan, the growth pipeline company, enables clients to accelerate growth and achieve best-in-class industry positioning in terms of innovation and leadership. The company’s ‘Growth Pipeline-as-a-Service’ provides corporate management teams with transformational strategies and best-practice models that catalyze growth opportunity generation, evaluation, and implementation. Let us coach you on your transformational journey, while we actively support you in fostering collaborative initiatives within the global Automotive Safety and Connectivity ecosystem. This journey is fueled by four powerful components, ensuring your success in navigating dynamic business and industry landscapes.
- Schedule a Growth Dialog with our team to dive deeper into transformational strategies and explore specific needs within your company.
- Become a Frost Growth Expert in your area of specialization and share your expertise and passion with the community through our think tanks.
- Join Frost & Sullivan’s Growth Council and become an integral member of a dynamic community focused on identifying growth opportunities and addressing critical challenges that influence industries.
- Designate your company as a Companies to Action to maximize your exposure to investors, new M&A opportunities, and other growth prospects.
