Cisco Confidential 1 © 2011 Cisco and/or its affiliates. All rights reserved.

The Internet of Things TOMORROW Starts Here

Autonomous Vehicles

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Source: christian-foerg.de, 2009

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38

55

$0.73

$0.81

$0.94

$0.98

$1.20

$1.98

25,000

20,000

15,000

Average

10,000

5,000

Average Car Cost/ Mile by Annual Mileage [US$]

Source: AAA, Cisco Connected Vehicle, 2013

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1 Liter / 100 km Car

Urban Congestion:

11%-13% Time Wasted

Traffic Light Stops:

10%-17% of Urban Fuel

Parking Search:

7%-21% of Urban Traffic

Source: VDA Annual Report, TTI, VTPI, Cisco IBSG 2011

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Source: Millennials & Mobility, APTA 2013

2.24 2.73 4.09 4.34

Driving a car Walking Rail Bus

Bike

Mean preference rank,

where 1 is most preferred

2nd highest expense (12%)

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Personal Transportation

Mass Transportation

…But What is the Next Big Thing?

Source: christian-foerg.de ,Cisco IBSG Automotive 2011

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Consumers Trust Driverless Cars

95% Brazil

86% India

70% China

60% USA

57% Russia

92%

69%

53%

48%

36%

Canada

France

UK

Germany

Japan

52%

45%

45%

37%

28%

36%

37%

39%

31%

27%

57% of consumers, globally, trust driverless cars—even more so in emerging markets

Would Ride Driverless

Would Let Kids Ride Driverless

Source: Cisco Systems, 2013

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Safety and

Security

Operational

Efficiency

Travel

Experience

Revenue

Generation

Running Transportation on

Networked Information

Transportation Services Delivered by Technology

Source: Cisco IBSG Automotive, 2011

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Vehicle

Deliver Service Source Sell Make Develop Transform…

Source: Cisco IBSG Automotive 2011

Integrate…

Energy

Service Provider

Infrastructure

ITS

New Services …

Connect…

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Show me the Money! Society

Fewer crashes

Lower traffic/road/toll operation costs

CO2 reduction

Vehicle User

Lower insurance

Lower operation cost

Less time stuck in traffic, more productivity

Internet of Cars Service Providers

B2C: Navi, Traffic, Weather, Parking, Infotainment, etc.

B2B/G: “Apple on Wheels” , LBS, UBI, Big Data, etc.

Auto OEM/OES

Lower service/warranty costs

New profit pools

Architectural savings

$ 550

$420

$300

$160

Benefits per vehicle, per year Source: Cisco IBSG Automotive and Economics Practices, 2011

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Source: Autonomous Cars – Self –Driving: The New Automotive Paradigm, Morgan Stanley Research,, 2013

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Passenger Vehicle Stock

(Millions)

Reduce Cost to World Average of 24%

Source: EIU Data, Cisco IBSG Automotive 2010

Transportation & Communication Cost

(Percent of Personal Income)

58%

54%

50%

43%

42%

Brazil

India

Thailand

China

Mexico

17%

15%

15%

15%

14%

12%

United Kingdom

Germany

France

Italy

Japan

United States

Mature Markets

Emerging Markets

Today 2020

13%

750

1,750

59%

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Thank you.