Arno Zinke and Yannick Raynaud, representing the FISITA Industry Disruption Expert Group, consider the ways that disruptive technologies such as artificial intelligence, the software-defined vehicle, and digital twins are shaping the future of mobility
Megatrends as varied as climate change, urbanisation, remote work, and ageing populations are starting to impact how we transport people and goods. Moreover, new market forces and changing supply chains are influencing the way mobility is perceived and fundamentally impacting the dynamics of the mobility industry.
The automotive industry is undergoing disruption, forcing established automakers and suppliers to rethink traditional approaches to vehicle design, production, and operation. New market entrants have set higher standards for engineering cycle times and systems-level innovation and frequent upgrades. Technologies such as the software-defined vehicle (SDV), generative design, artificial intelligence (AI), automation, and the shift to electric and hybrid propulsion are reshaping the landscape for incumbents.
Automakers, transportation service providers, consumers, regulatory bodies, and other market actors are anticipating a future that will be very different from the status quo. To thrive in this environment, mobility stakeholders will need to adapt.
There is an opportunity to learn from other domains, such as software engineering, where ideas such as “shifting left” in the development cycle, agile co-creation, open source, and automation have helped to rapidly build and better operate software at scale
In times of rapid change, speed is safety. Put differently, fast learning and productization will be the key competitive advantages defining business success and market shares.
There is an opportunity to learn from other domains, such as software engineering, where ideas such as “shifting left” in the development cycle—that is, bringing tasks forward in a process timeline—as well as the introduction of agile co-creation, open source, and automation have helped to rapidly build and better operate software at scale, and help form a framework for implementation. Similar principles can be applied to the industry of mobility.
Two genuinely complementary solutions shaping the development of next-generation mobility, namely the SDV and AI, will enable automakers and transportation services to reimagine the customer experience, and present a framework for implementing it. It is a promise for higher safety on the road, greater efficiency and a freedom of movement that becomes more sustainable.
The SDV shifts the focus from hardware to software and underlines how all vehicle systems communicate and interconnect. Furthermore, the SDV also opens up exciting new opportunities. Take, for example, the safety of vulnerable road users (VRUs)—the focus of the FISITA Intelligent Safety Expert Group; creative engineering could see AI-augmented object detection of forward-facing ADAS technology used to inform following vehicles to the presence of pedestrians or construction zones, perhaps through tailgate-mounted integrated displays or via V2X-linked alerts.
Combining AI with vehicle-generated big data, configurability, and updatability provides automakers with continuous customer understanding and recurring customer- and vehicle-monetisation opportunities.
The question is, are automakers and other stakeholders ready to redefine their relationship with customers in a software-driven world?
Digital twin technology, which enables virtual cloud copies of physical assets, is now widely available and affordable. In the case of complex embedded systems which are subject to wear and tear, such as batteries or hydrogen systems, digital twins enable the monitoring of their real-world behaviour, unlike more traditional R&D models. The results impact how OEMs and Tier 1 suppliers design, make, sell, and service vehicles, and how transportation and logistics service providers minimise total cost of ownership (TCO).
The automotive world remains highly regulated, and safety is paramount. AI—especially in its most recent innovations—will rapidly accelerate the R&D process. The SDV allows for nearly continuous updates and enhancements of vehicle behaviour. Nevertheless, innovation must not compromise valid safety standards. Trust and explainability will be key for customer and regulatory acceptance.
The question is, are automakers and other stakeholders ready to redefine their relationship with customers in a software-driven world? Are they ready to switch to a subscription and rental business model? Are they ready to fundamentally change the way they do business to remain valid in this rapidly evolving mobility ecosystem?
These are some of the questions that form the basis of the FISITA Industry Disruption Expert Group’s upcoming white paper, which explores the megatrends that will disrupt the automotive industry in the coming decades.
About the authors
Yannick Raynaud is Chief Scientific Officer at OPmobility and Chair of the FISITA Industry Disruption Expert Group; Arno Zinke is Chief Technology Officer at A2MAC1.
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To join the FISITA Industry Disruption Expert Group, or to find out more about the FISITA Expert Group initiative or any other FISITA activities, visit the FISITA website.
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The FISITA Thought Leadership column is open to FISITA Corporate Members. The opinions expressed in this article are those of the author and do not necessarily reflect the positions of FISITA. FISITA does not accept liability for any loss or damage (other than for liability that cannot be excluded at law).
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