Connected vehicles are about to become even more technologically advanced, according to a recent report.
Global Connected Cars Outlook, 2021 from global consultancy firm Frost & Sullivan noted that automakers, suppliers and technology providers are moving towards new business models that focus on being a software-oriented business as opposed to hardware.
Frost & Sullivan’s analysis found that the global COVID-19 pandemic unlocked “massive opportunities” within the connected car space thanks to a great increase in tech implementation.
“Demand for innovative features such as bio-based health monitoring and non-touch-based haptics such as gesture recognition has increased due to the urgent need for driver protection and risk aversion,” Frost & Sullivan said in an announcement summarizing its findings.
The firm noted that estimates show that, despite a dip in sales in 2020, new vehicles with connected features could reach 50 million units sold globally this year.
“With the rise in demand for innovative features in cars, automakers, suppliers, and technology providers are shifting to new business models, focusing on a software-oriented business approach as a more viable means of revenue generation than a hardware model,” observed Ashwini Suvarna, mobility research analyst at Frost & Sullivan. “Over the next three to five years, automakers have to evaluate ideal software strategies to stay relevant and compete, which requires a fundamental overhauling of electrical and electronic (E/E) architecture, operating systems, and cloud competencies.”
With more 5G adoption taking place, data-rich services and vehicle-to-everything applications for self-driving vehicles will be more and more common. Suvarna added that 4-6 per cent of global new vehicle shipments will have 5G-based telematic control units.
“Further, with the evolution of the human-machine interface, augmented reality-based central and head-up displays will appear on new vehicle models,” Suvarna said. “Digital assistants [based on smartphones] will be available on all vehicles.”
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