Connecting Cars to the Future
In the last few decades, we have seen the automotive industry being disrupted and upheaved, time and time again. The emergence of the hybrid car, and then the electric car, and conversations about autonomous driving and shared mobility are constantly being had within the automotive ecosystem. However, the greatest disruption to the ecosystem could arguably be attributed to the growth of connectivity, and the technology behind the connected car, because connectivity technology is applicable to all forms of vehicles; electric, autonomous or even common petrol cars.
Literally speaking, a connected car can be defined as any car or vehicle that can connect to the internet, in some way or another, usually via WLAN. Currently, automotive companies use two kinds of systems in connected cars: Embedded systems, which are equipped with a chipset and built-in antenna, and Tethered systems, which are equipped with hardware that connects to the driver’s smartphone.
There are huge benefits which the consumer can take advantage of with the development of the connected car, many of which are now second-nature to most drivers and exist in the majority of vehicles being manufactured in this day and age. Connected cars provide drivers with access to a wide range of infotainment services on-the-go, advanced navigation systems through third-party apps, advanced safety features, which reduce the chances of an accident and therefore decreased insurance premiums. Enhanced security features help drivers to keep track of their vehicles, even when they are not driving the vehicle, and drivers can even get remote access to various functions of their vehicle.
The connected car is increasing the practicality of driving, but at the same time, is highlighting the fact that vehicles have evolved from a means of getting from A to B into, essentially, “smartphones on wheels”. Traditional OEMs are discovering that they no longer hold all the expertise in the development and implementation of such technologies, which has created a whole new market, which start-ups are taking full advantage of.
For example, Valens, an Israeli start-up who provide high-speed connectivity solutions for the automotive market, have this year completed a SPAC merger and are now being traded on the New York Stock Exchange, with a $1.1billion market cap. Additionally, Otonomo, another Israeli connected car start-up, are also now being traded on the NASDAQ, with a valuation of almost $1.3billion. It is evident that start-ups are enjoying the connected car revolution, and it is of no surprise that Israel, the Start-up Nation, is taking full advantage.
Looking further into the future, it appears that connected car technology will not be limited to conventional cars. Autonomous vehicles can and will also make use of this technology to communicate with the road infrastructure and cloud system. However, it is clear that the connected cars are disrupting the automobile industry in the present day. With more and more smart vehicles being launched, buyers are demonstrating a clear preference to the connected car. It won’t be long before connected technology is considered the new normal, enhancing safety and reducing accidents. Further, as 5G connectivity improves, so will the efficiency of the technology, resulting in even smarter and smoother connected car technology.
