Automotive, 3 factors are currently changing the automotive world

The automotive world is shedding its skin. Soon enough, vehicles circulating on our roads will boast profiles and functions far different from what we are accustomed to, turning them into a mix of innovative technologies that are already leading the automotive world towards the future: a digital transformation that will impact production processes, affect the creation of new and increasingly smart models and promote online purchasing. Both the automotive sector and the aftermarket will undergo major transformations, and the three main culprits are: artificial intelligence, the internet of things and shared mobility. A totally new business model currently affected by growing investments, whether by traditional market players or hi-tech multinational companies. All competing for new projects and innovative services to either finance or buy-out, and that, most of the times, are the result of years of research and development by cutting-edge start-ups.
 

Artificial Intelligence (Ai)

When speaking about artificial intelligence in the automotive field, the first thing that comes to mind is self-driving vehicles. Cars able to drive without any interference by the driver, relegated to the role of simple passenger. So far we are looking at prototypes that are still undergoing an intense testing process. So much so that quite a few years will pass before such vehicles will finally hit our roads. On the other hand, several manufacturers are taking advantage of Ai to improve software and on-board services already available, equipping cars with an electronic brain able to learn, reason and predict dangers and mechanical failures. A new business sector that will enrich the client portfolio of many manufacturers and their supply chain, with a consequent impact on independent aftermarket companies as well as the car repair world thanks to predictive maintenance. At present, automotive AI development focuses mainly on driver assistance services, such as automatic brakes, collision avoidance systems able to signal the presence of pedestrians or cyclists, traffic monitoring services or parking management systems. Not to mention smart dashboards able to warn the driver of malfunctions and mechanical failures before they happen. This is quite a novelty, the result of research in the field of "machine learning". But the presence of an on-board electronic brain is not limited to what we have seen so far. In fact, thanks to cloud computing, a platform that processes and stores data using hardware and software resources present on the web, cars will additionally be able to inform us about the nearest points of interest, gas stations, shops and restaurants. All tailored around our habits and preferences.
 

Internet of things (Iot)

 
The other face of AI’s development is the internet of things. The connected-car market is constantly expanding and it is estimated that by 2020 more than 250 million vehicles will be connected. New vehicles will be equipped with sensors, applications and functions able to interact with the outside world. All this thanks also to infrastructures, such as motorways, equipped with wi-fi and covered by a 5G signal, traffic lights able to communicate with motorists warning them in case of traffic jams and systems able to report traffic offenses. Meanwhile, passengers will sit comfortably in the car sending emails, buying things online, surfing the internet, and accessing a number of apps on their smartphone using voice commands. This is a market in which the demand for smart vehicles is constantly growing, to the point that many analysts estimate that by 2018 it will be worth 40 billion euro. The purpose of this technology is to keep people connected guaranteeing efficient and safe commuting at the same time. Vehicle-to-vehicle communication is a perfect example of this. Cars will be able to communicate their position and movements in order to prevent an accident if a traffic violation has been committed, or the driver is not paying the necessary attention behind the wheel, just as in case of a mechanical failure. Remote maintenance and assistance represents one of the most interesting developments of the IOT. Thanks to specific sensors mounted on a number of components – engine, bodywork and even tires - car manufacturers and repair shops can monitor the real condition of the vehicle. Services range from remote diagnostics and fine tuning to automatic transmission of data to be used in designing better and more efficient cars. Insurance companies are also looking at these developments with an ever growing appetite since, by analyzing the styles and behaviors of each individual motorist, they will be able to offer tailor-made insurance policies. For now though, the unknown factor hovering about these vehicles remains cyber security. Making them impenetrable to cyber attacks is the next step.
 

Car Sharing

From ownership to shared mobility. For now, this is an embryonic market in which automotive and specialized mobility startups are investing huge sums of money with the aim of offering advanced zero-emission vehicles able to satisfy a growing demand. In fact, the number of car sharers, especially in large cities, is steadily rising. According to a study carried out by McKinsey & Company, in 2016, the car sharing sector generated close to $ 54 billion in the US, China and Europe. Particularly active in this sector are the United States and China where the growth rate is higher than anywhere else. European countries, on the other hand, are lagging far behind with a business volume of just under $ 6 billion. In this case, the negative influence, according to McKinsey analysts, is represented by an excessive fragmentation of the offer due to poor collaboration between public and the private sectors. The tendency to prefer the temporary use of a vehicle rather than owning one finds its foundation in people’s desire to adhere to new lifestyles favoring efficiency, sustainability and sharing. Car sharing will not necessarily lead to a drop in sales or maintenance costs. Quite the contrary, in fact a greater use of the same vehicle will require greater care shortening the time required for its replacement. On the other hand, in a scenario of widespread sharing mobility, the presence of less vehicles on the roads will decongest cities, translating into quick travelling time. Most sharing mobility services nowadays are car sharing, ridesharing or carpooling. In the first case it can be: station based (vehicles are parked in dedicated areas), free floating (cars are equipped with a gps and can be located with an app; furthermore vehicles can be picked up and handed back in a specific parking area), peer-to-peer (a service that allows a vehicle owner to rent his vehicle to other users). While carpooling is the use of private vehicles between two or more people who, having to travel the same itinerary, can share the costs.