A decade ago, the digital revolution was being driven forward primarily by smartphones. From eCommerce to banking, every major consumer business came out with its own dedicated smartphone app to remain competitive. But over the years, the digital economy expanded to more devices outside of the smartphone spectrum. In fact, smartphones became a central stem from which different connected hardware devices began to emerge and attain widespread adoption.
Smartwatches and wearables were the first movers in this segment, followed closely by smart home devices and other IoT hardware. But these haven’t been able to create the magnitude of disruption in the daily lives of consumers as done by connected vehicles.
What Is Connected Vehicle Technology?
In simple terms, connected vehicle technology refers to the range of digital technologies, both hardware and software, that transform vehicles into a digital experience point for consumers. In addition to being a digital experience point like a smartphone, connected vehicles are also equipped with the necessary tech to enable autonomous operations, maintenance cycles, smart intra-vehicle and inter-vehicle communications, and sustainable business models for manufacturers to monetize over their lifetime.
It is estimated there will be a $361 billion worth of market for connected cars globally by 2030.
Why Are Connected Vehicles the Future of Automobiles?
Now that you have a clear picture of what connected vehicle technology is, it is time to explore the key reasons why it is hailed as the future of the automotive industry worldwide. Here are five reasons:
Experience Is in the New Adrenaline
The world as we know it today is progressing rapidly into an experience-driven economy where customers emphasize and connect well with the given experience for any of their investments. Buying a vehicle is no different in this regard.
With connected vehicles, not only are consumers getting a set of new wheels to take them from point A to point B, but they also get to do it while enjoying their favorite music apps or news podcast. They can access these right from their car’s dashboard rather than having to connect their smartphone to the car via a cable or Bluetooth.
What’s even better is that a connected car allows customers to set their preferred interior temperature and mood music, turn on the air freshener, and keep the seats warmed up even before going anywhere near the car in the first place. Everything can be done remotely with the touch of a button on the dedicated connected car app on their smartphone.
Connected cars focus on tech that can sense obstacles on the driving path and alert drivers constantly of a potential collision up ahead. This early warning system can go a long way in reducing fatal accidents.
Besides, a connected vehicle can detect collisions and trigger notifications to the respective authorities in the event of a severe crash, thereby assuring passengers of speedy access to critical health services automatically without much loss of time.
Lower Environmental Pollution
We all know that Electric Vehicles (EVs) are disrupting the clean transportation space like never before. Nevertheless, there is a huge opportunity for manufacturers to make their ICE-powered vehicles more efficient and environmentally friendly than ever before with connected tech.
- Vehicles can communicate with each other and with a city traffic management system.
- Get notified of potential roadblocks or heavy traffic congestion up ahead.
- Show drivers an alternative route to reach their destination faster and more efficiently.
Connected vehicles allow for periodic and automated diagnostics of core elements of the car, like its engine or exhaust management, etc. This continuous monitoring allows the vehicle to stay at its optimal best running condition every time without having to take it to a mechanic for inspection.
Alerts can be sent to the owner’s smartphone when it is time to change a component or when the vehicle’s oil pressure is down, mandating a refill or inspection. This helps in the proactive maintenance of vehicles. It, thereby, extends their lifetime by a significant number of years.
Open New Revenue Opportunities
For vehicle manufacturers, connected vehicles open the door to a multitude of possibilities they can explore to monetize the vehicle’s operational life. From a subscription-based vehicle diagnostics service to automated insurance validations and integrated streaming and music services, connected vehicles allow manufacturers to build a new ecosystem of digital services they can monetize through subscriptions.
In addition to the revenue stream, these opportunities allow manufacturers to:
- Build lasting relationships with customers post-sale
- Get an opportunity to cross-sell or up-sell products over time using the relationship
The Ascentt Advantage
Connected vehicles are turning into a goldmine of opportunities for automotive manufacturers. They are moving towards becoming the most pivotal and disruptive change that the industry has witnessed since the dawn of ICE-powered vehicles. But going the digital route with connected cars requires
- Great software and hardware
- A fundamental way of harnessing the enormous treasure trove of data generated across vehicles, dealerships, consumer services, roads, and the general transport infrastructure
Learning newer ways of building a more engaging customer experience requires automotive manufacturers to build powerful data models and data monetization platforms that go deep into unlocking new value streams. This is where they need the services of an experienced partner like Ascentt to build data strategies and develop data-driven growth trajectories for their business. Get in touch with us to know more.