The role of tech giants in the automotive sector
The constantly changing technological era is also creating a new boundary for the automotive sector and is pushing the car, beyond its speed, mechanical properties, horsepower, towards the tech giants like Google, Amazon, Facebook, Apple, and others. The prominent players of this sector such as BMW, Ford, Mercedes, etc. have already upgraded to offer more comfortable rides, in terms of interiors, modifications, remodeling, and the involvement of high-tech gadgets. But, dealing with these gadgets in real-time is the major challenge faced by this sector, as it required numerous lines of code along with their maintenance in real-time.
Besides, the complexity of software, big data, real-time computing, and predictive analysis have ensured the use of future mobility, MaaS, and connected ecosystem within these luxurious cars. Factors such as the robust demand for luxurious vehicles with in-built gadgets, rapidly growing component aftermarket, the rising sale of new vehicles, and increasing investments in research and development activities associated with these tech giants are likely to influence the market growth in a positive direction during the projected years.
Google's contribution to the Automotive sector
In general, Google controls more than 90% of the internet search market and has its involvement in almost every sector. In the automobile sector, Google is majorly involved in the chassis layer development that deals will the designing and manufacturing of a vehicle. Some of the Google product involved in automotive sectors accounts to:
- Google Maps: It is expected to dominate the consumer mapping and navigation market, owing to its ability to search and guide for a destination on your phone or an integrated non-android automotive system.
- Waymo: It offered the most advanced self-driving capability in the automotive segment. In the production line, the role of Waymo is to operate on the electronic segment along with the software layer. In the electronics segment, it deals with sensors, IoT devices, and Lidars whereas in the software layer its revolves around machine learning, detection, and control, motion mapping, etc. In the aftersales market, Waymo in partnership with Lyft offers a self-driving experience for the passengers.
- Other google products accounts to:
- Google Cloud: It offers cloud computing services to renowned automobile manufacturers such as Groupe Renault and Ford.
- Android Auto: An app that mirrors the phone screen on the car in an infotainment system and allows easy navigation, dialer controls, and other functions.
- Android Automotive OS: An open-source operating system specially designed for cars that allow the automaker to manufacture their infotainment interface while maintaining and updating the codebases.
Amazon's competitive move in the automotive industry
Amazon is well known to be the biggest e-commerce platform in the world and is expanding its existence in almost every sector irrespective of its presale, production, for the aftersales market. Amazon's contribution to the automotive industry accounts to:
- Zoox: It is developing a Robotaxi offering with mobility-as-a-service especially in dense urban areas. Zoox will be responsible for handling the driving, charging, maintenance, and upgrades for the fleet whereas the rider will only be liable to pay for the service.
Amazon Web Service: AWS is among the biggest cloud platform to date and is already functioning in partnership with many key players of the automobile market, such as BMW Group, Tata Motors, Honda, etc.
Implementation of Alexa: In the infotainment market, Amazon's voice assistant, Alexa, is helping the drivers with the utility services, such as controlling the home lighting system, opening, and closing of the garage, or even the payment fuel at Mobil and Exxon gas stations. However, in developing countries, Amazon is offering Echo Auto, which can be docked into the car dashboard and will be offering services such as Amazon music, voice assistant, and easy connection to Alexa, etc.
Can tech giants be a challenge in the automobile industry?
The automobile sector is vast and complex and often requires innovation to compete in the market. Thus, it requires new business models, which are implemented on the pillars of partnerships and collaborations. Besides, the future travel industry will involve the expertise of all domains, including automaker, tech giant, telecom operators, service providers, etc., to offer better value service to the consumers. But, it will still serve to be the challenging factor for the automobile industry, in terms of:
Privacy: Privacy will always be a major concern for this industry; as the sharing of data will be enabled via ECUs and DCUs. Thus, they have to be cautious and transparent about the data they are sharing with the Tech Giants.
Strategic partnerships: In order to compete with the capabilities offered by Tesla, many prominent manufacturers are expanding their business through strategic partnerships with Tech Giants. As it can be expected that these partnerships will end up producing hi-tech luxurious cars with the best facilities in the market.
Research and development activities: The involvement of Tech Giants in the manufacturing of automobiles will require huge capital investment for research and development activities, which will eventually raise the cost of the product.
Besides, these challenges the manufacturers are still investing with Tech Giants to launch their solution and to offer better competition in the market. Tech Giants can enter this industry by the newly proposed business model or by their involvement in pre-sales, production, or aftersales market. Like the previous years, the automobile industry is expected to witness numerous OEMs mergers and collaborations, which will expand the market size in the near future.