Connected Cars in Shared Mobility – A Future Vision for 2035

Table of Contents

• What is a Connected Car?
• Connected Vehicle Technology in Shared Mobility
• Future Trends of Connected Cars in Shared Mobility
• How Operators Can Leverage Connected Vehicle Data
• What About Data Security?

Introduction

According to McKinsey research, an astounding 95% of new vehicles sold worldwide will be connected by 2030. That means they’ll be in constant communication with external devices, changing the driving landscape and leading the way for autonomous driving. The research also predicts that autonomous driving would generate up to $400 billion in revenue by 2035.

While private car owners will enjoy enhanced entertainment and assistance features, what does this connected future hold for shared mobility? Do connected cars have the potential to impact the user experience at scale? How can operators capitalize on this technology? And how will data security concerns affect customer behavior?

Take a peek into the future of shared mobility with us. In this article, we will dive into four real-world use cases to discover what shared mobility could look like a decade from now. Are you ready for the ride?

What is a Connected Car?

Connected cars, also known as smart cars, are equipped with an integrated communication system that connects to the internet, forming a vehicle-to-network (V2N) architecture. This connectivity not only enhances entertainment options but also enables seamless communication with other vehicles and external devices. The result? Greater convenience for drivers and more interactive experiences for private and shared cars.

By sharing real-time data, OEMs or shared mobility operators can leverage vehicle data for numerous use cases throughout a vehicle’s life cycle. From predictive maintenance to advanced research and development capabilities, the potential to boost operational efficiency is vast.

Connected Vehicle Technology in Shared Mobility

Vehicle connectivity has always been at the heart of shared mobility. Shared vehicles function as “connected cars” through telematics units, which make features like keyless access, vehicle location tracking and remote management possible. Over the years, advancements in technologies such as 2G, 3G, LTE-M and Bluetooth have enhanced these capabilities, allowing customers to access shared vehicles directly from their smartphones. Today’s advanced telematics devices allow operators to take this even further, offering features like Fleet Management and Driving Analysis.

McKinsey predicts an annual growth of $250 billion to $400 billion through connectivity use cases by 2030. While much of this value will be generated by the automotive industry monetizing vehicle data for entertainment or over-the-air-upgrades, shared mobility operators should not overlook this trend. The more connected vehicles operators incorporate into their fleets, the greater the opportunities for personalized services that significantly enhance the user experience.

Future Trends of Connected Cars in Shared Mobility

What does the future of connected cars in shared mobility look like? To answer this, let’s explore some real-life use cases that may be an integral part of our shared mobility landscape by 2035. Therefore, we would like to introduce you to Mark, a city dweller with a passion for sharing. As a frequent user of shared vehicles, Mark is excited about the future and the opportunities that await him.

1. AI and Machine Learning

Artificial intelligence is expected to be integrated into 122 million vehicles by 2025, a staggering increase of 115 million compared to 2015. Mercedes-Benz’s MBUX voice assistant, Audi’s ChatGPT integration and NIOs NOMI are just a few examples of how AI is already shaping today’s driving experience. In the near future, gesture recognition could trigger virtual assistance, making human-to-vehicle communication even more intuitive.

But AI’s potential goes far beyond that. AI plays a pivotal role in collecting valuable data that helps operators constantly track and analyzing their operations and ensure vehicle health. In the future, AI will influence even more processes and improve the user experience, as the following example shows.

Real-life example:

On Monday, Mark needs to drive across town for a customer meeting. His navigation system recommends a 40-minute drive, including 20 minutes on the highway. Within the first 10 minutes, before reaching the highway, the vehicle’s AI detects that Mark consistently drives below the speed limit. In fact, Mark is uncomfortable with driving too fast. In response, the vehicle communicates with the navigation system and suggests an alternate route that avoids the highway. Mark receives a notification – on-screen or via voice – allowing him to approve the change. By taking this alternate route, Mark avoids stressful driving situations, reducing his risk of being tailgated or encountering aggressive drivers.

2. Autonomous Vehicle Integration

Autonomous vehicles (AVs) can lower operational costs for shared mobility operators by eliminating the need for human drivers. This cost efficiency can lead to lower rental prices, making shared mobility more accessible and appealing to a broader audience. It is estimated that up to 57% of new sold cars could feature such advanced autonomous technologies by 2035.

These advancements won’t just give autonomous driving services like Waymo & Tesla a boost but also expand opportunities for tele-driving services in large-scale operations. As tele-driving vehicles are remotely controlled by a person, there are fewer regulatory challenges compared to full autonomy. The hybrid model is an important milestone on the way to fully autonomous driving. Operators like Vay or Poppy are already implementing tele-driving technology, and in the next 10 years, these services could become a routine part of daily life.

