Autonomous Vehicle Strategies

Autonomous vehicles will change every aspect of our society from transportation to infrastructure, from jobs to lifestyle.

With the advent of autonomous forms of transportation, society will usher in the single greatest change since the industrial revolution. This vast cultural re-imagination will create nearly endless opportunities.

To capitalize on these opportunities, Brulte & Company is currently developing tailor-made autonomous vehicle strategies that will provide our clients the greatest chance for success in these foremost markets:

    Shared Mobility (Encompassing Autonomous Vehicles) Market Opportunity
    Entertainment — (Over-The-Top) OTT Streaming Services
    Partnerships — Best-in-Class
    Policy — Driving the Future Forward
    Subscriptions — Autonomous Vehicles as a Service

    Shared Mobility (encompassing Autonomous Vehicles) Market Opportunity

    Morgan Stanley is projecting the shared mobility market (which encompasses autonomous vehicles) to be worth $2.6 trillion by 2030. While, McKinsey & Company is projecting that 1 out of 10 cars sold in 2030 will be a shared vehicle.

    The insights from both Morgan Stanley and McKinsey & Company point to a bright future for car manufacturers which are willing to transform from traditional car manufacturers into mobility companies.

    Brulte & Company has the close relationships with manufacturers which are developing autonomous vehicles, as well as the trend setting global startups that are redefining the mobility marketplace.

    Established companies and entrepreneurs will create new revenue streams that will propel growth in the future.

    As illustrated in a recent research report by Katy Huberty, Managing Director at Morgan Stanley, Research Division, she is predicting that Apple could gain 16% of the mobility market by 2030.

    If this happens, an Autonomous Apple Car as a Service could generate $400 billion in annual revenue and $16 in earnings per share by 2030. To put this into perspective, Apple generated $155 billion in revenue from the iPhone in fiscal 2015.

    Today, only 8% of the U.S. population has used a form of car sharing according to Navigant Research. With the introduction of shared on-demand autonomous vehicles, this will create a massive opportunity not just for Apple, but for all companies with a vested interest in mobility.

    Will you be ready for this opportunity? Brulte & Company’s clients will be prepared for this opportunity with a strategy that gives them competitive advantage over their competitors.

    Entertainment — (Over-The-Top) OTT Streaming Services

    The average American spends 46 minutes per day in a car. The time spent in an driverless car can now be used to watch movies instead of concentrating on the road which will create new opportunities for studios, content owners and OTT service providers.

    Ernst & Young is projecting that driverless cars could generate $20 billion in incremental growth through increased streaming revenue. While the opportunity is there, will Hollywood embrace the opportunity by developing and implementing an autonomous vehicle strategy?

    “Hollywood execs take for granted that everyone wants to watch their content. The studios should make sure their content is there. It has to be different from a phone, or a house — there has to be an experience for the car.” – Grayson Brulte, Co-Founder of Brulte & Company as featured in the July 22, 2016 issue of The Hollywood Reporter.

    In 2015, more than 180 million individuals – 7 in 10 U.S. Internet users – watched a video on an OTT platform. By 2018, one in five American households will not subscribe to a traditional pay TV service. These subscribers will instead choose OTT services.

    In the next five years, OTT subscribers are projected to surpass 306 million, and revenues are expected to climb 50% to nearly $27 billion. With the increase in streaming revenue comes opportunity to create new in-car experiences for driverless cars.

    Will you be ready for this dramatic growth opportunity when Level 4 driverless cars are on public roads?

    Brulte & Company’s clients will be prepared to capitalize on this opportunity. Will you be prepared for the next great OTT growth opportunity?

    Partnerships — Best-in-Class

    The shared mobility (encompassing Autonomous Vehicles) market is entering a period of consolidation due to breakneck growth, balance sheets and general market saturation.

    Today we are seeing companies connect the dots and invest in companies that offer them strengths that are not easily replicated — cloud, energy, logistics, mapping, ride sharing.

    These investments are being used as stepping stones to model user behavior prior to deploying an autonomous vehicle car service. CB Insights is reporting that there are currently 30 corporations working in and around driverless cars. These corporations are a diverse group of companies, ranging from manufacturers to automotive components companies to leading technology companies.

    While there are currently 30 corporations working in and around driverless cars, there are countless startups which are developing autonomous forms of transportation and the mobility platforms to power the future of transportation.

    Brulte & Company has close relationships with the corporations that are developing the future of transportation as well as the trend setting global startups that are redefining the mobility marketplace.

    With these close relationships, we can identify and define potential partnerships for our clients to grow their businesses. We understand how trends and consolidation will affect the global marketplace.

    Through partnerships, we prepare our clients for trends that will impact the marketplace. Brulte & Company’s clients have the right partnerships to succeed in an ever-changing marketplace.

    Brulte & Company’s clients are prepared. Do you have the right partnerships to grow?

    Policy — Driving the Future Forward

    Brulte & Company has a deep understanding of the autonomous vehicle policy and mobility markets and how these markets have evolved over the course of history and how they are projected to evolve in the future.

    Before the shared mobility market can grow and reach it’s true potential, partnerships and coalitions will be formed to address the following question — How will autonomous vehicles impact my city?

    Brulte & Company is currently advising Cities, Mayors and Statewide Elected / Appointed Officials across the United States on how to prepare for a future with autonomous vehicles.

    We are actively working with officials to develop and implement autonomous vehicle strategies that encompass drop-off / pick-up zones, infrastructure, land use issues and partnerships.

    Brulte & Company’s clients are prepared. Will your City be prepared for an autonomous future?

    Subscriptions — Autonomous Vehicles as a Service

    Today, when you lease a vehicle you are essentially subscribing to a vehicle expect, you have to garage, insure, service and maintain a vehicle which is highly inefficient. The average vehicle sits idle 94% of the time which incurs costs for garaging the vehicle when it’s not in use.

    To overcome this highly inefficient utilization of vehicles, individuals in the future will subscribe to an autonomous vehicle brand as a service as opposed to leasing / owning and garaging an autonomous vehicle. Individuals who subscribe to the service will be able to use every vehicle in the brand’s product range for a flat monthly fee.

    When individuals travel, their autonomous vehicle subscription will travel with them to their destination. This will create a consistent brand experience for the subscriber which will reinforce brand loyalty and increase revenues for the autonomous vehicle company which is providing a mobility service.

    The market is clearly ready for a subscription model, as leasing of new cars in Q1 2016 passed 31.11% for the first time in history according to Experian Automotive. This is roughly a 4% increase in new car leases since Q1 2015 when the number was last reported as 26.67%.

    Individuals on average are currently spending $410.66 per month to lease a car. 64% of all new car leases are on a 36 month contract, which makes for a seamless upgrade to an autonomous vehicle subscription when they are introduced.

    Brulte & Company’s clients will be prepared for the change of car leases to autonomous vehicles service subscriptions. Will you be prepared for the change in car ownership?

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