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How to manage complexity of a global connected vehicle platform

Vehicles today are no longer just transportation. They are our phones, our sound systems, weathervanes and personal assistants. Today’s vehicles are smart, software-defined, network-aware hives of data that are connected to the road, the cloud and everything around them. However, building a connected vehicle requires an equally connected mindset that seeks to maximize data through a specialized connectivity platform.

Woman in a network operation center managing a connected vehicle platform
Charlotte Lundén 

Head of Market Readiness Connected Vehicles

Category, topic & hashtags

Connected vehicle services have emerged as one of the most potentially lucrative opportunities today. McKinsey & Co. estimates the market could be worth as much as $1.5 trillion USD by 2030. Services are no longer something to ponder. Instead, they are now a business imperative for vehicle manufacturers who want to capitalize on this megatrend.

Powering this industry transformation is connectivity. Through this, stakeholders can generate new revenue streams from advancements in telematics, fleet services, C-V2X (cellular-vehicle to everything connections), autonomous driving and advanced driver assistance systems (ADAS).

Still, the deployment and lifecycle management of connected vehicle services is a complex undertaking, but there are ways to help ease the first steps.

Ericsson’s connected vehicle platform, Connected Vehicle Cloud (CVC), enables innovation and agility by decoupling the software from the hardware and moving the complexity to the cloud. With it, vehicle manufacturers can simplify the management of connected vehicle services, ease global connectivity and accelerate innovation of new services.

What are the opportunities driving the rise of the connected vehicle?

Connectivity, electrification and shifting consumer requirements are converging, creating four major trends that are influencing the development of connected vehicles and their service capabilities.

First, most vehicles rolling out of factories today are already “connected.” This allows vehicle manufacturers and partners to control and share vehicle data, customize and provide critical updates, optimize vehicle systems, predict maintenance and innovate new services and capabilities.

Automation is the second trend. Connectivity is at the core of automated vehicles and enables the sharing of critical data. Whatever the level of automation, connected cars require vehicle-to-everything communication, including vehicle-to-vehicle (V2V), vehicle-to-infrastructure (V2I), vehicle-to-network (V2N) and vehicle-to-pedestrian (V2P), for improved user experience and regulatory compliance.

Additionally, new business models are introducing new revenue models. Vehicle manufacturers are being redefined as service providers that bring new on-demand, in-vehicle services to their customers. This requires increased cross-border collaboration across all industries, along with the formation of new alliances.

Lastly, the automotive industry is already transitioning to a more sustainable, electrified model. Vehicle manufacturers are creating more efficient electric engines, innovative vehicle battery technologies and durable drivetrains. In an all-electric future, additional work must be done to refine data analytics, artificial intelligence and machine learning. These efforts will, in turn, optimize vehicle usage and performance.

What do vehicle manufacturers need to keep in mind when they introduce a new connected service?

Once a vehicle manufacturer launches a new connected service, they must ensure that customers can take advantage of it regardless of where they travel. Seamless connectivity is required. Additionally, operations have to ensure a scalable and reliable service. Seamless connectivity and connected services are no longer a nice-to-have in the connected vehicle; it’s critical for the user experience.

Managing a globally connected vehicle platform is a complex task. Often, the connected vehicle platform integrates with multiple software providers, and each one provides updates and patches at inconsistent times. Life cycle management of connected vehicle platforms and the necessary 24/7 operations quickly become overwhelming and take time and resources away from exploring new innovation and capturing the potential of the connected services.

These efforts can take away focus from the main goal - innovating new services customers will love. And, the more platforms and interfaces a vehicle manufacturer’s operations team must operate in a siloed manner, the more cumbersome and time-consuming management becomes. Our Connected Vehicle Cloud platform can help support vehicle manufacturers with a single interface that unifies connectivity management.

Ericsson’s Connected Vehicle Cloud simplifies the complexities associated with launching and maintaining connected services. Download our Executive Guide to Connected Vehicle Cloud to learn more.

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