Beyond Mobility: Digital Experience Innovation in the Automotive Industry

The automotive industry stands in the midst of a transformative era, one where the journey of mobility extends far beyond the confines of traditional transportation.?

This whitepaper delves into the concept of “Beyond Mobility,” a visionary approach that reimagines the role of automobiles in our lives. As we venture into this new landscape, the fusion of digital experience innovation and life-centric strategies emerges as the key to unlocking unparalleled opportunities for growth and differentiation. Join us as we explore the dynamic shifts reshaping the automotive landscape and the strategic imperatives for brands to thrive in this exciting future.?

This first article focuses on the shift from an analog towards digital experience in the automotive industry regarding entertainment, personalization, health and autonomous driving.?

The ongoing shift towards digitally-powered experiences?

Influenced by internal and external trends alike, the automotive sector is currently undergoing a significant transformation, moving away from its traditional manufacturing roots into a new era where digital integration is paramount. This shift is being driven by the core evolution of the car to the Software Defined Vehicle (SDV) combined with the rapid emergence of cutting-edge technologies such as Artificial Intelligence (AI) and coupled with the ongoing growth of the Internet of Things (IoT) and big data analytics.??

These technologies are not only revolutionizing the way vehicles are designed and operated but are also creating opportunities for the development of entirely new experiencesthat combine the unique space and functions of the car withthese digital capabilities. Experiences not just for the driverbut for passengers as well. As consumer preferences continueto evolve, the industry is responding by placing a greateremphasis on efficiency, personalization and the overall in-car experience but also the customer experience beyond the vehicle, facilitated by OEM brands.?

Connectivity and entertainment?

The modern vehicle is evolving into a hub of connectivity and entertainment. Systems like Apple CarPlay and Android Auto have become standard in many cars, allowing users to seamlessly integrate their smartphone experience with the vehicle’s infotainment system. This integration provides access to a wide range of apps and services, from navigation and messaging to music and podcasts. OEMs like Hyundai and Audi have also integrated Amazon Alexa into their connected car systems, allowing users to control certain car functions from their home or vice versa. Additionally, with the continued adaption of 5G technology, the potential for in-car entertainment is expanding further, with possibilities such as high-definition streaming and augmented reality experiences becoming more feasible.?

Personalization of in-car experiences?

One of the most notable trends in the automotive industry is the move towards personalization. Modern vehicles are increasingly equipped with advanced systems that allow drivers and passengers to customize various aspects of their in-car experience, both physical and digital. For instance, Audi Themes and Virtual Cockpit offer a customizable digital dashboard and other in-car features, like ambient lighting, that adapt to driver preferences, thereby enhancing the driving and overall in-car experience. Similarly, Tesla’s electric cars provide personalized driver profiles with settings adjustments for seat position, climate controls and steering wheel preferences according to the driver. Other OEMs like BMW and Nio leverage Intelligent Personal Assistants to further this trend by understanding and responding to voice commands using natural language processing and allowing users to manage car functions effortlessly with speech. New developments emerge frequently by almost all car brands, highlighting the focus of the industry in this area.?

Driver/passenger health monitoring?

Another example of new digital experiences entering the car is increased offerings centered around wellbeing. As the public focus on health and wellness continues to grow, automotive manufacturers are also integrating features that monitor and promote the wellbeing of drivers and passengers.??

For instance, Mercedes-Benz’s ENERGIZING Comfort system uses a combination of lighting, music and seat adjustments to create an environment that can help reduce stress and fatigue. Similarly, Ford’s Active Health Monitoring seat concept is designed to track the occupant’s heart rate and provide alerts in case of irregularities, potentially offering early warnings of health issues. While these offerings are still in their early stages, they are a clear indication of how new vehicle capabilities are opening expansion opportunities for OEMs into new domains and increased intersections with other industries.?

Autonomous driving?

Perhaps the most transformative aspect of pushing digital innovation in the automotive industry continues to be the development of autonomous driving technology and all the new capabilities and opportunities that come with it. As vehicles become increasingly capable of driving themselves, the focus is shifting from the act of driving to the overall experience inside the car. This transition opens new avenues for in-car services and business models.??

For example, Volvo’s Concept 26 interior design envisions a future where the car can transform into a mobile office, lounge or entertainment space depending on the driver’s needs. Similarly, the rise of autonomous ride-sharing services like Waymo One challenge traditional car ownership models and paves the way for new forms of urban mobility where passengers become guests and services and offerings need to be adaptable to their needs within this newfound space.?

Digital experiences: The new frontier??

This shift in the automotive and mobility industry is reshaping the way we think about cars and transportation. As vehicles become more connected, intelligent and autonomous, the opportunities for innovation in in-car experiences are vast. From personalization and health monitoring to entertainment, productivity and new business models, the integration of digital technologies is creating a more comfortable, convenient and enjoyable journey for all. As this transformation continues, it will be exciting to see how the automotive industry evolves to meet the changing needs and preferences of consumers and capitalizes on the opportunities to engage with them in ways that transcend the notion of car and driver.??

Within the next decade, revenues from software-based services marketed to end consumers are expected to account for up to a trillion dollars.?

This concludes the first article in the Beyond Mobility series. The following articles will focus on various aspects of the customer experience beyond the traditional concept of transportation, as well as new challenges and opportunities for car manufacturers in the automotive industry.??

Denny Pezic, Global Industry Lead, Automotive & Mobility, Valtech

If you want to download the whole white paper for free already, visit: https://valtech-mobility.de/portfolio/digital-experience-automotive-industry/ ?