The traditional concept of cars is entirely transforming with the advent of Internet of Things (IoT). The inclusion of features that make a typical car smarter and more connected, the way we drive and stay in touch with the world around us.
What is Internet of Things (IoT)?
With the help of IoT, devices that were formerly unconnected can now be wirelessly linked to the Internet so that they can collect data, report and/or automate systems. It is expected that IoT as a business will be estimated at USD11 to USD19 trillion dollars within the next 10 years.
The automotive market has without doubt shown maximum potential in adopting IoT technologies, opening doors to connected cars, autonomous driving systems, cloud computing, AI and a host of other features which revolutionize the way car makers design and manufacture vehicles. Within the next 3 years, it is expected that over 250 million cars around the world will be connected via the internet.
Here are a few changes that the automotive industry is expected to undergo as IoT as a concept grows –
- Driverless Cars Will Become A Common Sight
Most automotive companies are at least considering if not directly tackling the idea of autonomous or semi-autonomous vehicles. The advent of IoT has brought about advancements in sensors, camera, on-board computers and laser based radars, transforming the way cars are designed today. There are already cars in testing that have the ability to accelerate, slow down, change lanes, overtake cars and merge with traffic without having a driver behind the wheel.
Over the next few years, when these cars will be linked to cloud-based, AI supercomputers, it is expected that they will be able to learn and adapt at an unimaginable pace.
- Car Makers With Soon Be Tech Companies
The evolution of the automotive industry has compelled most car makers to become tech companies in their own right. IoT is expected to accelerate this change even further. In fact, many automakers worry that they will lose control of the customer to the software companies that develop the systems. It is a common belief that cars will be a secondary commodity device to the software that runs in it. As operative systems become critical parts of the vehicles, automotive companies will have to up their game with regards to hardware. In fact, Google has been in the news for years now for their prototype driverless car.
- Opening New Revenue Streams
With software becoming an integral part of a typical vehicle, it will be all the more important for car-owners to keep their systems updated to run the vehicle effectively. Upgrades for autonomous or semi-autonomous driving cars will open doors to additional software purchases and upgrades even after the vehicle has been bought. Dealerships today are able to make additional money through servicing the vehicle. However, there aren’t too many changes or updates to a typical car after it has been bought. Soon, this may no longer be the case. As the cars get connected to the internet, they will have access to new features and updates that can be provided at a price. Content can be monetized like it has been in air travel, opening doors to revenue opportunities from a captive audience for several hours at a go.
It is only natural that IoT will bring many other unpredictable changes to the automotive industry. That said, it is already significantly influencing how carmakers build their vehicles today. Companies are increasingly pouring money into IoT and the automotive industry has peaked special interest. IoT offers significant business opportunities in this sector that are worth looking into.