Go to the Mian menu
Go to the Mian menu

i-KIET Issues & AnalysisKIET Korea Institute for Industrial Economics and Trade

  • home
  • Publications
  • i-KIET Issues & Analysis

The analysis of smart cars’ industrial ecosystem and its implication

Author Hwang, Wonsik ; Kim, Seungmin Date 2017.03.06 Issue No 10


Smart cars are advanced vehicles with better safety and convenience through ICT convergence. Their market is continuously expected to expand as technology develops and demand increases.

Demand of services, which is convenient to drivers with IT services, is expected to increase, and relevant market is projected to expand in the future as a way to address a safety of transportation.

It is urgently needed to obtain soundness of the industrial ecosystem through the improvement of financial conditions of SMEs, which comprise supply value chains of smart cars.

●Under the industrial structures of ecosystems of the domestic smart car industry, the majority of small SMEs heavily rely on the minority of large companies with high profits.

●Among SMEs comprising supply value chains of smart cars, there are many businesses with a poor financial stability and profitability.

●Businesses related to smart cars generally have a higher ratio of R&D investment to sales compared to other industries in order to adjust to new technology environments.

Customized policy is necessary to establish the ecosystems of the smart car industry in virtuous cycle.

●Integrated governance systems are necessary to support a connectivity from technology development to ITS infrastructure establishment.

●There are many challenges to develop the smart car industry for example, building infrastructures, maintenance of laws and systems, convergence between technologies, etc.

●It is necessary to focus on the establishment of policy ecosystems so that businesses smaller that SMEs can show their competence as a growth engine of the smart car industry in the future.