The document discusses autonomous vehicles and how technology can transform transportation. It notes that autonomous vehicles could reduce transportation costs on average by $550-$420 per vehicle per year through reduced insurance, operation costs, and time spent in traffic. The document also discusses how consumers globally trust autonomous vehicles, especially in emerging markets, and how transportation and communication costs take a large portion of personal income in many countries that could potentially be reduced.

1. The Internet of Things
TOMORROW Starts Here
Autonomous Vehicles
© 2011 Cisco and/or its affiliates. All rights reserved.
Cisco Confidential
1

2. Source: christian-foerg.de, 2009
© 2013 Cisco and/or its affiliates. All rights reserved.
Cisco Confidential
2

3. Average Car Cost/ Mile
by Annual Mileage [US$]
5,000
55
$1.98
10,000
$1.20
Average
$0.98
15,000
38
$0.94
20,000
25,000
$0.81
$0.73
Source: AAA, Cisco Connected Vehicle, 2013
© 2013 Cisco and/or its affiliates. All rights reserved.
Cisco Confidential
3

4. Urban Congestion:
11%-13% Time Wasted
Parking Search:
7%-21% of Urban Traffic
Traffic Light Stops:
10%-17% of Urban Fuel
1 Liter / 100 km Car
Source: VDA Annual Report, TTI, VTPI, Cisco IBSG 2011
© 2013 Cisco and/or its affiliates. All rights reserved.
Cisco Confidential
4

5. Driving a car
Walking
2.24
2.73
2nd highest expense (12%)
Rail
Mean preference rank,
where 1 is most preferred
Bus
4.09
4.34
Bike
Source: Millennials & Mobility, APTA 2013
© 2013 Cisco and/or its affiliates. All rights reserved.
Cisco Confidential
5

6. Personal Transportation
…But What is the Next Big Thing?
Mass Transportation
Source: christian-foerg.de ,Cisco IBSG Automotive 2011
© 2013 Cisco and/or its affiliates. All rights reserved.
Cisco Confidential
6

7. Consumers Trust Driverless Cars
of consumers, globally, trust driverless
cars—even more so in emerging markets
57%
Would Ride Driverless
Would Let Kids Ride Driverless
Brazil
India
China
USA
Russia
95%
92%
86%
69%
70%
53%
60%
48%
57%
36%
Canada
France
UK
Germany
Japan
52%
36%
45%
37%
45%
39%
37%
31%
28%
27%
Source: Cisco Systems, 2013
© 2013 Cisco and/or its affiliates. All rights reserved.
Cisco Confidential
7

8. Running Transportation on
Networked Information
Transportation Services Delivered by Technology
Safety and
Security
Operational
Efficiency
Travel
Experience
Revenue
Generation
Source: Cisco IBSG Automotive, 2011
© 2013 Cisco and/or its affiliates. All rights reserved.
Cisco Confidential
8

9. Integrate…
Transform…
Develop
Source
Make
Sell
Deliver
Service
Vehicle
Energy
Service Provider
Connect…
Infrastructure
ITS
New Services
…
Source: Cisco IBSG Automotive 2011
© 2013 Cisco and/or its affiliates. All rights reserved.
Cisco Confidential
9

10. Internet of Cars
Service Providers
 B2C: Navi, Traffic, Weather,
Parking, Infotainment, etc.
 B2B/G: “Apple on Wheels” ,
LBS, UBI, Big Data, etc.
Vehicle User
$ 550
$160
 Lower insurance
 Lower operation cost
 Less time stuck in
traffic, more productivity
Show me the Money!
Auto OEM/OES
 Lower service/warranty costs
 New profit pools
 Architectural savings
Society
$300
$420
 Fewer crashes
 Lower traffic/road/toll
operation costs
 CO2 reduction
Benefits per vehicle, per year
Source: Cisco IBSG Automotive and Economics Practices, 2011
© 2013 Cisco and/or its affiliates. All rights reserved.
Cisco Confidential
10

11. Source: Autonomous Cars – Self –Driving: The New Automotive Paradigm, Morgan Stanley Research,, 2013
© 2013 Cisco and/or its affiliates. All rights reserved.
Cisco Confidential
11

12. Transportation & Communication Cost
(Percent of Personal Income)
Passenger Vehicle Stock
(Millions)
1,750
Mexico
42%
China
43%
Thailand
India
59%
54%
Brazil
United States
Reduce Cost to
World Average of 24%
50%
58%
12%
750
Japan
14%
Italy
15%
France
15%
Germany
15%
United Kingdom
17%
13%
Emerging Markets
Mature Markets
Today
2020
Source: EIU Data, Cisco IBSG Automotive 2010
© 2013 Cisco and/or its affiliates. All rights reserved.
Cisco Confidential
12

13. Thank you.
© 2013 Cisco and/or its affiliates. All rights reserved.
Cisco Confidential
13