Autonomous car, Nissan

‘Internet-connected vehicles number one application by 2020’

Bron: Nissan

The rapid pace of digitisation is transforming the component-driven automotive sector to a software- and solutions-focussed industry, accelerated by consumers’ evolving digital lifestyle expectations and demands for new and innovative services. By 2020, internet-connected vehicles will be the number one application, transmitting over 350 KB of data per minute. This was the premise of a round table debate hosted by Frost and Sullivan, in partnership with IBM Watson IoT.

In a future connected supply chain, the combination of IoT data with analytics provides manufacturers with a common platform to operate with real-time visibility, promoting greater interdependency, collaboration, dynamic responsiveness and the flexibility to integrate disruptive innovations. This is expected to derive savings of almost one billion euros for a mainstream volume of a Original equipment manufacturer (OEM).


According to Sarwant Singh, Senior Partner at Frost & Sullivan, the auto space is progressing towards mass adoption of 4G LTE and, ultimately, 5G as well as satellite broadband systems. “The advent of autonomous vehicles will give rise to a plethora of services, and personalisation of the travel experience will be of critical importance.  Connected autonomous technologies will increasingly render the car a platform for drivers and passengers to use their transit time for personal activities, which would include the use of media and other service packages,” he said.

In the future, there is expected an increased focus on packaging services like LBS (location based services), consumer OTA (over-the-air), Infotainment with Mobility, insurance, remote upgrades, prognostics and extended warranty-related services, expected to become revenue streams for car owners. An area where the impact of digital disruption will be particularly prevalent is the unbundling of the automotive retail network. The future of automotive retail will transition from a transactional concept to an experience-based model using digital tools throughout the customer journey.

Mobility platform

The roundtable forum also mooted the possibility of the car of the future morphing into a Mobility platform. Transactions will be made based on time and miles covered. Most European OEMs are already progressing towards Car as a Service (CaaS). “The Internet of Things (IoT) has already transformed the customer experience through enhanced operations;  and disrupted professions, businesses and even entire industries,” states Sanjay Brahmawar, Global Head & Managing Partner Strategic  Business Development at  IBM Watson Internet of Things.

According to Frost and Sullivan by 2025, advanced technologies such as automated driving, connected mobility, EV charging, and health and well being solutions will play a pivotal role in improving the experience offered by vehicle-sharing operators. They expect the Future of Mobility to consist of of technology-enabled, door-to-door, multi-modal travel, encompassing pre-trip, in-trip and post-trip services to improve the user’s journey experience.

The event crystallised that a diverse digital strategy, encompassing several elements right from Business Intelligence analytics, Internet of Things (IoT) to deep learning and Artificial Intelligence (AI), will help improve the bottom line of an automaker.

Author: Marieke Van Gompel

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