A recent report from Gartner pointed out that by 2020 we will see a quarter billion connected vehicles enabled with new in-vehicle services and automated driving capabilities. Another report suggested that the global automotive tire industry alone is expected to reach almost $250 billion by 2019. While we notice core demands such as green tires, battery charging longevity, and growth in commercial and passenger vehicles sales, the automotive industry has turned aggressively towards the use of analytics and device-to-device communications. The Internet of Things (IoT) is taking center stage in the driving experience. With changing demographics, new business models, pricing pressure, and regulatory and compliance pressure, the convergence to an elastic, configurable, scalable, and consumption-based paying model of the cloud is imminent.

Some of the world’s largest automotive and tire manufacturers are working together with Capgemini to gain insights on the performance of their products in near-real time directly from sensors embedded during manufacturing. Using data analytics platforms, Capgemini enables companies to manage the enormous amounts of data from its cyber products. Sensors placed at different points collect data on conditions and performance that influence safety, control, and vehicle dynamics. End-users have a more collaborative, social, and personal touch courtesy of a first-hand look onto their mobile phones via specific communication protocols.

Cloud is enabling manufactures to have a closer relationship directly with consumers, helping to understand different patterns and usage remotely. With the cloud platform, companies are creating smaller consoles and centers to reduce costs, lower risks, increase security, and dramatically improve vehicular engineering. For example, with SAP, the Capgemini Center of Excellence is adding to the Connected Car Analytics (Vehicle Insights) on the SAP Leonardo platform—product performance dashboards and functions (vehicle protection and control; information about traffic, road conditions and parking; remote vehicle behavior and diagnostics; management of logistics and of industrial vehicle fleets; and automated emergency calls) to deliver efficient manufacturing and business processes. Another solution on Predictive Maintenance as part of the Fast Digital 4 Discreet Industries  is a ready-to-use solution built on SAP Leonardo and enriched with Capgemini assets (library of algorithms, prediction models, enhanced security) to deliver pilot project within weeks. The cloud native apps let you adapt to customer needs in real time. But we’re going further with the interesting combination of applications (SaaS), platforms (PaaS), and Infrastructure (IaaS) possibilities for clients.

The exponential increase in the pace of customer demands and technology drives the digital transformation in the automotive industry. The cloud is answering the needs of advanced data analytics and virtually unlimited computing power on demand for new business models and players. Uber is forcing incumbents understand mobility-as-a-service and the concept of sharing economy. With Tesla on the prowl, every major player is working twice as hard not just to remain competitive, but also to master the digital disruption and adjust to the new business models. The present is a strong indicator of a very different future. Just as we saw the cloud trounce on premise enterprise software the last 10 years, the next 10 will see the automotive industry transform. Let’s shift gears to top gear and win this cloud Grand Prix!

To learn more about Capgemini’s work in the Automotive sector and specifically with SAP Leonardo, feel free to contact Lukas Birn, Nico GödelAlex Bulat, or me, Aditya!