TONY SMALLWOOD New technology is ultimately heading towards creating communication between the connected car and the “smart city”
As vehicles become increasingly technologically advanced, the future of the automotive industry is shifting towards the ‘connected car’ that can communicate with external sources, such as the vehicle manufacturer, says mobile network service provider Vodacom Business’s machine to machine (M2M) division.
M2M communication systems have existed for some time, says Vodacom Business M2M head Tony Smallwood, adding that M2M technology for vehicles has developed to such an extent that the next generation of vehicles will be fitted with embedded Sim cards as a standard feature.
He explains that M2M systems in the automotive industry were initially used for vehicle tracking and the recovery of stolen vehicles. “Mobile network to mobile-network communication systems were first implemented in vehicles for tracking during the late 90s. The future growth of M2M systems in vehicles is to have the system installed during the manufacturing process.
According to technology research and consulting firm Machina Research, there are currently about 30-million vehicles with embedded M2M systems and the firm suggests this number will grow to 654-million by 2024, says Smallwood.
Recent Growth
The adoption of embedded M2M systems as standard features in vehicles has “been incubating for several years” and numerous vehicle manufacturers chose to roll out their connected-car distribution strategies only recently, states Smallwood.
Although the latest M2M technology can perform numerous actions, such as the automatic reporting of vehicle problems, the basic features of the original-equipment manufacturer systems that will be installed in soon-to-be-released vehicle manufacturer BMW’s range of vehicles also include an emergency call feature. “When the vehicle is involved in an accident, the M2M system will enable the driver and/or passengers in the vehicle to communicate with an emergency control centre, enabling rapid assistance,” says Smallwood.
An M2M-fitted BMW vehicle will be able to perform remote diagnostics checks, whereby the vehicle constantly monitors its performance and reports any service requirements or issues to the nearest dealership to follow up. “This can greatly assist in saving a customer time and convenience,” he states.
“Moreover, an embedded M2M system will enable those in vehicles fitted with M2M entertainment capabilities to enjoy online entertainment, as they can select their choice of entertainment online and download the content to the car, thereby eliminating the use of a CD player,” Smallwood boasts.
Smart Travelling
Smallwood says this new technology is ultimately heading towards creating communication between the connected car and the “smart city”.
“With the right infrastructure, vehicles will soon be able to connect to a central hub in city centres, which makes it possible to create smart traffic flows with synchronised traffic lights. Even searching for an open parking bay will become easier, as the system will direct the driver to available bays.”
Smallwood says all these developments will make cities easier to manage and more practical in terms of commuting through them.
“Once you start to look at the ecosystem of M2M systems and how they can work to assist in different areas, the overriding benefits of the system become evident.”
Another feature of M2M systems is that they can monitor driver behaviour and report good or bad driving habits to the insurance company. “With this information, it is possible for insurance companies to reward good drivers with lower premiums,” Smallwood says, adding that it has been proven that drivers who are aware of their driving habits being monitored adopt safer driving styles.
How It Works
Smallwood says buyers of vehicles with embedded Sim cards will not have to open separate contracts for the mobile network used in the M2M system.
He adds that the incorporation of embedded M2M systems is largely driven through the manufacturer in terms of customer accounts for the mobile network service provider.
“When a customer buys a vehicle, the salesperson will inform the buyer of all the M2M features available. This will enable the buyer to choose which features he or she would like to include in the package,” says Smallwood.
Although some features will be included by default in the base price of the vehicle, other features will be a value-add component, which will, in turn, include its own commercial terms, he notes.
“The role of Vodacom in this scenario is to provide a seamless capability for the manufacturer to offer some of, or all, the M2M services to clients,” says Smallwood.
Therefore, Vodacom, as the service provider, will not have any commercial relationship with the vehicle buyer, but it will have a business relationship with the vehicle manufacturer at the back-end of the deal, he adds.
M2M Expansion
A major influence on the growth of the M2M industry in general is the increasing sophistication being introduced to the M2M end devices – typically those in the hands of the users – that connect to the network and are constantly becoming cheaper to produce.
Another driver of growth is the expansion of mobile network coverage in South Africa and the expansion from the 3G to the faster 4G network.
“The adoption of M2M systems in South Africa is rapidly growing, creating an endless wave of opportunities that are starting to evolve along with M2M technology,” concludes Smallwood.