The Buzzword Breakdown Series is supported by The Network, Cisco’s technology news site. The Network features technology news, trends and information on video, collaboration, core networks, mobility, security, data, Cisco culture and social media.
Cars are no longer just a motorized solution to get you from point A to point B. They can now help protect you, direct you and connect you. In the last few years the “connected car” has moved from concept to car showroom, so if you’re not in the know, it’s well worth getting caught up.
We have spoken to two experts in the industry to try and decode the connect car from a consumer point of view. Mark C. Boyadjis, senior analyst and manager of automotive for the Americas at IHS iSuppli has provided overall industry insight, while Kevin Link, senior vice president of marketing at Hughes Telematics offers a view from inside a company producing automotive telematics solutions for major manufacturers.
Have a read through our analysis of the current connected car market and where it could be headed in the future. Join us in wondering just what Henry Ford might have made of all this, and do have your say on this interesting tech topic in the comments.
1. So, What Are Connected Cars?
Until recently the preserve of the rich, your next automotive purchase is likely to be a "connected car." "Essentially, the connected car is the modern car. With over 90% of cars sold today in the U.S. ... with Bluetooth, essentially, all cars have some connectivity to them," says Boyadjis.
"However, we are seeing a much more diverse meaning for what a connected car is. Connections can come from mobile devices, embedded telematics and broadcast services. Connections can bring in emergency services, security features, traffic and weather, navigation, information, Google and Bing search results, Pandora Internet radio and much more."
So what has driven demand for such high-tech motors? "One of the greatest global trends is related to how connected society has become. Like never before, we are connected to our home, our families, our phones, our work and our friends through a complex maze of networks that seem to be always on. The vehicle is the next node on the network, providing a plethora of connected services for the benefit of the consumer, dealer and manufacturer," explains Link.
"As society increases its demands for constant connectivity, the vehicle becomes a mobile device that must safely connect drivers to the world around them. It used to be that your vehicle was no more than a means of getting to a destination. However, at Hughes Telematics, we believe your journey there should be just as important."
As the cost of telematics comes down and consumer awareness about the benefits of connected cars grows, we can expect to see more and more connectivity in our cars. "The limits to what connected services are available is up to the demand from the consumer and the costs associated with them," predicts Boyadjis.
Image courtesy of Ernest
2. What Are Some of the Trends to Look Out For?
"The trends of connected vehicles are all about giving drivers more solutions to make their journey seamless and enjoyable from ignition to park," says Link. Although automotive telematics began as safety and security services for vehicles, it has evolved to inform and entertain consumers too.
"Connected cars used to be relegated to only the luxury vehicles and those customers who could pay for an annual subscription service. While these are still in use today, and evolving, other solutions have come to fulfill the needs of the mass market. This includes all of the same services that the luxury market offers, but for less money -- or in some cases, for free. Using devices the user may already have, solutions like Ford Sync and [the coming-soon] Toyota Entune have the ability to bring in 911 assistance, vehicle diagnostics, news feeds, Twitter updates, Pandora, Bing local searches, OpenTable.com reservations and more," says Boyadjis.
"The biggest innovation in this market has been the democratization of the technology down to the volume segment cars including everything from a Ford Fiesta to a Hyundai Sonata."
And Hughes Telematics has plans to democratize the market even further by bringing the kind of connectivity brand new cars enjoy to the masses of existing vehicles already on the roads.
"Another major trend just in its infancy is aftermarket connectivity -- connecting vehicles with no embedded system. Most vehicles sold in the U.S. after 1995 have an on-board diagnostics, or "OBD-II" port, which is used to decode the “check engine” light and determine what vehicle systems are malfunctioning or need repair. If you’ve ever had a vehicle emissions test, it’s that port," explains Link
"At any rate, you can connect an aftermarket telematics system to a vehicle through the OBD-II port, delivering many, but not all, of the same services (for instance, Automatic Crash Notification and emergency calling, plus smartphone connectivity, among others) you see offered by a system like Mercedes-Benz's mbrace. This allows telematics services to be delivered to the hundreds of millions of vehicles that don’t have an embedded telematics system and would not otherwise have any access to telematics services. This is significant in places like the U.S. where the average vehicle age is over 10 years."
Other trends to look out for can be glimpsed in Hughes Telematics' roadmap, which Link gives us a brief insight into: "Our product roadmap for new connected vehicle services will leverage our next generation telematics systems to deliver services through multiple channels such as interactive voice recognition, in-vehicle head units, smartphone apps, web portals and through live agents."
