Cloud computing and big data are opening new doors in the auto industry. Today many automakers are using cloud to deliver a range of new services including security, navigation, infotainment and diagnostics. Despite continued growth in these services, Kevin Link, senior vice president at Verizon Telematics points out that we are in the early innings of being able to extract valuable insights to help transform the driving experience.
“While connected cars have been around for 20 years, we haven’t even tapped the actionable intelligence that the connected car can provide.”
Here are three examples of what the future could bring for auto makers, consumers and society- at- large through big data applications.
- Diagnostics: According to the National Highway Traffic and Safety Administration, car manufacturers have recalled 13 million cars in the US to date in 2014 – costing the industry billions to the bottom line.
Link says that if auto makers could identify a large subset of vehicles long before they become a problem through data and analytics, the cost savings would be huge not only for manufacturers, but also dealers and suppliers.
- Your Wallet: Analytics on emissions and diagnostics will not only help manufacturers and their partners, but also consumers. Link notes that when the car is able to provide feedback to the driver on the efficiency and safety of their driving, this can create even more cost-effective insurance premiums for consumers.
- The Gas Tax: Most highways and roads in the US are paid for via a government-mandated fuel tax. As Americans drive more fuel efficient cars such as hybrid and electric vehicles, they are buying less gasoline, creating a revenue gap to fund road construction. Moving forward, Link says that municipalities may look for new ways to extract data from electric vehicles as a stop gap measure.
Check back soon for Link’s take on key barriers for turning actionable big data into a reality in the auto industry.