Already connected the car! What’s next?

Connectivity preludes a new age of technological and business convergence around automotive OEMs and telecom operators. From being a futuristic idea to being the ‘now,’ the adoption of connectivity in the automobile industry is steadily on the fast track. It is soon becoming an imperative offering for digital-native customers. From legacy to digital: This blog outlines the answers to a few keys questions:

The What? Evolution of the transportation system and the expected tectonic shift
The Why? The reasoning behind this metamorphosis of automotive OEMs
The When? Validation of new use-cases and their rising need in today’s connected world
The How? Standard Market offerings vs. specialized Airlinq platform

Metamorphosis of the transportation ecosystem-

There is a tectonic shift happening in the way OEM will offer the vehicles to consumers in the future. Most of the Automotive OEMs are already transforming their businesses. They are partnering closely with major Mobility service providers facilitating point to point transportation services. Instead of buying cars, people would prefer to subscribe to the mobility packages in a pay-as-you-go kind of model. The whole service offering will be on-demand in nature. It will be highly flexible and will be configured based on the parameters like the mode, time, purpose, passenger, and duration of transportation required.

The advent of autonomous electric vehicles will drive further disruption-

Electric autonomous pods added to these fleets, along with Driverless revolution and all-electric mobility, will lower the cost per mile substantially, democratizing personal transportation access. Billions of people will spend an average of 2.5 hours per day in these autonomous, connected pods. According to a report by Mckinsey The estimated revenues by delivering value-added services on top of this transportation network are nearly $1.5 Trillion by the year 2030

The task at hand for Automotive OEMs?
• Rapid innovation in this fast-evolving business landscape
• Extend and futureproof the connectivity in all vehicles
• Build extensive edge processing and analytics capabilities
• A clear roadmap to autonomous and electric models
• Integrate an elastic layer of on-demand mobility for users
• Service monetization on top of connected infrastructure

Time to check the current vehicular connectivity –

Every OEM’s connected car deployment is unique, so is their service vision. There are many standard connectivity solutions offered by telecom operators and intermediaries that are good to meet immediate needs. However, to align with the significant shift visible on the horizon, OEM’s need flexible software-defined connectivity. Along with a data pipe, it should also facilitate complex use cases around 5G, autonomous driving, edge computing, C-V2X enablement, vertical handover, regulatory compliances, multi-regional presence, and ownership changes as necessary. The success of a digital monetization ecosystem highly depends on the flexibility and robustness of underlying connectivity fabric.

Integration with monetization ecosystems should start now –

The value creation models for connected automotive are highly dependent on the underlying building blocks – edge processing, vehicular data, in-vehicle HMI, and the cloud-enabled ecosystem of third-party service providers. There are hundreds of use cases to be developed on top of these blocks, ranging from:

These use cases validate the need to redefine the vision and mission around Connected cars. It further substantiates the need for developing a new value chain inside the OEM organization; to partner for expertise in software and apps, connectivity, data management, User Experience with strong play for AI, and ML.

Airlinq: Forefront of enabling automotive ecosystem

With a ubiquitous global fabric of connectivity, Airlinq acts as a glue between the Automotive OEMs and Telecom operators. Airlinq working with leading Tier 1 global automotive OEMs understands what they need and has developed a comprehensive solution to align with next-generation applications around edge computing and ecosystem enablement.

Automotive OEMs eyeing seamless connectivity and global expansion of Connected Car business need a partner that can provide reliable connectivity and extend unified services across all regions of the world. Strategic partnerships with Tier 1 mobile operators place Airlinq in a unique position to offer single API based integration for Global roll-out and new market launch. Automakers get the comfort of a single pane of operations with complete control over performance and revenues across the world.

Kunal Upadhyay

Director Airlinq

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