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Ericsson connected cars report reveals striking economic look-in for car manufacturers

IoT Technology
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Ericsson connected cars report has revealed striking economic look-in for car manufacturers. While vehicles are still required to transport drivers and passengers to their destinations, other aspects of driving experiences are rapidly altering around the world. Reliable and stable connectivity is the ‘driver’ of this change. As consumers want better connected-vehicle experiences, automakers are embracing connectivity and altering business tactics to stay competitive. A new Ericsson analysis delves into this fast-moving market, outlining potential to profit from IoT and connectivity innovation.

With the connected car market expected to reach USD 166 billion in revenue by 2025 (Statista), Ericsson’s report, Connected Cars: Succeeding in the Face of Economic and Societal Transformation, examines the major challenges, solutions, and use cases as automotive Original Equipment Manufacturers (OEMs) reassess their value to customers.

The research also discusses how new market players are demonstrating that having a well-known brand name isn’t always enough to maintain customer loyalty and market share.

Smart over-the-air (OTA) updates can save up to 87 percent (according to Stout’s 2019 Automobile Defect and Recall study) for the baseline automotive OEM mentioned in the research by leveraging cellular connectivity IoT.

Software upgrades might be performed remotely rather than driving the car to a dealership or repair centre, saving time and money. Data transmission optimization during off-peak periods will also save money because OEMs will be able to take advantage of reductions.

Another method for OEMs to match drivers’ expectations of being completely and seamlessly connected on the road, regardless of location, is to manage connection and subscriptions intelligently.

Installing a fixed SIM, such as those found in most phones, is ten times more expensive than updating an embedded SIM (eSIM) – a programmable SIM card.

This eSIM feature allows the industry to better control costs while also providing a better experience for consumers by removing the difficulties that may arise when cars travel across multi-CSP networks or cross borders. An embedded eSIM would automatically manage all of these requirements, eliminating the need to change or update cards based on the journey’s length.

Another possibility for automakers is to extract insight from vehicle data. The whole worldwide revenue pool from car data monetization could range from USD 450 billion to USD 750 billion by 2030, according to the analysis.

Kyle Okamoto, General Manager, Ericsson IoT, says: ”Automakers need to strategically consider the future of their business and capitalize on an evolving ecosystem of technology companies, information and entertainment companies, suppliers and many more players who are progressing innovation around the Internet of Things. This interesting report outlines how automakers can adapt and succeed in the market.”

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