Image courtesy of Jakob Montrasio
3. Who Is Producing Connected Cars Now?
"Ford, GM, BMW, Hyundai, and Toyota. In many cases, these OEMs have either created the market, or evolved it significantly to represent new solutions, designs and capabilities," say Boyadjis.
Ford offers SYNC, an integrated comms, mapping and entertainment system. GM's system is OnStar, a subscription-based model for comms, navigation and remote diagnostics. Toyota currently offers a similar system to OnStar with its "Safety Connect" service, as does BMW with its "Assist" service, as well as a new "BMW Connected" iOS app.
Hughes Telematics currently works with Mercedes Benz USA, which offers more than 40 services through its Mercedes-Benz mbrace platform, but Link agrees such systems are becoming more commonplace: "Many automotive makers are beginning to incorporate connected services within their vehicles."
Image courtesy of D'Arcy Norman
4. Who is Buying Connected Cars?
"We don’t have empirical data on the demographics of telematics buyers, but we can generalize that the average age of a telematics user or subscriber is decreasing as more younger car buyers gain access to these systems in low- and mid-cost vehicles," says Boyadjis.
"In general, telematics is designed for the mass market buyer. Whether you are a college grad with no money or a Fortune 500 CEO with a garage full of cars, there is something in telematics that will interest you. Plus, with the recent diversity of systems in different OEMs, there are a variety of solutions at a variety of price points that many buyers will be able to take advantage of."
Hughes Telematics sees four main demographic groups that "are influenced by the benefits of a connected vehicle." One of these is the "affluent demographic" who, in Link's words, "tend to want the convenience and peace of mind associated with connected vehicles."
Link also identifies the "tech savvy" demographic as "the early adopters of connected vehicles. This group should not be confused with the young demographic, but pertains mainly to those who have a general and thriving interest in technology trends."
Meanwhile the safety features present in connected cars appeal to families. "The 'Out-and-About Parent' demographic is drawn to and sees the value in the convenience of a vehicle, which provides safety and security services offered in telematics packages," says Link.
Finally, Link says the “Gen-Y” demographic "feels excited about the idea that one’s vehicle is not just a mode of transportation anymore, but can be a way to both explore and connect to our world."
Image courtesy of Kenny Louie
5. Who Are the Up-and-Coming Connected Car Manufacturers?
We now know a little about the established manufacturers in the market, but who else is jumping into the connected car arena? Boyadjis highlights three manufacturers that are worthy of note.
"Audi has made recent news with their new Audi Connect telematics. This includes a 3G GSM SIM card which is used in the car to enable a Google Earth View for day-to-day navigation, plus Google local search POI. Also, Hyundai has recently announced and launched its Blue Link telematics system on the 2012 Sonata and Veloster models. This is an approach similar to OnStar and encompasses everything OnStar can do and more, all while offering it for less money," says Boyadjis.
"Lastly, Kia has also launched a new solution called Kia UVO. This is a mobile device telematics solution similar to that of Ford Sync, which uses the user's mobile phone. Now, UVO does not have any off-board services yet, but IHS iSuppli estimates they will in a year or so."
Link expects the majority of mainstream manufacturers will eventually jump on board as telematics are expected to be a standard feature in vehicles by 2015. "This shows significant growth in the adoption of telematics technology in the automotive industry. These trends can only point to a high adoption rate among most major automotive manufacturers, which are either already implementing or planning to launch connected services in their vehicles."
Image courtesy of Craig Cormack
Series Supported by Cisco
The Buzzword Breakdown Series is supported by The Network, Cisco’s technology news site. The Network features technology news, trends and information on video, collaboration, core networks, mobility, security, data, Cisco culture and social media. To subscribe to The Network, click here. You can also submit your story ideas here.
More About: Buzzword Breakdown Series, cars, connected car, connected cars, future, future tech, hughes telematics, iSuppliFor more Tech & Gadgets coverage:Follow Mashable Tech & Gadgets on TwitterBecome a Fan on FacebookSubscribe to the Tech & Gadgets channelDownload our free apps for Android, Mac, iPhone and iPad
Posted on Thu, 04 Aug 2011 14:00:24 +0000 at http://feeds.mashable.com/~r/Mashable/~3/ACEHkSElfto/
Comments: http://mashable.com/2011/08/04/connected-cars/#comments
Cars are no longer just a motorized solution to get you from point A to point B. They can now help protect you, direct you and connect you. In the last few years the “connected car” has moved from concept to car showroom, so if you’re not in the know, it’s well worth getting caught up.
