Embedded Connectivity as the Future of Automotive Innovation

The Imperative of Embedded Connectivity

Embedded connectivity transcends being merely an additional feature; it's a cornerstone for maintaining competitiveness in the dynamic automotive landscape. This necessity is propelled by two primary market drivers: the swift move towards vehicle electrification and the evolution of ownership models. A standout illustration of this pivotal shift is the collaborative effort between ACTIA and Sibros. Their joint solution not only accommodates but thrives under new, leasing-based ownership models, setting a new benchmark for the industry.

Why Embedded Connectivity is Indispensable

At its core, embedded connectivity is vital for several reasons. It ushers in a new era where Original Equipment Manufacturers (OEMs) can stay in tune with their vehicles post-sale, gaining invaluable insights into usage patterns. This feedback loop is crucial, especially in a world where the integration between digital and physical is expected, mirroring the connectivity found in consumer devices like smartphones.

Electrification and changing business models are reshaping the market, demanding OEMs to rethink their strategies. More OEMs are leaning towards leasing, necessitating onboard connectivity solutions for efficient asset monitoring and maintenance. Embedded connectivity not only meets these requirements but also aligns with consumer expectations for integrated digital experiences in their vehicles.

Dual Benefits for OEMs and Consumers Alike

The internal benefits for OEMs are substantial. Embedded connectivity enables the updating of the vehicle's numerous onboard computers, mirroring the regular software updates seen in mobile phones. This direct link from OEM to consumer facilitates real-time adjustments and enhancements, paving the way for iterative improvements in vehicle design and functionality. Externally, consumers enjoy advanced features like remote start, cabin preconditioning, and, importantly, predictive and preventive maintenance—all made possible through connectivity.

Transitioning to Full Embedded Connectivity: Overcoming Barriers

The path to achieving a fully embedded connectivity ecosystem is fraught with challenges, both hardware and software-related. The market's swift pace, driven by electrification and evolving business models, shortens the time available for product development. The solution lies in collaboration and resource pooling with specialized partners, a strategy that accelerates innovation and adaptation to consumer needs in a cost-effective manner.

Historically, attempts by companies to develop in-house solutions for complex systems have proven inefficient compared to adopting specialized external platforms. This inefficiency is akin to a hypothetical scenario where every company that needs a spreadsheet or document solution attempts to create its own version of Microsoft 365—a process that would not only be impractical but would also require an exorbitant amount of time and energy. This analogy directly applies to the automotive industry, where the need to shift towards external connectivity solutions is becoming increasingly apparent. 

By leveraging specialized platforms, automotive OEMs can avoid the pitfalls of attempting to individually develop their own connectivity solutions. This strategic move offers broad applicability across multiple OEMs, significantly reducing development time, energy, and costs, and streamlining the path to innovation and market adaptation.

The ACTIA-Sibros Advantage

The partnership between ACTIA and Sibros exemplifies this strategic move towards efficient, scalable innovation. By offering a platform that significantly cuts costs (by up to 95%) and halves the time to market, they provide a compelling alternative to in-house development. This approach not only reduces the financial and operational risks but also ensures continuous improvement and scalability, a stark contrast to the isolated and often cumbersome efforts of individual OEMs.

Conclusion

Embedded connectivity is not just the future; it's the present redefining the automotive industry. The collaborative model championed by ACTIA and Sibros is a testament to the power of strategic partnerships in overcoming the inherent challenges of automotive innovation. By embracing this model, OEMs can leverage the myriad benefits of embedded connectivity, from enhanced customer insights and predictive maintenance to streamlined development processes and innovative revenue streams. As the industry continues to evolve, embedded connectivity will be the driving force to a more connected, efficient, and consumer-centric future. To catch the exclusive recorded session on this topic, click here.