If Henry Ford was standing today, he would be stunned by the things the auto-industry has achieved. Modern cars are not only serving as means of transport, but have entered a new era in which they are bought as technology devices. Not only this, but recent technology innovations have made many major changes, including the way vehicles are driven and the way they are built. Many consumers worldwide are putting their purchases on hold until next year, so that they can buy cars from their favorite auto makers that have connected car features. Right now, there is a huge increase in awareness, and consumers around the world are starting to understand the value of connected car features and how this technology can change their driving experience forever.
Connected cars for the future
With new innovations, the IoT movement while on the road will also improve vehicle-to-vehicle connectivity, and this is something that is very new when it comes to car industry tech breakthroughs. Cars will be able to use specialised wireless networks in order to establish short ranged communication, meaning that they will be able to broadcast their position, their current speed and any other relevant data to vehicles close by. Cars that have the connected feature will be much smarter, able to detect real-time road hazards, avoid collisions more effectively, increase fuel efficiency and significantly reduce traffic congestion.
Another drastic change and improvement will be the way drivers can access information while in their vehicle. I’m sure most people will be happy to hear that they will be able to say goodbye to traditional dashboard instruments and welcome brand new augmented reality navigation systems.
Additionally, with the rise of ‘black box’ insurance, or telematics, insurance companies are now able to influence your driving habits and therefore may actually lower your premiums for safer and more responsible driving. According to a report by insurance company, CallWiser, the ‘black box’ trend has helped to save their car insurance customers around £200 on average, against their annual car insurance premiums – great news for the tech-savvy driver.
“There has never been a more interesting time to work on innovation within the auto industry. Today’s pace—in technology development, experimentation with new business models and changing social trends—has created opportunities for vehicles to enable new experiences and add value as never before.” – Connected Car Expo L A, Nov 15, Blog
How new technology will affect the market
I will only say one thing, the Wi-Fi hotspot was dubbed the most demanded connected car feature among consumers in the United States. This truly says a lot; not only that the public is aware of how important this new technology will be, but also the preferences of this feature have now been praised by many experts. It is expected that the customers in countries including Germany, the United States, Brazil, China and Mexico will buy cars with this technology in the next few years.
For two years in a row, we have witnessed a trend where many customers in various parts of the world have become familiar with the phrase “connected car”, and even better, they are becoming more informed on the connected car’s services and features.
All of these things are good signs for the car industry and it is very likely that, when technology is actually implemented, customers will start to buy new cars. This has enabled car companies to plan in advance and estimate their future growth.
In the past couple of years, there has been a significant decrease of fatality risk. This is all due to improved safety technology and vehicle designs. Just in the past three years alone, there have been even bigger and much wider game changing improvements that have affected the auto industry. However, this is nothing compared to the big growth that is coming for the entire connected car market. Not only that the car market will experience huge growth, but it will also generate many other markets, which in turn will offer products that are related to this connective technology.
When you consider that mobile technology is currently one of the fastest growing industries and it is closely related to connective technology, then it becomes clear what prospects await us in the future.
The future however remains difficult to predict, but if you take a look at the current trends it becomes obvious that this new technology is going to change the car industry in the next ten years or so. It is possible that people will change their driving methods compared to the past, but comfort, efficiency and safety are things that will never be the same.
Adam Birchall is Vice President – Mobile Solutions at Barclay’s Corporate Banking, and previously he held global and regional executive positions with Nokia, including as Head of Device Strategic Intelligence. Mr. Birchall is an international technology thought leader, and is a sought-after speaker at conferences and industry events. Here’s his Twitter feed!