We have spoken to two experts in the industry to try and decode the connect car from a consumer point of view. Mark C. Boyadjis, senior analyst and manager of automotive for the Americas at IHS iSuppli has provided overall industry insight, while Kevin Link, senior vice president of marketing at Hughes Telematics offers a view from inside a company producing automotive telematics solutions for major manufacturers.
Have a read through our analysis of the current connected car market and where it could be headed in the future. Join us in wondering just what Henry Ford might have made of all this, and do have your say on this interesting tech topic in the comments.
1. So, What Are Connected Cars?
Until recently the preserve of the rich, your next automotive purchase is likely to be a "connected car." "Essentially, the connected car is the modern car. With over 90% of cars sold today in the U.S. ... with Bluetooth, essentially, all cars have some connectivity to them," says Boyadjis.
"However, we are seeing a much more diverse meaning for what a connected car is. Connections can come from mobile devices, embedded telematics and broadcast services. Connections can bring in emergency services, security features, traffic and weather, navigation, information, Google and Bing search results, Pandora Internet radio and much more."
So what has driven demand for such high-tech motors? "One of the greatest global trends is related to how connected society has become. Like never before, we are connected to our home, our families, our phones, our work and our friends through a complex maze of networks that seem to be always on. The vehicle is the next node on the network, providing a plethora of connected services for the benefit of the consumer, dealer and manufacturer," explains Link.
"As society increases its demands for constant connectivity, the vehicle becomes a mobile device that must safely connect drivers to the world around them. It used to be that your vehicle was no more than a means of getting to a destination. However, at Hughes Telematics, we believe your journey there should be just as important."
As the cost of telematics comes down and consumer awareness about the benefits of connected cars grows, we can expect to see more and more connectivity in our cars. "The limits to what connected services are available is up to the demand from the consumer and the costs associated with them," predicts Boyadjis.
Image courtesy of Ernest
2. What Are Some of the Trends to Look Out For?
"The trends of connected vehicles are all about giving drivers more solutions to make their journey seamless and enjoyable from ignition to park," says Link. Although automotive telematics began as safety and security services for vehicles, it has evolved to inform and entertain consumers too.
"Connected cars used to be relegated to only the luxury vehicles and those customers who could pay for an annual subscription service. While these are still in use today, and evolving, other solutions have come to fulfill the needs of the mass market. This includes all of the same services that the luxury market offers, but for less money -- or in some cases, for free. Using devices the user may already have, solutions like Ford Sync and [the coming-soon] Toyota Entune have the ability to bring in 911 assistance, vehicle diagnostics, news feeds, Twitter updates, Pandora, Bing local searches, OpenTable.com reservations and more," says Boyadjis.
"The biggest innovation in this market has been the democratization of the technology down to the volume segment cars including everything from a Ford Fiesta to a Hyundai Sonata."
And Hughes Telematics has plans to democratize the market even further by bringing the kind of connectivity brand new cars enjoy to the masses of existing vehicles already on the roads.
"Another major trend just in its infancy is aftermarket connectivity -- connecting vehicles with no embedded system. Most vehicles sold in the U.S. after 1995 have an on-board diagnostics, or "OBD-II" port, which is used to decode the “check engine” light and determine what vehicle systems are malfunctioning or need repair. If you’ve ever had a vehicle emissions test, it’s that port," explains Link
"At any rate, you can connect an aftermarket telematics system to a vehicle through the OBD-II port, delivering many, but not all, of the same services (for instance, Automatic Crash Notification and emergency calling, plus smartphone connectivity, among others) you see offered by a system like Mercedes-Benz's mbrace. This allows telematics services to be delivered to the hundreds of millions of vehicles that don’t have an embedded telematics system and would not otherwise have any access to telematics services. This is significant in places like the U.S. where the average vehicle age is over 10 years."
Other trends to look out for can be glimpsed in Hughes Telematics' roadmap, which Link gives us a brief insight into: "Our product roadmap for new connected vehicle services will leverage our next generation telematics systems to deliver services through multiple channels such as interactive voice recognition, in-vehicle head units, smartphone apps, web portals and through live agents."
