With privately owned vehicles becoming connected to each other and to external infrastructures via a growing number of sensors, an enormous amount of data is being generated. Once considered merely ‘nice to have,’ connected car data and its monetization is rapidly becoming a critical part of automobile and transportation systems. Ericsson says that the total number of connected cars in operation will rise to more than 500 million by 2025. The connected car market is projected to reach USD 219.21 billion by 2025, and 2017-2025 is the forecast period for estimating the size of the global market.
But what is connected car all about?
A connected car is a car that comes well-equipped with internet connectivity, thus enabling your car to share key data and information remotely. It is essentially important in various situations, right from monitoring tyre pressure, fuel level, and braking systems to sat-navy systems, external parking cameras, and geolocation systems to track your car if it gets stolen or parked in a multi-story car park.
In the past few years, car connectivity has evolved substantially from a theoretical concept to the actual reality. It is estimated that connectivity services may outreach $450 billion to $750 billion all across the globe by the year 2030. But everything largely depends on the capability of market competitors to utilize the data generated by cars, drivers, and mobility systems to design and develop products that increase revenue, minimize costs, and improve safety and security measures. Although the potential of connecting services is noteworthy, monetizing car data at a larger scale still remains a big challenge. But one thing is clear that a lot of many organizations circumambulating the automotive sector can catch hold of these potential opportunities.
Here at Airlinq, we have been consistently probing the automotive ecosystem for quite a while now. We believe in providing a comprehensive white-label platform as a service (PaaS) for quick development and implementation of the large-scale AI and IoT applications hinged around global connectivity, device management, and cutting edge intelligence for an automotive manufacturer.
Connected Car Data: Is it the Real Driver?
When a vehicle becomes connected, the car itself turns into a hub for an entire ecosystem of connected services that come with a variety of new experiences to consumers and unravel a world full of opportunities for various businesses across sectors such as manufacturers, mobile operators, OEM and more.
Some major industries that could benefit significantly from the rise of connected cars include:
1. Automobile Sector
Automobile manufacturers splurge millions of dollars to make a vehicle that meets their expectations but has limited means to know if they will succeed in their objective. Connected cars comprise of a large number of IoT enabled sensors that assess engine performance parameters, braking and steering systems, and various other systems. Automakers can analyze their large sets of data to gauge product performance. This can significantly help them make their next model more efficient, safe, and reliable. But the real IoT advancements in the auto industry are still behind the scenes, as automotive manufacturers and software providers both lay claim to the driver’s seat. Your car linked to your smartphone will tell you about the real-time traffic updates and can offer roadside assistance and concierge services right at the touch of a button. Therefore, when it boils down to technology and connecting drivers, the auto industry has a much longer and richer track record than any other sector in the market.
2. Insurance Policy based on usage
Almost 40% of drivers are in favor of the idea of insurance companies to let safe drivers pay less for their plan. Connectivity services allow automotive insurance companies to track driving behavior and performance. And ultimately, this will enable insurance companies to favor safe and sensible drivers by lowering their premium amounts. Another concept steering through the usage-based insurance sector is the PAYD and PYHD. Pay-as-you-drive (PAYD) car insurance plans can provide a money-saving solution for drivers who don’t drive often. However, Pay-how-you-drive (PYHD) insurance policies consider driving skills as their significant factor when setting premiums. So if you are a careful driver who applies brakes gradually and considers speed limit, as a rule, you will be considered a skilled driver, which signifies low premium amounts.
3. The Growing Trend of Electric Vehicles
Electric mobility continues to develop speedily, and it can be easily understood as in 2018, the global electric car fleet surpassed 5.1 million, which is 2 million higher from the previous year. China is the world’s largest electric car market, followed by Europe and the United States of America. Here, the connected car data concept can help manufacturers customize the battery size as per the travel needs and get rid of over-sizing the batteries, which is particularly pertinent when it comes to heavy-duty vehicles.
4. Opening New Opportunities for OEMs
Positive and motivating customer feedback is recognized as a considerable success for original equipment manufacturers (OEMs), the majority of which have already invested significantly in developing connectivity within the vehicles. OEMs can harness the connected car data to successfully develop features that meet a driver’s unmet emotional and functional requirements.
5. Predictive Maintenance of Mission-Critical Fleet
Today, business organizations with high-value assets, like fleet management companies, are turning to predictive maintenance to help control the ever-increasing costs of maintaining their equipment. Predictive maintenance tools fetch data and monitor the condition and performance of in-service equipment, such as a fleet of vehicles, so as to reduce the possibility of failures. By using the data by numerous sensors installed on trucks and other fleet vehicles, the fleet managers can easily foresee the imminent failures.
When businesses turn to the Internet of Things services companies, they are more likely to become more agile, unveil new revenue sources, and augment the experience for their valuable customers. Hence, the increasing number of companies and industries gatecrashing the connected car economy is no exception.