University of Economics, Prague
Faculty of Informatics and Statistics
THE INTERNET OF THINGS IN THE AUTOMOTIVE INDUSTRY AND CONCEPT OF SMART CAR
Master thesis
Study programme: Applied Informatics Field of study: Information Systems Management
Author: Igoris Triskinas, BSc Supervisor: Ing. Martin Potančok, Ph.D.
Prague, December 2020
Declaration
I hereby declare that I am the sole author of the thesis entitled “The Internet of Things in the Automotive Industry and Concept of Smart Car”. I duly marked out all quotations. The used literature and sources are stated in the attached list of references.
In Prague on 7th of December 2020 Signature
Igoris Triskinas
Acknowledgement
I hereby wish to express my appreciation and gratitude to the supervisor of my thesis Ing. Martin Potančok, Ph.D.
Abstract
Modern society aims to have a more independent life. The open borders and possibility of easy relocation are influencing people’s habits to change their living place more often, with the idea of owning something big and expensive becoming less and less attractive. Thus, people are choosing to rent instead of buying property. To lease a car or to use carsharing is seemingly more attractive as people would like to be free from the headache surrounding the ownership of a car, such as parking, taxes, maintenance, insurance and etc.
The following diploma thesis aims to analyze the possibility of using telematics data by global car manufacturers to get rid of old-fashion car insurance companies; specifically offering the insurance service as an additional option to the leasing or purchasing of the car at dealer centers.
Similarly, based on the introduction of the current abstract the target is to analyze and develop the concept of car sharing options and prices in the future. This will be achieved by utilizing the driving style information of the customer which is gathered via telematics sensors installed in the vehicles. For example, car renting businesses can use the model of The Social Credit System based on the telematics data gathered from the car and driving habits of consumers.
Keywords
Insurance, Vehicle-to-everything, V2X, Smart Car, Telematics, Consumer telematics, UBI, Internet of Things, Automotive Industry, Intelligent Vehicle, Telematics-based Insurance, Fleet Management.
Content
1. Introduction ... 12
1.1 Topic Definition ... 12
1.2 Aims ... 13
1.3 Methods ... 14
1.4 Prerequisites and Limitations ... 15
1.5 Thesis Structure ... 16
1.6 Outputs and Expected Benefits ... 17
1.7 Literature Review ... 17
2. Car telematics and current technologies ... 19
2.1. Introduction and Definition of cars telematics ... 19
2.1.1 Types of telematic solutions ... 21
2.1.2 The way how does it work ... 24
2.1.3 The influence of 5G ... 27
2.1.4 Cellular V2X and 5G ... 31
2.1.5 V2X and fog computing ... 32
2.1.6 The way how manufacture is planning to use it now ... 33
2.2. Vehicle-to-everything (V2X) connectivity and possibility for use ... 34
2.2.1 Smart car security: Good practices to improve car safety ... 36
2.2.2 Urban analytics for smart cities based on car telematics or V2X ... 37
2.2.3 Predictable maintenance and repair ... 41
2.2.4 Connected Vehicles from business perspective ... 43
2.3. Usage based Insurance overview ... 44
2.3.1 Current companies and products in Europe and Czech Republic ... 47
2.3.2 Methods and technics to gather the data for insurance companies ... 49
2.4 Car Sharing in Europe ... 50
2.4.1 Types of car sharing in Europe ... 52
2.4.2 Price specification ... 54
2.5. Nowadays Situation and Challenges of Telematic and 4.0 Technologies ... 56
2.5.1 People acceptance ... 56
2.5.2 Legal ... 57
2.5.3 Privacy and Security ... 58
2.5.4 Technological ... 59
2.6 Summary ... 60
3. Concept design ... 61
3.1. Research Design ... 61
3.2. Consumer telematics and benefits of use ... 62
3.3. Car telematics benefits of use for enterprise ... 63
3.4. The design of future concept of smart car (aiming to Europe) ... 66
3.4.1 Car Sharing concept and possible options using smart car ... 66
3.4.2 Telematics Data Flow Diagram ... 70
3.4.3 Dealer based insurance for the end users based on the telematics data ... 71
3.4.4 Future "private" car usage concept (“own-less” concept) ... 74
3.5 Concept validation based on the interviews ... 75
3.6 Forecast of development ... 78
4. Conclusion ... 80
List of references ... 81 Annexes ... I Annex A: Interview Questions - Insurance Agent ... I Annex B: Interview Questions – German automotive company, software development specialist. ... I Annex C: Interview Questions – German automotive company engineering division, engineer.
