The connected car is a vehicle that is able to communicate with other objects, including other vehicles, the physical infrastructure in which the vehicle operates, the electricity grid that supplies it with power (in the case of electric vehicles) and with any number of smart devices, apps, etc.
Given the high degree of interaction, the possibilities around the connected car seem unlimited. PwC predicts that the connected car market could grow to 155.9 billion dollars by 2022, compared to an estimated 52.5 billion dollars in 2017. However, these revenues will become increasingly fragmented because of new services, technologies and suppliers.
The idea of sharing a ride is certainly not new. Since the turn of the century, however, a new way of shared mobility has emerged. The idea of building a full service platform around the disposal of private vehicle ownership has led companies to offer consumers a number of new transport alternatives. These alternatives are direct competition for traditional taxis and private ownership.
Recent investments and rapid population growth in urban areas are clear indicators that shared mobility is becoming an increasingly important option for the world's population. In addition to the growing choice of ride and car sharing, there are additional options for sharing other modes of transport, such as scooters, bicycles, shuttles and micro transit routes. These forms show a significant increase as consumers seek to expand their mobility options. Data sharing and analysis is expected to improve the user experience and ROI for businesses, which will further expand the mobility ecosystem in the coming years.
Various autonomous driving technologies already in use are designed to improve safety, such as rear-view cameras, automatic braking, adaptive cruise control, lane departure warning, etc. These options are increasingly implemented in autonomous vehicles of level 1 (function-specific) and 2 (combined function) and quickly become standard.
The road to level 3 (limited self-driving) and level 4 (full self-driving) of autonomous driving is more difficult due to challenges that exist around high definition mapping, interaction with (and prediction of) human drivers and adaptation to changing infrastructures and circumstances. The complexity of this requires considerable investment and cooperation, the results of which will probably only be visible over time.
While most of the world is currently insisting on a stricter fuel economy and emission targets, vehicle safety standards still vary significantly between mature and emerging markets.
As with the development of new technologies, there are different ways to reach a certain level. However, it is almost impossible to establish standard rules or specifications until the technology has developed to a certain level. For regulators, it has proved complex to develop a roadmap to guide the development of autonomous and connected vehicles and how they deal with the world around them. However, public safety remains a top priority.
The maintenance of roads, bridges, tunnels, power plants (and electricity grid), water supply and other services needed by society entails enormous costs. In addition to maintaining these important components, planners take into account future infrastructure needs. By integrating things like road sensors, smart parking meters, lighting, garages and other 'smart' things into the planning, cities can use their limited space more effectively as the population continues to grow within the borders of cities.
Reducing traffic density and congestion in cities is a complex issue. Experts agree that new technologies and different modes of transport offer the best solution to improve the way people and goods move around. Increasingly, cities are using data to better understand how citizens and goods move, enabling more efficient and tailored solutions based on factors such as population density, climate and layout.
Sharing data and information can help our society reduce road maintenance and improve traffic flow at peak hours through predictive analysis.
Sales, financial, insurance
The rise of autonomous driving and connected vehicles will have a huge impact on sales, financial and insurance models. As the population increasingly moves to urban areas, where the possibilities of transport, journey and car sharing are increasingly available, the purchase of vehicles (especially in mature markets) may be affected.
In an effort to respond to these trends, new financing models have already been introduced in combination with trip and car-sharing companies to stimulate the selling of new vehicles to non-traditional consumers.
Insurances will be significantly affected as well. As autonomous and connected vehicles offer the promise to improve pedestrian safety and reduce the number of collisions, insurance costs could decrease. Some insurance companies have therefore already started offering Usage Based Insurance (UBI) as an alternative option for those who are not regular drivers or who participate in trip/car sharing.
Digitisation has been one of the main drivers of technological innovation since the turn of the century and has become an integral part of the mobility initiative. Products and services offered while travelling, including e-commerce in vehicles and social media apps, are examples of the role technology plays in the overall customer experience. Digitisation also contributes to the improvement of supply chains, a key theme of Industry 4.0.