By 2027 it’s expected there will be 367 million software-defined vehicles on the road. At the core of this growth is 5G’s high speed and low-latency capabilities and the ability for this technology to be both built-in to vehicles and added retrospectively.
Soon, we expect connectivity to be as important to drivers as electric charging is to electric vehicles (EVs). The promise of SDVs is an elevated driving experience through features like remote diagnostics, predictive maintenance and personalised infotainment services. But as with how low fuel range was a criticism of EVs, if most connected vehicle features stop working when they reach international borders, poor consumer experience will stop the connected car industry from getting off the ground.
For automakers looking to go beyond providing the hardware for connected cars, they need to be clear about where they stand between mobile network operators (MNOs), who are providing the connectivity, and the GAFAM companies – Google (Alphabet), Apple, Facebook (Meta), Amazon and Microsoft – providing digital services. For instance, a JD Power survey found that nine out of ten (89%) of customers are willing to pay a subscription for improved safety features – something automakers have full control over – but will ignore options that they can get on their phones.
The idea that a vehicle is the best it can ever be on the day of purchase is also set to change – and with it, the traditional customer lifecycle. Over-the-air (OTA) updates can transform the customer-OEM relationship, making it a lot more direct. And that direct relationship can extend far beyond the first owner of a vehicle. In a world where sustainable vehicles will have a longer lifespan, particularly when they can be used internationally, this a truly transformative development.
Connectivity can’t cease between countries
Cars exist to get us places, but sadly, the breakdown of functionality across borders is a blocker for connected car take-up. As the European Commission highlighted:
Cross-border connectivity (CBC) is essential for the deployment of connected and automated vehicles, as it enables vehicles to communicate with each other and with the infrastructure across borders.
CBC is fundamental to supporting the growth of the auto industry by ushering in the era of the software-defined vehicle. OEMs need to work together with adjacent industries to eliminate barriers to adoption and investment in the technology infrastructure, along with the rules and regulations that decide whether widespread adoption is worthwhile for consumers.
At Cubic3, we think cross-border connectivity helps solve many challenges:
- Regulatory compliance: Due to different countries having differing regulations around areas such as safety, emissions and privacy, connected cars have previously been limited to specific countries, communities and corridors. But CBC technology helps manufacturers and service providers ensure compliance with these regulations by allowing software to adapt the alerts and functionality of a vehicle to meet specific regional requirements as it crosses borders.
- Globalised automotive supply chain: CBC will play a critical role in managing the complexity of co-ordinating operations across countries. Automatic updates will ensure a vehicle made in the U.S. will comply with local regulations and content on arrival in a foreign market.
- Telematics/data exchange: CBC enables the transmission/receipt of data wherever the vehicle is in the world. This will allow automakers to monitor vehicle performance, gather diagnostics and deliver over-the-air (OTA) updates. The ability to manage these systems remotely through cross-border connectivity reduces the complexity of vehicle maintenance and improves the overall user experience.
- Customer experience: CBC allows seamless access to services and data regardless of location. Navigation systems, in-car entertainment and emergency services all rely on cross-border connectivity to ensure no drop or change in service thereby reducing complexity for users and enhance the overall driving experience.
