Connected Ecosystem


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Connected vehicles are well aligned to the automotive trend, CASE - Connectability - Intelligent Vehicle sharing electric mobility. This situation is causing massive disruption to the classic automotive world as we know it. But looking at what started, the connected car has been available for more than 25 years. Then Google Maps didn’t launch until 1996. General Motors offered an on-demand vehicle called “OnStar”, which many of us know about. These were factory-fitted telematics units and were supplied by factory-operated connections through a connected device.

Connected car ecosystem: 2016 – 2030 – Opportunities, Challenges, Strategies & Forecasts

Connectivity has meant that the car is not just a “car” anymore, it’s a real computer on wheels. The benefits are clear to anyone who uses one of these vehicles. They are no longer isolated from external information or data sets. When you see your personal vehicle in this way, it becomes obvious how important connectivity is for this market. And modern cars don't only connect to the outside world via smartphones or apps - thanks to high-speed LTE networks and infotainment systems with built-in 4G functionality, they can already offer integral shared mobility services 24/7. The concept of telematics was born 25 years ago - today the ecosystem possibilities are endless which means that automakers have an abundance of opportunities to get involved.

There is a new opportunity within the connected car ecosystem that represents itself as an important element for road safety, environmental protection, and optimization of traffic flow: Vehicle2X - or V2X communication. This is one of the most promising subjects about innovations in vehicle-to-vehicle (V2V), vehicle-to-infrastructure (V2I), and vehicle-to-pedestrian (V2P) communication.

Vehicles equipped with this technology will be able to communicate both with each other and roadside equipment such as traffic lights, parking spaces, etc. The main goal is to reduce accidents and save lives on roads by exchanging information between vehicles and transport infrastructure, warning drivers about dangerous situations such as traffic congestion or closed lanes, improving traffic flow, and reducing pollution.

- Benefits of interconnected cars: IntelliSafe Autopilot with Adaptive Cruise Control, Active Lane Assist, Blind Spot Information System (BLIS), Front Assist with Pedestrian Monitoring

- Case study: "Connected Car Solutions - Connected Ecosystem" by ABI Research provides a clear understanding of the key challenges and solutions surrounding the mass adoption of V2X technologies in connected car ecosystems in both North America and Europe. This thought-provoking report and in-depth analysis will assist OEMs and suppliers to understand the benefits and roadblocks associated with these new systems; it also helps them determine which established players are well placed to win business in this market's highly competitive environment.

You might not know this, but your car is already connected.

Most new cars come with some kind of connectivity built-in. It’s what allows you to access features like GPS and music playback. But that’s just the beginning. A truly connected car can do so much more.

With Geolance, you can unlock the full potential of your car’s connectivity. We offer a suite of transportation services that give you complete control over your vehicle – from anywhere in the world. Whether you need to find your car in a crowded lot or want to start it up remotely on a cold winter morning, we’ve got you covered.

Key highlights of the report:

1. From 2020, V2X technologies are expected to be widely adopted in connected car-sharing ecosystems; 80% of new vehicles will offer some form of basic V2V support (alerts about stopped vehicles or pedestrians) while 25% will include full connectivity (V2I and V2P functionalities).

2. The key challenges that OEMs currently face are related to liability issues; on one hand, authorities do not want them to implement solutions without proper security protocols while on the other hand, they fear the risk of drivers becoming too dependent on these systems. There is also concern surrounding driver distraction due to all the incoming infotainment services available via OTA updates.

3. V2X technology is expected to bring many benefits, including increased road safety with an estimated reduction of up to 25% in accidents, decreased congestion through improved traffic flow management, and better air quality with less environmental pollution. This technology will also bring significant cost savings for both public authorities (in terms of accident reports) and private individuals (through damage caused by accidents). Additionally, it has the potential to provide numerous new business opportunities such as parking guidance systems or congestion charging for toll roads - unique value propositions that can be pushed through over-the-air updates with innovative revenue mechanisms attached to them.

Today's car is no longer just a means of transportation modes--it's has turned into a computer on wheels which gives its owner access to a wide range of services, including safety and infotainment. However, that connectivity comes at a cost that is increasing in magnitude every year. At the same time, cars have also become less reliable and more expensive to maintain with the average vehicle age rising from 8 years in 1950 to 11.5 years today.

On one hand, car manufacturers must make sure their vehicles can communicate with other cars or roadside equipment--vehicle-to-vehicle (V2V) communication is what makes high levels of automation possible while vehicle-to-infrastructure (V2I) will be key for future road safety standards both in the EU and US. On top of that, connected cars offer motorists access to new features such as the ability to remotely unlock the doors or start the engine.

On the other hand, they have to bear in mind that connectivity can be a dangerous thing if implemented without regard for security protocols. Car manufacturers must therefore ensure their vehicles are fully protected against any possible cyber-attack while at the same time, authorities do not want them to implement solutions without proper security protocols in place with public-private partnerships.

Conversely, drivers are asking carmakers for more vehicle features that improve safety and give access to new applications with added value propositions such as parking assistance, collision mitigation systems, etc., which all demand constant connectivity--the problem is, this makes it very easy for both users and companies alike to fall prey to cybercriminals. Therefore, in addition to security concerns surrounding V2X technologies, OEMs must be extremely careful when it comes to driver distraction.

