This will also mean a fundamental shift in the way cars are being manufactured and used. Today, the overwhelming majority (c. 90%) of the car value relates to the hardware. But the new level of IoT and M2M connectivity means that software and content will represent more than half of the value.
The automotive industry will evolve from mainly an OEM value chain towards a technology stack, similar to what has happened to the PC industry. Software, content, and other services also produce higher margins, whereas the hardware part of the industry will become less profitable.
However, this scenario requires consistent car connectivity, which is not feasible through conventional roaming-based cellular agreements in multiple markets:
- It is too slow to set up
- It cannot deliver the cost control, guaranteed high capacity and low latency connectivity needed.
- It will not comply with data regulations in most markets.
Continuous, seamless, and secure connectivity is imperative for the automotive industry to succeed in the connected car market.
HMD Connect Pro using Nokia WING delivers such connectivity: a consistent IoT platform to support connected car services. Car manufacturers can avoid the costs and time needed to agree on multiple contracts for IoT sensors and SIMs with local CSPs (Communication Service Providers). Instead, they have one contract that meets all their worldwide IoT device management needs.