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2016 predictions: ten ways data will transform the automotive sector

Categories : TransportTechnology

Data is transforming the automotive market, no doubt about that. With the introduction of Apple CarPlay and Android Auto earlier this year, traditional automotive manufacturers have been forced to reassess not only their relationships with customers, but the way in which cars are bought and sold and the very nature of the car itself.

The most important questions concern data ownership and accessibility. Who has access to a driver’s data, who owns it and who can manipulate it? With this in mind, I spoke to Nick Gill, Chairman of the Global Automotive Sector at Capgemini, to find out about the transformation of the automotive sector in 2016. Here’s what he told me:

The connected car will solve its first crime

Nick Gill“With its many cameras and sensors, the connected car is effectively a mobile policeman, monitoring the streets in real-time and feeding data back to the cloud. The police already rely on visual data collected from stationary cameras. It isn’t too much of a stretch to imagine partnerships between citizens and police authorities to augment data from fixed cameras with crowdsourced data from connected cars. This data could be stored for a period of time, to be used as evidence in criminal proceedings, or even in real time as incidents escalate. “

First insurance dispute to be settled by data is not far away

“Telematics data will be able to provide insurers with the critical information needed to finalise claims. The data will help investigators make better decisions, which are currently hampered by unreliable witness statements.”

First driverless vehicle incident

“Driverless cars will continue their strong safety record, but an incident in which the vehicle is at fault is nonetheless inevitable.  In the near future, the onboard computer will have to make a decision between two undesirable events, crashing into another vehicle, say, or crashing into a pedestrian.

“This incident will crystalise the debate on where the fault lies. Is it with the manufacturer of the car, the driver or the technology? Should the driver intervene at that moment and take action, meaning they are liable for the incident? Should the technology behind the vehicle be blamed for making the decision? Or should the manufacturer never let the vehicle make that decision in the first place?”

The average speed of traffic in London will increase

“Real-time data from connected cars will be pooled and stored in the cloud to determine the best way to ease congestion. Cities such as London, the most congested city in Europe, will be able to control the flow of traffic at the busiest times of the day. The 10-mile stretch from Sutton to the New Kings Road in Fulham was recently named the most congested road in London. With the combined data from millions of passing vehicles, traffic agencies can work out where to place red lights and for how long to ease congestion. Over time, the average speed of traffic will increase.”

First driver to be charged insurance premium per mile

“Real-time analytics will allow insurers to personalise their services, offering experienced drivers a cheaper premium if they drive in a safe area. However, if they decide to drive in an area where accidents are most common, they could see a higher cost. Real-time analytics will allow the payment model to be hyper-targeted, in theory charging drivers more to drive at night, when wearables indicate their judgment may have been impaired by alcohol.”

The automotive sector joins the sharing economy

“Data will become the heart of the relationship between the driver and the car. It will allow customers to sit in any car and immediately access their details and past information. This system of using a car would be governed by a familiar OS whether that is android or iOS, rather than the vehicle itself. This process presents a sharing economy aspect to the automotive sector, allowing users to borrow or let out vehicles to reduce the initial cost of owning the vehicle.”

Drivers trade data for cheaper vehicles

“The sticker price of a vehicle will be determined by the amount of data the driver wants to share. The more data the driver wishes to share with third parties, the cheaper the car will be. However, the price will increase if drivers want to own some or all of the data. This approach will mean that consumers have better control of driving data, such as speed, location, and part performance, while manufacturers can easily manage the data available to them and use it to improve customer experience and drive loyalty.”

‘Clear all’ option for vehicles

“The European Commission will rule that all cars have access to a ‘clear all’ option. This will allow drivers to instantly delete data with a touch of a button, similar to the clear browser option commonly found on browser toolbars. And much the same as Google’s approach, a clear all option on the dashboards wouldn’t remove the data entirely, it would simply prevent third parties from accessing it.”

F1 pit-stops for consumers

“The aftermarket will experience a disruption to the traditional service model, enabling real-time part replacement. Drivers will be informed when a service or replacement part is required and alerted via the dashboard to several replacement options. E-commerce companies such as Amazon will compete with traditional aftermarket suppliers to supply the part, to the best location at the best possible price. If a driver needs a new battery on a long journey, the part could, in theory, be supplied to a motorway service station, along with a mechanic to fit it. Over the long term, this will eliminate the need for annual vehicle servicing.”

Interested in finding out more? Read the findings of our 16th annual Cars Online study. 

About the author

Magda Bulska
Magda Bulska
Magda is responsible for managing Capgemini’s media relations programme and supporting its digital and internal communications activities. Before joining Capgemini in 2015, she ran PR campaigns in the UK and across EMEA for a number of blue chip companies and start-ups. Originally from Poland, Magda is passionate about (in no particular order) good films, travel photography, diversity and discovering quirky places all around the UK.

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