Real-life example:

On Tuesday, Mark is surprised by an unexpected morning shower. The nearest car sharing station is a 10-minute walk away, but because he has heavy folders to carry, walking in the rain is not an option. Instead, he chooses the delivery option. Once Mark confirms his pick-up location, the car at the station activates tele-driving or autonomous mode and arrives right at his doorstep. After loading his folders into the car, Mark can either let the vehicle continue autonomously to his office or he can take over control for the drive. When he arrives at his destination, Mark pulls up to the door, unloads his belongings, and the car finds a parking space or heads to the next customer.

3. Connected Cities

Today’s machine-to-machine technology (M2M) makes it possible for vehicles and mobile devices to communicate with either GSM or Bluetooth running in parallel. In the future, connected cars might be included into a broader ecosystem, allowing for vehicle-to-infrastructure (V2I) and vehicle to everything (V2X) communication.

In general, cars may no longer be just vehicles driving through a city. Connected cars will become integral components of urban infrastructure, helping authorities collect critical data, such as air quality measurements, and gain better understanding of the mobility demands. This data will be used to design more efficient and sustainably transportation networks. On top of that, electric vehicles may play an important role in power management, as the early pilots of bidirectional charging demonstrate.

Real-life example:

Mark is an avid user of shared mobility services. He relies on several providers to get around the city. With every trip, Mark provides valuable traffic data. The city government collects and uses this information – such as passenger count and travel patterns – to plan infrastructure more efficiently. For example, by analyzing the data, the city can optimize recommended routes and stoplight signals to improve traffic in the city. For Mark, this means data-driven route optimization, so he gets to his destination faster. This integration of connected cars into city infrastructure holds the promise of creating smarter and greener urban environments.

4. Personalization in Car Sharing

Shared vehicles are often treated with little respect because customers do not see them as personal property. Smoking, unreported damages, and joyrides are common issues operators deal with.

With connected cars, operators have a better opportunity to combine the sharing mentality with hyper-personalization. While there is still a need for reliable tools to identify smokers, detect damage, or monitor vehicle movement, hyper-personalization is a step forward in helping customers see a vehicle more as their own by tailoring the in-car experience to individual users.

Real-life example:

It’s Friday and Mark rents a car to visit his girlfriend in another city. Knowing he will be on the road for hours, Mark elects the premium option to ensure maximum comfort. As soon as Mark opens the door, the car automatically adjusts the cabin temperature, seat position, and ambient lighting to match his preferences, which it has collected over several trips in the past. When Mark opens the door, everything is set. Even his favorite music playlist is ready to play, seamlessly connected to the car’s system.

How Operators Can Leverage Connected Vehicle Data

To unlock the potential of connected cars, operators must first gain access to the relevant vehicle data that powers features and uses cases.

Currently, after-market telematics devices and software platforms enable oversight of fleet activity. As vehicles become more connected, these devices may become less important, the need for a robust vehicle monitoring dashboard for fleet oversight will remain vital. Features such as fleet management, remote vehicle control, and over-the-air diagnostics via API will continue to play a critical role in all types of shared mobility operations.

Operators will need a platform capable of aggregating data from current and next-generation connected vehicles. By adopting a solution that bridges existing technology with future innovations, operators can establish a solid foundation for their service, while maintaining the flexibility to adapt to the changing mobility landscape.

In addition, shared mobility operators need to be cognizant of communication reliability with connected vehicles. Signal strengths that may be suitable for enhanced autopilot may not be appropriate for shared mobility needs, such as quick keyless access in underground parkades or real-time GPS positioning. As a result, it is essential for operators to collaborate with partners who specialize in these areas.

What About Data Security?

The latest Volkswagen data leak is a reminder of the regulatory challenges and security concerns associated with connected vehicles. In fact, less than 20% of car owners feel comfortable sharing their vehicle data.

For connected cars to succeed in shared mobility, public acceptance – or at least tolerance – of data sharing is crucial. However, this raises critical questions: will the benefits of AI, autonomous driving, connected cities and hyper-personalization be enough to justify the transparency required? Do customers really want operators to analyze their driving behavior, route preferences, or know their favorite music? Are they comfortable with shared vehicles sharing this information with other vehicles and city infrastructure? And most importantly, who will oversee or regulate the data collected by OEMs and shared mobility operators?

While the path for connected vehicles and their enhanced features has been paved, there are still unresolved questions to consider. Only time will unveil how these challenges are addressed and how connected cars will change our mobility behavior.

Choose INVERS to Connect Any Vehicle

As an innovator in shared mobility, INVERS is your partner for the exciting journey of connected vehicles to 2035 and beyond. Whether you’re a premium operator looking to integrate connected car technology at scale, or an established player offering basic car sharing features to price-sensitive customers. Let us help you to adapt to upcoming changes within the shared mobility industry.

Our comprehensive analysis has enabled us to make over 1,000 vehicle models sharing-ready for your business, with more coming every year. Trust our 30+ years of experience to connect any vehicle to your fleet.