5 Serious Obstacles for Connected Cars

It’s impossible to know exactly the future of connected cars and what cars of the future will look like, but we can say with near certainty that they’ll be connected to the internet.


The global connected car market is expected to reach $131.9 billion by 2019, which means the automotive industry needs to quickly resolve some of the lingering concerns plaguing connected cars. These issues concern not only car manufacturers and original equipment producers, but also insurance companies and end users.


According to Machina Research and Telefónica Digital, there are some serious obstacles for connected cars to bring them to the mass market. Let’s analyze them.



1. Data protection and crime risks.

The gigabytes of information that are collected and processed by smart cars, stored either in the car itself or on a cloud database, make them a potential target for cybercrime attacks that can cause harm to connected car owners. If a system is hacked, a very large number of accidents could occur. Depending on the data type, connected car manufacturers should implement data encryption to ensure the safe transfer and storage of information. In addition, the software that processes this data must be of the highest quality in order to protect it from unauthorized collection and use.




2. Insurance.

The rising market penetration of embedded telematics devices offers insurers a powerful tool to reduce risk and offer better services to the insured. Monitoring the location of smart car, its speed, and the behavior of the drivers, in addition to information about its usage, will allow insurance companies to offer customers personalized insurance policies. This can reduce the cost of insurance for experienced drivers and make it easier for companies to offer discounts based on drivers’ skills.



3. The resale market for smart cars.

When connected cars appear in the retail market, it will be up to sales people to educate consumers about their car’s technology. In the future, our cars will store a huge amount of personal information, from our favorite songs to average braking distance and seat height. In the event that this vehicle is resold, this data will be available to a third party likely unbound by a privacy policy or terms and conditions agreement signed by the manufacturer. This makes it necessary to enable users to transfer user account information to a new device or delete stored data.



4. Finding reliable mobile partners.

First of all, car manufacturers will need to choose reliable telecom partners to provide permanent internet connections and collaborate on solutions that facilitate the speedy transmission of data gathered by the connected car. Secondly, users preferring to plug in their mobile device to their connected car via USB or Bluetooth must be protected from unauthorized use by mobile partners. Car manufacturers must demand that their mobile partners conform to licensing requirements and legal obligations typically applied telecom providers.



5. Who pays for services?

Consumers believe that their car payments are high enough. In the case of connected cars, however, consumers must make ongoing expenditures on communications. Users may be hesitant to add a car to their monthly bill for mobile services. In that case, the operating costs of connected cars will increase due to roaming charges and data usage. Because of these factors, the pricing structure for connected car mobile services should be revised based on buyer preferences.


In spite of all these connected cars problems, smart car technology is inevitable, and that's why every car manufacturer or equipment producer should move towards developing it. Archer Software has experience developing connected car solution software and data analytics tools, so we can help you integrate future changes.


For more information about how we can develop connected car software solutions that are right for you, contact our experts at info@archer-soft.com.


You can also check out our full automotive portfolio here.

Image Courtesy: https://www.cheapfullcoverageautoinsurance.com/