A recent report states that the global connected automobile market alone is expected to grow from 5.1 Million units in 2015 to 37.7 Million units by 2022, at a CAGR of 35.54%
A day dedicated to growing network of physical objects with Internet connectivity – few would know that April 9th is World Internet of Things Day. Riding on the wave of broadband penetration, IoT has slowly expanded into many new areas like connected vehicles where IoT is turning vehicles into connected intelligent platforms that offer safety, security, infotainment, better vehicle management and lesser environmental impact.
A recent report states that the global connected automobile market alone is expected to grow from 5.1 Million units in 2015 to 37.7 Million units by 2022, at a CAGR of 35.54%. India too is fast emerging as a huge market for connected automobiles. Currently, less than 2 percent of all automobiles sold in India have some basic form of connectivity. But as we have seen in the past with smartphones, adoption of latest technology is on the rise in India and it is certain that the adoption of connected vehicles will grow exponentially in the next few years.
In a country where traffic is a huge problem, the day is not far when your vehicle will wake you up and remind you to get dressed and hit the road to avoid a jam. Big data will also help manage traffic in a better way. With connected automobiles, not only will drivers have a clear incentive for driving but also insurance companies will be offering better premiums for those who allow their driving habits to be monitored. Drivers can use this data to improve their driving.
Vehicle diagnostics will help generate alerts when a part of the vehicle starts functioning in a less than optimal manner. This will reduce breakdowns and ensure hassle free driving along with improved mileage resulting in savings. Well maintained vehicles would also emit less pollutants.
The data opportunity
A recent research which outlines the potential of data generated by connected vehicles, states that a single connected vehicle has the potential to generate more revenue than 10 conventional non-connected vehicles. In the next few years, auto OEMs will be rated based on the units of data generated and not units of vehicles sold.
Connected cars will also be able predict task lists and to-dos for the day. It is predicted that they will be able to make smart suggestions on which place to visit next and what task to take up after.
With the arrival of 5G, connectivity complaints will be a thing of the past. 5G will enable connected cars to send and receive messages faster. It will also enable more situational awareness and provide warning in case any road block or hindrance were to appear on the road giving the driver more time to react.
From the early days, OEMs are delivering a certain degree of automation. Autonomous parking, collision alert and protection systems that slow down cars or issue warnings to drivers or even dial emergency numbers are already part of mainstream automobile narrative.
Connected automobiles will turn into content delivery platforms soon thereby opening a whole new market for infotainment providers.
Connected cars is undoubtedly the most exciting concept powered by IoT. In the years ahead, this segment will witness more path breaking developments and breach new personalization frontiers. The possibilities are indeed endless but within our capacity to imagine.
Original source: BW Disrupt