Automotive IoT: Rolling out a fleet of smart vehicles

The Internet of Things (IoT) is transforming industries worldwide, and the automotive sector is no exception. Connected vehicles are becoming increasingly common, with IoT-based solutions revolutionising how you manage your fleet. Indeed, APAC's automotive industry is experiencing a significant shift towards connected technology.

APAC presents significant opportunities for connected vehicle adoption. The region's large population, rapidly urbanising cities, and increasing demand for mobility make it an ideal market. Asian countries have also invested considerably in the infrastructure for connected vehicles, such as 5G networks and smart city initiatives. The region's connected vehicle market could reach $191.83 billion by 2028, expanding at 18.1% per annum.

The time is now for automotive companies to embrace connected vehicles and invest in IoT.¹ Here are four game-changing trends driving the growth of connected technology for transportation:

● The rise of electric and autonomous vehicles - As electric and autonomous vehicles become more common, the need for connected technology to support these vehicles will increase.²

● The demand for data-driven insights - Enterprises are increasingly looking for data-driven insights to inform their business decisions, and connected vehicles can provide valuable data on driver behaviour, fuel consumption, and maintenance needs.³

● The rise of the sharing economy - The sharing economy is driving the need for more flexible and efficient transportation solutions, and connected vehicles can help meet this demand.⁴

● The need for sustainability - There is growing pressure on companies to reduce their environmental impact, and connected vehicles can help reduce emissions and improve fuel efficiency.⁵

Other factors automotive companies must consider are the rapidly growing Asian market for connected cars, accessibility of low-cost electronics, widespread communication networks, and the potential for diverse information flows in vehicles. This investment will allow you to stay competitive in an evolving business and technological environment while delivering seamless connected vehicle experiences.

IoT generally refers to a network of interconnected sensors, gateways, and devices that communicate with each other via the Internet, enabling data exchange and process automation.

Consumer IoT includes devices for individual use, such as smart home devices and wearable technology. In contrast, IIoT refers to IoT devices utilised in the manufacturing, healthcare, and transportation industries.

Connected vehicles are among the most notable examples of IoT devices in the transportation industry. They feature sensors that collect and transmit data so drivers and fleet managers can monitor their vehicles in real-time.

In automotive IoT, vehicles, mobile devices, and infrastructure communicate to improve mobility and safety. Connected cars have sensors that gather data on speed, fuel efficiency, and engine performance, among others. They can share real-time information about their location, triggering automated responses in various situations, such as while in city traffic, crossing an intersection, or near potential roadblocks.

With an exemplary connectivity service, connected vehicles and IoT devices can "talk" to each other on the road securely and efficiently.

The advantages of IoT-based solutions for your fleet are numerous, such as:

●       Real-time monitoring: Using IoT technology, you can actively monitor your fleet's real-time performance, making informed and timely decisions.

●       Improved safety: Enhance your vehicles’ safety through IoT insights into driver behaviour and identify potential safety hazards.

●       Reduced costs: Decrease fleet costs with IoT by optimising routes, lowering fuel consumption, and minimising vehicle downtime.

●       Better decision-making: IoT-based solutions provide real-time data and insights, which drivers or fleet managers can use to make informed decisions.

●       Enhanced customer service: Deliver goods and services more efficiently with real-time monitoring and optimised routes, improving overall customer service.

Various types of enterprises can also benefit from automotive IoT, including:

_{Original equipment manufacturers (OEMs)}

Automotive manufacturers can utilise IoT technology for remote diagnostics, predictive maintenance, and over-the-air updates, enhancing customer experience and reducing costs.

_{Fleet management companies}

IoT enables real-time vehicle performance monitoring, location tracking, route optimisation, and fuel management, streamlining operations and reducing costs.

_{Ride-sharing and taxi services}

IoT allows these services to improve vehicle dispatch, optimise routes, and enhance passenger safety through real-time driver performance monitoring.

_{Emergency response services}

IoT can enable faster and more efficient responses to accidents or other emergencies through real-time communication between connected vehicles and emergency responders.

_{Logistics and delivery companies}

Real-time tracking and route optimisation can improve delivery efficiency, reduce fuel costs, and enhance overall operational performance.

Embracing IoT-based solutions could be a game-changer for all other companies in the automotive and transport industries.