...II Annex D: Interview Questions – Lithuanian telematic producer company, Sales manager. ...II
Annex E: Interview Questions – German car manufacture, dealer sales manager from Baltic country. ...II Annex F: Interview Questions – Board member of automotive importer from Baltic countries.
... III Annex G: Interview Questions – Baltic car sharing company, product owner. ... IV Annex H: Interview Questions – CFO of Czech carsharing company. ... IV Annex I: Interview Questions for Telematics – Director business development of automotive company in Europe. ... V Annex J: Table of conducted quiz ... VII
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List of Figures
FIGURE 1 AN OVERVIEW OF HOW BUSINESSES USE TELEMATICS (GEOTAB TEAM, 2018)
... 20
FIGURE 2 SCHEME OF HOW A TELEMETRY SYSTEM IS USED IN A HYBRID CAR (ARIS, SAHBUSDIN AND AMIN, 2015)... 25
FIGURE 3 VEHICLE DATA COMMUNICATION SYSTEM (ARIS, SAHBUSDIN AND AMIN, 2015) ... 26
FIGURE 4 OVERVIEW OF A TECHNICAL SOLUTION OF REAL-LIFE TELEMATICS SYSTEM (HUSNJAK ET AL., 2015) ... 27
FIGURE 5 VEHICULAR NETWORK WITH PARTIAL CELLULAR COVERAGE (FALLGREN ET AL., 2015) ... 31
FIGURE 6 DISTRIBUTION OF ACCIDENT AND TRIP TIMES (TOBIAS IPPISCH, 2010) ... 38
FIGURE 7 DIRECT VEHICLE COMMUNICATION (HEINEKE ET AL., 2019) ... 40
FIGURE 8 PREDICTIVE MAINTENANCE OF VEHICLES (CHAUDHURI, 2018) ... 42
FIGURE 9 TELEMATICS-BASED VS. DISTANCE-BASED VEHICLE INSURANCE (TOBIAS IPPISCH, 2010) ... 45
FIGURE 10 INSURANCE TELEMATICS POLICIES IN FORCE (EUROPE AND NORTH AMERICA 2018–2023) (SVEGANDER, 2018) ... 47
FIGURE 11 NUMBER OF CAR SHARING USERS (WASZKOWSKI, 2020) ... 51
FIGURE 12 FORECAST NUMBER OF CAR SHARING VEHICLE (MOOSA, 2018) ... 67
FIGURE 13 DESTROYED “CITYBEE” CAR SHARING PORSCHE BOXSTER IN LITHUANIA (GUREVIČIUS, 2017) ... 68
FIGURE 14 TELEMATICS DATA FLOW EXAMPLE ... 70
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List of Tables
TABLE 1 RISK ANALYSIS ... 15 TABLE 2 LIST OF UBI SOLUTIONS IMPLEMENTED WORLDWIDE (HUSNJAK ET AL., 2015)
... 48 TABLE 3 CATEGORY OF CAR SHARING (RODENBACH ET AL., 2016) ... 53 TABLE 4 APPENDIX D CONDUCTED QUIZ ... VII
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List of abbreviations
SIM Subscriber identity module
km Kilometers
km/h Kilometers per hour
m Meters
m/s Meters per second
EU European Union
EU-27 European Union (since 2007) GPS Global Positioning System
UK United Kingdom
U.S. United States
USA United States of America USB Universal Serial Bus
WHO World Health Organization UBI Usage-based insurance g-force gravitational force equivalent
OTA Over-The-Air
STPA System-Theoretic Process Analysis NDA non-disclosure agreement
BSW / LCW Blind Spot Warning / Lane Change Warning IMA Intersection Movement Assist
DNPW Do Not Pass Warning
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LTA / RTA Left Turn Assist / Right Turn Assist FCW Forward Collision Warning
EEBL Electronic Emergency Brake Light
RAT Remote Access Technology
HD high definition
PCS pieces
ECU Electronic Control Unit
OEM original equipment manufacturer
RSU Roadside Unit
V2V Vehicle-to-vehicle
V2I Vehicle-to-infrastructure V2P Vehicle-to-pedestrian V2G Vehicle-to-grid V2D Vehicle-to-device
OECD Organization for Economic Co-operation and Development
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1. Introduction
1.1 Topic Definition
Nowadays technology is developing rapidly in all aspects of our life. I can see that development is even faced with the problem of evolution from Moore’s Law; the number of components on an integrated circuit should double every year. The progress came to the point where sensors and micro devices went down to the size of nanotechnologies and it is almost impossible to follow Moore’s law anymore. New technologies become very small and easily installable into our gadgets and transport. This is however a benefit for all involved parties as external companies and car manufactures can place as many sensors as they wish given that the sensors are the size of coin.
