A tipping point for vehicle connectivity

Technology-led innovations are driving change at an unprecedented pace and are the basis of competition among industries globally. The auto industry is at the forefront of this revolution and is expected to see a rapid rise in digitalization and investment in next-gen technologies — topping $82 billion by 2020. Cars are no longer just utilities to get people from point A to point B. They now serve as an integrated means of frictionless movement while providing a differentiated experience along the journey and creating opportunities to harvest data in the process.

Manufacturers have already started integrating new technologies in their cars to make them stand out in a market where autonomous features, ecosystem connectivity and other innovations have become an industry norm. In fact, IHS Markit predicted that by 2023, more than 70 million connected cars will be in operation and on the road.

Advancements in vehicle-to-everything tech will help drive this innovation. The potential of the V2X technology market is expected to reach $14.8 billion, and automakers need to find innovative ways to propel car connectivity to gain a sizable share of that market.

Here are a few ways manufacturers could use next-gen technology to further leverage V2X capabilities, establish new partners and bridge connected experiences across separate ecosystems.

For longer-term investment, it's important for manufacturers to think outside the box in terms of what other connected devices and ecosystems the car can interact with. Manufacturers must take proactive steps to push the boundaries of connected services. Creating a larger connected ecosystem along owner and rider journeys will pave the way for loyalty and advocacy, and ultimately return on investments by creating new revenue streams.

For example, the modern car derives more than 40 percent of its value from software, and the software itself is a set of drivers for hardware components, electronic control units, etc. Each of these cars will go out into the field and get serviced across a network, which needs to be aware of this software and its configuration for each vehicle. As there are software upgrades and updates, these should be authenticated before installation to prevent any intrusion into the system or breakdown on the road. This interesting problem can be addressed using blockchain.

The potential applications of technology seem limitless — whether it's implementing remote-start capabilities in a smart home or smartwatch, partnering with smart home tech manufacturers to communicate with appliances from your dashboard, or any number of potential combinations. Manufacturers that invest in tech partnerships to transform their cars as platforms will dominate the connected-car market.

Today, connected devices often operate in siloed ecosystems. Connected experiences are limited from one environment to another, in which the user is engaged for a limited time and within a limited range of distance. Auto companies have long searched for the key to help create seamless experiences across these separate ecosystems to create one universal connected environment.

Advancements in vehicle-to-everything technologies will prove to be this missing piece. Paired with autonomy, V2X technology will provide auto manufacturers the ability to create unique experiences across these connected ecosystems such as smart home and office, gaming and entertainment, and much more.

Thanks to developments like 5G, vehicles will be able to better communicate with complex road and traffic situations. These developments will also allow for previously unimaginable connectivity speeds and minimal latency, allowing for increased communication across multiple connected devices. The car will become an extension of the home, office, computer, phone, gaming console and more — all accessible at a moment's notice.

While vehicle connectivity can certainly serve as a vessel for bridging these ecosystems, the resulting capabilities are only as strong as the ecosystems they connect with. In order to reach the real potential of creating a universal connected ecosystem, the ecosystems outside the car must all scale alongside one another and have the necessary information technology infrastructure in place for integration into other sectors. No single player needs to take the first step toward this connected future. Instead, all parties need to help one another scale in tandem and grow this connected ecosystem in which we all will operate.

Vehicle connectivity is at a tipping point. Cars are quickly becoming smarter and more interconnected than ever before. New V2X capabilities will not only innovate the driving experience but also help connect separate ecosystems in which the consumer operates daily. These separate ecosystems must begin to work in tandem, but an introduction to untapped V2X possibilities will help open the door for conversations across these individual players.