_{What are your opportunities?}

As you explore the connected vehicle market, several opportunities await:

Connected car services

Boost your vehicles' value by providing services like safety systems, traffic management, car tracking, congestion avoidance, and autonomous driving. This approach enables greater pricing flexibility and diverse payment models.

Third-party services integration

Generate income through commission, revenue sharing, or platform subscriptions by incorporating third-party services like wireless internet, content streaming, parking services, event booking, and concierge services into connected car platforms.

Data monetisation

Use data from connected vehicles about driver behaviour, passenger activity, preferences, and location to enhance service personalisation and improvement. Utilise this data for product development, ongoing engineering efforts, and cost reduction, including streamlined maintenance scheduling and timely parts ordering.

_{What are the challenges?}

However, you may also face challenges with connected vehicles. It would help to have proper integration and interoperability across multiple operators so customers can utilise your new services in different APAC areas. Launching connected vehicles in Asia can be challenging due to the region's diversity, which includes differing regulations, consumer preferences, and infrastructure, making it challenging to introduce a standardised product.

You must also comply with local and regional regulatory requirements when launching services, including the need for KYC checks to access mobile services. Collecting and communicating large amounts of data by connected vehicles also pose data privacy and sovereignty issues and potential risks of data tampering, manipulation, and spoofing.

Meeting these challenges requires compliance with local and regional data and cybersecurity regulations and technical requirements for data integrity and accuracy.

Navigating complex regulatory environments may be daunting if you are new to the area, making partnerships with local companies crucial.

As connected vehicles gain traction in APAC, you must develop a strategic approach to capitalise on the opportunities in this technological shift. To create a successful connected car strategy, consider the following key steps:

_{1. Make the switch to 5G}

5G technology provides much better network connectivity than 4G LTE. Considering regional variations and market readiness, you must determine the right time to transition to 5G. Proactively adopting 5G can help you fully harness the potential of connected vehicles.

_{2. Adopt V2X technology}

Vehicle-to-everything (V2X) technology is crucial for enhancing advanced driver assistance systems (ADAS) and paving the way for autonomous vehicles. By transforming cars into autonomous digital platforms interacting with infrastructure, people, and other vehicles, V2X technology opens up numerous digital services and boosts overall safety.

_{3. Utilise network slicing}

Network slicing enables communication service providers (CSPs) to run multiple virtual networks on one 5G infrastructure. This technology allows the concurrent delivery of various services with specific service level agreements (SLAs), making it a vital enabler for connected vehicles.

_{4. Optimise cloud and edge architectures}

As connected vehicles generate data, you'll need to find affordable ways to handle this data on a large scale. Cloud and edge computing architectures can help you process data closer to the vehicles, reducing transportation costs and enhancing efficiency.

_{5. Promote open SIM management and better interoperability.}

For seamless consumer experiences in connected vehicles, effective eSIM management and platform interoperability are essential. Adopting cloud-based open eSIM platforms can support multi-vendor procurement strategies, increasing competitiveness, business continuity, and geo-redundancy.

This approach will contribute to successfully integrating connected vehicles into the automotive ecosystem and promote the continuous development of safe, efficient, and innovative transportation solutions.

Understanding the importance of connectivity is essential to power up connected vehicles. Enabling technologies such as AI, analytics platforms, cloud, telematics, and others, supports intelligent functions in connected vehicles. They allow the seamless collection, sharing, and processing of massive data sets from various sources and in multiple formats.

Moreover, data is a vital currency in operating IoT devices effectively. The data-driven insights gained from connected cars provide opportunities for:

●  New products and services, such as automated payment systems for gas, parking, and tolls,

●  Telematics services for vehicle maintenance, emergency assistance, navigation, route notifications, and

●  Personalised infotainment services like video streaming and in-vehicle gaming.

OEMs have developed connection-agnostic solutions that can adapt to whichever network is available. However, while those solutions can be helpful, considering reliable connectivity from the start is crucial.⁶

Reliable communication networks are the driving force behind connected vehicles. For instance, 5G offers low latency, comprehensive coverage, high speed, and capacity that enable seamless connectivity of multiple devices.

Successful deployment of connected vehicles in APAC requires collaboration with local partners with expertise in the local market. You must navigate a complex regulatory environment and ensure compliance with local regulations. This requires a thorough understanding of local regulations and a willingness to work with regulators to address any concerns.

