Many industries are already buzzing with the new life that technology has infused into the industry. But not until very recently, the auto industry has remained almost stagnant despite the huge strides in technological progress been made. However, with increased digitalization and ever-changing customer behavior coupled with innovations by cutting edge companies like Carblox, the automotive and digital world are destined to converge in the near future.
There is a slow but progressive shift in revenue stream in the automobile industry and even leading industry executives have attested to this fact. The Digital Ecosystem has been echoed albeit quietly but confidently. Thus, the car itself is no longer viewed as the most important aspect of the automobile industry, but the technology that drives and powers it.
This perceived digitalization and integration is according to one automotive executive, capable of fetching more revenue than ten non-connected cars, further highlighting the influence of the niche. Consequently, car unit sales will no longer be the right benchmark to quantify market share value by, as cars will now be able to generate revenue throughout the entirety of their life cycle.
With a more infused and integrated digital cycle, comes the key Relationship Between Data, Security and Trust. Some executives have even mooted the idea that OEMs would still be able to generate revenue via their hardware and the digital ecosystem. Also, because OEMs can offer specialized products and services, they can generate income from a vehicle for the entire duration of its lifecycle.
Additionally, some sources are hinting at the fact that by 2025, OEMs will be able to generate revenues in a bid to make the upstream and downstream profitable. Although this theory is probably not very precise and correct at this stage. Again, around this forecasted period, customers are very well going to be pushing for a more personalized platform to manage their own accounts on these platforms. This will prompt a platform with a user sign-in ID. Executives have identified this move as a vital one to build customer relationship and to simplify things even more. Also, they are more likely to pick an emerging brand or one that has been established for a longer period.
With so much talk about data and digitalization, one important question remains unattended to, who actually owns the downstream and upstream data generated from a vehicle? Usually, tech companies depend on customers to hand them some of their personal info I exchange for some small rewards. However, most customers still strongly believe that they actually own their own data. Again, about 45% of industry executives have opined that they do not really see any need for data compensation. This view is still largely unknown to a better part of the industry.
Customers are now becoming more careful about losing their data and companies are faced with the uncomfortable question of what will happen if their data were compromised. Nowadays, Customers are even opting for compensation in the event that their information becomes compromised. On the other hand, since gathering data is an essential aspect to enable development in the long term, companies will still be looking to collate some form of customer data and this, in turn, will place security at the heart of all purchasing decisions that pertain to mobility.
In the end, this change is inevitable and some may even argue that we are already in the process, digital ecosystems will greatly improve efficiency, increase in mileage and a better allocation and utilization of available resources. Carblox is the World’s First decentralized vehicle multi-platform on blockchain and they are one of the key industry players driving the digital Eco system idea amongst many others with the goal of revolutionizing the automotive industry in the very near future.