Deutsche Telekom: Opportunities Presented by Connecting Cars and Homes

by Parks Associates | Dec. 14, 2017

Blog submitted by Thomas Rockmann, VP Connected Home at Deutsche Telekom

The connected car market is arguably one of the most far reaching and dynamic markets of our times. While technology moves incredibly rapidly across all sectors, increasingly connected cars promise to change firstly the way we travel, and as a result the cities and homes we will live in.

The drive towards fully automated cars has begun on several fronts, from increasingly sophisticated guidance and ‘hands off’ parking control systems, governmental announcements in Europe that non-electric cars will be phased out in the coming decades to meet emissions targets, and consumer demand for a more connected in-car experience.

According to research, while the overall connected car market registered a shipment of 5.1 Million units in 2015, the market is expected to reach 37.7 Million units by 2022, at a CAGR of 35.54% between 2016 and 2022. That’s a pretty impressive leap, and can be ascribed to the combination of those factors, as well as a recognition that the business case for the connected car has never been stronger. Due to the deepening technologies available in the average family saloon, the potential to deliver a wider range of products and services direct to the user has become significant, and mobile connectivity is the umbrella over all of these.

Connected vehicles are evolving into software platforms capable of supporting a growing range of consumer digital services, spanning entertainment, digital payments, mapping and navigation, communications, productivity applications, verticals from health to finance, and the rapidly growing wave of mobility services.

An example of this in action is Deutsche Telekom's partnership with Volkswagen, which centers around Volkswagen’s Car-Net App Connect. The integration means that car owners can seamlessly control their Magenta SmartHome, which is based on Deutsche Telekom's open, white label smart home platform, while away from home.

Volkswagen drivers will be able to control their Magenta SmartHome directly via their vehicle’s infotainment system. Using the control panel, the driver can activate or turn off pre-set scenarios while driving. For example, for the scenario "coming home": the lights in the driveway and house entrance turn on automatically when the vehicle approaches, as the Magenta SmartHome app connects to the vehicle. All they need is an Android smartphone with MirrorLink technology and the Volkswagen Car-Net App-Connect.

The ever-growing requirement for connectivity in vehicles offers telcos and service providers a major new opportunity that is only just emerging. Telcos have long advocated and championed this "liquid mobility" concept, where device and location are less important to the user experience than the content and notion of interoperable, integrated services that follow the user.

Of course, there are challenges ahead as well as opportunities. Large numbers of connected vehicles will make digital service delivery and management even more complex, raising integration and interoperability as well as security issues. Solving these challenges will be key to offering the consistent user experience that consumers already expect—and demand. However, the potential for telcos in particular to benefit and deliver customer value is enormous—the future of motoring is connected!

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