Ericsson Report Harps on Connected Vehicles in Digital Transformation

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Emma Okonji

Operators targeting the digital transformation of industries will see immense opportunities in driving the connected vehicle agenda with 5G and Internet of Things (IoT), Ericsson has said.

In a recent report by Ericsson entitled ‘The Guide to Capturing the 5G Industry Digitalisation Business Potential’, the company explained for ICT players to achieve digital transformation in the coming years, they will need to adopt the technologies that will propel the development and implementation of connected vehicles forward.

The global market potential for connected vehicles was mainly made up by the public safety, public transport, and automotive industries – and its estimated revenue potential is as high as $69 billion, the report said.

Analysing the report, the Head of Strategy, Technology, Sustainability and Public Affairs for Ericsson, Middle East and Africa, Alp Uysal, said however, key challenges in the connected vehicle space include providing sufficient coverage of high-speed mobile broadband, as well as developing new sales capabilities to deal with several types of customers, ranging from equipment manufacturers to public transport companies and everyone in between.

To make connected vehicles a reality for use cases like autonomous ambulances, high-speed internet on trains, vehicle-to-vehicle networking systems, and other such applications, operators will need to overcome these challenges with innovative cloud-based solutions that utilize next generation technology from every angle, Uysal said.

Currently, the market drivers for connected vehicles include a growing car sharing market, new safety regulations such as eCall, vehicle electrification, and the emergence of new high-tech disruptors in the automotive industry. These market drivers will only evolve and expand with time, so operators will need to adapt their strategies to keep services and solutions applicable as connected vehicle use cases change, the report added.

However, there are also challenges to overcome in the introductory phase of the connected vehicle agenda. For example, new monetisation models will be required, as consumers are used to a one-off payment for a traditional car, while connected cars and features will likely be based on a subscription model in order to keep software up-to-date as improvements are made, the report said.
Increasingly, the automotive industry is addressing the demand for connected vehicles with aims to make them more accessible on a broader scale. One Swedish telecom operator, Telia, is catering to this demand with plans to connect cars already on the streets, opening up a new digital world for otherwise unconnected cars and complementing inbuilt connectivity with a suite of relevant services.

According to the report, in Sweden alone, there are well over three million cars that employ the on-board diagnostic (OBD) feature – a key enabler for the service, which also provides the opportunity for operators to expand from data connectivity and create innovative service offerings for car owners as well as insurance and parking services companies.