The Connected Car: IoT Innovation in 2024
Introduction
In 2024, I expect the connected car to take a huge leap forward in innovation and adoption. As internet-connected vehicles become the norm, manufacturers will compete aggressively to deliver the most useful and intelligent in-car experience. Exciting new capabilities in areas like automation, safety, entertainment, and mobility services will emerge. However, new cybersecurity threats and concerns around data privacy will also need to be addressed.
As an industry analyst tracking developments in the Internet of Things (IoT), I anticipate several key trends that will shape the connected car landscape over the next year. In this article, I will provide an in-depth look at the innovations that will redefine the automotive industry.
Hardware Advancements
5G Connectivity
The rollout of high-speed 5G networks will have a transformative impact on connected vehicles. 5G delivers ultra-low latency wireless connectivity and enables much faster data speeds compared to 4G. This allows vehicles to transfer huge amounts of telemetry data to and from the cloud in real time.
With 5G, cars will gain new capabilities like high-definition streaming entertainment, AR/VR applications, vehicle-to-vehicle (V2V) communications for collision avoidance, and better integration with smart city infrastructure through vehicle-to-infrastructure (V2I) systems.
I expect 80% of new vehicles sold in 2024 to feature 5G network connectivity, up from less than 5% in 2023. This will greatly accelerate innovation in connected car services and transformation of vehicles into data hubs.
More Powerful In-Vehicle Compute Platforms
The amount of data processing required for connected car services is growing exponentially. To keep up, vehicles in 2024 will feature more powerful in-car compute platforms.
Major chipmakers like Nvidia, Qualcomm and Intel are developing automotive-grade processors and AI acceleration chips optimized for handling intensive workloads like computer vision, sensor fusion and natural language processing.
These platforms will allow cars to make sense of massive sensor data flows and enable new ADAS capabilities. The average new car in 2024 may contain over 100 million lines of code, compared to 10 million lines in 2010. Hardware advancements will be key to running this complex software.
Software Innovations
Automated Driving Features
In 2024, autonomous driving features like traffic jam assist, highway autopilot and parking valet will become commonplace in production cars. Tesla already offers an advanced driver assistance system (ADAS) called Autopilot.
Other automakers will catch up by deploying automated driving software powered by AI and computer vision. LIDAR sensors will also decline in price, allowing their integration.
Partial automation will greatly improve safety and convenience for drivers. However, I expect vehicles with full self-driving capability to remain prototypes undergoing testing in 2024. Complete automation in all conditions poses unsolved technological challenges.
Smart Personal Assistants
Your car will gain conversational intelligence thanks to smart assistants like Alexa and Siri. With natural language interfaces, you’ll be able to ask your car to adjust cabin temperature, play media, look up points of interest, get maintenance updates or shop online.
Assistants will be able to leverage cloud-based data to provide highly contextual information and recommendations tailored to your trip. You may also use them to control smart home devices from your car.
Predictive Maintenance
Connected vehicles generate massive amounts of sensor data on engine performance, mileage, fluid levels, and other diagnostics. Automakers are developing AI systems to continuously analyze this data in the cloud.
Using techniques like anomaly detection, they can spot signs of parts failure before it happens. Predictive maintenance will notify drivers of exactly which components need servicing and the best time to visit the workshop. This prevents costly breakdowns and improves uptime.
Personalized UX Platforms
Connected cars will deliver hyper-personalized experiences to users. User profiles, travel patterns, weather data, and calendar schedules will allow vehicles to customize interfaces, recommend routes, automatically adjust seats/mirrors, and cue up preferred media.
For example, Audi’s concept car holoride offers immersive VR entertainment that syncs virtual worlds with physical vehicle motions and routes. Expect more such contextual personalization.
New Business Models
Vehicle-as-a-Service
Buying an automobile may no longer be necessary in the future. With vehicles connected to the cloud, automakers can offer transportation as a subscription service.
For a monthly fee, users can access a vehicle via a ridesharing platform without owning it. OEMs benefit from steady, recurring revenue. Consumers pay only for the mobility they need.
Established car rental firms and new startups will offer such “vehicle-as-a-service” fleets. This can also incentivize the use of greener transportation options.
Usage-Based Insurance
Insurers are leveraging connected car data to introduce usage-based insurance plans. By monitoring driving habits like speed, acceleration and braking via telematics devices or OBD-II ports, premiums can be adjusted dynamically based on real-time risk profiles.
This benefits safe drivers with significant cost savings while promoting better driving behavior across the board. According to Ptolemus Consulting Group, over 150 million vehicles globally will rely on usage-based insurance by 2024.
Integrating with Smart Cities
Municipalities and governments are embracing smart city technologies like sensors, IoT and big data analytics to improve urban transportation systems. As more vehicles get connected, automakers have a huge opportunity to collaborate with smart cities.
Connected vehicles can sync with traffic light infrastructure to optimize traffic flow, reducing congestion. City planners can leverage real-time mobility data from fleets of rideshare vehicles to improve public transit services. V2I connectivity opens up many possibilities to enhance commuter convenience and safety.
Challenges to Overcome
While the opportunities are exciting, automakers also need to grapple with some big challenges.
Cybersecurity Risks
With connectivity comes vulnerability to hacking. Researchers have repeatedly demonstrated remote exploits that can take control of a vehicle’s critical functions like brakes and steering.
As cars become software-defined, security needs to be a top priority. Automakers need to adopt best practices like encryption, over-the-air updates, isolation of drive systems, intrusion detection and partnerships with cybersecurity vendors.
Strong cybersecurity will be a key selling point for automotive brands.
Data Privacy Concerns
Vehicles today can log a wide range of driver behaviors and usage patterns. With the right safeguards, this data can improve safety and enable new services. However, consumers are rightfully concerned about how their personal driving data is handled by automakers.
Brands need to be transparent on data collection policies and offer users meaningful choices to protect privacy. Data anonymization, localized processing, and regulatory oversight will help automakers earn user trust.
Accommodating Legacy Vehicles
While new cars will have built-in connectivity, legacy vehicles on the road today cannot benefit from connected car innovations. Aftermarket solutions like OBD-II dongles exist, but have limited capabilities compared to native integrations.
Moving forward, cars need to be designed with firmware extensibility and easy hardware upgrades in mind. This will help enable some connectivity for aging vehicle fleets. Retrofitting technology can also be incentivized by policymakers to improve road safety.
The Road Ahead
The connected car revolution is well underway. As 5G networks light up and vehicles turn into platforms for continuous innovation, the possibilities are endless. While some hard challenges remain, I am optimistic that automakers, regulators, and technology partners will work hand-in-hand to unlock the full potential of connected mobility. Expect to be amazed by the pace of innovation over the next year!
The connected vehicle is no longer just a futuristic concept – it is the new reality of transportation in 2024. As an industry analyst, I will be closely tracking developments in IoT-enabled automotive technology. Please reach out if you would like to discuss the trends covered in this article or learn more about my insights into the connected car industry.
