Connected Cars: How to rethink mobility with connected vehicles

Car connectivity describes a vehicle’s ability to connect with the outside world – be it with the internet, other vehicles or the infrastructure. Connected vehicles are no longer merely a vision of the future. Instead, the digital connectivity of cars now forms the basis for a new form of mobility – one based on data, digital communication and real-time information . This is not just about convenience for the driver, but above all about efficiency, safety and new business models in the mobility sector. 

Although terms such as ‘smart car’, ‘connected car’ and ‘autonomous driving’ are often used interchangeably, they differ significantly in meaning: 

• A connected vehicle (or connected car) can communicate with its surroundings – such as other cars, the transport infrastructure or a cloud platform.
• A smart car uses digital features such as infotainment, voice control and app connectivity – but it is not necessarily constantly connected.
• An autonomous vehicle makes driving decisions independently, but requires robust vehicle connectivity to analyse its surroundings and make decisions. 

Not every smart vehicle is automatically a connected car – and not every car with connectivity features is autonomous.  

A direct comparison shows just how significant the differences between connected and conventional vehicles already are today – particularly in terms of functionality, data availability and practical value:

An overview of the key components of a connected vehicle: 

• Using On-Board Diagnostics (OBD), vehicles continuously record technical data such as engine temperature, fault codes and driving behaviour.
• M2M SIM cards enable communication with the outside world – both nationally and internationally, often in real time.
• GPS modules provide accurate location data for navigation, tracking or geofencing.
• Data is exchanged, software versions are updated and services are provided via cloud connectivity over mobile networks (e.g. LTE, IoT).
• Apps and OTA (over-the-air) updates allow you to change vehicle settings via a smartphone, carry out remote diagnostics or install new features. 

Connected vehicles not only offer greater comfort for drivers – they also deliver tangible operational benefits for businesses, manufacturers and mobility providers.  

• More efficient fleet management through real-time tracking, route planning and condition monitoring
• Less downtime thanks to predictive maintenance
• Increased safety through automatic emergency call systems such as eCall
• Data-driven analyses to optimise driving behaviour and reduce costs
• Improved traffic management, as vehicles can transmit data to urban infrastructure 

Connected cars are more than just a technological upgrade – they deliver real added value for various stakeholders across the entire automotive value chain. Vehicle connectivity has an impact on production, operation, usage and infrastructure. 

Car manufacturers: For manufacturers, connected cards provide a direct link to the vehicle – and thus to the customer. Connected services open up opportunities for new digital business models, for example through 

• Remote diagnostics and OTA updates
• Data-driven product development
• Tailored service packages depending on usage
• Improved customer loyalty through personalisation 

Businesses (e.g. fleet operators, logistics companies, car-sharing schemes): Connected vehicles enable precise real-time management and analysis of vehicle fleets. This reduces downtime, lowers operating costs and increases transparency. Further benefits include: 

• Optimised route guidance using real-time traffic data
• Predictive maintenance thanks to telematics
• Analysis of driving behaviour to improve efficiency
• Integration with existing ERP or fleet management systems 

Drivers: The benefits are also increasing significantly for the end-user of a connected vehicle – whether a company car driver or a car-sharing user: 

• Greater safety thanks to eCall and driver assistance systems
• Convenience through app-controlled vehicle functions
• Real-time navigation with traffic avoidance
• Transparency regarding vehicle status and maintenance requirements 

Road users & cities: Through communication with infrastructure (V2I) and other vehicles (V2V), connected cars help to improve overall traffic flow – a key component of smart cities. The benefits include: 

• Dynamic traffic light control to reduce traffic congestion
• Faster response times in the event of accidents or dangerous situations
• Data basis for urban transport planning
• Greater safety for pedestrians and cyclists (V2P communication) 

Software for connected cars
 

Systems such as BMW ConnectedDrive or Car Link for Android allow smartphones to be seamlessly connected to the vehicle – for navigation, media control or voice control directly via the infotainment system.

For vehicle connectivity to function reliably and at scale, it requires high-performance IoT connectivity, stable networks and strong technology partners. Telekom offers tailor-made solutions for this – from M2M SIM cards and connected telematics to high-performance 5G networks and IoT tariffs specifically tailored to the requirements of the automotive industry and other businesses.