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Most of the technological advances in automobiles have been focused until now, and rightly so, on making cars safer while also providing simple user conveniences, like GPS navigation. These automotive trends have made a big difference. In fact, the emergence of these safety-centric technologies and the inevitability of autonomous vehicles, which remove the human element from the operation of the vehicle, have encouraged the National Highway Traffic Safety Administration, in conjunction with the National Transportation Safety Board and several nongovernmental organizations, including the National Safety Council, to undertake the Road to Zero initiative.

This partnership between major influencers on public policy regarding matters of roadway, behavioral and vehicle has set the lofty goal of eliminating traffic fatalities within 30 years.

Automotive Connectivity Evolves to Meet Demands for Speed & Bandwidth

New technologies will lead the way to this goal. Electric and driverless cars, the advanced state of artificial intelligence technology, increased applications of environmental sensors with onboard computer systems and connectivity of Wi-Fi through telematics and digital platforms are revolutionizing the future of mobility. This exciting future is before us.


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However, many of the technologies that will completely transform the driving experience are only in the preliminary stages and there are still challenging issues in terms of traffic infrastructure and product affordability. The companies racing to develop the first driverless car include major automakers and technology companies. The first truly driverless car will be a game-changer. Building upon technology that, for now, is confined to smartphones or smart speakers, automakers will provide artificial intelligence software in a vehicle's infotainment system that will serve as a virtual personal assistant with the ability to respond to voice commands and proactively guide drivers in collaboration with its navigation system.

With the increasing use of sensors and other technologies that collect data, AI will be key to making sense of everything.

Brainstorm: How To Best Handle The Connected Car's Network Strain

Some automobiles already use AI for Level 3 autonomous driving, but for the industry to reach Level 5, major enhancements need to be made to the car as well as the infrastructure. Automotive telematics play a vital role in assessing driver behavior for a wide range of purposes, from determining a more accurate insurance premium to learning more about when and where people drive. Dealerships value telematics as a way to monitor vehicle diagnostic and smart maintenance service.

Currently it is estimated that between 60 and 80 percent of cars sold in contained installed telematics, however the market for connected car packages continue to focus on premium vehicles. By , 75 percent of connected car packages will be sold as part of smaller, less expensive cars. Sign up for weekly updates on the latest trends, research and insight in tech, IoT and the supply chain.

V2V shows great promise in helping to avoid crashes, ease traffic congestion, and improve the environment. Taking the concept one step further, "vehicle-to-everything" V2X technology will make it possible for vehicles to communicate with smart traffic signals and even conduct a transaction at a gas pump. Innovative sensors monitor and regulate a car's operation and provide the ground for autonomous driving by sharing important data in demanding applications, such as engines and brake and transmission systems.

Car Connectivity Consortium CCC is developing an open standard for use of smart devices as digital keys for automotive. The solution will be car and smart device agnostic.

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The solution will also enable provisioning and sharing of keys with properties associated with them. CCC is also collaborating with other standardization organizations to create a lean and efficient solution. The first phase of Digital Key specification is targeted for completion by the end of Q1 of Drivers interact with their compliant smartphone apps via any compliant in-vehicle infotainment system IVI.

MirrorLink enables interoperability between a wide range of smartphones and cars.

What V2… means?

In the automotive sector, as elsewhere in the economy, digital forces are blurring traditional industry boundaries, spurring the formation of new ecosystems , and placing large profit pools up for grabs. The value of this data will depend in part on the acceptance of clear-cut standards.


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A common understanding and shared language will help players across the ecosystem communicate about current and emerging opportunities. It will also make it easier for consumers to compare features and capabilities of different offerings. No such standard exists today for user experience in a connected car, one of the key foundations for data-driven value creation in mobility. As connectivity systems become progressively more complex, understanding the changes underway will become increasingly problematic in the absence of a universal framework.

In this article, drawn from years studying this topic, we propose one. To understand the role of generally accepted standards, look no further than the framework for levels of vehicle autonomy, advanced by the Society of Automotive Engineers SAE automation taxonomy.


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  • The SAE taxonomy is at once comprehensive and simple. At each ascending level of automation capability, only one new element is introduced at a time. Such stark classification reflects an engineering-oriented approach—yes or no, zero or one. Through three years of cross-industry research, multiple global roundtables, 3, consumer interviews and more than interviews of executives from companies ranging from start-ups to large corporations, as well as our experience serving clients on this topic, the McKinsey Center for Future Mobility has been seeking to bring similar clarity to each distinct step change in connectedness achievable in the coming months and years.

    Whereas autonomy and its levels can be defined as the extent to which drivers control how automobiles move from full driver control to no human intervention at all , connectivity should be defined based on what car riders experience.

    The distinction is not academic. Connectivity, in large part, will be key to using car data to generate revenue, optimize costs, and improve safety.