How Smart Cars are Impacting the Auto Industry

We live in a world where autonomy and connected information are becoming exceedingly prevalent. With the steady growth of IoT (the Internet of Things), data is gathered from various smart devices and internet-connected hardware, changing how we buy, sell and use these items. No more is this apparent than in the auto industry, where the evolution of smart cars takes place with greater emphasis on digital functions.

Smart cars have a wide range of functionality, but the central idea is the same: autonomy from information. While self-vehicles are not yet commonplace, many cars now come with some measure of wireless connectivity. This connection has numerous functional potential and will shape the future of the auto-industry in the years to come.

For instance, auto-insurance can change entirely thanks to smart cars. Since insurance premiums are priced based on performance (safe driving versus unsafe driving), a smart car can introduce more custom, personalized approaches to insurance. A connected vehicle can send data of the driver’s habits and patterns to relevant sources, which then generates a digital profile. Perhaps they are exceedingly safe, and thus get the cheapest possible premiums because of this.

Demand for smart cars will likely become mandatory in the following years too. Many vehicles now operate as internet hotspots, or at least connect to the internet in some manner. Since in the working world there’s an enormous reliance on communication – especially mobile – a car that can cater to this is likelier to generate sales than a non-connecting vehicle. So, this becomes a standard in the industry versus a perk.

One could even potentially argue that smart-car features become mandatory. For instance, safety is critical for many on the road. Driving can be dangerous and getting into an accident is the last thing anyone wants. In the event of disaster, a smart car can send instant wireless alerts to nearby emergency responders, including things like where the actual vehicle is. This can be a life-saving situation, since the driver might be incapacitated. In those scenarios, it seems sensible that everyone would want this feature since safety is one of the biggest selling points to many vehicles.

With all this change, however, auto manufacturers will have to meet the challenge of connectivity. Software run smart cars and internet connections have many dangers, just like you’d find on the web. Imagine a self-driving vehicle hijacked in some way by malicious malware, or even a hacker. While total autonomy is possible, many question whether or not it should be fully autonomous.

One thing is certain: the demand and growth for smart-cars is growing. While manufacturers constantly look for ways to improve functionality, other automobile related industries will follow. Will these changes lead to better driving, greater safety, and a happier consumer base? Only time will tell, but that time is coming soon.