Quick Question: How Will the Automotive Industry Benefit from Connected Cars?

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In an ongoing series, JCC answers all your questions about the forthcoming transportation transformation. Got a question you’d like to ask us? Send us a message!


The automotive industry has always been a forefront of innovation and design so it’s no surprise it would see the integration of technology into the cars we drive as an obvious next step. In 1996, GM first dabbled in connectivity with OnStar, the emergency voice system. In 2001, remote diagnostics were introduced and by 2007 telematics data was exchanged. In 2014, Audi was the first OEM to offer WiFi as LTE. According to Accenture, the total business value of connected car services will reach €100 billion by 2020, and €500 billion by 2025.

Even as in-car technology increases and connectivity becomes the norm, OEMs are facing increased pressure from tech companies looking to gain traction in the connected car industry. According to a 2016 study, there are four trends that are impacting the connected car: “(1) radically new technology at low prices, (2) new high-tech entrants drive faster, new mobility concepts, (3) increasingly urban customers, and (4) evolving regulatory and policy constraints.” These trends partially explain why OEMs are investing in the connected car, ridesharing services, and autonomous vehicles.

Additionally, OEMs won’t only gain monetary benefits from connected cars; they will also have contact with the consumer after the car sale. OEMs will be able to send instant notices to consumers when vehicle maintenance is due, send promotions, build vehicles with more personalization and in turn, build brand loyalty.

While the automotive industry will benefit greatly from connected cars, the question comes into play if they are properly equipped to deal with the challenges. Like security, product lifecycle, making a user-friendly interface, and even integration.


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