Digitization and transformation in automobile industry: The Connected Cars Way

Digitization of Automobiles is the New Normal

The focus is now on making cars connected, autonomous and electric through application of new technologies. This digitization of automobiles is gradually becoming the ‘new normal’.
Connected cars have created a buzz in the automobile industry around the world. Auto manufacturers, through the application of new technologies such as Artificial Intelligence, Internet of Things, Machine Learning, Telematics, Big Data and so on, are connecting cars to their network, external and physical infrastructure, building a connected transportation ecosystem.

Emerging Technologies Pay Way for Connected Cars

Connected cars are applying Artificial Intelligence and Machine Learning to effectively stay connected on the run. The latter is used by OEMs to learn in real time about the vehicle performance in the real world situations. So every time a car is driven, the mechanism learns more about it and its efficiency is improved. On the other hand, Telematics helps in connecting a car with its environment. As a connected car collects massive data every day, it requires Big Data setups to process it into useful information.
Digitization is the new technological disruption in the automobile industry. What was once a part of Sci-Fi movies and fiction is now a reality. Multitude sensors together not only benefit the vehicle owner but also others, who are a part of the ecosystem. This includes the manufacturers, service providers, infotainment service providers, insurance service providers and even other vehicles in the immediate environment. Digitized vehicles increase operational efficiency, owing to the real-time application of the data that it generates on an ongoing basis. Also, it is envisaged that these vehicles will make roads much safer to travel and reduce emissions that harm the global environment.

Industry Transformation to be Marked Important

The automobile industry is undergoing a historic change and there is much that needs to be looked into like the required asset structure, skills among employees, and most importantly laws and regulations. These changes are taking place in the developed world but for developing world the issues are still basic to ensure proper roads, better connectivity and uninterrupted internet services.
Developed economies like USA, Germany and UK are leaders in the connected cars market. With government regulations being proactively rolled out, North America is anticipated to be the market leader. Developing yet fast growing economies like India and China are expected to take the leap in the next 3-5 years. On one hand, demand for connected cars is rising in these economies, yet they lag behind in quality infrastructure required for connected cars to function efficiently. This lack of proper infrastructure is also one of the prime concerns in building autonomous cars that can drive safely. A digitized vehicle needs well-built roads and uniform network to stay connected.

Big Data leads the Bunch

There is even a bigger challenge that lies ahead, of digital privacy and safety. An automated vehicle is an integration of several technologies that practically keeps a watch on every move one makes. From driving location to driving habits and patterns, all the data is constantly collected to offer you the best services. The more you drive, the more technology learns about you to offer customized services. Yet, undeniably the data collected is sensitive. Clearly, the industry needs to be backed up by strict law enforcements to ensure that user data is kept safe and is not misused. This is a roadblock that can’t be crossed unless governing bodies across the globe back up the industry with required rules and regulations. Thus Big Data, IoT, AI are the building blocks to bring connected cars to existence!

Authored By Satish Kumar Malhotra, Senior Project Manager, ATCS