Welcome to the era of connected vehicles

The way we travel and transport goods hasn’t changed much in a few decades. Yet the last 10 years have ushered in an era of change with connected vehicles (CV). Technologies previously entirely unrelated to the automotive industry have begun enabling connected capabilities that promise to change modes of transportation forever. At the core of such technologies, is the concept of connectivity.

CVs aim to improve roadside safety and ease traffic problems while reducing travel time, fuel consumption, and emissions. With such broad implications, it is not surprising that the ‘connected cars’ segment is poised for growth. According to Capgemini, the number of connected cars is set to increase to 352 million by 2023¹.

At the core of CVs is an interoperable networked wireless communication system. This means a vehicle connected to the Internet, which allows it to share data with or talk and listen to the entire vehicle ecosystem. This includes other vehicles, the road infrastructure, service providers, communication devices, and even the driver's home. This sharing of data has opened the door to a host of smart and convenient connectivity features in the vehicle that today’s consumers expect. A McKinsey study on trendsetting car buyers found that 40% of respondents were willing to change car brands for better connectivity features². 

Such connectivity to the vehicle ecosystem is often provided through a host of apps that can remotely operate the car, optimise the route, provide infotainment, and share vital data on traffic, road conditions, and more with other vehicles. Vehicle performance, energy consumption, and safety data can also be shared with manufacturers. Data thus collected has the potential to dramatically improve driver and passenger safety and experience, vehicle security, and energy efficiency, and allows original equipment manufacturers (OEM) to continuously improve and iterate the product.

There are four key forces at play in connected vehicles: data, technology, services, and stakeholders. And powering it all is seamless network connectivity.

CVs, including autonomous vehicles (AV), use a combination of cameras, sensors, radars, and light detecting and ranging (LiDAR) devices to recognise objects in their vicinity and monitor environmental factors. In doing so, the devices collect huge amounts of location, vehicular, and environmental data. In turn, this data provides valuable insights into consumer behaviour, road conditions, traffic, infrastructure, vehicle usage patterns, and more. According to Gartner, by 2025, AVs will analyse more than 4TB of sensor data per hour³.

Technologies such as artificial intelligence (AI), digital and data analytics platforms, 5G, blockchain, cloud, and telematics are enabling intelligent functions in CVs. AI is used to perform the driver’s tasks, more so in autonomous cars. Digital platforms, 5G, and the cloud enable the seamless collection, sharing, and processing of massive data sets from various sources and in multiple formats. The application of blockchain (once it gains more popularity) will ensure data security. When analysed, the data gathered provides a better understanding of the entire vehicle ecosystem and helps build new products and services.

Insights garnered from connected cars create use cases for many products and services. An example is an automated payment system that takes care of gas, parking, and tolls. Another example is telematics services using GPS data to monitor vehicle maintenance requirements, provide emergency assistance, navigation, and route notifications and alerts. Then there are infotainment services that offer personalised entertainment options such as video streaming and, potentially, in-vehicle gaming.

A widely distributed network of smart Internet of Things (IoT) devices and service offerings is possible only through collaborations and close alignment of multiple stakeholders including customers, OEMs, city regulators, infrastructure providers, and telecom and technology companies. Such collaborations are essential to design, build, and deliver intelligent products and services.

Advanced and reliable communication networks are central to connected ecosystems. Based on the product or service, the bandwidth, mobility, and latency requirements from the network varies. For example, a driver safety alert or monitoring service would require low latency, while an e-commerce service would require high bandwidth.

3G, 4G, and more recently, 5G networks are therefore the driving force behind connected vehicles. With the latest advancement in network connectivity designed for low latency, wide-coverage, and high speed and capacity, many devices can be seamlessly connected anywhere, providing highly reliable and low-cost connectivity solutions that are making a seamless, connected, and smart automotive future possible.

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¹ Capgemini, Connected Vehicle Trend Radar 2, 2020.
² McKinsey, The trends transforming mobility’s future, 2019.
³ Gartner, Emerging Technologies and Trends Impact Radar: Autonomous Vehicles, 2021.