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Connected vehicles are already among us: this is the radiography of the sector

Connected vehicles are already among us: this is the radiography of the sector


Connected vehicles constitute a type of mobility that we tend to imagine in the future, in science fiction cinema, as when, in Yo, robot (2004) , a police officer requests several reports while driving and the system asks “What kind of music do you want to listen to while downloading?” Far from being a futuristic, it has been years since connected cars are part of our mobility.

Today, everyone travels with a smartphone in their pocket and, more and more frequently, it becomes our GPS navigator through applications such as TomTom, Google Maps, Coyote or Waze, among others, when we place it in the center console with magnets or suction cups.It is a first step towards connectivity.


Related That said, when we talk about connected vehicles, we tend to talk about those who either have the possibility of including an integrated SIM (eSIM, of embedded SIM ) with its own data rate; or through dashboards such as Mirror Link , a system that shows certain telephone functions on the central screen of the vehicle.What is the current status of connected vehicles?


ecall, mandatory sale in March 2018


GPS, connection with our music and even provide WiFi service inside the vehicle, are functions that we will talk about later and that represent a plus of comfort and quality on the trip.But if an elementoutil in connectivity is to be highlighted, this is the eCall, a security service that acts as a beacon in case of an accident , notifying the emergency services if our vehicle detects an incident such as a sudden stop could hurt the occupants.


Connected vehicles are already among us: this is the radiography of the sector


Traffic and Road Safety Magazine December 2013 | Source: DGT


According to the DGT, the eCall system will be mandatory from March 31, 2018 for all new vehicles, and since the system makes a call to 112, this means that the cars will have connection This does not have to be assigned to a telephone number with a voice or data rate, that is, it will not have a fixed cost for the user, and the call will have preference in the network.


How many vehicles are currently connected?


Worldwide, and with data from the white paper of Hewlett-Packard entitled The Internet of Things and connected cars (April 2016), in 2013 5% of the vehicles that left the factory had their own SIM that could be assigned to a telecommunications company.At the end of 2015, they were multiplied by two in market share, and it is estimated that by 2020 almost 70% of mobility will be connected to the Internet.


Connected vehicles are already among us: this is the radiography of the sector


For years, the demand for connected cars increases .According to a 2014 Telephone Survey, 70% of drivers were interested in the possibilities of these vehicles, and 80 % of them expected the connected car to offer the same connection experience they were used to at home.


In 2016, Accenture published a study in which it was estimated that 71% of shoppers were willing to pay 10% more if the vehicle came standard with connectivity services adapted to their needs, while 41% were interested in security, being willing to pay for the eCall service.


Connected vehicles are already among us: this is the radiography of the sector


Many of these demands come from security, but it is not the only factor that should be considered.Different brands are proposing new services (as well as extensions of existing services) aimed at mobility connected.


Services that win today with the existence of connected mobility


The content distributors in streaming are probably the biggest beneficiaries of connected vehicles.We can think of several music on demand services with monthly fees such as Google Play Music, iTunes or Spotify.


A user of these services pays about 10 euros per month to access a huge musical catalog whenever he wants (and can), which is reproduced thanks to a fast connection.They are usually used at home or at work, where the WiFi network and flat rate.


With vehicles connected, and data rates updated to the new needs behind the wheel, content distributors gain more hours of use and, therefore, more value as brands; while users feel they take more advantage of the money they spend every month.


Connected vehicles are already among us: this is the radiography of the sector


This does not only apply to the driver, since the rest of the companions will also be able to enjoy the car data rate.Movie services in streaming, such as Netflix; platforms for watching videos, such as YouTube or Vimeo; and even digital media, such as Medium and Nobbot, can benefit from increased connection times.


Telecommunications companies, keys in the connected vehicle


Due to its unbeatable position to provide a connectivity service, telecommunications companies, like Orange, are making the leap to agreements with vehicle brands.This service is twofold:


  • On the one hand, they offer an output for the huge amount of data that is produced and that brands can use to improve their service.

  • On the other, they facilitate the connectivity of the occupants.This is the most visible, and possibly one of the largest of a cake with thousands of services.

Telecommunications companies manage tens of millions of fixed and mobile lines in Spain (the latter in 2016 amounted to 50,917,207 private lines, excluding company lines).Bearing in mind that in 2017 and according to the DGT had 23,787,912 cars in circulation, not counting trucks, buses and motorcycles, among others, giving connectivity to these vehicles would mean a potential market expansion of 46.7% .


