How should automakers capitalise on the $69.5b CV industry?

The global connected automotive infotainment system market is expected to reach US$69.5 billion by 2028. How can automakers find the right solution to meet consumer demands and capitalise on the potential of connected vehicles (CV)?

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How should automakers capitalise on the $69.5b CV industry?

The automotive industry is on the brink of major transformation, thanks to ground-breaking technological innovations. Expanding Internet of Things (IoT) applications enabled by ubiquitous connectivity are bringing the future closer for connected vehicles. Currently, there are a variety of connectivity solutions available, each with its strengths and weaknesses. Automotive enterprises should carefully evaluate each connectivity solution available today to make informed decisions.

No matter what they are buying, customers today expect a convenient, personalised, and connected experience – vehicles are no exception. Fortunately, advancements in automotive IoT are unlocking the power of data and connectivity to deliver the experiences that customers expect today. These advancements in turn are the driving force behind the development of innovative connected features and capabilities that are set to redefine the way people interact with their vehicles.

Automotive IoT refers to the integration of IoT components such as sensors and devices, data processing, connectivity, and apps into vehicles. This enables a range of solutions such as vehicle-to-everything (V2X) communication, vehicle-to-vehicle (V2V) applications, navigation and telematics solutions, and in-vehicle infotainment systems, amongst others.

For users already attuned to the omnichannel way of living1, the enablement of in-vehicle infotainment systems is one of the key advantages of automotive IoT. And with the global connected automotive infotainment system market expected to reach US$69.5b by 20282, automakers must rush to onboard these capabilities. Connected automotive infotainment systems provide a combination of information and entertainment services, enhancing the in-vehicle experience. By providing users with the ability to connect to multiple audio-visual devices, it helps them to navigate destinations, while at the same time allowing them to consume news, music and videos or make calls and check the traffic report. In addition, these systems enable features such as parking assistance, in-vehicle climate and seat temperature control, voice assistants, and more.

Technology in the driver’s seat

All IoT applications – whether infotainment-related or otherwise – rely on network connectivity to share data with devices inside and outside the vehicle. This may be wired or wireless, long-range cellular (3G, 4G, 5G, LPWAN), or dedicated short-range (Wi-Fi).

Although Wi-Fi is a popular wireless technology, assuring users of its reliability and security remains a significant challenge. Long-range cellular networks like Low Power Wide Area Networks (LPWAN) are growing in popularity instead of Wi-Fi and wired solutions since many IoT devices do not consume large amounts of data.

There are many options available with LPWAN technology and of all options, NB-IoT and CAT-M1 have emerged as the preferred solutions. Both these cellular networks are 3GPP-standardised and supported by an established ecosystem. Long-range cellular standards like 5G, on the other hand, offer a range of bandwidth, latency, and capacity benefits that are not available with LPWAN technologies.

The right solution is essential to capitalise on the connected vehicle potential

Each IoT use case has unique requirements that should be matched with network attributes such as reliability, geographic reach, security, and latency before selecting a network connectivity solution.

As the future is headed towards ubiquitous connection and interoperability, enterprises must look for a network solution that can deliver reliable, seamless, and uninterrupted coverage in their desired markets or region. A trusted partner can help OEMs navigate the complex connectivity regulations, licenses, compliances, and policies of different markets.

The network connectivity partner that car brands choose today will determine the success and growth of their product. Therefore, it is important to evaluate the partner’s ability to scale at speed. In addition, as the number of IoT devices and connections grows, provisioning and managing them will become more complex. Hence, it is important to assess the partner’s provisioning and management platform - can it offer a unified user experience for any deployment size and across multiple geographies?

Capitalising on the connected cars market will require a trustworthy partner with a widely deployed and accepted network with the widest coverage, power efficiency, scalability, and flexibility – all areas where Singtel has established itself as an expert. With alliances with tier-1 mobile network operators (MNO) across APAC, we function effectively as a key point of delivery for your network and connectivity solutions.

Learn how our one team, one process, one platform approach to network connectivity can help you reach your goals. Contact us today.

Sources:
1 McKinsey, Omnichannel: The path to value, 2021.
2 Reports and Data, Connected Automotive Infotainment System Market, 2021.

 

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