- Connected car a collaborative effort between different technologies and competencies
- Can be divided into solutions that are inside, outside, and around the car
THE first wave of connected cars saw infotainment and environmental information services.
As we enter the year 2016, the concept of connected car will branch further out to multiple areas of consumer convenience, such as seamless urban mobility, assisted driving, driverless cars, and car-sharing, to revolutionise the driving experience.
Industry analysts expect investments in the connected car market to exceed US$40 billion globally by 2025.
This second wave of connected car will see businesses leverage technology to address issues of urbanisation – road congestion, pollution, and safer mobility.
Man to machine is passé
Modern vehicles are fast evolving into moving machines with sensors, software, processors, applications and networks.
More than ever before, organisations require a deep understanding of multiple technologies to build the new capabilities needed – a convergence of digital, telematics, mobility, social media, analytics and the Internet of Things (IoT).
Machine-to-machine (M2M) – the automatic exchange of information between machines and devices without human intervention – a concept closely related to the IoT, cloud and analytics, is able to exchange and evaluate data and create added value to daily lives.
For instance, it is possible to avoid congested routes with a combination of M2M technology, real-time traffic monitoring, and predictive analytics.
Remote diagnostics leveraging M2M technology can also alert drivers as well as solution centres if they foresee in-vehicle issues.
All in all, M2M is increasingly being used by automakers and original equipment manufacturers (OEMs) to enhance safety and functionality in vehicles to eliminate waste and inefficiencies, while optimising resources.
Rolling out collaboration
M2M presents a significant opportunity for innovation across a range of industry sectors, including automotive.
With such ideas in mind, businesses are engaging in multiple sectors to conceptualise, design and implement them. Partnerships and alliances with hardware and telecom providers are vital when pursuing the planned strategy of multiple dimensions of solutions and services, including consumer electronics and personal gadgets, customer applications and analytics, security and safety.
Increased collaboration between enterprises across the spectrum – automakers, technology providers, wireless service providers, digital security experts, energy companies, smart city solution OEMs, fleet operators, distribution companies and more – is giving rise to a world of new mobility, new opportunities, and new challenges.
Shifting gears with different business models
With car buyers increasingly expecting features of a connected car, differentiation amongst OEMs will come from their ability to provide complex feature sets, such as integration with lifestyle needs, based on demographics.
With the help of digital technologies, greater personalisation will be the next step for businesses to take so that they will stand out in the industry.
In emerging markets, millennials with growing purchasing power do not view cars as mere means to go from point A to point B – they want to travel in the most efficient and entertaining way possible!
Therefore, the connected car initiative is a collaborative effort between different technologies and competencies.
From the OEM standpoint, end-to-end connected car solutions and services can be categorised as ‘Inside the Car’ (that is, in-vehicle systems development, testing and implementation), ‘Outside the Car’ (that is, consumer-facing apps, integration with dealer/ OEM systems), and ‘Around the Car’ (that is, urban mobility, cross-industry monetisation).
Personal transportation is a matter of both need and aspiration. Naturally, the evolution of the connected car is an extension of consumer choices.
This dynamic in congested mega-cities takes the choice to a different level. For regular urban commutes, people are willing to look at different options that are more convenience-driven than feature-loaded.
Driverless cars, car sharing, car-pooling and seamless multimodal mobility will soon become an integral part of urban transportation.
With the market estimated to be a multibillion-dollar opportunity, it is expected that technology companies will be vying for a growing slice of the pie. Connected car solutions will become one of the major business drivers for the automotive industry in the future.
In 2016 and beyond, automotive manufacturers and their partners will see radical changes to their businesses with the emergence of new digital technology and the re-distribution of global supply chains.
Prasad Satyavolu is head of Innovation, Manufacturing and Logistics at Cognizant.
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