Like many industries, the automotive industry is undergoing a seismic shift at the hands of the Internet of Things (IoT). Once considered pure equipment manufacturers, auto companies are now creating digitized machines that connect to emergency roadside assistance, link to passengers’ smartphones, offer real-time traffic information, access multimedia applications and much more.
This is only the beginning. The future of the smart car has yet to be designed. With a potential economic impact between $200 billion and $700 billion a year by 2025, it’s certain automotive companies will continue to seek opportunities to capitalize on this growth. Yet, they cannot do it on their own.
Telecom providers play a critical piece in the smart car ecosystem. Here are four ways telecom providers can seize the opportunities of the connected car market.
Collaborate with automotive companies
Currently, only 10% of all passenger vehicles have embedded connectivity. This has made much room for aftermarket device makers to capitalize on consumers’ rising demands for more smart features within their cars. Telecom providers can get in on the game by working directly with automotive companies to develop the in-car features and solutions that will create a multimedia experience both drivers and passengers desire.
Use data to the benefit of passengers
According to a recent McKinsey report, only 1% of IoT data collected is used. This leaves behind valuable information that can be used to innovate the future of the smart car. Analyzed data can be used to track emerging driver and passenger behavior that can used to create new features and solutions. Data can be used to diagnose issues, alert drivers and implement repairs without bringing the car physically into the mechanic shop. It can also be used to coach drivers to become safer and more efficient drivers.
Interoperability is critical for any IoT system and it is particularly so for the connected car. The transient nature of the vehicle – a machine that moves people between different destination points – will connect with a wide variety of systems, applications and devices. As a result, the connected car needs an open, standards-based platform that can interoperate with the myriad of Things coming into its ecosystem.
Offer a seamless, secure network
For the connected car to remain safe for the driver and passengers it is carrying as well as the passengers and pedestrians outside of it, it must have access to a seamless, secure network that will transmit data to and from the vehicle in real-time. Telecommunication providers will need to strengthen their network infrastructures to ensure it remains scalable to connect ever more devices and provide over-the-air firmware updates the vehicle’s systems will depend upon.