Connected Cars Highlight Growing Role of Analytics

In the popular imagination at least, the Internet of Things (IoT) is largely associated with a virtual army of networked fridges sending out endless shrill alerts on the urgent need to buy milk, or beer. However, while IoT is still a nebulous proposition, it is the connected car segment where the most tangible progress has so far been made. The possibilities cover a wide spectrum, from engine diagnostics to WiFi hotspots, emergency response, navigation, the streaming of third-party entertainment and much more.
 
General Motors (GM) claimed that it accounted for more than a million 4G LTE connected cars on the road in 2015, but by 2016 its Chevrolet brand alone had almost four million vehicles with embedded LTE. And according to Jasper, provider of an IoT platform that enables companies to launch, manage and monetise IoT services, as many as 80% of all cars will be connected within five years. It’s worth noting that Cisco recently announced its intent to acquire Jasper, which will become its new IoT Software Business Unit.
 
Many of the big tech names are already firmly behind the initiative. Google is well known for its work on driverless cars, but is also active in connected cars. In January 2014 it formed the Open Automotive Alliance (OAA), a global grouping of technology and auto industry players committed to bringing the Android platform to cars. Not to be outdone, a couple of months later Apple revealed its CarPlay system to connect iPhones to car infotainment units. Perhaps less well known for its backing of the connected car concept and yet no less significant, is the GSMA, an industry body that represents the interests of mobile operators worldwide. The GSMA has been instrumental in creating the connected car Embedded SIM [E-SIM] Specification, which forms the basis for a range of in-vehicle services.
 
However, despite the strong industry backing, it’s apparent that a number of consumer concerns will need to be overcome first, with security and cost topping the list. While the benefits of in-car internet connectivity and the ability to interact with the vehicle from any distance are considerable, the security implications also are significant. Moreover, car manufacturers will need to overcome consumers’ wholly understandable reluctance to pay over the odds for optional extras. Many consumers will likely prefer to use their smartphones as the primary means of in-car connectivity, so moves by Apple and Google to focus on in-car smartphone integration appear entirely sensible until true embedded connectivity becomes as ubiquitous as the cup holder.
 
From the perspective of the carmakers, while connectivity itself is unlikely to bring huge short-term financial rewards, the greater prize is in the opportunity to create closer links with their customers, utilising and monetising the analytics that they and their vehicles generate. As with so much of modern technology, it is all about the analytics. The ability to download data from vehicles will position carmakers and their commercial partners to set up lucrative new revenue streams, such as car leasing and pay-as-you-drive insurance. For while the connected car is about the flow of information to and from the vehicle, behind the scenes carmakers also are quietly forging connections of their own…

By Paul Ridgewell

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