Autonomous driving reshapes competition in the ecosystem

The Report

In this report, we discussed the potential of autonomous driving in China, and the shift in the competitive landscape. In the end, it provides insights and suggestions to all players in the FoM ecosystem on riding the waves and reaping the opportunities, helping the stakeholders determine where to play and how to win.

Viewpoints / key findings

• A bright future for autonomous driving. Driven from China government's strong push and the market demand, China is very likely to become the largest autonomous driving market in the world along with leading L4 technologies and applications.
• Rebalance the negotiating power within auto industry. The traditional top-down value chain tends to be flattened in the L4 era. The dominant role for auto OEMs will be challenged. The negotiating power for each player in the value chain will be rebalanced. 
• Define the position in the ecosystem transformation. In the new ecosystem, all the stakeholders should clearly define their own position in the value chain, and formulate the winning strategy to cope with a changing market landscape.
• Cooperation is better than competition. In the autonomous driving ecosystem, all the players need partners and collaboration to enhance their competitiveness, no single player can achieve success without collaboration with others.

The autonomous driving market in China is huge and complex. All the stakeholders need to build a clear strategy as soon as possible. Meanwhile, it is necessary to collaborate to extend their partnership.