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Connected car service provider Airbiquity has published a series of predictions for the industry in 2016, including increased recognition of automotive leadership by non-traditional technology players, and an increased focus on developing autonomous technologies.

As a company that works with automotive manufacturers and the growing connected car ecosystem, Airbiquity is well-placed to provide projections for the global connected car industry. The company offers a cloud-based service delivery platform, known as Choreo, which provides bespoke and scalable connected car service delivery for vehicle connectivity, safety and security, infotainment delivery, electric vehicle, and fleet management.

Airbiquity vice president of marketing Scott Frank, said: “Automotive continues to face significant challenges—and opportunities—for connected car technologies and programs. The industry has only begun to scratch the surface of what is yet to come. A decade ago, no one could have predicted the rate of technology evolution or level of competition the industry is experiencing today. One thing we know for sure is the pace isn't going to let up; in fact it's going to accelerate.”

The heroes of Silicon Valley such as Google, Apple, Tesla, Uber, and Lyft are looking to disrupt the automotive industry and consumers are receptive to such a development on account of the heritage of these brands. As a result, Airbiquity argues traditional automakers are set to face an immense challenge in making use of new technologies, working with new ecosystem partners and transforming outdated processes and procurement policies that are standing in the way of progress.

Automakers stand to benefit from cost savings and consumer engagement gained from remote software updates to fix recalls and improve features. They will also be able to provide customers with data about vehicle operations and driving history. However, in order to make such a development a reality, automakers will have to combine the strategy and operations of connected vehicle service functions with other functions such as design and engineering, customer experience and support, brand and marketing, and dealer channels.

Global warming concerns and regulatory mandates that call for more fuel economy will be the major drivers for electrification, though demand for electric vehicles and oil prices are still low today. Automakers will have to provide efficient vehicles in the future across all price ranges and the challenge will be to provide right product at the right time to remain competitive. With regard to autonomous technology, automakers have to embrace the fact that this technology will become a reality someday. However, the road to fully autonomous vehicles will be fraught with challenges and setbacks. Airbiquity anticipates fully autonomous technology by 2030-35.