Suppose you think about the driving experience some decades ago. Entertainment during 3-hour rides mainly included listening to the radio or staring at the landscape through the window. Now, you can connect your vehicle to your phone to play your favorite list on Spotify or even watch a show on Netflix.
As we live pushed by digitalization and remote activities, the automotive industry is finding its way through an era where interconnectedness is key.
The connected car
Companies are using the connected car concept to describe a vehicle that provides digital services that simplify people’s lives while they head to their destination. Today, connected cars enable us to access our schedule, email, or social media, meaning they have become a digital commodity that compliments our lifestyle.
The globally connected car market is expected to reach $166 billion by 2025 and consumers in Italy (63%), Spain (55%,) the UK (49%), and France (42%) believe increased vehicle connectivity will be beneficial.
New challenges for automotive interconnectedness
The automotive industry is now facing a new era of connectivity where vehicles are capable of connecting with devices, interfaces, and infrastructure outside the car (V2I or vehicle to infrastructure communication). This new level of connectivity ranges from enabling drivers to make payments from their vehicles to remotely controlling devices. They can also improve mobility with connectivity to road infrastructure.
One of the benefits of connected vehicles is the new generation of car infotainment systems. Users will be able to download and use their favorite apps via the vehicle’s computer system, generating valuable data on:
- The e-commerce sites they visit.
- Their favorite music library on Spotify.
- A preferred restaurant to visit.
As a result, the system can make more accurate suggestions such as scheduled services, reminders, remote engine capabilities, and personalized navigation.
Some automotive companies are already making in-car payments a reality. In 2018, Chevrolet and Shell partnered to enable customers to pay for fuel through a dashboard screen by selecting a fuel payment icon. This payment system is embedded in the car, meaning other types of tethered technology are not needed to complete the transaction. Mastercard and Here Technologies started working together in 2019 to make purchases and interact with destinations through the vehicle’s dashboard.
The digitalization of cars and new software and cloud services capabilities will inevitably change current automotive business models. Shared data, new market segments, and an ongoing customer relationship represent clear new business opportunities.
Find out more about how this industry is creating new value streams in the era of personalization. Download our white paper!