Image courtesy of Jakob Montrasio
3. Who Is Producing Connected Cars Now?
"Ford, GM, BMW, Hyundai, and Toyota. In many cases, these OEMs have either created the market, or evolved it significantly to represent new solutions, designs and capabilities," say Boyadjis.
Ford offers SYNC, an integrated comms, mapping and entertainment system. GM's system is OnStar, a subscription-based model for comms, navigation and remote diagnostics. Toyota currently offers a similar system to OnStar with its "Safety Connect" service, as does BMW with its "Assist" service, as well as a new "BMW Connected" iOS app.
Hughes Telematics currently works with Mercedes Benz USA, which offers more than 40 services through its Mercedes-Benz mbrace platform, but Link agrees such systems are becoming more commonplace: "Many automotive makers are beginning to incorporate connected services within their vehicles."
Image courtesy of D'Arcy Norman
4. Who is Buying Connected Cars?
"We don’t have empirical data on the demographics of telematics buyers, but we can generalize that the average age of a telematics user or subscriber is decreasing as more younger car buyers gain access to these systems in low- and mid-cost vehicles," says Boyadjis.
"In general, telematics is designed for the mass market buyer. Whether you are a college grad with no money or a Fortune 500 CEO with a garage full of cars, there is something in telematics that will interest you. Plus, with the recent diversity of systems in different OEMs, there are a variety of solutions at a variety of price points that many buyers will be able to take advantage of."
Hughes Telematics sees four main demographic groups that "are influenced by the benefits of a connected vehicle." One of these is the "affluent demographic" who, in Link's words, "tend to want the convenience and peace of mind associated with connected vehicles."
Link also identifies the "tech savvy" demographic as "the early adopters of connected vehicles. This group should not be confused with the young demographic, but pertains mainly to those who have a general and thriving interest in technology trends."
Meanwhile the safety features present in connected cars appeal to families. "The 'Out-and-About Parent' demographic is drawn to and sees the value in the convenience of a vehicle, which provides safety and security services offered in telematics packages," says Link.
Finally, Link says the “Gen-Y” demographic "feels excited about the idea that one’s vehicle is not just a mode of transportation anymore, but can be a way to both explore and connect to our world."
Image courtesy of Kenny Louie
5. Who Are the Up-and-Coming Connected Car Manufacturers?
We now know a little about the established manufacturers in the market, but who else is jumping into the connected car arena? Boyadjis highlights three manufacturers that are worthy of note.
"Audi has made recent news with their new Audi Connect telematics. This includes a 3G GSM SIM card which is used in the car to enable a Google Earth View for day-to-day navigation, plus Google local search POI. Also, Hyundai has recently announced and launched its Blue Link telematics system on the 2012 Sonata and Veloster models. This is an approach similar to OnStar and encompasses everything OnStar can do and more, all while offering it for less money," says Boyadjis.
"Lastly, Kia has also launched a new solution called Kia UVO. This is a mobile device telematics solution similar to that of Ford Sync, which uses the user's mobile phone. Now, UVO does not have any off-board services yet, but IHS iSuppli estimates they will in a year or so."
Link expects the majority of mainstream manufacturers will eventually jump on board as telematics are expected to be a standard feature in vehicles by 2015. "This shows significant growth in the adoption of telematics technology in the automotive industry. These trends can only point to a high adoption rate among most major automotive manufacturers, which are either already implementing or planning to launch connected services in their vehicles."
Image courtesy of Craig Cormack
Series Supported by Cisco
The Buzzword Breakdown Series is supported by The Network, Cisco’s technology news site. The Network features technology news, trends and information on video, collaboration, core networks, mobility, security, data, Cisco culture and social media. To subscribe to The Network, click here. You can also submit your story ideas here.
More About: Buzzword Breakdown Series, cars, connected car, connected cars, future, future tech, hughes telematics, iSuppliFor more Tech & Gadgets coverage:Follow Mashable Tech & Gadgets on TwitterBecome a Fan on FacebookSubscribe to the Tech & Gadgets channelDownload our free apps for Android, Mac, iPhone and iPad
Posted on Thu, 04 Aug 2011 14:00:24 +0000 at http://feeds.mashable.com/~r/Mashable/~3/ACEHkSElfto/
Comments: http://mashable.com/2011/08/04/connected-cars/#comments