Connected car saga: Come 2022, how big tech can take control of your car?

Modern cars are not just metals and plastic and clanking components powered by fossil fuel. They are more about software, microchips powered complex functions. Modern vehicles are increasingly relying on software and technologies, which is expected to increase significantly in the coming years.

By: HT Auto Desk
| Updated on: 27 Dec 2021, 15:08 PM
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Modern cars are witnessing the fast-growing penetration of connected automotive technologies. 
Modern cars are witnessing the fast-growing penetration of connected automotive technologies. 

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A major shift in the automotive industry has been witnessed in the last few years. While the space has remained dominated by legacy auto manufacturers for a long time, the emergence and rising penetration of new technologies in the automotive sector is drawing new players into the segment.

Major technology companies such as Amazon, Apple, Google are finding a growing footprint in the automotive sector. Not only that, automotive companies like Nikola, Tesla and a wide range of mobility startups can be easily referred to as auto and tech companies, rather than conventional auto companies. These companies rely largely on data, a large volume of data, which is becoming a goldmine for various companies.

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With the smartphone war already won by Google and Apple, the automotive front is now open for the battle between these companies. Amazon too is fighting to gain control in the segment. Car owners spend a large number of time in the driver's seat than anywhere outside their home or workplace. This eventually results in a large number of data using the in-car system. This is where the auto companies are seeking the help of the tech companies after floundering to incorporate the cutting-edge technologies into the vehicles on their own.

As the collaborations between the auto manufacturers and tech companies are growing, the consumers are finding themselves amidst an array of tech-driven features, which are value-added services along with new business models as well. The consumers can pay monthly subscription rates for the services instead of shelling out for a product just once. This is not just giving power of choice to the consumers' hands, but opening new revenue generation avenues for the auto industry and technology companies as well.

The tech implementation in the automotive industry has been increasing over the last few years at a fast pace. The pace has been further accelerated by the pandemic and subsequent disruptions created in the automotive world. Expect the year 2022 to see a rising growth in that as the connected cars will see further penetration in the auto industry.

First Published Date: 27 Dec 2021, 15:08 PM IST
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