In 2020, the market of solutions for connected cars reached a value of 1.8 billion euros, according to a recent research of Osservatorio Connected Car & Mobility by Politecnico di Milano’s School of Management presented during the online conference “Connected Car & Mobility: how to rewrite future mobility”. One third of the market is represented by ADAS, Advanced Driver Assistance Systems, installed on new vehicles. They are electronic aiding systems designed to enhance safety and to gather useful data for the monitoring of several parameters.
According to one of the reports of MarketsandMarkets, the demand for ADAS in Europe will be encouraged by new European laws and regulations. Starting from 2022, in fact, these systems will be mandatory in new vehicles. For older vehicles, instead, drivers will have to upgrade within May 2024.
“Companies are increasingly more often drafting strategies to make the best of data gathered by smart carsan and adopt new pricing models that involve the purchase of car or road-related smart services or even pay-per-use modalities” - Giovanni Miragliotta, Scientific Area Manager of Osservatorio Connected Car & Mobility says.
“In the next years, the development of connected car won’t depend only on their growing diffusion or their traditional functionalities, but also on the possibility of conceiving cars as a “smart” sales channel to bring the customers innovative services and advanced product functionalities subject to payment - such as the extension of an electric car’s battery life or engine improvements” - Miragliotta adds.
Data and Technologies for Connected Cars
The interest for connected cars stems from the numerous benefits gathered data and technologies provide to consumers, companies and public administrations. Just think of data allowing fleet managers to limit frauds, to encourage a safer driving style and to plan maintenance in advance, saving on time and costs.
Besides these perks, we also find smart road projects, such as the one planned by ANAS, whose goal is to provide the country with an efficient road system, with constant improvements and openness to future challenges: from power supplies to assisted driving and beyond, as for the case of self-driving vehicles.
Another opportunity provided by ADAS is the possibility of underwriting insurance policies whose premium changes according to the number of systems installed in the vehicle. Thanks to such devices, insurers can access different kinds of data, specific to each vehicle and with a certain weight on the final premium (such as information about safety optionals). For instance, brake assistance systems reduced claim risks of 38% compared to older cars. This way, the insurance company can carry out a more precise calculation of the risk of potential claims and work out accurate premiums.
Black box and the benefits for insurers
“The new paradigms we foresee will be vehicle to vehicle (V2V) and vehicle to connected object (V2CO). This means that our cities will be invaded by sensors for the constant and continuous monitoring of environmental conditions that could affect cars and drivers. The gathered information will, thus, trigger Advanced Driver-Assistance Systems (ADAS) that will in turn notify and assist drivers in critical situations” - Marco D’Ambrosio, Business Developer at GreenVulcano, stated.
Among the most widespread connected objects for cars we find black boxes or telematic boxes, mobile electronic devices provided with GPS detectors and able to record a large amount of data regarding the driver’s driving behavior, claims included. Their adoption is advocated by insurance companies since it works against frauds and theft, thanks to vehicle geolocation and the simplification of data recovery and collection about the drivers’ behavior.
An investigation by ANIA (the Italian National Association of Insurance Companies) established that those who have a black box installed in their car presents a more responsible driving style, reducing the risk of claims - and therefore, a reduction in the price of traditional car insurance policies.
Being provided with a connected device and a platform able to read gathered data in real-time allows insurance companies, consumers, and fleet managers to keep constant control of their vehicles (or fleets) and the underwritten insurance policies.
GreenVulcano, always aware of market evolutions regarding connected mobility, contributed to the development of this market too, thanks to its 20-year-old experience in the field of telematics and more than 10 million monitored vehicles for its partners. One of the offered solutions is the Pay Per Mile service, a device that collects data about the journey of the vehicle, analyzes weather conditions and potential accidents on the road, defines the driving style of the insured driver and generates a custom policy with the possibility to buy kilometers at convenient prices. Moreover, thanks to a unique vehicle identification number, it can monitor whether the device is moved from a vehicle to another (in case the insured owns more than one vehicle).