Companies must therefore partner with a network operator expert to simplify the process of deploying connected vehicles in APAC.

For instance, Singtel can provide extensive coverage thanks to our own and our partners' networks. We have close relationships with carriers in countries across the region. Car manufacturers and other automotive companies can get a single, region-wide contract at a relatively low cost while ensuring connectivity.

We also have a single platform with a core network, ensuring real-time data transfers and optimised IoT traffic. This creates a seamless and reliable connected vehicle experience for drivers and fleet managers.

Moreover, it's beneficial to partner with the right mobile network operator (MNO) with the expertise and experience in multi-country licensing and compliance requirements. Working with a single MNO like Singtel means having a unified contract covering the service level agreement, unified billing, and centralised monitoring, reporting, analytics, and support. You have a single point of integration between various systems and network operators.

Learn how Singtel helped two automotive manufacturers overcome complex challenges in launching their connected car programs in APAC, paving the way for new services, revenue streams, and business models.

_{Case Study #1}

A multinational automotive manufacturer faced several challenges when launching a next-generation connected car programme across five APAC countries, such as navigating multi-domestic requirements and regulations, dealing with multiple mobile network operators with different operational processes and contract agreements, and managing different country-specific device variants and SKUs.

Singtel's Multi-Domestic Connectivity Solution helped the manufacturer to overcome these challenges by providing a unified platform to simplify SIM management and comply with regulatory complexities.

Additionally, we reduced logistical complexity and allowed the manufacturer to avoid high roaming charges. The partnership paved the way for developing new services and business models, creating new revenue streams for the manufacturer.

_{Case Study #2}

A European automotive company faced several challenges in launching its connected car program in the APAC, including navigating complex regulatory requirements, dealing with multiple MNOs, managing different device variants or SKUs, and incurring high roaming and system integration costs.

The company partnered with Singtel to overcome these challenges, adopting the Multi-Domestic Connectivity Solution. This enabled the company to provide seamless vehicular connectivity across 13 countries using a single eSIM and a unified platform to manage connectivity.

Singtel helped the company navigate the regulatory landscape and provided a single contact point across various regional markets, reducing logistical complexity and lowering inventory costs and subscription overheads. The solution also offered end-to-end security and a multi-domestic view of connectivity, enabling centralised management of the SIM lifecycle for all deployed countries.

These two case studies highlight our Multi-Domestic Connectivity Solution’s role in simplifying SIM management, reducing logistical complexity, and providing end-to-end security.

As a leading provider of IoT solutions in Asia, Singtel is the ideal partner for companies looking to launch their connected vehicles in the region. Singtel offers a range of solutions, including IoT connectivity, data analytics, and managed services, to help you navigate the complex Asian market and deploy successfully connected vehicle programmes.

Singtel deeply understands the Asian market and can help you identify local partners, develop customised features and services, and navigate the complex regulatory environment. Additionally, Singtel has made significant investments in the infrastructure necessary for connected vehicles, including 5G networks and smart city initiatives.

Companies planning to deploy connected vehicles can benefit from Singtel's IoT connectivity technologies, including 5G, edge computing, and software-defined networking (SDN).

Singtel's expertise in all leading types of IoT connectivity technologies can help these companies choose the right network connectivity technology for each IoT application. Companies can assess the network infrastructure in terms of range, bandwidth, security, power consumption, quality of service, and network management:

_5G

With 5G's ability to support many connections simultaneously while improving speed, latency, reliability, and power consumption, companies can adopt connected cars at scale. With Singtel, you can also implement good IoT security practices to mitigate threats to the network. Singtel's IoT Control Centre allows for ease of connectivity management from any location, addressing the challenge of managing endless IoT SIMs and devices across countries.

_{Multi-access edge computing (MEC)}

MEC also plays a significant role. It enables cloud computing capabilities at the network's edge, reducing latency and data bottlenecks. Singtel's 5G edge computing infrastructure allows real-time data analysis and private connectivity. The MEC and 5G combination enables businesses to develop immersive user experiences, better IoT capabilities, real-time video analytics, and smart manufacturing capabilities.

