Rise of the connected cars

Advanced features like 5G, IoT, and AI are reshaping the automotive industry in India, promising enhanced mobility and safety for drivers.

India’s roads are undergoing a seismic shift. A tidal wave of connected vehicles, propelled by a confluence of factors–the introduction of feature-rich car models, a surging desire for in-car digital experiences, and an escalating focus on safety–is fundamentally reshaping the country’s automotive landscape.

According to a CyberMedia Research report, connected car adoption skyrocketed to an impressive 28% in 2023, reflecting a staggering 115% year-on-year growth. This trend is further emphasised by the fact that one out of every three vehicles sold in 2023 boasted telematics connectivity, highlighting a growing consumer preference for these advanced features. Notably, 95% of electric vehicles embraced cutting-edge connectivity, showcasing the industry’s commitment to innovation.

The cars of the future will send sensory feedback and communicate with each other, offering real-time information on traffic, weather, and safety hazards.

This influx of connected vehicles, equipped with advanced features like 5G, the Internet of Things (IoT), Artificial Intelligence (AI), Software-defined Vehicle (SDV), and Advanced Driver-Assistance System (ADAS), promises a future of enhanced mobility and digital connectivity. Notably, over 70% of these connected cars belonged to the aspirational segment (priced between Rs 11-25 lakh), indicating the growing demand for advanced automotive technology in India. Recognising this, OEMs are strategically integrating these features into vehicles within this price range, making cutting-edge technology accessible to a broader population segment.

The Future Connected Vehicles

Cars seamlessly connected with smartphones or computers provide drivers with essential data like infotainment, GPS tracking, and vehicle diagnostics. But the future holds even more. These cars will process extensive data for smart autonomous driving, send detailed sensory feedback, and even connect to homes and other vehicles. They will communicate with each other and nearby infrastructure, offering real-time information on traffic, weather, and safety hazards.

Modern connected cars already have features like Wi-Fi hotspots, emergency services connectivity, and cloud-based telematics for improved navigation and alerts. In the days to come, 5G promises to revolutionise the industry by enhancing connectivity for innovative features, AI, Machine Learning, and IoT, fundamentally transforming the driving experience.

Automotive connectivity is the cornerstone of autonomous vehicles. Highly automated vehicles rely on a diverse range of sensors and processing units, and seamless connectivity is essential for Vehicle-to-Everything or V2X functionality. V2X allows vehicles to communicate with each other and with connected elements in “smart cities,” like smart traffic lights, revolutionising road safety and efficiency.

Connected cars are also at the forefront of harnessing AI technology. AI gathers vehicle data to support functions like routing, optimising electric vehicle charging, and improving battery performance. This paves the way for a new era of innovation and efficiency in the automotive industry.

Further shaping the future is the shift towards SDVs in India. SDVs aim to create a “habitat on wheels,” offering immersive experiences beyond traditional features. Equipped with multiple displays and sensors, SDVs integrate autonomous driving and next-level connected services.

In conclusion, the rapid adoption of connected vehicles and the emergence of SDVs herald a new era of innovation and transformation in India’s automotive industry. As India embraces these cutting-edge technologies, the future of mobility promises to be more connected, intelligent, and safer. With connected vehicles projected to account for over 60% of the market by 2030, India stands on the brink of a mobility revolution driven by connectivity, automation, and innovation.

By Divya Maurya

The author is an Analyst with CyberMedia Research (CMR).

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