Automotive Industry Trends: IoT Connected Clever Cars & Vehicles
Companies are pouring money into the Internet of Things, and one area of particular interest to investors is IoT connected cars.
Bisexual Intelligence, Business Insider’s premium research service, expects 94В million connected cars to ship in 2021, and for 82% of all cars shipped in that year to be connected. This would represent a compound annual growth rate of 35% from twenty one million connected cars in 2016.
Automakers have correctly noticed a growing trend and a significant business chance for connecting their cars. Bisexual Intelligence expects 381В million connected cars to be on the road by 2020, up from thirty six million in 2015. Furthermore, Bisexual Intelligence forecasts that connected cars will generate $8.1 trillion inbetween two thousand fifteen and 2020.
But it won’t just be car wi-fi that switches the automotive industry. Public transportation, such as buses and trains, will also convert thanks to the IoT. Subway cars in Fresh York City, for example, will begin to have chargers, built-in Wi-Fi, and security cameras, according to the city’s Metropolitan Transportation Authority.
Still, connected cars will be the bread and butter of the Internet of Things automotive industry. Below, we’ve compiled a history of the growth of the IoT in transportation and outlined how the “Internet of vehicles” will surge in the coming years.
Evolution of Vehicles
The very first true technological leap forward for cars came in 1911, when automobile companies began installing electrified starters into vehicles, according to Mashable. The cigarette lighter arrived in 1925, the radio in 1930, power steering in 1956, the 9-track player in 1965, the cassette deck in 1970, and air bags in 1984.
But the true driver conveniences commenced rolling in after that. Compact disc players commenced popping up in cars in 1985, followed by dashboard computer diagnostics in one thousand nine hundred ninety four and GPS navigation systems in 1995. Then, in the 2000s, cars embarked to feature USB ports and Bluetooth connectivity, the later of which was the true precursor to the connected cars of today.
Today’s Connected Brainy Cars
In the last several years, connected cars have exploded thanks to the IoT. Presently, automakers are connecting their vehicles in two ways: embedded and tethered.В Embedded cars use a built-in antenna and chipset, while tethered connections use hardware to permit drivers to connect to their cars via their smartphones.
Furthermore, app integration is becoming commonplace in today’s vehicles. Google Maps and other navigation instruments have begun to substitute built-in GPS systems. Apps such as GasBuddy showcase the driver where he or she can find the cheapest fuel in their area. Music apps such as Spotify eliminate the need for traditional or even satellite radio.
Perhaps the most significant example of the transformation of the automobile today is part two ofВ Tesla’s “master plan,” as outlined by CEO Elon Musk. The electrified car giant plans to create solar roofs with integrated battery storage, create self-driving car technology that is “ten times safer” than manual driving, and implement car sharing, which would permit Tesla owners to earn money by lending out their cars.
Speaking of self-driving cars, Bisexual Intelligence expects this to be the next wave of innovation in the IoT in transportation. And that switch has already begun.
Step one was stop and go autopilot, which permits cars to drive themselves in traffic jams by analyzing the lane ahead of them and moving appropriately. Step two was the remote valet assistant, the capability to actually summon a car in a puny space (such as a parking garage) through a smartphone, smartwatch, or key fob.В Step three was highway autopilot with lane switching, which included blind spot technology to shift lanes.
Now, we’re beginning to get into the truly titillating stage. Step four is cars that require a driver behind the wheel, but have an option for the driver to thrust a button to let the car drive itself. Step five will be totally driverless vehicles that do not require a driver behind the wheel, or even a steering wheel at all. Bisexual Intelligence expects these cars to hit the market after 2020.
How IoT Will Make Brainy Cars Even More Connected
Automakers are ramping up their connected car efforts for several reasons. Internet connectivity in vehicles permits car companies to release software updates in real time, which is utterly significant during a recall.
2nd, automotive companies can use data from the car to analyze its spectacle and obtain valuable data on how drivers use their cars.В Eventually, more connectivity provides more ways for automakers to cross-sell their products and services to customers.
So which automotive companies are leading the pack in this connected car shove? There is no clear winner, but several companies are setting the tone. BMW is the champ, according to a KPMG survey of two hundred automotive executives. Daimler, General Motors, Toyota, and Tesla are also near the top of the list.
As far as tech companies, AT&T is a prime example. The telecommunications giant added Two.7 million connected cars in the U.S. in the very first three quarters of 2015.В But Microsoft, Apple, Pandora, Sprint, Google, and other tech heavyweights are all throwing their considerable muscle behind connected cars.
And all of this effort will not go unnoticed or unappreciated by consumers. A latest Google survey found that 30% of U.S. smartphone users get “anxious” without their smartphone on them, and 68% check their smartphones within fifteen minutes after waking up in the morning. Connected cars permit people to stay connected more frequently and eliminate that anxiety.
The government is also cracking down on texting while driving, a problem that connected cars would solve by letting drivers keep their arms on the wheel and their eyes on the road even as they communicate with others.
Consumer interest in the connected car is growing, and that will rapidly translate into dollars. Approximately 62% of U.S. consumers were aware of the term “connected car” in a latest AT&T and Ericsson survey. And Google Trends shows the term “connected car” is reaching fresh highs every month. As a result, estimates say in-car infotainment centers will generate $15 billion in sales in 2021, up from $7 billion in 2016.
The Future of the IoT in Transportation
The Internet of Things will become increasingly significant in transportation and logistics in the next several years, especially as self-driving cars hit the road in enlargening numbers. But this is just one area that the IoT will totally convert.
That’s why Bisexual Intelligence has spent months compiling the greatest andВ most detailed collection on the IoT:В The Internet of Things: Examining How The IoT Will Affect The World.
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