According to a recent report, the global connected car market is expected to grow from 5.1 Million units in 2015 to 37.7 Million units by 2022, at a CAGR of 35.54% during the forecast period. Adoption of telematics units and advances in tech with emphasis on driver and passenger experience along with safety and cyber security are ushering in a new era of growth for connected cars globally.
Hereafter some applications induced by connected cars usage:
With connected cars, insurance companies can offer incentives to drivers to drive well in return for lower premiums. This will make our roads safer and improve the driving experience. Drivers can also use this information to evaluate and improve their driving skills. In a country where we constantly complain about traffic jams, thanks to big data, your car will someday soon wake you up early to remind you that if you don’t reach office early, you will have to deal with more traffic. Big data will bring in more predictability in traffic management with data from each vehicle adding up.
Drivers and fleet managers will now get inputs on vital vehicle diagnostics data leading to detection of issues before they turn into a major problem. This will reduce vehicle breakdowns and ensure hassle free driving as well as improved mileage. Well maintained vehicles also minimize emissions.
The data opportunity
According to a recent research, a single connected vehicle has the potential to generate more revenue than 10 conventional non-connected vehicles. In the future, the market share of OEMs will not be based on units sold but on the data revenue generated per vehicle. Data monetization in an IoT context is still in its infancy and we will see plenty of action on this front in the near future.
A connected car can dig into its database to come out with suggestions on your favorite number or best route available to pick up your child from her piano class every Friday.
With the arrival of 5G, connectivity issues will be a thing of the past. 5G will enable connected cars to send and receive messages faster (up to 10 times a second). 5G will also enable more situational awareness and provide advance warning in case any roadblock or hindrance were to appear on the road you are driving on thereby giving you more time to react.
In the US, it is expected that fully autonomous vehicles will be driving at motorway speeds by 2025. Though it is still early days OEMs are delivering some degree of automation. Autonomous parking, collision alert and protection systems that slow down cars or issue warnings to drivers or even dial emergency numbers are already part of mainstream automobile narrative.
Connected cars will turn into content platforms in the near future. This will open up a whole new market for content providers. Such platforms could also host apps and other engagement options. Automakers or other entities will offer content within cars.
Connected cars are arguably the most exciting concept being enabled by the Internet of Things. In the days to come, this segment will witness more path breaking developments and personalization of a driver’s engagement with her car will bring benefits of its own accord. The possibilities are endless but well within our capacity to imagine.
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