‘Computer on wheels’ dominate highly-connected automotive industry

Almost every new car will be connected to the internet by 2030.

Connected vehicles are on track to lead the automotive market, with 95% of new cars expected to be internet-enabled by 2030, generating up to 25 gigabytes of data per hour.

“[This is] driven by enhanced safety requirements, efficiency requirements, but also demand for connectivity by both the manufacturers and the consumers,” said Marco Bijvelds, Vice President of Tata Communications MOVE. Infotainment, remote diagnostics, and AI applications are key drivers behind this transformation, he added.

He cited a recent market survey by Tata Communications and Automotive IQ which found that 70% of industry leaders consider connectivity a cornerstone of their business strategies.

Jack Palmer, Principal Consultant at Frost & Sullivan, emphasised that connected vehicles are now indispensable. “Consumers really expect it. They expect a seamless navigation experience in the vehicle, plus all the other connected vehicle services. You can't sell a car in many markets now without some portfolio of connected vehicle technology and apps,” he said..

The shift to software-defined vehicles (SDVs) marks another significant evolution. “Cars are transforming from traditional vehicles to computers on wheels, allowing high levels of customization and remote management,” Bijvelds said.

Features like real-time traffic updates, adaptive suspension, and remote maintenance are now possible through software updates, enhancing user experience and operational efficiency.

Palmer highlighted the revenue potential for automakers from SDVs. “There’s a possibility to upgrade features throughout the vehicle’s lifecycle, enabling continuous improvement and new revenue streams,” he said, pointing to the flexibility of unlocking new functionalities based on user needs or regulatory changes.

Security remains a critical concern in the connected vehicle ecosystem. “A car being compromised in terms of security turns a car into potentially a weapon,” warned Bijvelds. The complexity of modern vehicles makes them susceptible to cyber threats, as seen in past incidents like compromised tire pressure monitoring systems.