Disrupting the automotive value chain

The Internet of Things, Car to Everything, Artificial Intelligence, and Augmented and Virtual Reality are shaping the automotive industry of the future

The auto industry is focused on driving innovations toward zero emissions. The rise of technologies, such as software-defined vehicles and architectures, Artificial Intelligence (AI), Augmented and Virtual Reality (AR/VR), cloud-connected mobility like the Internet of Things (IoT) and Car to Everything (C2X), green-alternative energy sources, and mobility infrastructure transformation are reshaping the future of the automotive industry.

CyberMedia Research (CMR) insight points to a gradual shift that is beginning to disrupt the whole automotive value chain through the improvisation of new technologies, cross-collaborations between tech companies of various verticals, and the rise of new mobility start-ups. It has also brought a new paradigm change at the demand level, where consumers, especially the early adopters, are now using these advanced technologies.

C2X is the AI-driven vehicle-connected platform which has led to disruption at the digital level in the automobile industry.

With mobility being redefined, there is a need to highlight five technology trends disrupting the automotive industry. These holistic trends are bound to interconnect and support each other to deliver the best of the automobile experience.

Trend #1

Autonomy: With a purposeful vision, Autonomous Driving (AD) technology has been prioritised for safer driving. AD features will help minimise human errors with vehicle advancements to drive assistance and autonomy.

This innovative technology has evolved in such a vast spectrum, giving breakthroughs to cross-industry leaders and optimising automotive techs. This change has penetrated great ideas to develop AD feasible in vehicles using UV sensors, Hi-def cams, radars, operating systems (OS), and System on Chips (SOCs) hardware.

IoT has made vehicles smart and efficient by communicating with others through in-vehicle smart computers and telematics systems like eSIM.

SAE or Society of Automotive Engineer International has pre-defined six levels of vehicle autonomy based on standardising safety features, called ADAS or Automotive Driving Assistance System, where Levels 4 and 5 define fully autonomous driving.

Trend #2

Connectivity: C2X is the AI-driven vehicle-connected platform which has led to disruption at the digital level in the automobile industry. The IoT concept has made vehicles more smart, versatile, and efficient by communicating with others in the environment through in-vehicle smart computers and telematics systems like eSIM to provide continuous and real-time data information.

This seamless technology has been quickly adopted by automakers that helps fleet owners check and understand their vehicle and driving behaviour better through informed data that can track distance, estimate transportation time, and suggest convenient routes. It also allows personal vehicle owners to remotely connect their vehicles through mobile and smart-watch and command their vehicles. These include locking and unlocking, turning-on headlights, emergency calls, tracking of vehicles, geo-fencing, navigation, OTA, and service updates.

Trend #3

Electrification: The technology is considered a prime shift towards the future of automobiles. The industry has initiated the shift from Internal Combustion Engines (ICE) to Mild and Strong Hybrid Vehicles (M/S-HEV) and full electrification Battery Electric Vehicles (BEVs), keeping in mind a clean environment for future generations by reducing carbon footprints, emitting zero exhaust waste gas. EVs also benefit from ICE with low noise, high and linear torque, and better stability with a lower centre of gravity.

With government policy support through Faster Adoption and Manufacturing of Electric Vehicles (FAME) and tech optimisation, we can see technology disrupting with zero carbon footprint by powering renewable energy resources like hydrogen fuel cells, solar, wind, and hydro energy, and not relying on fossil fuel imports anymore.

Trend #4

Continuous tech innovation: Automotive Original Equipment Manufacturers (OEMs) are introducing new technology-driven mobility models with hardware and software innovations introduced through On-board Diagnosis or Over-the-Air updates.

These trends keep evolving. A few industry examples include software-defined vehicle architecture including zonal and central setup, EV battery techs from lead acid to lithium-ion, an in-vehicle experience like dual screens, larger screens, and augmented reality. It also includes Advanced Driving Assistance System Levels 0 to 2 and cloud-connectivity features from 2G to 5G.

Virtual cockpits connect passengers to features like mobile connectivity, navigation, safety driving aids, surround camera display, and voice assistance.

CMR is bullish about these evolving automotive trends and technologies and expects them to be adopted at a very rapid pace. With the government’s subsidies and policy support, one can expect a transformation in the auto industry with a 55% market share of EVs, 50% vehicles with ADAS, 70% with cloud connectivity, and 90% with virtual cockpits by 2028.

Trend #5

In-vehicle experience: Inside a vehicle, we can now witness a whole new level of advanced tech upgrades. These advancements allow the driver and passengers to fully connect with the vehicle through AI and use features with better convenience and a richer experience. This intelligent technology has replaced the old and traditional conventional instrument cluster with a dashboard filled with physical buttons.

The virtual cockpits are sections of screens like cluster and infotainment screens, depending on OEM dash design and rear infotainment setup. They are touch-sensitive and multifunctional and connect passengers to all vehicle features – from mobile connectivity, navigation, safety driving aids, surround camera display, voice assistance, entertainment apps and much more.

The technology has been developing at such a quick pace that in the coming years we can see the whole vehicle with a body designed – screens everywhere that will cover even basic functions – opening and closing of the door with fingerprint sensors, and gesture-based functions.

By John Martin

John is a Senior Analyst – Smart Mobility Practice at CyberMedia Research

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