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What is accelerated vehicle innovation?

Learn how connected cars and autonomous vehicles are changing the future of the automotive industry by improving mobility and making roads safer.

What is accelerated vehicle innovation?

Advances in connected mobile experiences for consumers combined with the growth of connectivity technology like Edge and the Internet of Things have led to the increasing popularity of connected cars. What are connected cars? Like smart devices, connected cars—also called automated vehicles or connected autonomous vehicles (CAVs)—are connected to the internet, which enables remote communications between the vehicle as a system and an external environment. However, this is just the beginning of vehicle technology innovation.

The automotive industry has undergone tremendous changes in recent years. In particular, the development of autonomous vehicles and connective technology has been disruptive. Still considered emerging technologies, these disruptions point to the future of auto innovation. Experts believe connected cars will soon be able to interact with one another and share data at scale—making our lives easier, improving transportation, and helping to make roads safer.

This page will cover how connected cars stay connected, the features and benefits of connected cars, automated vehicle safety and entertainment, the role of connected cars in smart cities and how they contribute to a greener planet, and, finally, how the demand for connected cars is transforming the face of the automotive industry and leading to accelerated vehicle innovation in the automotive, mobility, and transportation industries.

eSims to 5g: how connected cars stay connected

How do automated vehicles work?

Now that we’ve covered what a connected car is, let’s explore how they work. Since automated vehicles belong to the Internet of Things (IoT), you might think of them as “IoT cars.” These cars are enabled with vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) technology, which means automated vehicles can “see” and communicate wirelessly in an omnichannel (i.e., all-directional) manner with other smart devices.

Whether another connected car or device is in view or out of sight, IoT cars are aware of them thanks to these all-directional, wireless communication capabilities. This means drivers not only have access to convenient in-vehicle automations, but they can also receive important, real-time notifications about things like: 

  • Traffic and intersection alerts. 
  • Nearby vehicle speed and movement information.
  • Construction or school zone warnings.

None of this would be possible without SIM technology, which identifies a devices owner and communicates with cellular networks. Embedded SIMs (eSIMs) also act as a connectivity hub, but unlike SIMs, they can be updated remotely and do not have to be physically changed to work with different cellular carriers, making them a popular choice for the development of automated vehicles.

From consumer to fleet vehicles and beyond, eSIMs have the potential to improve IoT applications and accelerate vehicle innovation due to their flexibility, reliability, small size, and ease-of-use. Other reasons eSIM technology is a great opportunity for automated vehicles include:

  • Global adaptability—eSIMs simplify auto manufacturing and logistics while reducing costs thanks to universal connectivity standardization.
  • Security—eSIMs provide a layer of security to help prevent hackers from accessing IoT cars.
  • 5G networks—The growth of 5G—especially when combined with eSIM technology—means we can expect to see a lot more connected cars on the roads in coming years.

Another inflection point driving the rapid adoption of connected technology is the advent of 5G networks. These networks are faster than 4G and its predecessors and have a higher capacity to meet the needs of connected and autonomous vehicles. Edge computing—with its ability to process data in real time and reduce latency—also plays a significant role in the future of connected vehicles. 

A challenge posed by connected vehicles and devices is the vast amount of data generated—which can be many gigabytes, especially among autonomous vehicles. For original equipment manufacturers (OEMs) and mobility players, there are several opportunities to leverage this data to help improve products and safety, thereby providing richer experiences and better value for customers.

What are the features and benefits of connected vehicles?

Endless possibilities: connected vehicle features and benefits

Having connected capabilities presents a number of attractive options for consumers. Connected vehicle technology can:

  • Deliver continuous improvements and feature enhancements through remote, over-the-air (OTA) updates.
  • Interact with mobile applications. 
  • Provide drivers and passengers with WiFi access.
  • Offer drivers and passengers cloud-based entertainment, streaming services, voice-activated personal assistance, and integrated communication and productivity tools.
  • Enable vehicle diagnostics and remote-control functions using smartphones or other devices. 

