What the "car of the future" will look like in five years' time
Global IT consulting and services firm DXC Technology predicts five trends in how the automotive industry will change our relationship with cars over the next five years.
The transition to software-defined vehicles is reshaping every aspect of the automotive industry - from how cars are designed and manufactured to how they are used and maintained. Crucially, it is changing the driver's relationship with the rich ecosystem of partners and services around the automotive industry. DXC and Luxoft (a DXC company), which specializes in automotive software and platform-based business models, see signs that these five trends are accelerating.
The software in your vehicle is as important as its logo
Software-defined vehicles (SDVs) will be the cars of tomorrow, with features and functions controlled by software. "SDVs will be known more for their user experience than their physical features. Software will provide a direct link between the automaker and the customer, and platform-driven automotive companies will be able to seamlessly offer personalized services to their customers through their vehicles," said Matthias Bauhammer, Global Lead, Robotic Drive Offering at DXC Technology.
This data exchange will not be limited to a single car and its manufacturer. The "crowd data" from millions of vehicles can be used to provide smarter mobility services across an entire automotive ecosystem. Gaia-X 4 Future Mobility for example, is a European initiative that enables close networking between vehicle users, service providers, manufacturers and suppliers. Applications include intelligent transport infrastructures, vehicle lifecycle management and digital twins for autonomous vehicles.
Your car renews itself and offers upgrades on demand
As cars become increasingly software-defined and connected to the Internet, their ability to self-heal, self-renew and self-refresh will increase. "Our phone software is regularly updated to add new features, download apps, updates and security patches to fix problems and make our devices even more useful. The car may have a long way to go before it becomes as dynamic and interactive as our phone, but it's clear we're seeing a similar evolution," said Karsten Hoffmeister, head of autonomous driving at Luxoft.
Most of the world's automakers are already experimenting with on-demand services that reach users as software. BMW delivers downloadable upgrades via the My BMW App or the SIM card installed in the vehicle. Volvo offers its customers "Over The Air (OTA)" software updates that are sent directly to the vehicles. Some automakers are trying to monetize software upgrades. In a recent interview with Bloomberg the CEO of CARIAD, the Volkswagen Group's automotive software company, even hinted that pay-as-you-go autonomous driving could be a possibility.
For Generation Z, owning a car could be a thing of the past
The way we live and work is changing. Hybrid working means many workers no longer need to commute by car every day. While many younger people want the convenience of a car, they don't want the traditional ownership model, which tends to be expensive, responsible and inflexible. Another approach to getting on the road is to pay for a vehicle only when you need it, perhaps through a subscription-based car-sharing or peer-to-peer rental service. With their on-demand and remote control capabilities, SDVs lend themselves to these types of services.
Several car manufacturers are experimenting with subscription models, including Audi, Lexus, Nissan, Porsche and Volvo. Many third parties also offer subscription services, including car rental companies, for whom this is a logical extension of existing services. Start-ups such as Borrow plan to focus on electric vehicle subscriptions. An innovative example of a mixed mobility subscription model is GetTransfer.com, which offers its customers a wealth of rental, loan and transfer services for cars, helicopters and aircraft.
The car of the future makes an appointment with a workshop before you know you have a problem
"As part of the Internet of Things (IoT), connectivity built into cars is being used to transmit real-time vehicle diagnostics that are used to plan increasingly sophisticated predictive maintenance schedules," said John Makin, automotive strategist at Luxoft.
Feedback from AI-assisted analysis enables the car to report impending problems to the workshop, the dealer or directly to the manufacturer. Diagnostic information will be shared with mechanics in advance so they can order the components they need. This technology will relieve the driver of some of the responsibility of identifying problems during vehicle maintenance, while increasing road safety.
The U.S. electric car manufacturer Rivian, which provides home vehicle maintenance, for example, states that it can "perform comprehensive diagnostics remotely via our connected vehicle platform. Most problems can be detected proactively thanks to our onboard sensors and associated predictive algorithms. We can often notify you before you even notice a problem."
Your future electric vehicle could run on hydrogen
Global sales of electric vehicles (EVs) are growing rapidly. In China, the world's largest automotive market, e-vehicles already make up 21% of the market from. According to consulting firm AutoForecast Solutions, e-vehicles could account for one-third of the North American market and about 26 % of vehicles produced worldwide by 2029. However, the rising cost of electric car batteries, long waiting times for vehicles and spare parts, and problems adapting charging infrastructure to meet growing demand are already impacting adoption. In many cities around the world today, drivers have to wait more than an hour to charge their vehicle at public charging stations.
With their intelligent route planning and energy optimization, SDVs can mitigate many of these problems, but the search for viable fuel alternatives to power them continues. The Institute of Vehicle Concepts (FK) at the German Aerospace Center (DLR) in Stuttgart has already tested a hydrogen fuel cell for cars. Initial tests show that a vehicle with a tank capacity of 6.3 kg of hydrogen can run about can generate 100 kWh of electricity. This is roughly equivalent to the average monthly consumption of a one-person household. With the increasing number of software-defined vehicles, we expect further development of alternative fuel sources throughout the automotive industry, from cars to trucks.