Connected Cars: A Complete Guide

In the not-so-distant past, cars were merely a means of transportation. Today, thanks to advancements in automotive technology, they have evolved into sophisticated machines that offer a wide range of features and capabilities. At the heart of this transformation lies the concept of connected cars.

In this guide, we take a close look at connected cars. What exactly are they? How do they work? What are their advantages for drivers, car dealers, and automakers?

What you’ll learn:

• What is a connected car?
• Benefits of connected cars
• How connected vehicles work
• Types of connectivity in connected cars
• Applications of connected cars
• The future of connected cars
• How the automotive industry can use connected car data
• Connected car FAQs

A connected car, also known as a smart car, is a vehicle equipped with advanced technology that allows it to communicate with other vehicles, the internet, and external devices. Connected car software makes communication and connectivity features possible in connected cars. This connectivity opens up a world of possibilities, transforming the driving experience and offering a number of benefits for drivers, passengers, and automakers alike.

Let's explore some of the key benefits that make these vehicles so appealing:

• Improved convenience: Connected cars offer a host of features that enhance convenience. Navigation systems with real-time traffic updates guide drivers efficiently to their destinations, while remote access allows owners to lock or unlock their vehicles, check fuel levels, and even start the engine remotely.
• Elevated entertainment: Connected cars serve as an entertainment hub for every journey. Passengers can enjoy seamless connectivity, streaming their favorite music, watching movies, or playing games on integrated screens. With Wi-Fi hotspots, everyone on board can stay connected, making long road trips more enjoyable.
• Optimized performance: Connected cars collect and analyze data on vehicle performance, fuel efficiency, and tire pressure. This information can be accessed by drivers and mechanics, to allow timely maintenance and optimal vehicle performance.
• Reduced environmental impact: Connected cars contribute to a greener future. By monitoring driving patterns and optimizing routes, they help reduce fuel consumption and emissions. Additionally, connectivity enables efficient traffic management, reducing congestion and further lowering emissions.

The power of connected car technology lies in the seamless integration of hardware, software, and connectivity systems. Here's a breakdown of how connected cars function:

• Onboard sensors: Connected cars are equipped with a variety of sensors that collect data on vehicle performance, speed, location, and more. These sensors include accelerometers, gyroscopes, GPS, and cameras, which work together to provide real-time information to the car's computer systems. This data is then used to make driving decisions, such as adjusting speed or braking.
• Telematics systems: The data collected by onboard sensors is transmitted to a central telematics system, which acts as the brain of the connected car. This system processes the information and communicates with other systems, such as the vehicle infotainment system or the driver's smartphone, to provide useful features and services. For example, the telematics system can send alerts to the driver about potential road hazards or provide navigation assistance. It can also connect to the internet to access real-time traffic information and assist with remote vehicle diagnostics.
• Data transmission: The collected data is transmitted to the cloud or a central server using cellular networks, Wi-Fi, or Bluetooth.
• Data processing: Advanced algorithms analyze the data to generate insights, recommendations, and real-time alerts. These insights can help improve driving efficiency, identify potential maintenance issues, and even enhance the overall driving experience.
• Connectivity options: Connected cars offer different ways to stay connected.
• Embedded connectivity means the car has a built-in connection to the internet. This gives you a seamless and always-on connection.
• Tethered connectivity means you use your smartphone to connect your car to the internet. This option is more affordable, but it may not be as reliable.
• Smartphone-based connectivity means you use your smartphone as a hotspot to connect your car to the internet. This is the most affordable option, but it may not be as reliable as the other two options.

Connected cars use various types of connectivity to communicate and exchange data. Here are some key connectivity types:

• Vehicle-to-vehicle (V2V): V2V communication allows cars to communicate directly with each other, sharing information on speed, location, and potential road hazards.
• Vehicle-to-infrastructure (V2I): V2I communication enables cars to exchange data with traffic signals, toll booths, and other infrastructure, optimizing traffic flow and reducing congestion.
• Vehicle-to-pedestrian (V2P): V2P communication helps prevent accidents involving pedestrians and cyclists by alerting both parties to potential collisions.
• Vehicle-to-cloud (V2C): V2C communication allows cars to transmit data to the cloud for analysis, storage, and remote access by authorized users.
• Vehicle-to-everything (V2X): V2X encompasses all forms of communication between vehicles and their surroundings, including V2V, V2I, V2P, and V2C.

