Next week, we will participate in the Automative Tech Week in collaboration with our parent company, Tata Communications. Our workshop will show how to derive value from data across the connected vehicle value chain. We will also discuss the impact of eSIM on OEMs and the latest innovation in the field.
Below are the key takeaways to consider before the event
The disruption of automotive sector
Connected cars and electric vehicles are the way of the future with various governments declaring their target to completely adopt an electric transportation strategy. Global sales of electric cars accelerated fast in 2020, rising by 43% to more than 3 million, despite overall car sales slumping by a fifth during the coronavirus pandemic. The growth in the sector is also fueled by the evolving ecosystem where new start-ups are innovating to bring to market new solutions.
These new solutions are not just for improving infrastructure but also providing a better, connected car experience for the customers. The traditional car market is being disrupted by solution providers offering in-car embedded apps, technology for remote connectivity, better battery management and usage and innovation in product design.
Autonomous driving and 5G: where are we?
One of the major disruptions in the automotive industry will be caused by the successful launch of autonomous connected cars. There are various autonomous cars on the road today. However, the usage is believed to be in its infancy. Analysts envision that 5G will have a major role to play in taking the usage of autonomous cars to the next level by offering new applications and enabling the exchange of data between connected devices quickly. 5G will be enabled of a truly interconnected, intelligent road transport system which is critical to ensure the safety and adoption of autonomous cars.
Today we are at “level 3” of “conditional vehicle autonomy” (according to the GSMA intelligence data released in the latest MUST connected car event) where the car can take some decisions based on limited data and connectivity. Automated systems reach their limits when unexpected or unknown situations occur.
eSIM for automotive industry leads the way
The GSMA intelligence report highlights the fact that the automotive industry is leading the way in IoT deployments and the use of the embedded sim to deliver the fully connected car experience. 45% of the automotive providers surveyed see eSIM as a very critical factor for their success. Automotive companies such as AUDI, BMW, GM, Hyundai, KIA, Land Rover and Mercedes are already leading the way with eSim and IoT usage in their vehicles.
eSIM, a game changer for end-users & OEMs?
The arrival of the eSIM has considerably improved the experience of end users, most notably in terms of security. Embedding eSIM cards into vehicles grants end users the ability to use emergency call services and offers them access to insightful data to improve the maintenance of vehicles under a secure software. Moreover, it responds to the end customer’s increasing demand for digitalization, as it extends their digital life into their car. Indeed, 47% of consumers would be willing to switch brands in order to access new and innovative connected car services. Younger drivers and large city residents in particular see greater value in connected services over traditional factors. (Connected Car: Consumer Expectations, Opportunities and Challenges for the Industry – Copyright PAC GmbH, 2020)
But end-users are not the only beneficiaries of the eSIM. Connected navigations are also great news for OEMs. It grants them access to data illustrating the location, destination and driving-patterns of their cars, which can later be used for promotion or advertisement purposes. Remote preventive diagnostics and maintenance based on car/fleet data, such as Bosch Drivelog Connect, are also made possible. Most importantly, the end user’s increased demand for digitalization is a major chance for OEMs. It’s a great opportunity for them to become providers of new entertainment and paid services. OEMs can bridge the gap between OEMs and tech companies, especially if the OEM owns the solution and integrates it. If done efficiently, OEMs may even become “kings of APIs”.
Integrating connectivity during the manufacturing stage & the need to be an expert in connectivity
Nonetheless, the OEM’s decision to integrate connectivity into cars must be made early on, during the manufacturing stage. It is only then that the embedded SIM enables assembling of connectivity within the vehicle. During the manufacturing stage, finding the right connectivity for mobility devices is key, as it avoids potential interoperability issues. Doing so also facilitates the management of new costs (Bootstrap).
The need to become an expert in connectivity is a second challenge OEMs would have to face. With the arrival of this innovative technology, expertise is not only required when building vehicles, but also for implementing connected devices. Expertise in connectivity is essential as there are up to 8 points of connectivity in a car, with up to 3 forms factors depending on function and place. Experts will also have to manage new levels of security that didn’t exist with the traditional SIM.
The future of networked cars: safe, self-driving and… shared
As urban zones try to decrease pollution and lessen city congestion, there are significant opportunities for car sharing & rental organizations. Car-sharing models look to hold more potential for profit than ride-hailing models such as those pioneered by Uber and Lyft. The profitability of mobility services such as ride sharing, and their high potential for growth, make the concept a very disruptive one. Companies like Ford, VW, GM and Renault have the very beginnings of fleet operations, which means a whole different value proposition.
Subsequently, Automobile manufacturers are increasingly venturing into mobility services to cater to the growing demand for car-pooling services. For instance, major automobile manufacturers, namely BMW and Daimler have merged their car-sharing ventures to expand geographically in 2018. Similarly, in February 2020, Tesla announced plans to launch ride-sharing application. Automakers investing in carpooling applications will contribute to the growth of the market.
Find us next week at the Automative Tech Week for more information on how to derive and use data to improve business operations and enhance customer experience, with a focus on specific use cases.
During our interactive 2-hour workshop, we will address three topics and a range of related key questions:
Deriving Value from Data
- What sort of data are we talking about and how can it be derived?
- What sort of insights can be gained?
- Connected vehicle monetization opportunities
Changing the Connected Vehicle Management Paradigm
- Securing connected vehicles with cloud SIM services
- How eSIM is changing the connected vehicle model
Extending Connectivity Data to Enhance the EV Driver Experience
- Achieving the goal of borderless electric mobility
- Creating seamless charging experiences for EV drivers
The workshop will be presented by:
Avneesh Prakash, Vice President Mobility and IoT Services, Tata Communications
Saurabh Ohri, Head of Automotive Business Unit, Tata Communications
Olivier Leroux, CEO, Oasis
Christian Hahn, CEO, Hubject