Regulatory guidelines will heavily influence the adoption of connected, highly automated vehicles. Presently, government and regulatory authorities are working with automakers to improve transportation by addressing key issues such as road accidents, traffic congestion, and cost.

Fremont, CA: It is obvious that connected vehicles will significantly impact the automotive industry. The market is expected to reach $166 billion in sales by 2025, with some sources predicting it may exceed $200 billion. Automobile manufacturers/OEMs are already preparing to thrive in a world of ubiquitous connected cars. Emerging technologies invariably introduce new complexities that must be addressed and overcome. We identified the top challenges that automotive OEMs face as they navigate to find their place in the new ecosystem in our research for our report Connected Cars.

Reliable Coverage

Another major challenge for automakers is achieving consistent connectivity. Reliable and high-bandwidth connectivity is mission-critical for functions such as maintenance and advanced features such as autonomous driving. A minor lapse in service can mean the difference between safe navigation and an accident.

As companies like Einride demonstrate the benefits of driverless transportation, the industry is already realizing the potential of assisted and autonomous driving. Cellular connectivity, specifically 5G, is the only wireless technology capable of providing the reliable, high-bandwidth coverage required for safe operations.

Different Regulatory Guidelines

Regulatory guidelines will heavily influence the adoption of connected, highly automated vehicles. Presently, government and regulatory authorities are working with automakers to improve transportation by addressing key issues such as road accidents, traffic congestion, and cost. Governments would like to mandate features such as automatic braking and lane-departure warnings, which have been shown to decrease accidents, as part of these efforts. While these capabilities are primarily based on in-car services, connectivity can assist in extending the driver's line of sight beyond the immediate range of onboard sensors. As a result of these emerging technologies, the advanced driver assistance systems (ADAS) segment is expected to reach $36 billion by 2025, with a 30.8 percent CAGR.

Another challenge for connected cars is the requirement for borderless coverage. Local data and sovereignty laws complicate connectivity management by limiting where collected data can be analyzed and stored as a vehicle crosses borders into different countries or regions. Adoption and usage will suffer as a result of disjointed guidelines. However, if the EU regulatory environment remains favorable, 43 percent of vehicles could be partially or fully autonomous by 2035.

Cybersecurity

Security is also a significant challenge for any organization that uses software, and unfortunately, cybersecurity has not been prioritized in the automotive industry. According to a recent study, only 10 percent of automakers have an established cybersecurity team. Manufacturers will need to prioritize investment in more strong security testing and measures as a car's functionality become a lot more software-based.

OEMs must continue to prioritize consumer privacy and security because software flaws could jeopardize the safety of connected car systems and features, jeopardizing both the user's sensitive information and physical safety. A single negative incident can devastate a brand's reputation, making it extremely difficult to recover and regain consumer trust. With this in mind, Ericsson's platform offers secure connectivity management and separates IoT from other cellular traffic while ensuring encryption. It also employs other tools to ensure the IoT network's security, such as anomalous activity alerts and robust identity and access management.