Periodic Reporting for period 1 - SKIDLESS (Enhancing car safety through accurate and real time side-slip angle assessment)
Berichtszeitraum: 2019-02-01 bis 2019-07-31
During Phase 1 we collected requirements from OEMs and Tier1s for integration of the Skidless software, realized a lab-scale demonstrator emulating the software in an use case scenario, and performed a standard compliance analysis in order to obtain certifications. We assessed the size of the market, and defined a business model based on a licence fee. The marketing strategy is based on direct contacts of prospective customers, by initially focusing on high-end and sport vehicles. The Phase 1 project has been key for demonstrating the feasibility of the system implementation, enabling a co-development effort with OEMs and global ESC manufacturers and leading to a pre-commercial validation test-beds, which will be pursued in the view of the commercialization in 2022.
We finally performed a standard compliance analysis in order to determine the certifications required to commercialize the system (e.g. AUTOSAR Safety and ISO 26262) and the activities needed to obtain them.
Regarding the business-related activities, we interacted with several OEMs, Tier1s and Tier2s. We first validated the value proposition of Skidless, which has been highly valued for the enhancement of the vehicles’ stability and therefore of the passengers’ safety, as well as for the expected savings due to the embedment of a virtual sensor technology. The interactions served also for collecting further requirements (like short development time and low technical impact) and potential barriers to implementation (like integration and confidentiality issues).
The market size is huge, with 86.01 million vehicles sold in 2018 and the ESC systems market hitting 24.5 billion € in 2018. We scouted and interacted with the most important suppliers of ESC systems and estimated the overall TAM, SAM and SOM of our new technology. We identified a model based on an annual license for each car model, with a staggered price list depending on expected production volumes. The commercialization plan was defined, based on a first phase for the final engineering of the Skidless software and validation, followed by a business development activity with a dedicated sales engineering team. This will lead us to the market launch in 2021, enabling Modelway to hit more than 13 M€ revenues in 2025, with an estimated net profit of more than 7M€. During the Phase1 project, we disseminated the Skidless solution in several global events (like the WAC in Shangai 2019), and through interactions with the most important players in the automotive sector.
The first benefit of the Skidless solution is related to the enhanced security value that OEMs could claim to their customers. Security is one of the key strategic features driving innovation in the automotive sector. Skidless is poised to improve the ESC performances by up to 20%. OEMs highlighted as first application of the technology both sport and medium/high-end cars, because of their high-speed performances needing specific security features.
The second benefit is related to the incoming revolution of Autonomous Driving. Modelways’ proprietary and patented Direct Virtual Sensor (DVS) technology is a potential enabling factor for the full deployment of autonomous cars, since it enhances the capability of the car to collect input data and process them in real-time by ensuring maximum security for passengers. Sideslip angle has then been considered as a first key feature of a “sensing machine” which is poised to replace several physical sensors in autonomous vehicles, by reducing overall costs components/sensors and implementation efforts.
By developing and commercializing the Skidless technology, Modelway will fulfill the vision to make Skidless an industry standard in the automotive sector. Modelway’s DVS technology provides a rich variety of potential side applications, both in the automotive sector and in other branches. In the long term, Modelway intends to become a world leading company in the development of “virtual sensing machines”, able to substitute real sensors, thus reducing costs for components/sensors and implementation efforts, and enhance the vehicles’ automated features and the overall safety.