Proving the Business Case for the Internet of Things

Boundaries between connected car and rest of IoT blurring: ABI

Iain Morris
June 26, 2014
The boundaries between connected car and other Internet of Things (IoT) services are set to blur as M2M companies develop new services that allow vehicles to communicate with other devices, according to a new study from ABI Research.

“For the automotive industry the emergence of the IoT constitutes a disruptive and transformative environment characterized by value chain and business model upheaval and a ‘collaborate or die’ ecosystem friction reality prompting it to redefine and reinvent itself in order to capitalize on the huge opportunities in the new IoT economy,” said Dominique Bonte, a practice director at ABI.

“The absorption of the automotive industry in the wider IoT is driven by new connected car use cases such as electric vehicles as a mobile grid and vehicles used as delivery locations,” he added. “As this IoT revolution unfolds, automotive innovation and value creation will be shifting to the boundaries with other verticals such as home automation, smart grids, smart cities, healthcare and retail.”

The market-research company reckons vehicle-to-infrastructure (V2I) and vehicle-to-retail (V2R) will be the dominant segments in future.
In the V2I sector, some 459 million vehicles will feature smart car IoT applications by 2030, while some 406 million vehicles will include applications supporting V2R services.

Vehicle-to-home technology, or V2H, will have been rolled out in 163 million vehicles by the same date, while 239 million vehicles will support vehicle-to-person or V2P services.

Meanwhile, a total of 50 million vehicles will have been equipped to provide vehicle-to-grid or V2G services by 2030.

ABI says that high-profile examples of connected car IoT applications include Volvo’s (Gothenburg, Sweden) Roam Delivery service, the partnership between Mercedes-Benz (Stuttgart, Germany) and Google-owned Nest (Palo Alto, CA, USA) on remotely controlling home thermostats and the cooperation between Toyota (Aichi, Japan) and Panasonic (Osaka, Japan) to integrate cars with home appliances.

Other examples include V2G services from GM (Detroit, MI, USA) and Toyota and Nissan’s (Yokohama, Japan) Nismo smart watch, which combines personal healthcare with vehicle diagnostics.

Nevertheless, the market-research player warns that companies will have to overcome a number of barriers to fully unlock the automotive IoT potential, including security, safety, regulation and lack of cross-industry standards.
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