With this objective, Orange and SEAT have just published an agreement that aims to promote new advances in the development and use of the connected car, as well as lay the foundations for a joint collaboration in different areas of work.In this sense, the agreement It focuses on three main axes of action: improve the experience of the occupants in the vehicle by developing innovations of the connected car, bringing the digital experience of the home or office to the users of the car and the implementation of a program of loyalty that promotes the recurrent use of those new connectivity and mobility solutions that launch the market.


Connected vehicles are already among us: this is the radiography of the sector


Assuming that the average age of the passenger car park in Spain is preserved, which is around 12 years, and counting the upward trend of vehicles on our roads, in a decade the market of mobile telecommunications companies with data can be multiplied by 1.5.


However, telecos cannot remain "immobile" as an agent in charge of only charging a toll for pumping information from one place to another , since the almost explosive growth that connected cars will have (and therefore the data they send) could saturate the existing infrastructure, providing a meager benefit.


It is estimated that connected vehicles could emit about 5TB in data in a single hour , according to Automotive World, due to the numerous sensors and automatic records.Speed, GPS, road status, vehicle and component status, driver and passenger status, temperature sensors, humidity, brightness, pressure...


The list is huge without even taking into account autonomous vehicles or data uploads from the users of the vehicle, so the challenge is to know what to do with all that information , how to store it, process it and obtain knowledge with it.Telecommunications companies will have to provide an extra large analysis service data volumes, whose know-how and knowledge add value to different secondary markets.


Markets and secondary agents interested in the connection of vehicles


There are numerous companies that can benefit from connected mobility, in addition to those that are already based on the data, some of which today are already interested in this technology are mobility companies, agencies of insurance and the manufacturers of components for vehicles.


Carsharing, VTC, Taxi, Public Transportation ... and, in general, any existing mobility service will benefit from arrival of connected vehicles.For some time now, urban buses have installed WiFi for their neighbors.A similar service is offered in VTC companies, such as Uber or Cabify (next to the already classic bottle of mineral water), so that the occupant can use the Internet.


Connected vehicles are already among us: this is the radiography of the sector


Insurance companies .Permission for points (more specifically the remaining points of meat) was an important scale to measure gross mode the good or bad driving of the insured.The reason why many insurance companies look for drivers with all points is because they are immersed in fewer episodes.If they have fewer accidents, they can be offered a coverage service at a noticeably lower price.


Thanks to the connected vehicle, the insurance companies will be able to buy the insured's driving data from the vehicle brand to offer them plans that personally interest them based on their driving mode: cautious, prudent, responsible, but also reckless, reckless, risky...This is known as connected car insurance or connected vehicle insurance.


Manufacturing companies .The bulk of the components for cars and other vehicles are not manufactured by the brands that sell them, but are designed by external companies and repaired by licensed companies (workshops).To improve the quality of the different components, the data of the OBD II or OBD2 port is registered.When these data are available in real time, manufacturers can make more flexible decisions.


For example, if OBD II detects unusually strange behavior in a certain batch of parts, the brand has the possibility of contacting the owners before it fails and becomes a problem.Similarly, manufacturers can correct the error and the workshop can make predictive maintenance much more affordable.


A look into the future of connected vehicles


Connected vehicles are already among us: this is the radiography of the sector


This radiography of connected mobility would not be complete without taking a look at the future possibilities of cars connected to the Internet, their projections and futures, some already with one foot in the market.


Payment in the SER or parking area .Commercial centers, professional car parks or town halls will make it much easier when it comes to charging the use of the space when the vehicles are connected , since the GPS signal will inform you where the vehicle is located and the payment will be processed telematically.No barriers or other expensive management systems will be required.


Electric vehicles .The market penetration of electric vehicles depends largely on how we change our habits of use.A connected electric vehicle can notify the owner of that the charge is complete, or at the chosen percentage.This is especially useful for fleets of electric rental vehicles.


Health companies .In 2017 a system was discovered to measure blood glucose without need for punctures, a system that could Embed on a flyer.At the 2016 World Economic Forum, the possibility of biotechnology companies investing in equipping vehicles with different sensors was already mentioned.A 30-minute trip (going to work) could become a basic medical checkup.


Security forces .Taking into account how mobile phone data helps to determine the guilt and innocence of the defendants in different legal proceedings, the connected vehicles assume an important source of data.Of course, private and only accessible by judicial means as it happens today with the GPS of the mobile.


Climatology .For putting some science that could benefit considerably, we must bear in mind that the AEMET only has 800 meteorological stations.Let's think about what it would mean for the forecast of time and studies on Climate Change to have 30 million vehicles with temperature sensors, air pressure, and others.

Images | Matan Vizel, iStock/jacoblund, iStock/UberImages

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