The so-called 'connected car' is slowly becoming the default for the modern era. Gone are the days when we focus all our attention on "horse power." Get ready to look into how much "computer power" a car has. In case you were wondering, each of these connected cars has an average power of 20 personal computers and can process 25 gigabytes of data by the hour. Gartner predicts that over a quarter of a billion connected cars will be on the road by 2020. European analysts at the global firm McKinsey & Company believe that the demand for connective devices and services will rise to 170 billion Euros by 2020.
Connected cars offer drivers added comforts and conveniences inside the car, but also increased safety. A great deal of time is being spent in developing connected cars that can communicate with other cars to avoid accidents and sense various phenomena on the road.
These cars, of course, play a game-changing role in the automotive industry and even in the insurance industry. In this article, we will take a look at a few factors for companies to think about with the rise of the connected car so that we can create a more integrated automotive industry that puts the customer's preferences and privacy first.
Checking Data as a Strategy
Since connected cars have Internet capabilities, software updates can be undertaken at any time. The important thing for dealerships to understand in the future is how to use a customer's purchasing habits to their advantage. In an age where most software updates will be done away from a dealership's office, dealerships need to be aware of what consumers want from their connected car experience. This will mean that tracking consumer purchases of software upgrades and various other features will become more important for manufacturers and dealers in the future.
Quality of Data
There is so much bandwidth and data available to connected cars, but the real issue for the future of connected cars' growth, however, will not come from just haphazardly throwing in more data capabilities. Data analysts will be needed to go through different algorithms to both improve and refine the data that is used by connected cars to travel on the roads of tomorrow.
The Connected Car Incorporates All Modern Industries
The connected car is so powerful because it integrates so many companies, from the suppliers to the dealers, from mobile and telecom companies to technology innovators. In an age where technological innovation is happening by the day, the connected car stands at the center of it all. Industry leaders could use the connected car as a symbol for how all players of the automotive industry in the age of the Internet of Things should work together.
Privacy is one of the major issues consumers have with connected cars. In a global survey by McKinsey & Company, consumers around the world expressed grave concerns about their car being hacked. It will be increasingly important for companies to ensure all the data that can be extracted from connected cars will be safe and secure. The key to success in this area will be transparency between the company's capabilities and privacy procedures. Companies may have to change their auto protection insurance policies to include sections on privacy issues.
The connected car comes with great promises, but also threat. The greatest threat comes to those working as older equipment manufacturers. Telecommunications companies and software providers are now infiltrating the automotive sector. People are increasingly demanding Internet connectivity and mobile accessibility above everything else in their automotive experience. Those that work in the traditional automotive industry will have to make significant changes in how they relate to their customers and in what products and services they offer. While these innovations can lead to changes in how we experience driving, carmakers and dealers will increasingly have to deal with mobile partners to give customers of the future what they want from connected cars.