Technical Insight
5G Convergence – Automotive Industry as the Aggregator! MOHAN BACHHAV & SANKALP SINHA
IBM
Value Addition of 5G Today’s world is defined by speed and change. The fifth-generation technology standard for broadband cellular networks or ‘5G’ as we call it, represents far greater technological achievement than any previous of its generation jump. The prime reason being bringing the high-speed network and computing to the Edge! While telecom companies are pioneering the 5G ecosystem, it’s true value extraction spans across industries. 5G acts as an enabler for the most part, while the actual disruptions happen in a multitude of other industries. The 5G technology market is set to reach approx. 800b$ globally by 2030. The market for connected cars is predicted to soar to over 215b$ by 2027 with connected services and subscriptions being a recurring revenue pool. It is important to note that much of this growth will not be possible without the convergence of industries, i.e. bringing the competitive advantages of multiple industries together – primarily automotive and telecom, but also technology, media / entertainment, hospitality, banking / payments and the insurance industries. Today’s car stands as the hub in the ecosystem. As self-driving and connected vehicles and services become more common, the focus for automakers is shifting towards issues such as unlocking digital value, data protection / security. Car manufacturers and suppliers have to define digital functionalities and technologies that are necessary in order to implement solutions that are unlike anything that exists today. 5G in its fullest potential would be the instrument towards revolutionary applications.
40 | Telematics Wire | March 2022
5G increases the real-time cooperation across the globe. Imagine that technicians with specialized skillsets are able to control and repair your car from anywhere in the world, reducing vehicle downtime and immensely increasing customer satisfaction. Production lines can be almost completely automated and, since everything can talk to everything in real-time, efficiency can surge dramatically. The Internet of Things has barely scratched the surface of its own potential. 5G is poised to facilitate the connection of everything requiring a low latency internet connection, from autonomous vehicles to virtual car manuals to roadside - assist, paving the way for an environment in which every car and and its owner is “smart” and connected. 5G is the enabler to success of Industry 4.0 and the Digital Supply Chain, Blockchain deployment at scale, advancements in Augmented and Virtual Reality, Big data and Artificial Intelligence ! You can access your favourite content while driving anytime, anywhere, because 5G is built to minimize delays. It provides a fast, reliable environment for data to travel and reach your devices nearly instantly. 5G enables connecting your car to almost everything be it a smartphone via apps, creating a simple dashboard on the vehicle that controls and connects all the devices in your life and all the services you use, providing 10X better experience in the comfort of your vehicle with faster browsing and seamless downloading and streaming.
Growing 5G Automotive Ecosystem It is essential to understand the ecosystem resulting out of 5G convergence. It applies across the automotive value chain. For e.g.
Today’s connected cars offer multitude of connected services not limited to : ● Autonomous Driving ● Infotainment Services ● Mobility Services ● Vehicle Health ● Driver Safety ● Vehicle Management ● Personalization ● Banking & Payments ● OTA The ecosystem thus has following stakeholders apart from the OEM if we take connected car as a use case : ● Telecommunication Infrastructure Provider ● Device Partners ● Operating System Platform Provider ● Integrator Partner ● Infotainment Content Provider ● Service Providers ● Banking & Insurance Partners ● Mobility Platform Provider ● Big Data / Analytics Provider This is currently just the tip of iceberg. This ecosystem is rapidly evolving and expanding across the automotive value chain. Considering the surge towards electric vehicle, this ecosystem is set to increase further with each stakeholder distinctly adding value to the ecosystem.
Where does 5G comes into picture in automotive industry value chain The automotive value chain ranging from end suppliers to end customer is set to benefit from 5G. With more and more digital transformation and edge applications across the value chain, 5G is set to boost the new age applications and services.