The potential applications of connected cars are vast and continue to expand. Here are some of the exciting ways connected cars are transforming the driving experience:

• Advanced navigation: Real-time traffic updates, personalized route suggestions, and points-of-interest information enhance navigation, making journeys more efficient and enjoyable.
• Remote diagnostics: Connected cars enable remote monitoring of vehicle health, allowing mechanics to identify and address issues proactively, minimizing downtime.
• Usage-based insurance: Some insurance companies offer usage-based insurance policies that reward good driving habits, encouraging responsible behavior and potentially lowering insurance costs.
• Emergency assistance: In case of an accident or emergency, connected cars can automatically contact emergency services, providing critical assistance when it's needed most.
• In-vehicle entertainment: Connected cars offer a wide range of entertainment options, including music streaming, video streaming, and gaming, turning every drive into a multimedia experience.

While connected cars offer immense potential, they also face certain challenges and opportunities:

• Data privacy and cybersecurity: Connected cars generate vast amounts of data, raising concerns about data privacy and cybersecurity. Robust measures are necessary to protect sensitive information and prevent unauthorized access.
• Connectivity issues: As connected cars rely on a strong network connection, any disruptions or outages may affect their functionality. This may lead to safety concerns and inconvenience for drivers.
• Regulatory framework: With the increasing popularity of connected cars, there's a need for a regulatory framework to ensure their safe and ethical use. This includes addressing issues such as data ownership, liability, and ethical considerations for autonomous driving.
• Integration with smart cities: As cities become smarter, the integration of connected cars with smart city infrastructure will be crucial for optimizing traffic flow, reducing pollution, and enhancing overall urban mobility.
• Advancements in autonomous driving: Connected cars play a vital role in the development of autonomous vehicles, enabling communication between vehicles and their surroundings. As autonomous driving technology advances, the demand for connected cars will continue to grow.
• Business opportunities: The connected car industry presents numerous opportunities for businesses to develop innovative products and services, such as data analytics, cybersecurity solutions, and advanced navigation systems.

One of the key areas for using connected car data is in product development. By analyzing the data collected from connected cars, automakers can gain a deeper understanding of driver behavior, preferences, and usage patterns.

This information can then be used to develop new products and features that better meet customer needs and expectations. For example, by analyzing vehicle data on how drivers use different features in their cars, automakers can identify which features are most popular and which ones are underutilized. This can help them make informed decisions on which features to prioritize in future models and which ones to improve or phase out.

Connected car data can help us improve safety features and reduce accidents. By analyzing driving habits and behavior, automakers can identify safety hazards and develop new technologies to prevent accidents and keep drivers and passengers safe.

This data can also be shared with government agencies and other organizations to improve road and traffic safety. Ultimately, connected car data can lead to a better driving experience and a safer, more efficient transportation system for everyone.

Many drivers are willing to trade data for enhanced personalization, according to Salesforce's connected car research. Automakers and dealers can use connected car data to tailor marketing messages to individual drivers. By analyzing driving patterns, location data, and vehicle health data, automakers can create personalized promotions and services that are relevant to each driver's needs. This level of personalization is becoming increasingly important in the automotive industry, as customers expect a more tailored experience from the brands they support.

For example, a driver who regularly commutes long distances may be offered discounts on maintenance services. Or a driver who lives in a cold climate may be offered deals on winter tires. By using connected car data to personalize marketing messages, automakers can improve the customer experience and increase customer loyalty.

Automakers can use connected car data to improve service interactions with their customers. By having access to real-time data on a vehicle's performance and maintenance needs, automakers can proactively schedule service appointments and provide personalized recommendations for maintenance and repairs. This saves the customer time and hassle, and it also helps to prevent potential issues and keep the vehicle running at its best.

Automakers can also use data on a customer's driving patterns and habits to offer personalized services and features that cater to their individual needs and preferences. This can help them build a stronger and more loyal relationship with the customer, ultimately leading to increased customer satisfaction and brand loyalty. Overall, the use of connected car data has the potential to greatly benefit both customers and automakers alike, creating a more seamless and enjoyable driving experience for all.

Connected car data has immense potential for automotive businesses in terms of improving their products and services, providing valuable insights for safety and efficiency, and enhancing their marketing efforts. As the technology continues to advance and more vehicles become connected, automakers will have even more opportunities to use this data to benefit both themselves and their customers.