Where Connected Cars & IoT are headed in the Next Five Years3 min read

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Deepak Amirtha Raj

Deepak Amirtha Raj

Deepak is a Research Analyst with expertise in Business Strategy and Technology. His research covers Artificial intelligence, Virtual and Augmented reality, Machine learning, Big data analytics and Market Strategy. You can find him playing guitar and writing gospel songs in his band "The Brotherhood”. Follow him on LinkedIn and Twitter.

Companies are investing most aggressively in the Internet of Things (IoT) with particular interest to IoT connected cars. IoT consists more than just FitBits and Smartwatches.

Your regular workday may drastically change due to connected car and home. According to BI Intelligence, 94 million connected cars are estimated to be shipped in 2021. This would represent a CAGR 35% of 21 million connected cars in 2016.

Automakers have rightly noticed an increasing trend and a significant opportunity for connecting their cars. Moreover, BI Intelligence estimates that connected cars will generate $8.1 trillion between 2015 and 2020.

ROLE OF THE INTERNET

Automakers are ramping up their connected car efforts for three reasons:

  1. Real-time updates: IoT makes it easier to release software updates in real time which is very critical during a recall.
  2. Cross Selling: IoT provides more ways for automakers to cross-sell their products and services to customers.
  3. Data Analytics: Automakers can use data from the car to analyze performance and obtain critical insights on how drivers use their cars.

According to a KPMG survey of 200 automotive executives, BMW is the champion in pushing connected cars; followed by Daimler, General Motors, Toyota, and Tesla. As far as tech companies, AT&T is a prime example. The telecommunications giant added 2.7 million connected cars in the U.S. in the first three quarters of 2015. But Microsoft, Apple, Google, Pandora, Sprint and other tech players are all throwing their considerable muscle behind connected cars.

A recent Google survey found that 30% of U.S. smartphone users get “anxious” without their smartphone on them, and 68% check their smartphones within 15 minutes after waking up in the morning. This anxiety can be allowed by allowing people to stay connected through connected cars.

Consumer interest in the connected car is growing, and that will rapidly translate into dollars. Approximately 62% of U.S. consumers were aware of the term “connected car” in a recent AT&T and Ericsson survey. And Google Trends shows the term “connected car” is reaching new highs every month.

Consumers foresee car buying as an experience and companies are quick to adapt to changing trends. Consumers begin the car-buying process by doing online research and speaking to dealers, which gets a boost through technologies such as augmented and virtual reality. This can provide consumers with a real life look and feel of the entire experience of owning a vehicle of their choice. With more consumer devices such as smart-watch, wearable gadgets and virtual reality gears, this trend will become mainstream globally.

Conclusion

In near future, consumers will expect much more from their vehicles once driverless connected cars vehicles are offered to them, including more focus on car safety, creating a more personalised experience behind the wheel, and in-vehicle productivity.

It wouldn’t be wrong to state that cars will evolve sooner than expected and users would be able to communicate with cars uniformly via wearable devices, smartphones, mobile apps, and the like. It would be a normal routine for a user to set navigation, lock doors, turn on the heat, flash the lights, or sound the horn through the wearable or the smartphone and its compatible applications.

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Deepak Amirtha Raj

Deepak Amirtha Raj

Deepak is a Research Analyst with expertise in Business Strategy and Technology. His research covers Artificial intelligence, Virtual and Augmented reality, Machine learning, Big data analytics and Market Strategy. You can find him playing guitar and writing gospel songs in his band “The Brotherhood”. Follow him on LinkedIn and Twitter.

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