The digital age has truly shaped the modern consumer—today, consumers choose to be equipped with information, which can be obtained conveniently with a tap of a finger,a click of a button, or even a voice command. The modern consumer also demands convenience, personalization, and the need be connected with the people around them, and the environment they are in.
Connected cars, originating in 1996, are vehicles that can access the Internet to connect to a local area network, allowing them to connect with other devices, networks, other vehicles, and services. Connected vehicle technology has brought a lot of benefits and has created a positive impact in road safety. According to the US Department of Transportation’s Connected Vehicle Program, connected cars can improve safety, mobility, and system efficiency while reducing negative environmental impacts. In addition, connected vehicle technology can also provide real-time and real-world data to help with transport system operations.
A recent Teleperformance CX Lab Survey analysis across 13 countries showed that almost 30% of respondents who own a car have a connected car service, an increase of 3 percentage points over the previous year. In fact, satisfaction with connected car services is good as close to 50% of users assign a score of 9 or 10. Generational differences were evident as 37% of Millennials and 44% Gen Z stated having automobiles with connected car services.
The connected car service market, according to McKinsey and Co., is estimated to hit 1.5 trillion USD by 2030. Developing technologies, such as the recent growth in 5G networks, have prompted an even greater push for connected cars. Automobile software has evolved as well, now having the ability to offer vast features and services that greatly affect road safety, mobility, navigation, and even in-vehicle entertainment.
Digital Business Services Driving Connectivity
With data analytics, digital storefronts, Internet of Things, cloud computing, and AI-powered technology steering the automotive industry towards the future, the possibilities can be endless. Data can be used to unlock new ways to transform and personalize the customer experience, using it to analyze driver behavior to drive sales and follow-throughs towards the end of the consumers’ buying journey. Data gathered can result in practical and actionable insights, which manufacturers can use to improve an automobile’s overall safety and quality. Manufacturers are also using the cloud to drive operational efficiency, leading to better scalability, cost-efficient operations and processes, and more mobility options for customers.
Today, a car is more than a “thing that runs on four wheels.” Cars now serve as an extension of our smartphones and our lifestyles, a machine fine-tuned by technology to take us where we need and want to go. As carmakers, consumers, and drivers move closer towards the future, the automotive industry is driving on a path of endless possibilities, powered by the promise of connectivity—its full potential just waiting to be tapped, ready to take the entire driving experience to fifth gear.