These features enable a wealth of perks for autonomous car owners. Some of the benefits of connected vehicle technology include:

  • Increased lifetime value of vehicle.
  • Increased efficiency.
  • Improved driver and passenger safety, comfort, and convenience.
  • Overall improved mobility, such as accelerated travel times and reduced delays.

How to stay secure while staying connected?

Connected car safety and security

Even with all these appealing benefits and features, cybersecurity threats and vulnerabilities are still a concern for many would-be connected car buyers. Auto manufacturers have taken great strides to ensure that connected and autonomous vehicles are protected from data breaches and malware. Some of these security features include:

  • Data encryption to prevent hackers from accessing your vehicle.
  • Firmware and software updates that keep your automated car functionality up to date.
  • Patches for potential software problems or threats.

Because connected and autonomous vehicle manufacturers work with a variety of third-party vendors, complications can arise on both the software and hardware fronts. To ensure connected vehicle optimization and safety, automakers must take an integrated approach to vehicle manufacturing, security, and support over the life of the vehicle. They can achieve this by:

  • Regularly sending and analyzing data to improve mobility experiences.
  • Integrating segmented internal systems that seamlessly and efficiently “talk” to one another, provide more sophisticated functionality, and reduce security blind spots.
  • The complexity of today’s connected and autonomous vehicles calls for manufacturers to pay special attention to data security, safety, and technology integration.

Entertainment for connected cars

On-the-go entertainment: automated vehicle infotainment

One of the most attractive aspects of connected vehicles for many consumers is in-vehicle entertainment or “infotainment” systems. Like the many features and functionality provided by your smartphone, in-vehicle infotainment provides a similarly smart, connected experience.

What can infotainment systems provide for drivers and passengers of connected vehicles? Again, consider your smartphone—connected cars can perform many of the same functions. Inside a connected vehicle, you might find:

  • Customized user experiences and settings based on preferences linked to biometric profiles—for example, the car recognizes the user via facial recognition technology. 
  • In-vehicle voice assistants with a wide range of command capabilities, from turning down your volume to creating appointment reminders.
  • Rear seat entertainment and WiFi connectivity.
  • Streaming services.
  • In-car gaming for passengers.
  • Gesture recognition that enables drivers to interact with and control their vehicles through hand motions rather than touching buttons or screens, which requires them to take their eyes off the road.

These advanced features are possible thanks to the technologies covered previously—including eSIMs, WiFi, and 5G networks—as well as emerging mobility technologies like proximity sensors and conversational artificial intelligence (AI). The automated connected vehicles of the future will not only make transportation safer and more efficient, but more entertaining and enjoyable as well.

How connected cars will integrate with the smart city

Connected cars and the smart city

Connected cars can offer car owners and commuters a variety of benefits—many of which have been covered above—and have the potential to greatly improve our overall mobility experiences.

In addition to connected vehicles, driverless cars, or autonomous vehicles (AVs), can reduce traffic congestion, accidents, and generally improve road safety since they can monitor and manage human-factor risks that contribute to vehicle accidents. As a result, insurance premiums may go down, emergency rooms could see less vehicle-related injuries, and law enforcement efforts could be redirected from traffic enforcement to other departments. How is all this possible? With the help of smart cities.

Smart cities use connected networks and cloud technologies to create sophisticated infrastructure that interacts with AVs. For example, smart city technology can communicate with AV sensors, sending traffic data and navigation information that helps drivers make better decisions. Not only can smart cities help facilitate the flow of traffic and reduce congestion, but they can also alert drivers to potential hazards and even objects and pedestrians in the surrounding environment.

While the development of smart cities is not wholly focused on traffic issues and AVs, the emergence of connected cars and the need for improved mobility play a significant role in shaping the future of smart cities. Together, smart cities and AVs can transform our lives through improved road safety for drivers and pedestrians alike, increase transportation efficiency, and bolster environmental sustainability efforts.

