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Technology and the Automotive Industry: A Story of Disruption
Disruption from technology is hitting the automotive industry. From self-driving automobiles and trucks to the introduction of electronic and gas-alternative powered vehicles, the industry is changing. Apple, Google/Waymo, Baidu, Uber and Facebook all think that they can compete, not to mention electronic and hybrid vehicles from Tesla and more than a half dozen ventures.
Threat of disruption has more traditional automotive companies eager to realign and reposition their businesses so as not to get left behind. For example, Toyota recently announced a big data automotive initiative with tech businesses like Intel, Ericsson, Denso and NTT DoCoMo. The Automotive Edge Computing Consortium is preparing for the connected car of the future with a focus on Big Data and data collected via Internet of Things (IoT) devices. Toyoto predicts that by 2025 the amount of data that vehicles on the road will be sending into the cloud will exceed 10 exabytes per month.
Another example of businesses changing to compete in the automotive industry is Intel’s recent acquisition of Mobileye for $15.3 billion. Their goal is to compete with Nvidia and be part of the self-driving vehicle infrastructure. It’s a big gamble, but it may eventually make Intel a source for sensors and processors used to build self-driving vehicles.
IBM’s Bluemix and Watson IoT was selected by BMW to be part of their CarData platform, a platform that allows car owners to share data about their cars with car owners, places like repair shops and service providers.
