Connected cars: transforming the automotive industry

Connected car technologies are transforming the automotive sector, for both industry players and consumers alike.

The vehicle of today has the computing power of 20 computers, featuring 100 million lines of programming codes, and processes as much as 25 gigabytes of data an hour.

Unlike before where automotive digital technology focused on optimising a vehicle’s internal functions, attention is now moving towards developing a car’s potential to connect with the outside world and improve the in-car experience.

This is the connected car — a vehicle that can optimise its own operation and maintenance. The car can also control the convenience and comfort of passengers through onboard sensors and Internet connectivity.

It’s estimated that the sizable increase in connected cars will increase the value of the global market for connectivity components and services to €170 billion by 2020 from just €30 billion today.

Harman, a company long known for its high-end stereo equipment, is working with Samsung to make sure even more vehicles get connected.

“There will be more than 200 million connected vehicles on the road around the world by 2020,” said Shewchuk, a spokesman for Harman International.

The rapid acceleration of connectivity has the ability to change the competitive landscape, with companies from the software and telecommunications sectors already entering the automotive market

A report by McKinsey found that 13 per cent of car buyers are no longer willing to consider a new vehicle without Internet access, and more than a quarter already prioritise connectivity above features like engine power and fuel efficiency.

However, consumers are still unsure about digital safety and data privacy with an average of 37 per cent of respondents saying that they would not consider a connected car.

The below visual shows the concerns new-car buyers have when it comes to data privacy.

connected cars

While the future of the technology-enabled car points towards ever-greater connectivity, companies will face both hard and delicate decisions in the coming years.

Also read: Uber removes self-driving cars from San Francisco roads





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