The future success and survival of automakers depend on adopting the connected car transformation.
FREMONT, CA: The automotive industry is on the edge of a digital revolution, with the race to develop the fully connected car which is already underway. The convergence of vehicles, communications, and technology is fuelling this industry transformation. Ultimately, connected cars aim to provide a personalized, intelligent driving experience that will redefine transportation as a whole. Automakers are aware of this megatrend and are responding by collaborating with technology companies to find innovative ways to alleviate customers' demands and avoid being disrupted. Read on to know more.
The rise in the global connected cars market affects the auto industry and provides several opportunities for businesses, including retailers, insurers, entertainment businesses, and the carmakers themselves. To leverage the massive volumes of data generated and collected by connected cars to gain new customer loyalty levels and open up novel revenue streams. As a result, the latest models with embedded Internet of Things (IoT) connectivity and intelligent applications built-in are reshaping the manufacturing landscape and the driving experience for consumers.
Connected cars leverage the power of IoT sensors and connectivity, processing massive data every moment. Presenting with this data's valuable insights, car manufacturers are now turning their attention to developing a car's potential to connect with other vehicles, intelligent transport systems, and smart city infrastructure. Through this vehicle-to-everything connectivity, it is possible to transform the driver experience completely. Analysis of data gathered by the connected car allows businesses to offer their customers new, highly personalized, and targeted services by decoding behaviors and preferences for customizing products. The outcome is enhanced brand loyalty, a competitive position, and new revenue avenues.
Equipping connected cars to communicate with other vehicles, and the IoT ecosystem needs seamless, reliable connectivity. This is where the edge-to-cloud-connected, embedded SIM or eSIM will provide an edge to automakers. As the name suggests, eSIMs are developed in the vehicle at the factory. As connected cars gain momentum, businesses and technologies become linked through an interdependent ecosystem. This demands automakers to embrace collaboration with the IoT ecosystem and the new business models and new revenue streams it allows, or risk becoming just a commoditized hardware provider.