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Next Generation Mobility - Powered by Digital Technologies Driven by Customer Value
Next Generation Mobility - Powered by Digital Technologies Driven by Customer Value

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The mobility industry, encompassing vehicles moving on land, air and water, is undergoing a digital transformation fueled by automation technology disruptions occurring at a rapid pace. The quantum of change expected in the next decade would be much greater than what occurred over the last several decades [1]. Several universal trends that impact all forms of mobility, such as passenger/highway vehicles, off-highway vehicles, heavy equipment, logistics and the transportation industry, drive this transformation. While each of these industries exhibits unique characteristics, the trends, technology drivers and impact are common. For example, in the land-based automotive industry, the influencing trends are Autonomous, Pervasive Connectivity, Electrification, Shared and Personalized mobility (ACESP), a shift from the traditional enterprise to an ecosystem value chain, catering to local and global regulations and changes in consumer preferences. A closer look at these trends will help understand the business impact and the underlying technology driving the transformation. Similar inferences can be derived for both air vehicles and water-bound vehicles.

A McKinsey report indicates that autonomous highway vehicles could account for 15% of new vehicles sold in 2030, provided technology and regulatory barriers are overcome [2]. The impact of autonomous technologies on mobility is significant considering the value for consumers and the commercial fleet transportation segment. Today, any form of mobility is fully connected by design, unlocking tremendous opportunities from continuous to vehicle software feature updates, keeping security updated, and facilitating newer business models that were not possible earlier. The Electric Vehicles market has been expanding 50-60% in recent years globally, triggered by rising fuel prices, government incentives, and changing consumer mindsets. The ownership paradigm is changing, and consumers are migrating from one vehicle for all their needs to mobility-as-a-service that addresses a specific purpose. As a result, vehicles are now designed for specific purposes such as work commute, vacation, transport and business.

The network effects of platforms and ecosystems are transforming operations. The vehicle is the center of gravity and interacts with multiple ecosystems, such as transportation, insurance and service providers. Regulations around autonomous driving, EV incentives and shared mobility are evolving along with data privacy and security standards. However, regional differences increase the cost of compliance.

Digitally savvy customers expect newer experiences across the journey, micro-mobility, environmental consciousness and wanting mobility-as-a-service and on-demand. But next generation mobility faces many adoption challenges as digital technologies continuously evolve. Moreover, establishing viability for technology adoption is equally challenging. For example, LIDARs are expensive, and cameras are cost-effective in autonomous vehicles but require plenty of onboard computational power, which causes other challenges. Furthermore, the interaction between edge and cloud poses specific functional and non-functional challenges like security, scalability and data privacy. In addition, diverse road conditions, nature (fog, snow, rain, and other characteristics), and regulations are challenging for autonomous vehicles.

Moreover, the design of electric vehicles and the need to implement additional safety critical systems are still not hassle-free. Finally, the ecosystem needs to be aligned for accelerated technology adoption, for example, the charging ecosystem for electric vehicles. Data privacy regulations vary across geographies, and customers must be informed about the data collected.

Next-generation mobility will continue to rely on both software and hardware advances. The hardware includes computing power, cameras, LIDARs, edge devices, connectivity, and vehicle architectures. The advances in AI and deep learning are finding applications across the entire spectrum of the vehicle lifecycle. The adoption of private 5G and hybrid architectures of edge and cloud will influence the future of connected vehicles. This will be driven by strong security and data privacy standards and practices.  Finally, progress in the electric ecosystem, from charging to green energy to vehicle safety systems, will hugely impact the future of electric vehicles.

As the future of mobility continues to evolve rapidly, firms in the mobility industry must embrace a multi-disciplinary system engineering approach, shifting from the traditional engineering approach. Secondly, firms should define their strategy by exploiting the power of ecosystems to deliver value to their customers. Thirdly, it is important to contribute and help develop standards, regulations and certifications that will propel next generation mobility.

References

[1] https://theconversation.com/cars-will-change-more-in-the-next-decade-than-they-have-in-the-past-century-113585

[2] The future of mobility is at our doorstep, McKinsey & Company

 

About the Authors 

  1. Vinod Venkateswaran - Senior Industry Principal, Infosys
  2. Dr. G. V. V. Ravi Kumar - Associate Vice President & Head, Advanced Engineering Group, Infosys 

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