Curse or blessing? Big Tech shaping the car industry

The automotive industry is in the midst of a technology-driven revolution opening a door for autonomous vehicles to gain traction. Some cars have already been approved for using Level 3 advanced driver-assistance system (ADAS) on public roads. – This allows highly automated driving up to 60 km/h, but the driver must remain ready to intervene. The future brings ADAS Level 5, which means fully autonomous driving without the actual presence of a driver – think of robotaxis. With this advancement, attention to driving will shift from road traffic to productive activities, relaxation or entertainment.?

No wonder manufacturers are now racing to expand their infotainment systems – from onboard gaming to in-car entertainment use of popular news, social media and video streaming providers. Personalised in-car ads that highlight relevant promotions and POIs according to the route have also been tested for years. Isn't it exciting to see how such a smart car brings more convenience thanks to its connection to various services and the transport infrastructure (Vehicle2X)? Thanks to in-car payments, the vehicles will be able to settle payments for charging, parking, tolls or even at the drive-in independently. Managing and processing these payments is an emerging business field for car manufacturers who are seeking new after-sale revenues.?

I believe that software-based features will be what differentiates players in the automotive industry within a few years. Over-the-air software updates, which will be done several times a year, will get more significant than performance or design-related model updates that used to be launched every 5 years. Users will expect frequent updates and consider these features as a purchase or usage decision of certain vehicle brands.?

Big Tech, such as Apple and Google, have been interested in occupying the interface between users and car manufacturers for years. With Apple CarPlay and Android Auto, they have been learning about user needs and behaviours while driving – and have become widespread and popular due to their top-notch software design experience. Google's Android Automotive OS as a complete vehicle operating system first debuted in July 2020. By announcing the latest version of CarPlay in early June 2022, Apple also marked its willingness to take over the entire vehicle operating system and integrate and evaluate the exclusive vehicle data of the car in addition to the entertainment services. By claiming that 79% of US car buyers would only consider buying a car that works with CarPlay, Apple has positioned itself strongly vis-à-vis the car manufacturers pressuring them for cooperation.?

?'Make or buy' has become a big question for car manufacturers. Now it remains to be seen which carmakers will enter a cooperation with Big Tech and which will take advantage of a self-developed, independent solution. Ultimately, of course, it is consumers who will determine who wins the race. Regardless of the software basis, I see it increasingly important to develop the right in-car applications and connected interfaces for smart infrastructure in order to create a differentiating, convincing and unique feature set. A new chapter of the automotive industry is here.?