The new target is to make everything work together and extract benefits from all installed sensors to ensure cohesion and the ability to analyze the data properly. (Rotmanarchive David, 2020) During the last decade Tesla company is a good example how to properly gather, analyze, store and use telematic data. The car can drive itself performing complex calculations bringing you from point A to point B without drivers’ interruption. All other car manufactures, and competitors of Tesla are still a step behind, therefore are already installing all needed hardware into their cars.
Other companies need time to create, test and deploy proper algorithms to make self-driving cars, which is impossible without telematic sensors, which I will discuss in more details within Chapter two.
Additionally, concepts and technologies of V2X and V2V require other technologies, smart cities and related tools to achieve its functionality. Everything would be connected in one united network which monitors and analyzes each driver’s behavior. This could potentially predict a lot of future issues such as drunk and dangerous drivers, establishing a preventive method to stop and avoid fatal situations on the roads. At the same time, the idea of a “utopia” is becoming more realistic, requiring us to ask ethical questions about private lives and monitorization of personal information, however this relates to topics unrelated to my thesis.
The Insurance business has reached its mature stage in its lifecycle, regarding auto insurance. For the majority of existing and developed insurance firms in the market, intense rivalry and lack of product differentiation contribute to substantial revenue reduction. Especially when it comes to
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less developed markets, where Motor Insurance is the most important component of the product portfolio, this brings considerable risk to survival for companies. (Husnjak et al., 2015)
At the same time the dealership network is expecting telematic development to turn additional profit. With existing concepts such as predictive maintenance the car warns customers when it requires additional maintenance and may be returned to the dealer center. Therefore, why not offer additional services as insurance offers directly in the dealer center from the dealer center?
Predictive analytics will help the sales team close off deals for car dealerships and encourage constructive maintenance in the service department.
One of the questions which I am going to answer within this diploma thesis, is what additional value for society car-installed sensors will have, and how will it positively affect the data which car produces. Similarly, how can society use the data and what would be the main benefits for business, end users and others? I will also analyze why society does not need private cars anymore and how society can completely get rid of them and improve our driving behavior on the road.
1.2 Aims
The aim of the thesis is to design a concept of data usage (smart connect, autonomous driving analysis and telematics data) from smart cars for enterprise and end-users. This means I must not only specifically explain how the car manufacture can gather and use the telematics data from their customers, but also how they can turn it into specific insurance offers, becoming one point of sale for the customer.
Secondly the thesis’ aim is to discuss the concept of the future car sharing options for the customers based on the rating system of their driving attitudes. By analyzing the previous driving attitudes of the driver, dealers can offer them specific options of the available car and/or limit the car and its power.
In addition to the aim, the following objectives will be delivered through the research:
• The current trends of the car telematics.
