In 2022, we witnessed a pivotal moment: connected vehicles outselling their unconnected counterparts for the first time. Fast forward to 2030, and we’re on track to see 96% of all vehicles shipped globally being connected – a staggering 100, automotive increase on 2020.
This surge isn’t just about numbers; it’s about what’s driving them. Advanced driver assistance systems (ADAS), cutting-edge navigation and next-gen infotainment services are at the heart of this growth, fuelled by consumers who expect nothing less than seamless connectivity in every aspect of their lives.
And while connectivity and software-defined vehicle development are transforming the auto industry at a rapid pace, as Cubic3 CTO Nick Power points out, they’re opening a new set of challenges too.
Speaking at the Munich Car Symposium 2023, Power explored some of the ways in which software-defined vehicle development has ramifications beyond the obvious, forcing car manufacturers to walk a fine line between embracing tech partnerships and retaining ownership of the customer experience – without alienating them.
The automaker’s dilemma
The car industry is at a crossroads now, according to Power.
Ownership of the in-car experience is becoming the next tech battleground. Google, Amazon, Apple and other established tech giants are all expanding into automotive, with more likely to follow. This creates a dilemma for car manufacturers: do they let the tech companies in, or go it alone?
On the one hand, it makes sense to team up with tech giants. They are experts in building user-friendly operating systems, can accelerate the car development process and have access to huge volumes of data that can improve the accuracy of AI-powered systems for predictive maintenance or autonomous driving.
That said, giving up ownership and control could result in reduced brand differentiation.
If automakers come to depend on third parties for software and operating systems, there’s always the risk of discontinued support, software vulnerabilities outside their control or data breaches. In those instances, customer loyalty can take a significant hit. Inconsistent user experiences risks alienating users.
And all of this is before you factor-in reduced ability to monetise new services or find yourself in a situation where the tech giants begin to view automakers as competitors, leading to reduced collaboration.
Continuity matters
Whichever route automakers take, one thing is clear: continuity is crucial. For today’s drivers, cars are more than just vehicles; they’re an extension of their digital lives. They can offer real-time updates on journeys, stream music and movies, and link up with other smart devices like phones, doorbell and even fridges. But when software in a car fails, it’s more than just a glitch – it’s a major disruption.
Complexity can lead to significant issues if not carefully managed – system failures and crashes, incomplete or corrupted software installations, disruption of user preferences or loss of data can all overwhelm and frustrate users.
Automakers are used to 3–7-year production cycles. Managing this in a world where technology becomes obsolete in a much shorter timeframe, where continual enhancement and updating of software is required…these are new challenges that automakers are working to solve. And that’s before we even begin to discuss keeping cars connected for their entire lifecycle.
Connectivity is key
Software-defined open a world of possibilities for both manufacturers and drivers. But to unlock these opportunities, the automotive industry must tackle the unique challenges of delivering a consistent and satisfying user experience – not just for the first owner, but throughout the vehicle’s lifespan. And at the heart of this challenge is one critical factor: connectivity.
The pace of software updates means cars need fast, reliable connectivity with global reach. Automakers need insights into how that connectivity is performing, so they can make better user experience decisions. Software-defined cars are enabled by software-defined connectivity
Solving managed connectivity on a global scale
At Cubic3, we multiply the value of mobile assets by providing solutions that master managed connectivity on a global scale, unlocking the full potential of intelligent data.
