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Looking Ahead: 5 Upcoming Connected Car Trends

The Internet of Things is revolutionizing the automotive industry. By 2025, the connected car market is projected to reach $219.21 billion globally, growth at a CAGR of 14.8% over 2017. What’s driving this growth? Regulations and compliance as it relates to safety and cybersecurity are key factors. So, too, are the increasing consumer demands to make their cars more convenient and entertaining than ever before. Here are the five connected car trends that will begin to come to fruition in the next few years. Each of these trends will reinforce and accelerate one another. They will also depend on automakers partnering with mobile providers to manage these in-car components that will assure drivers’ road safety and cybersecurity.

Connected Car Trends: Artificial intelligence comes onboard

Artificial intelligence (AI) will introduce AI interfaces and algorithm solutions that will allow connected cars to bring collected data together in seamless and smart ways. In return, these cars will equip drivers with a virtual personal assistant that responds to voice commands and integrates with the vehicle’s navigation system. Already Amazon’s Alexa and Google’s Home are being incorporated into the smart car with drivers expanding their connected ecosystem to include their vehicle, in addition to the home and office.

Connected Car Trends: Predictive capabilities drive customizations

With AI on board, machine learning and predictive capabilities will come into vehicles. This allows connected cars to make sense of the data it is collecting and make informed decisions. In time, vehicles will get to know its drivers’ preferences – the most comfortable position of the car seat, opening favorite apps and playing favorite music playlists. Smarter than ever before, the connected car will also be able to make predictions. Prediction parking and traffic jam assistance are two features that will come into vehicles in the short-term.

connected car trends front seat

Connected Car Trends: More autonomous cars

The race to the driverless car is gaining momentum. But, we won’t see entirely independent vehicles on the road in 2018. We will, however, see cars with more autonomy than ever before as carmakers build more sensors into vehicles. Manufacturers will add features like LiDAR, radar, cameras and ultrasonic sensors to engines, brakes and transmission systems. The data collected, when powered with AI, will allow vehicles to make smarter, more predictive decisions that will impact auto safety, security, and vehicle maintenance costs.

Connected Car Trends: Talking cars

The concept where cars will be able to communicate with everything from smart traffic signals to smart gas pumps is still some time away. However, this year sees strong promise in vehicle-to-vehicle (V2V) connectivity. As the name implies, V2V enables connected cars to share their data with other connected vehicles. V2V-enabled cars will broadcast their location, heading speed, altitude, road conditions, among other data points. In return, fewer crashes, less traffic congestion, and an improved driving environment are all expected.

Connected Car Trends: On-demand mobility services

Overall global car sales will continue to grow, but the rate of growth in the next 15 years will be less robust: dropping from 3.6% over the last five years to about 2% by 2030. With a gap in revenue, new models will evolve. According to a McKinsey report, on-demand mobility services (e.g., car sharing, ride-hailing) and data-driven services could create up to $1.5 trillion in additional revenue potential in 2030. Unlike more traditional revenue streams – car sales and aftermarket products and services, these new services will bring in recurring revenues.

These connected car trends will continue to power the automotive industry toward a future of driverless cars. As it does so, it will require scalable, intelligent systems that will streamline management and operations of these IoT sensors, applications, and systems.

Referenced sources:


Case Study: IoT is redefining the customer experience. Nokia case study.

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