How connected cars will contribute to a greener world

Creating a greener world with connected vehicle technology

For many consumers, efforts to reduce carbon emissions and promote environmental sustainability are more appealing than in-vehicle entertainment. These consumers are interested in the role connected vehicle technology plays in reimagining transportation for a greener planet.

Connected vehicle technology provides drivers with real-time data and information about how their driving habits affect the environment, ultimately helping them make more eco-friendly choices. Best of all, you don’t have to sacrifice mobility or luxury driving experiences to make greener decisions. For instance, modern innovation means connected cars can be at least partially electric, emitting less emissions and consuming less fuel—if any at all.

Not only that, but predictive maintenance helps connected car owners stay on top of servicing their vehicles, which keeps them running efficiently and extends the car’s lifecycle. Thanks to connected vehicle technology, the planet will see less automotive waste and environmental pollution.

How are connected cars changing the face of the automotive industry

Transforming the automotive industry with connected car innovation

What does the future hold for connected vehicles? Progress on the auto innovation front is rapidly evolving, and experts agree that in just a few years, over half of the cars on the road will be connected vehicles. Initially, the desire for basic in-vehicle entertainment systems and simple computerized controls—such as hands-free calling—drove demand for connected cars. However, on-the-go connectivity and smart features are quickly becoming a consumer requirement.

By helping accelerate the transformation of automakers from traditional manufacturers to mobility services providers, cloud solutions like those offered by Microsoft Industry are central to innovation in automotive, mobility and transportation industries. Continued advances in wireless connectivity, artificial intelligence, and real-time data processing will bring even more opportunities for connected and autonomous cars to make our roads safer, our commutes more efficient, and our planet greener.

Frequently asked questions about accelerated vehicle innovation

  • Like smart devices, connected and automated vehicles are connected to the internet, so they can be controlled remotely as well as communicate with other connected devices. Autonomous vehicles can provide assisted driving services, alert drivers to potential hazards or route delays, help prevent speeding and automobile accidents, and even alert emergency services should a collision occur. However, this is just the beginning of vehicle technology innovation.

  • The terms “connected cars” and “autonomous vehicles” are often used interchangeably, but there are some differences between the two if we want to make that distinction. The technology behind connected cars is steadily evolving to become more automated, but drivers still have ultimate control.

    In autonomous vehicles—also known as driverless cars—everyone inside the vehicle is considered a passenger. Autonomous vehicles provide various degrees of self-driving capabilities, and can provide additional functionalities like Advanced Driver Assistance Systems (ADAS) such as brake-by-wire, adaptive cruise control, lane-keeping technology, and automated emergency braking.

  • Advanced vehicle technology provides drivers with real-time data and information about their driving habits, traffic conditions, potential road hazards, car maintenance needs, and more. Additionally, connected vehicle technology enables drivers to utilize a variety of wireless, in-vehicle features such as voice commands, streaming entertainment, and assisted driving.  Sensors, software, and hardware work together to make these operations possible and enable autonomous vehicles to operate efficiently and effectively.

  • The five levels of autonomous vehicles, or autonomous driving, are a set of standards maintained by the SAE and include:

    Level 1—driver assistance. This level provides simple automated that help the human driver. Cruise control is an example of Level 1 driver assistance. the human driver. Cruise control is an example of Level 1 driver assistance.

    Level 2—partial automation. At this level, the human driver is still responsible for monitoring tasks, but the car can perform automations like steering and acceleration.

    Level 3—conditional automation. With conditional automation, an autonomous vehicle can detect its surrounding environment and operate mostly on its own, but a human driver is still needed.

    Level 4—high automation. At Level 4, while a human can override operations, the autonomous vehicle is capable of operating completely on its own in certain scenarios, but geofencing is required.

    Level 5—full automation. When an autonomous vehicle is fully automated, it can perform all driving tasks on its own and in all circumstances and environments. No human interaction is required at Level 5.

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