M2M & BigData giving life to the Connected Society – Part 2(5) – Connected Cars

Data volumes from Connected Cars will skyrocket

All indicators are pointing in the same direction, our cars are getting connected fast and they will generate loads of data. Axel Deicke, Vice President Aftersales Service Technologies at BMW Group, talks about an increase in incoming data from approximately 20 GB per year (in 2011) to now 30 GB per day – and that is at BMW alone. These statistics exclude information from market research or customer service.
In a recent whitepaper from Deutsche Telekom AG,Erol Gökçek, Head of Industry Solutions Automotive & Mobility forecasts that the monthly data traffic per connected car will increase from approx. 4 MB to 5 GB in the next few years. If one accounts for the increasing number of connected vehicles, then it’s clear that data traffic will skyrocket. According to a study conducted by the consulting firm Oliver Wyman, 80 percent of all vehicles sold around the world will be connected as early as 2016. By then, about 210 million connected vehicles will be on the roads worldwide. Compared with 45 million cars in 2011, this would be an annual growth rate of more than 36 percent.
So what type of data are we talking about? It is everything… from sensors transmitting information about speed, miles driven, break pad consumption, weather alarms to owner downloaded content. Multiple players are interested in delivering, enriching or harvesting this data. Car manufacturers, Telcos, Cloud providers and analytics companies all see opportunities from these huge amounts of data.
Automotive industry – (Re-)connecting with customers and improving logistics
For the automative industry there are multiple benefits. Connecting cars is a way for major brands to create a real connection with their buyers, because to be frank this will not happen through the car sales people or car services. Both are usually synonymous to painful experiences.  But what if you car would start telling you when it should be taken for service, if it would start warning you about road hazards,  or if would automatically download content and car settings that are personalized to current driver. Taking it to the next level you driving profile, car usage could provide you car manufacturer with key insights on when and how to engage you on your next car purchase.
Getting relevant car information is not only useful to stay closer to the car manufacturers clients, but also to improve some of the internal processes, especially when it comes to spare parts for repair and maintenance.
Governments make safety a priority
When it comes to governments they see emerging technologies as great mechanisms to increase road safety and start inforcing this through regulations, which will further enhance the deployment of sensors and embedded connected devices. The EU has for instance passed regulations that will require new cars to have emergency self-braking systems (known as autonomous emergency braking, or AEB). The systems can use radar, laser or video to detect when obstructions or pedestrians are present, and a recent study suggests that the technology reduces accidents by up to 27 percent. Commercial vehicles will have to sport the systems from November next year, and everything else from 2014.
The European Commission has also adopted a measure to ensure that by 2015 your car can call emergency services for you in case ofa crash.  eCall automatically dials Europe’s single emergency number 112 in the event of a serious accident and communicates the vehicle’s location to the emergency services. According to some estimates, eCall could speed emergency response times by 40% in urban areas and 50% in the countryside, and save up to 2500 lives a year. The measure adopted on 26 November 2012 establish the conditions under which the emergency call response centres will be capable of properly rece iving and handling of 112 eCalls.
Enabling Vehicle-to-vehicle communication is another way of transferring key safety information with a  pre-emptive objective. A car suddenly breaking because of a fog bank or a car standing still on a highway are important pieces of information for another car driving in the same direction.
Telco’s addressing new value chains – Insurance telematics
Telefonica-Insurance
Telefonica has come quite far within their digital services unit. They have managed to position themselves in complete new values chain, in particular in the car insurance value chain.
Telefonica has signed a partnership with insurance company Generali, in Spain, in order to provide detailed driving behavior data enabled by their insurance telematics solution.  In the Telefonica solution a device is installed in the vehicle and sends every minute the following collected driving information to the Telematics Platform via GPRS communication: Kilometers driven, Harsh braking and acceleration events, Speeding events, Time and date, Type of the road. For more information on the business models, and additional value propositions please read the original telefonica whitepapers.

Telco’s addressing new value chains – Safety, Infotainment

GM_4GLTE_v2_610x375-1

AT&T is another pioneer in theconnected car business, and AT&T’s vision crosses multiple value chains, from safety provider, to car infotainment provider as securing preemptive maintenance notifications.

At this years Mobile World Conngress AT&T and General Motors had announced a partnership to sell 4G LTE-connected cars in 2014.

The AT&T approach seems to focus on providing a complete eco-system around the connected car concept with the operator at the heart of different value chains.

Ericsson & Volvo are working on a similar Connected Car vision where the car is connected to the cloud and becomes a portal for different types of end-user services. A main screen will provide access to all services from navigation, to safety, maintenance or infotainmet. Volvo cars will be equipped with a control center  that will tie together third-party providers such as internet radio, road authorities, governments, toll-road operators, and others. A prototype was also demoed at the 2013 MWC.

volvo_ericsson_1-580x428

http://www.att.com/Common/about_us/pdf/att_connected_car.pdf

http://www.ericsson.com/news/1665573

So what is next?  Creating more value by  data enrichment and analytics

To be frank, I believe this is only the beginning. Right now car manufacturers focus on connecting their cars as a differentiation for their brand and most of the insights are gathered from car-based measurements only. But soon you will need somebody that can combine data from multiple cars, analyze that data collected and gain new insights. This is an additional opportunity for operators.

In addition to earlier mentioned car collected data, their are other sensors and source of information that could be combined with the original data. Information from traffic lights, air pollution sensors could provide additional insights on how to optimize traffic lights or improve urban planning. Car data and car driving patterns could even be used to understand where there is lack of parking places and you could probably even infer the number of spots missing with the right analytics tools.

Possibilities for value creation are endless but this will require consolidation of M2M solutions and regulations so that data can be shared in a safe and reliable way.

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