The automotive industry is being shaken up by technology advancements, which are impacting the future of the business.
A PwC study revealed that electronics systems today contribute to more than 90% of innovations and new features in modern vehicles. Manufacturers are increasingly partnering with non-traditional players, such as software companies, in order to integrate innovative digital technologies into their products.
Research by McKinsey asserts that the car of the future will be connected. Manufacturers will not only be able to monitor data in real-time for safety and reliability purposes, but vehicles themselves will communicate with other vehicles and an increasingly smart roadway infrastructure.
The Internet of Things and consumer demands
The convergence of the Internet of Things (IoT), sophisticated new sensor and telematics systems, Cloud computing networks and Big Data analytics give automakers access to new streams of real-time data from vehicles, which can provide valuable insight into both their products and their consumers.
The continuing shift to more digital automobiles is being driven by changing consumer demands, especially by “digital native” customers who expect vehicles to act like smart devices.
According to Nitin Rakesh, CEO and President of Syntel, manufacturers are still scratching the surface of the potential for this technology, and the ability to efficiently handle, store and interpret massive amounts of vehicle data is the key to success.
“Throughout the various stages of a vehicle’s life span, from production through to the consumer, there is valuable data,” said Rakesh. “Traditionally, most enterprises have stored their data in inflexible, isolated or ‘siloed’ systems which are burdensome to maintain and make it difficult to collaborate and analyse this valuable information to improve business and product performance.”
New technology could boost revenue
According to McKinsey, new technology-driven automotive features could add as much as US$1.5 trillion in new revenue potential to the industry by 2030, even while the growth rate in vehicle sales drops. This makes it important for manufacturers to recognise the value of their existing customers and invest in creating a positive, lasting customer experience.
Edited from press release by Jordan Platt.