• 5G and influence of the telematics
• Current obstacles of the 4.0 technologies
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1.3 Methods
In my master thesis I would like to use the following research methods and approaches, which should help us understand the topic and find the best possible outcome and solution.
1. Secondary research: This is one of the main methods that will be used for the writing and analyzing of the topic of the thesis. This technique is based on the analysis of secondary data sources and involves using existing data in either print or electronic form as publications, articles and books. Secondary research methods will be used to collect theoretical information on the topic of the thesis. Namely information on the development of the current telematic data trends, sensors, ways of gathering the data, and the way it is used to benefit and add value for the enterprise and end-users. As well as information about the car sharing situation in Europe.
2. Qualitative Analysis: Aims to analyze the background of the problem and searches for explanations by examining behaviors or casualties. Generally, observation is the least controlled and in-depth interviews are the most controlled. Observation can be of two types: informal, when no specific notes are taken, and formal, when the observations are noted and analyzed. In-depth interviews are where the goal is to discover the respondent’s motivation. (Gillis, 2011)
3. Quantitative Analysis: Easy observable categories are gathered and analyzed. The aim is to identify the current situation and predict any potential trends. These methods include different types of surveys such as: electronic surveys, paper surveys, face-to-face or telephone interviews as well as interceptors of websites. Put another way, the content analysis becomes a quantitative method when its use is to establish some form of numeric measure. (Gillis, 2011)
These methods will help us to prepare an appropriate conclusion and understand how the usage of current technologies and gathered telematic data from the driving industry, can be improved and used to benefit the enterprise and end users.
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1.4 Prerequisites and Limitations
The prerequisites for this research include the availability of appropriate secondary data on the target topic which would be up to date to complete the research needed to reach the thesis’ goals and objectives.
The thesis limitations include the inherent time limits and the small number of professionals involved. This makes primary research on a wide scale impossible, as people who work with these technologies often cannot share the information or/and projects which they are working with.
Based on these limitations, the subject of the Thesis on Car Telematics and future benefit for end users was chosen as dedicated secondary research. The main limitations that have arisen in writing this thesis are related to the discovery of enough external opinions for Chapter 3.4, which relates to the future of car telematics. This was significantly difficult as most of the people involved in development have signed a non-disclosure agreement.
Table 1 Risk Analysis
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1.5 Thesis Structure
This paper is consisted of Four chapters with topic related information and divided into two main sections car telematics and current technologies overview and my concept definition.
The First chapter gives insight into the paper’s main goals and objectives as well as the motivation and basic concept. In addition, this chapter is based on the introduction of key literature, research methods and online sources that were used, a more detailed resource overview will be attached at the end of the thesis.
The Second chapter’s section one and two comprise of information about the Car Telematics concept, the current condition, challenges and issues. It also consists of telematics well-known sensors and how it works in general.
The Second chapter’s section three and four gives an overview of current UBI trends, status and usage as well as car sharing products and conditions of the sector in Europe. These sections will help to provide a more accurate and relevant proposal in the Practical part of the paper.
Following this the Second chapter, section five will provide information about the current challenges and issues which technological sectors face and what could potentially create an issue with concept implementation in the future.
Chapter Three provides us with the practical part and review of current and possible benefits for all involved parties. This chapter partially answers the main question of this paper regarding the concept of future car with the help of Smart car concept and telematics.
Finally, in Chapter Four, I will determine the standard concept of future cars, summarizing the theoretical and practical parts in a simple concept overview.
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1.6 Outputs and Expected Benefits
The findings of the thesis are expected to provide a deep understanding of the current development status of telematics data within the automotive industry. The findings should also show possible as well as actual trends of these technological developments. This is achieved using the secondary and quantitative research (using the analysis of the car’s data) to create a useful and beneficial concept for the end users and enterprise.
This also includes some concept of future car usage based on smart car and car sharing concept adaptations, using current telematic trends and alternative usage of car sensors.
1.7 Literature Review
During the initial stage of this Master Thesis, it was decided to gather basic information on Telematics, Car Sharing and Smart Cars concepts, in order to become familiar with the topic in general and to continue in-depth analysis of each particular topic and questions during the chapter of the research.
