The automotive industry is betting on Big Data for its future at CES 2020
Data is now crucial for the automotive industry. The many Big Data collection and analysis solutions presented at CES 2020 bear witness to this major transformation…
The auto industry has changed. As Brian Rhodes, a specialist analyst at IHS Markit, explains, this market is no longer limited to selling equipment .
Today, modern cars are equipped with cellular connections, processors, sensors, cameras and microphones. Like smartphones, these vehicles therefore generate large volumes of data .
The new priority of the industry is therefore to succeed in monetizing this data . CES 2020 in Las Vegas, which ran from January 7-10, reflects this transformation.
For a long time, the world’s largest consumer electronics fair has been an opportunity for car manufacturers to present their vehicles at the cutting edge of technology. This year however, solutions allowing to exploit the data generated by cars also occupied a major place.
Currently, automakers are looking to control the data generated by their vehicles, but lack the necessary software expertise . Very often, smartphone giants like Apple and Google seize this precious data through their respective CarPlay and Android Auto systems integrated into vehicle dashboards. The industry is therefore looking for alternatives.
Thus, Fisker was present to unveil its electric SUV Ocean for the first time. This company manufactures electric vehicles, but seeks to generate the majority of its profit from software and services .
She offers an application for ordering or updating her vehicle, and hopes that this concept will allow her to generate income over the life cycle of each vehicle. According to the CEO of the firm, Henrik Fisker, “people now think that their smartphone is more important for their freedom than their car” . It is therefore necessary for the industry to respond to a new demand.
According to Ford’s CTO, Ken Washington, the data generated by the vehicles are now essential for the famous American manufacturer. For example, Ford needs this information to use Digit: a robot designed by Agility Robotics .
This robot travels with delivery vehicles, deploys and transports packages to the recipient’s door. However, the machine needs the data generated by the sensors of Ford vehicles to find its way.
Likewise, the manager believes that capturing and analyzing data is essential for improving vehicle design and getting it to market faster . They can also allow automakers to become larger transportation companies.
Auto industry partners with tech giants to harness data
Technology giants, meanwhile, are now looking to provide automakers with solutions to take advantage of the data. With its Mobileye division, Intel provides car manufacturers such as Nissan, BMW and Volkswagen with assisted driving technology. In return, it recovers data collected by the cameras, chips and sensors of its system .
This anonymized information is then aggregated to create a detailed map that manufacturers can use to improve the navigation systems of their vehicles. At CES, Intel presented a map of Las Vegas created in 24 hours from information collected by BWM vehicles crisscrossing the city.
According to the firm, the freshness of the information makes this system more reliable than traditional navigation systems whose data may be obsolete. In addition, these maps could be used for other purposes such as remote monitoring of the condition of infrastructure.
Intel estimates that the market for such data will reach a value of $ 3.5 billion within ten years . This forecast is far less optimistic than that of McKinsey & Co, who predicts that automobile data will create a value of $ 750 billion by 2030. This colossal sum includes revenues generated by services such as smart cards or advertising targeting. , or the sale of anonymized information to third parties for analysis purposes.
Similarly, Amazon Web Services, the cloud giant , was present at CES to announce a partnership with BlackBerry. Together, the two firms have developed a new service aimed at helping car manufacturers deploy software updates on their vehicles, monitor the health of a vehicle, access data from on-board sensors, or even develop new applications and apply artificial intelligence models from data.
The world leader in mobile chips, Qualcomm, had come to announce its Snapdragon Ride platform . This platform brings together chips and software specially dedicated to autonomous vehicles. The goal is to reduce the costs and the power required for the development and operation of these vehicles.
In conclusion, this 2020 edition of CES demonstrates that the future of the automotive industry will be data-driven . The manufacturers who will be able to embrace this transformation are promised a bright future, while those who let this opportunity slip by risk seeing their survival endangered…