Connected Transportation Market was considered science fiction until a few years ago. In recent years, automotive companies have developed technologies to render multi-modal services by linking smartphones and digital watches to provide last-mile navigation services for transport by foot, bicycle, car, or public transportation.
According to the market database, advanced technologies such as voice control and intuitive handling are deployed in cars that focus on connectivity and entertainment. End-Users are expected to update their vehicle in-built software over the internet rather than visiting a car dealer. Connectivity is expected to be served in over 50% of cars in use and hit a penetration rate of around 90% in the market.
Maps are used to navigate through a journey and know that facilities being served around. This connectivity between vehicles and infrastructure is used in connected transportation to provide more safety and comfort features. Mapping is made possible with a huge amount of data collection which is further processed to provide better communication. According to the market database, smart routing, live traffic information, and other notifications such as occurred accidents or slippery roads ahead are provided to the driver with data processed through mapping technology. Connectivity of vehicles with infrastructure such as traffic lights enables intelligent traffic control and helps in maintaining the speed limit.
Automobile industries and IT industries have largely focused on the collection of data to improve their mobility services through connectivity. The data is generated from the use of applications integrated with the car and further helps understand the end user’s requirements. Sensors collect all this data generated through vehicle and infrastructure connectivity using mapping and navigation technology. This valuable big digital data is used by the automobile and IT industry for their mobility services. The higher the amount of data is collected and processed more it is vulnerable to hacking and manipulation. Hence security and safety are expected to play a long-term investment role in connected transportation.
Connectivity and Electrification of vehicles combined are expected to ensure benefits that provide a better sensing-processing-actuating system. The combination of electrification and connectivity gives way to cost-effective vehicle design and better and organized traffic behavior. Connectivity offers Zero-crash capability that further provides manufacturers with designing freedom for vehicles. Conventional automobiles have a high seed crash requirement to be considered while designing the vehicle. Connectivity enables low cost and reduces mass out of the vehicle in comparison to what is required for a high-speed crash-designed vehicle.
The connected transportation market is driven by high migration rates, an increase in urbanization, an increase in the adoption of digital and connected technology in transport infrastructure, an increase in free trade agreements, and the introduction of working models for public-private partnerships (PPPs) by government authorities for smart – city projects. Rapid investment by government agencies in smart city programs aimed at providing all citizens with sufficient infrastructure and smart transportation networks is expected to stimulate market growth.
According to the market database, the availability of charging and hydrogen-refueling stations is a challenge for electric and hydrogen fuel cell electric vehicles. Connectivity serves end-users with real-time information through mapping technology. Nearby charging and hydrogen refueling stations are notified to the vehicle driver through connectivity. Organized traffic flow, coordinated timing of traffic lights reduces traffic stops, raises vehicles’ average speed, and increases fuel economy are benefits witnessed with the synergy of electrification and connectivity.
In urban environments enabling connectivity helps drivers of two individual vehicles in platooning, where vehicles could drive together as a system with the freedom of separating at any time. Significant knowledge such as a roadmap of the journey ahead is available through wireless technology in connectivity enabling drivers to easily find parking spots and save vehicle battery range.
Public transit has a positive effect on the rise in connected transportation services. According to the market database, people who are unwilling to share a car use around 40% less public transit than people accustomed to sharing car services. The price of public transport or by a shared, self-driving vehicle is expected to be almost the same by 2022. This is due to the higher number of people using public transport higher the number of people is expected to be open for the use of shared self-driving vehicles. The major advantages with the use of shared self-driving vehicles for end-users are door-to-door, on-demand access and saving of time with the utilization of routes that offer more speed and reliability for user experience thus promoting the connected transportation market.
The synergy between electrification and connectivity is expected to enable efficient connected transportation. Design flexibility allows smaller and lighter vehicles that make it affordable for end-users. Enhanced transportation due to faster traffic flow, less congestion, and raised fuel economy provides qualitative benefits and synergistic efficiency from a combination of electrification and connectivity.
According to the market database, connectivity plays one of the key roles in increasing demand for electric vehicles. Different sectors such as technology and media are expected to provide end-users with connectivity to various applications, navigation features, remote services, and software updates. This is expected to have an end-user switch to new brands and are willing to pay higher for better connectivity. Hence increase demand for electric vehicles and autonomous driving is expected to be seen with new features of connectivity promoted in the market.