IoT Now: Is it new services driving data traffic in automotive or richer and more data intensive developments of existing offerings? What do you see as the main services driving the uplift in traffic?
André Schlufter: It’s a combination of both, but the biggest drive is coming from existing services becoming more developed, more frequently updated and more central to the vehicle experience.
Infotainment is a great example. Video and audio streaming, app-based services and navigation are no longer extraneous features, they’re core to the in-car experience and expected by today’s drivers. As software-defined vehicles (SDVs) become more widespread, consumers expect the same level of reliable connectivity in their car as they do in their home.
Another major driver is over-the-air (OTA) updates. As original equipment manufacturers (OEMs) invest in continuous software improvement, vehicles will generate and process much larger volumes of data across their lifecycle. This encompasses everything from feature updates, safety improvement, security patches, and diagnostics. And the demand is already there. Our research found that 40% of global consumers are willing to pay for connected services such as video and music streaming, so we can already see that connected entertainment is becoming a key expectation for consumers.
We also expect an uptick in data traffic from predictive maintenance, usage-based insurance, fleet management, EV battery monitoring and advanced driver assistance systems (ADAS) as the scale and frequency of connectivity across millions of connected vehicles creates a significant increase in data traffic.
IoT Now: Who is the provider here? Is it automotive OEMs, IoT enablers such as connectivity management platform providers, mobile operators or somebody else?
AS: Today’s provider network is collaborative. No single entity owns the entire connected vehicle stack. Global connectivity providers such as Cubic³ deliver orchestration platforms that unify operators and enable seamless cross-border connectivity. OEMs own the relationship with the customer and the experience they ultimately have with the vehicle. Mobile operators own the network coverage, while connectivity platforms exist in the middle, managing connectivity for OEMs across regions, networks and vehicle lifecycles. This orchestration layer is increasingly important as OEMs need a single platform that can support connected services and everything that comes along with it – whether it’s jurisdictional compliance, fleet management, or service continuity across global regions.
The industry increasingly recognises connectivity as a priority. Our research found 86% of OEMs said connectivity is important for protecting vehicles throughout their entire lifecycle, highlighting how connectivity is at the core of their SDV strategies.
IoT Now: Given vehicles have long lifespans, is future-proof technology being embedded by OEMs or will the market’s reliance on retrofit systems continue?
AS: OEMs are increasingly embedding future-proof connectivity while the vehicle is on the assembly line, rather than aftermarket. Connected services are directly tied to the long-term value and lifecycle of the vehicle. For example, a car sold today has the potential to be on the road for more than 15 years, so OEMs need technology that can remotely evolve alongside changing regulations, network capabilities, and consumer expectations.
This means support for eSIM, OTA updates and flexible capabilities is essential. The vehicle needs to be designed for continuous evolution, not just at the point of sale.
Retrofit systems will still play a role, particularly in commercial fleets and older vehicles, but for new automotives, the path ahead is toward embedded, software-defined connectivity.
IoT Now: What’s the impact of EVs – do their charging needs and battery management account for significant uplifts in data traffic?
AS: EVs are an impactful part of automotive data growth as they drive new connectivity requirements around battery health, range optimisation, charging status, energy consumption and predictive maintenance. They need OTA communication with charging networks, mobile apps and energy providers.
Most importantly, EVs accelerate the shift towards software-defined mobility. Battery performance, charging efficiency and driver experience can all be improved through software and data. As a result, connectivity becomes critical for entertainment, driver convenience, and ultimately for the core operation and value of the vehicle.
By 2030, Mc Kinsey expects 95% of new vehicles sold globally will be connected. These services will continue to be far more integrated into how vehicles are bought, operated, maintained, and monetised. The winners will be the OEMs and ecosystem partners that can manage that connectivity globally and reliably across the full vehicle lifecycle.