The V2X market is in a period of transition and the industry is still finding its footing. However, the year 2020 will mark a turning point in terms of basic connectivity--at that point, 80% of new vehicles will offer some form of basic V2V support (alerts about stopped vehicles or pedestrians) while 25% will include full connectivity (V2I and V2P functionalities). In the meantime, carmakers continue to test out new business models with innovative revenue-generating mechanisms applied through over-the-air updates - these are pushed either through digital services such as infotainment systems or safety applications.

Despite the controversy surrounding liability issues, connected cars are here to stay and they will only increase in number over the years. The automotive industry is already facing a shrinking market with no growth potential, so connected technologies might just be what saves it from eventual extinction.

The four megatrends driving the industry are the rise of automated driving, connected cars, electric vehicles, and shared mobility.

V2X is an acronym that stands for "vehicle-to-everything", meaning that it enables the communication between cars in terms of urban mobility as well as with other types of road users (pedestrians, cyclists) and infrastructure (parking lots, traffic lights). The technology uses wireless communications to exchange information on safety-relevant events to improve on-road safety. V2X systems can detect surrounding vehicles through onboard sensors such as cameras or radar devices. These real-time data allow the creation of precise maps of the area around a vehicle through all three dimensions (height, width, and depth).

Since these are based on wireless technologies they are also able to detect weather conditions, see the location of pedestrians, and estimate their speed using video processing. This is especially useful during night-time driving when it would be difficult for drivers to distinguish pedestrians from other objects in the dark.

All this information allows V2X systems to apply driver assistance technologies that are not available on regular OEM infotainment systems such as automatic emergency braking or forward collision alerts - features that are already making autonomous cars a reality in mobility modes.

Vehicle-to-infrastructure (V2I) connectivity provides data relayed in real-time by nearby vehicles to make road infrastructure safer for motorists--the most common usage scenario here is vehicle detectors installed at intersections that inform nearby cars about traffic lights. When combined with number plate recognition, the system could warn drivers about upcoming red lights before they reach the intersection.

In a similar vein, V2V (vehicle-to-vehicle) connectivity enables nearby cars to share information and thus avoid unexpected events such as collisions involving pedestrians and other vehicles. This technology is currently under development; at present we can only speculate on its implementation although we imagine it will become the next revolution in the automotive industry.

The bottom line is that V2X technologies offer great potential for improving road safety as well as driver assistance applications that increase convenience and give carmakers new ways to generate revenue from aftermarket services. Unfortunately, those same powerful capabilities could also turn out to be their Achilles heel if not properly secured against cyber-attacks - which is why cybersecurity is likely to become a major concern in the coming years.

According to ABI Research, V2X technologies will enjoy widespread adoption only after 2020 when more recent mandates will start to go into effect - e.g., the European Parliament resolution introduced last March that orders all new cars sold within the Union fitted with V2V capabilities by 2018. By then roughly 7% of all new car sales are expected to include basic V2V support (alerts about stopped vehicles or pedestrians) while 25% will include full connectivity (V2I and V2P functionalities). In the meantime, carmakers continue to test out new business district models with innovative revenue-generating mechanisms applied through over-the- updates - these are pushed either by OTA (Over-the-Air) updates or via the use of connected devices.

The Connected Car Market is growing rapidly with various vendors competing for their share of the pie. Here are some industry insights regarding the current trends and future projections:

ABI Research estimates that annual global shipments for infotainment modules will increase from 1.4 million units in 2014 to 16 million units by 2021, while AMBE+2 powered codecs will experience a surge in demand due to Voice over LTE technology. The market should enjoy robust growth during this period as more OEMs begin introducing new telematics systems featuring V2X connectivity; this will be accompanied by increasing demand for multimedia head units with mobile connectivity features such as Wi-Fi and Bluetooth.

In a recent report, Strategy Analytics forecasted that the global number of infotainment systems installed in new vehicles will reach nearly 200 million units by 2020 – up from just over 40 million units shipped worldwide in 2014. The company also expects another 300 million aftermarket systems to be purchased by motorists during this same period leading to a total market size of close to 500 million units for 2020.

According to IHS Automotive, shipments of telematics control units (TCUs) and electronic control units (ECUs) used for onboard navigation and driver assistance applications should grow at an annual average rate of 2% between now and 2020 as carmakers continue rolling out such technologies across their existing portfolios. Meanwhile, Audi, BMW, Mercedes-Benz, and Jaguar Land Rover have all announced plans to have their entire lineups ready for the latest driver assistance functions by 2020 - which should boost annual shipments of those systems from fewer than 5 million units in 2015 to roughly 15 million units by 2020.

The connected car ecosystem has a bright future ahead as it enables automakers to enhance current infotainment services while developing new revenue-generating features such as telematics, OTA updates, and subscription-based content. Yet cybersecurity could become a major concern since hackers might gain access to V2X technologies capable of disrupting traffic signals or engaging brakes without warning – but hopefully, the industry will be quick to respond with solutions that protect against unauthorized use.

The ecosystem’s place in society

is also sure to evolve as motorists develop a greater demand for in-vehicle technologies that connect with their lives both inside and outside the car. Future integrations will help generate a series of new services aimed at improving traffic awareness, increasing energy efficiency, and creating additional commercial opportunities - which means that automakers will have to consider expanding their current infotainment development strategies to create distinct value propositions for consumers.

Certainly, connectivity is already leading numerous automotive businesses toward unprecedented revenue growth while introducing entirely new ways of enhancing the driving experience. In turn, this could open up significant opportunities within adjacent industries such as content creation and distribution over mobile broadband networks – especially when coupled with the rollout of 5G solutions capable of increasing velocity and responsiveness throughout the entire connected car ecosystem.

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