NTT DATA names Connected Car as technology that will transform automotive industry

Connected Car

NTT DATA (Thailand) Co., Ltd., a subsidiary of NTT DATA Corporation and a global digital business and IT service leader, unveiled a study that finds 47% of car users ready to change a car brand when new technologies become available and named Connected Car technology as one of the main trends in the automotive industry currently. The Connected Car market is projected to reach USD 191.83 billion in 2028 due to factors such as technological advancement, market competition and enhanced vehicle safety. It also identified two challenges faced by the automotive industry and offered suggestions for gaining a competitive advantage. NTT DATA has partnered with the world’s leading carmakers to develop an application that connects vehicles through TCU technology, whose smart algorithms enable carmakers to gain insight from driving data to create added value and further innovations for business covering all aspects of a smart car.

Mr. Hironari Tomioka, President and Chief Executive Officer at NTT DATA (Thailand) Co., Ltd., stated that NTT DATA has published a report entitled “Automotive Aftersales” about aftersales in the global automotive industry, for digital customer engagement. The report finds that 47% of consumers are likely to change a car brand when options with more advanced technologies become available. These include Connected Car technology, which enables cars to connect over networks to other communication devices. Connected Car is an Internet of Things (IoT) technology that can transmit data and control the vehicle’s operations.

Connected Car

Connected Car is a technology trend that will enhance market competitiveness in an increasingly connected world. The IoT technology has transformed how we live and work and created business opportunities in all industries, improving customer experience and adding value in business. It has brought about changes in several industries including the automotive one, leading to cooperation and alliance-building among innovative solutions providers to keep the industry moving and meet current customer needs in the age of digital transformation.

A Fortune Business Insights report says that the global Connected Car market size was USD 55.56 billion in 2020; the market grew to USD 59.70 billion in 2021 and is estimated to reach USD 191.83 billion in 2028. The projected growth is due to several factors, such as the demand for advanced technologies to gain a position of prominence and strength for a competitive advantage. An increase in road accidents across the globe also prompts automobile manufacturers to set safety as a top priority.

Connected Car

However, NTT DATA has identified challenges in overcoming a turning point faced by the automotive industry currently, to create opportunities for competition.

These include:

  1. Make a car brand stand out: Not only being a manufacturer or distributor, but the brand has to take into account the delivery of experience to customers through services to maintain customer loyalty.
  2. Integration of new technologies to help analyze data without consulting experts may lead to data privacy and security issues, which may affect the vehicle’s functions.

The Connected Car technology can enhance safety and convenience for drivers as it enables monitoring, management and control of the vehicle via a smart phone. For example, it allows drivers to use an application to lock/unlock the door, start the car, or turn on the air condition. It also increases safety for drivers by showing car status, tracking car location on the application in an event of a stolen car, and sending out alerts when entering or exiting an area or when speeding is detected (geo fence & speed alert) and when a severe incident occurs such as an accident that activates the airbag, the system will notify the call center automatically to coordinate assistance from first responders.

Connected Car
Mr. Hironari Tomioka, President and Chief Executive Officer at NTT DATA (Thailand) Co., Ltd.

“NTT DATA sees challenges and opportunities that will enable business partners to overcome challenges and maintain their competitive edge in the industry. This is why we joined forces with the automotive industry to develop an application, with a telematics control unit (TCU) installed in vehicles to connect users to their car via the application, allowing them to control the car remotely with TCU which comes with a smart algorithm. This enables automakers to gain insights from driving data to build added value and create innovations for business.

NTT DATA offers a Connected Car technology that covers all the needs of automakers and drivers, from setting usage requirements, project planning, compliance evaluation, monitoring and control of IT infrastructure to deliver quality assurance. In addition, NTT DATA continues to develop services to bring the automotive industry on the path of progress. NTT DATA also fully supports the development of electric vehicles (EV) by providing EV charging platforms to become prepared in terms of technology and services and be able to integrate with EVs or develop EV charging stations to accommodate future demand growth.” Mr. Hironari said.

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