Vehicles now are becoming more connected and software-driven than ever. And with the continuous progress of the Internet of Things (IoT), vehicles are seen to advance beyond having seamless links with smartphones, navigation or tracking, real-time traffic information, and other current technologies.
The following are some of the ways IoT can influence car manufacturers:
- It can create additional revenue streams. It is said that by 2020, more than 250 million cars will be connected to the internet. This presents an opportunity for carmakers to open up new areas where they could rake in more revenue. For example, car owners are used to purchasing automotive devices, such as in-car entertainment, dash cams, or diagnostic tools, separately. But car manufacturers instead add such features to new models.
- Carmakers might transition into technological companies. Deloitte University Press mentioned in a report on the future of car technology that, “Automakers fear that, should they lose control of the customer to software providers, cars could become commodity devices secondary to the software they run.” And IoT is fueling this trend. Thus, carmakers need to keep up by developing and improving their own technological capabilities, which is what Tesla has already started doing.
- The arrival of commercial driverless cars is nearing. The necessary equipment needed for autonomous cars, such as sensors, laser-based radars, onboard computers, communication devices, and others, can be interconnected seamlessly because of IoT.
Jeff Lupient has skills and expertise in automotive retail sales, having worked in the industry since he was only 15 years old. For more insights about the automotive industry, follow this Facebook page.