At the beginning of the research was important to identify the keywords that could cover all aspects of the chosen topic. Concentration on the following keywords: “Telematics and Consumer Telematics”, “Intelligent Vehicle”, “V2X”, “V2V”, “V2I”, “Smart Car” “UBI’ and etc. helped me to narrow down the scope of the research and at the same time to find the most actual data for particular master thesis. The major output was taken from the online databases, which provide deeper research on Vehicle Telematics, current and future trends and Car Sharing.
The taken interviews with involved stakeholders gave in depth understanding of the current state of technologies and availability for use in different segments as well as the challenges which business currently facing, and the way how do they trying to solve it.
Due to a broad range of online platforms widely used during the writing of academic articles, the most appropriate tool may easily be selected. The availability of different sources regarding particular topics showed to be slightly problematic, as it can create an obstacle on how to gather and analyze such large quantities of information properly. It was decided to focus on just a few of sources with the intention to find more specific data.
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• ResearchGate - is a networking site for researchers, particularly those engaged in broadly scientific research. This academic social network, which possibly gives more insights into the understanding Car telematics and technical part of the question.
• arxiv.org (From Cornell University) - is a free distribution platform and an open-access archive for scholarly articles in all fields.
• Google Scholar - in fact, the most famous platform, suggested by thesis supervisor, which differs in that it gathers all the scientific sites together, thus making it possible to speed up the process of reviewing.
• Google Books - Same as above, big storage of the books, quite useful to find particular information using the defined key words.
Despite the huge amount of data, sources and researches from the platform mentioned above not all of them are available for free.
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2. Car telematics and current technologies
2.1. Introduction and Definition of cars telematics
Telematics started in the 1960s, when the U.S. Department of Defense and Johns Hopkins University’s Applied Physics Laboratory started to develop a Global Positioning System (GPS) which used satellites and receivers on the ground to help the to keep track of soldiers and equipment. GPS also made their missiles attacks more accurate. (Angelo, 2006)
The first GPS satellite named NAVSTAR 1 was launched in 1978. Over the next 10 years, nine more satellites were successfully launched and added to the system. Today, GPS uses a constellation of 31 satellites. (Adam Weintrit and Neumann, 2011)
The term “telematics” first came into use also in 1978. It appeared in a report to the French government about the computerization of society. In French language it spelled as “télématique”
and later became “telematics” after translation. (Adam Weintrit and Neumann, 2011)
Imagine an extremely smart device in your car that holds the ability to comment and analyze on nearly any detail — from speed and idling, to fuel consumption, low tire pressure, and more. By learning more about driving habits, drivers can use this information for a range of things from saving money on maintenance costs and improving fuel efficiency to improving safety and theoretically saving lives. All of this describes the telematics universe, also referred to as GPS fleet tracking.
Nowadays, the automotive industry giants are looking for different ways to enhance car monitoring activity by using or adopting already installed sensors to bring the benefits for all parties involved.
I am seeing a continuing trend towards merging car functions and possibilities to the related electronic control units (ECU) into general domain controllers, with premium OEMs pushing the technical move towards more streamlined and connected infotainment systems. Moreover, as the industry moves towards a service-oriented design with interconnected services, the number of applications and supported domains has increased significantly, a Figure with a business domain overview will follow. (Heineke et al., 2019)
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For example, to track assets, vehicle information is recorded via a small telematics device that usually plugs into the OBD II or CAN-BUS port — also called a black box. A M2M SIM card and modem in the device allows cellular network communication.
Figure 1 An overview of how businesses use telematics (Geotab Team, 2018)
In the provided figure above, you can observe most of the areas involved in the Telematics service for cars. From the 20th century with the start of the first telematic solution implemented in Satellites with installed GPS, we came to the solutions available for almost every end user, the monitoring of nearly all activities of the driver’s behavior on the road in the recently produced cars.
