We wrote some time ago on the Connected Car 'To Embed, to Tether or to Integrate - the Dilemma of the $141 Billion Connected Car Market' , lining out the three methods by which providers of connected car services are bringing internet access into the car. For enterprises offering telematics and fleet management services, including large auto-makers, the embedding technology has enabled them to provide a wide range of services to end customers - from tracking and monitoring, to resolution of technical issues, to facilitating research and development of new features and to providing data to the customers' own cloud for integration with their other business processes. In the retail segment, the excitement around the connected car has revolved around end-users being able to purchase latest car models that boast built-in internet connectivity (which drivers have the option to activate via a mobile data plan) where drivers can access various infotainment services on their digital screens including access to social media and music/video entertainment. This 'integrated' model has started growing in popularity especially in the last 12 months as more auto-makers sign up with local service providers to offer internet connectivity with some already bundling the connected car SIM in shared data plans for an access fee as little as USD$10 monthly. And at the other end of the spectrum, especially for customers who own smartphones with Android or Apple OS, the tethering method provided just the right solution, enabling millions of users to continue using their smartphones via the car's digital interface including making calls, browsing the internet and streaming music while they are on the road by replicating the functions on their smart devices on the car's touch screen and strategically placed knobs and buttons.
There is much anticipation in the market that year 2015 will be seeing more players entering the connected car market. In fact, incumbents such as Google who have been in the connected car scene for a while with its Android Auto tethering service is taking a few giant leaps to move to the integrated service segment with its Android M, according to recent news from Reuters. Reuters cited undisclosed sources saying that the Android M is expected to debut in a year or two. If this comes through, the market can expect a number of auto brands to debut a Google-powered complete connected-car solution - hardware, operating system and a full suite of Android applications, such as those found on Android smartphones - creating 'smartcars' that boast their own connectivity to internet, that have access to the car's telematics and that are connected to Google's cloud for real-time information transfer and updates including application and software updates.
This year also saw Alibaba, the second largest ecommerce giant (after Amazon) making inroads into the market with its agreement earlier this year with China's SAIC Motor Corporation to develop 'an internet car' which will be powered, according to some news sources, by Alibaba's own mobile operating system.
While these players scramble for a piece of the connected car market, service providers are poised to make the most gains as ultimately, every connectivity model relies on wireless connection provided by operators. What more, service providers who are already building a stronger presence in the digital content market can leverage their cloud-based content delivery capabilities to provide the various infotainment services, especially those that are developed for local markets, to augment their revenues in this market. In a recent report, IDC said that within the next five years, more than 90% of all IoT data will be hosted on service provider platforms - marking the strategic positioning of service providers in the IoT cloud market, which will also cover the connected car cloud platforms.
Catch up on other stories on Mobile Operators' foray into the Connected Car market here.