_{Software-defined networking (SDN)}

Singtel also offers SDN solutions, which enable centralised network management, automation, and policy-based routing. SDN makes it easier for transport companies to manage IoT devices and integrate them with various cloud services. Singtel's SD-Connect provides low-latency direct links to the cloud, enabling efficient provisioning and scalable bandwidth to meet real-time demands.

With SDN, transport companies can replicate their systems to new service lines and adopt a consumption-based model to allocate resources and bandwidth efficiently, optimising network performance. Overall, Singtel's SDN-based solutions enable transport companies to realise the full benefits of Industry 4.0 and transform into more efficient, flexible, and automated industries.

The automotive IoT market in APAC is growing rapidly. Companies that want to capitalise on this trend must move quickly and partner with an expert in the field, such as Singtel.

Connectivity is crucial to unlocking the full potential of these technologies. Our 5G solutions empower connected vehicles by leveraging edge computing, SDN architecture, and well-established network partnerships throughout APAC.

By focusing on vehicle localisation, eSIM adoption, strategic partnerships, and precise positioning, you can transform regular cars into an integral part of an interconnected ecosystem, enabling advanced functions such as telemetry, infotainment, and software updates.

Take advantage of the opportunities in automotive IoT. Partner with Singtel so you can deploy a connected vehicle strategy with agility, efficiency, and cost-effectiveness.

Contact us today to learn how 5G and SDN-based solutions can take your IoT digital transformation to the next level.

References:

1. IoT for All, Automotive IoT Solutions: Utilizing their Potential in 2022, 2022.
2. MDPI, Autonomous Vehicles Enabled by the Integration of IoT, Edge Intelligence, 5G, and Blockchain, 2023.
3. McKinsey & Company, Unlocking the full life-cycle value from connected-car data, 2021.
4. The Institute of Physics, The future of public transport in the era of sharing economy: the view of transport operators, 2022.
5. McKinsey & Company, Capturing growth in Asia’s emerging EV ecosystem, 2022.
6. Built-in, Automotive IoT: A Brief Overview of the Connected Car, 2022.

 Connected car services

As you explore the connected vehicle market, several opportunities await:

● Connected car services

Boost your vehicles' value by providing services like safety systems, traffic management, car tracking, congestion avoidance, and autonomous driving. This approach enables greater pricing flexibility and diverse payment models.

● Third-party services integration

Generate income through commission, revenue sharing, or platform subscriptions by incorporating third-party services like wireless internet, content streaming, parking services, event booking, and concierge services into connected car platforms.

● Data monetisation

Use data from connected vehicles about driver behaviour, passenger activity, preferences, and location to enhance service personalisation and improvement. Utilise this data for product development, ongoing engineering efforts, and cost reduction, including streamlined maintenance scheduling and timely parts ordering.

The advantages of IoT-based solutions for your fleet are numerous, such as:

● Real-time monitoring: Using IoT technology, you can actively monitor your fleet's real-time performance, making informed and timely decisions.

● Improved safety: Enhance your vehicles’ safety through IoT insights into driver behaviour and identify potential safety hazards.

● Reduced costs: Decrease fleet costs with IoT by optimising routes, lowering fuel consumption, and minimising vehicle downtime.

● Better decision-making: IoT-based solutions provide real-time data and insights, which drivers or fleet managers can use to make informed decisions.

● Enhanced customer service: Deliver goods and services more efficiently with real-time monitoring and optimised routes, improving overall customer service.

Various types of enterprises can also benefit from automotive IoT, including:

❖ _{Original equipment manufacturers (OEMs)}

Automotive manufacturers can utilise IoT technology for remote diagnostics, predictive maintenance, and over-the-air updates, enhancing customer experience and reducing costs.

❖ _{Fleet management companies}

IoT enables real-time vehicle performance monitoring, location tracking, route optimisation, and fuel management, streamlining operations and reducing costs.

❖ _{Ride-sharing and taxi services}

IoT allows these services to improve vehicle dispatch, optimise routes, and enhance passenger safety through real-time driver performance monitoring.

❖ _{Emergency response services}

IoT can enable faster and more efficient responses to accidents or other emergencies through real-time communication between connected vehicles and emergency responders.

❖ _{Logistics and delivery companies}

Real-time tracking and route optimisation can improve delivery efficiency, reduce fuel costs, and enhance overall operational performance.

Embracing IoT-based solutions could be a game-changer for all other companies in the automotive and transport industries.