21 2.1.1 Types of telematic solutions
Firstly, I want to find the answer to the question of what are Telematics? Imagine that you would have a highly intelligent computer installed in your vehicle which could gather and report on you about almost every detail of your car. Drivers already have basic reports of telematic sensors such as speed, idling, fuel use, low tire pressure, and more.
What kind of telematic solutions can we have, that question I will discuss in the next couple of paragraphs. At the beginning I would like to start from types of telematic:
Safety
Automatic Crash Notification one of the first and main telematics tools of safety. That is essential to provide fast emergence and medical assistance during the car accident, especially if there are no other cars were involved and nobody can report that. . Around the same time, these systems provided the basis for creating the idea of automotive telematics. Automatic accident warning service tracks the vehicle's collection of sensors. If any car incident occurs, the telematic “crash sensors” reacts accordingly and preparing the information for a help desk about the location of the accident and trying to initiate call with an emergency services. This results in the operator beginning to plan appropriate rescue operations. If necessary, the driver or passengers can manually send a request for emergency services to intervene. The current innovation of telematic and sensor technologies can send more and more date including speed, damaged parts, condition of the engine and fuel tank capacity to give emergency services a deeper understanding of which support should be sent. The vehicle is often equipped with an secondary power supply, so when the car battery or electrical system is faulty, it can continue to operate. (Mikulski, 2010)
Security
Telematic software providers implement security features primarily including remote control and management of your car with possibility to stop the engine or manage car doors, stolen vehicle monitoring, theft alarm. The device installed in the vehicle may transmit periodic information about the location of the vehicle remotely, or it may be started automatically by anti-theft sensors installed in the vehicle. A part of the door control feature can also be programmed by remote control to open and close the door. (Mikulski, 2010) Almost all new models of cars are equipped with Connect Car solutions, then you can monitor the status of your car from your smartphone.
22 Information and navigation
GPS Tracking, Navigation services became common part of any daily car what provides you direct information about car location and best route calculation even, if you do not have access to the internet. At the same time most of the cars get equipped with possibility to use SIM card and use all benefits of internet connection in your car (what is also important for safety discussed above).
These basic futures activate the possibility to establish ha fleet monitoring and management systems to improve the efficiency of utilizing car fleet. (Mikulski, 2010)
Diagnostics
Another developing area of prospective telematic services is diagnostics. This includes remote diagnostics, performance data collection and remote scanning features. On demand, a device or system mounted in the vehicle may conduct a comprehensive diagnostic scan or if certain key threshold values have been exceeded, e. g. The distance traveled, the previous scanning period or the period after the last service. This is the deepest and biggest potential, having the technology of telematics, a diagnostic of the car can affect many different topics starting from predictive maintenances to influencing insurance costs. If a customer of an insurance company has continual car trouble, such as not getting service on time which endangers those on the road, it could affect the insurance cost or even lead to cancellation of the contract. (Mikulski, 2010)
Example of Sensors
Based on three conducted interviews (Annex B; Annex C; Annex D), I was able to get some internal insights and current status of use and development of telematic solutions in general and in automotive sector specifically.
First interview was conducted with engineer from automotive company (Annex B) the company which is working on the technical development and smart car development for German premium brand cars manufacture and located in Czech Republic.
Second correspondent (Annex D) is employee of the company which operates in Baltic countries and well known in Europe. Company with more than 15 years’ experience in telematic sector, providing solutions for telematic hardware installation, GPS tracking and fleet management.
Third interview was conducted with telematic software developer from automotive company (Annex C) who is working in another German automotive company and located in Germany.
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The information gathered within these two interviews will be used through the whole paper.
First of all, lets discuss types of telematic solution based on the hardware installation principle.
Currently the end user of the car can have two types of solution installed into the car:
1. Telematics modules and sensors installed from manufacture
2. External solution, so called “black boxes” installed by the third party.
Based on the interviews with engineer and software developer from automotive companies (Annex B) and (Annex C) I have found that modern car brands are having full set of installed sensors in the car and now they are on the way to optimize the usage and analyzes of the cars. The modern technology 5G which is actively coming to the automotive sensor and will be further discussed in next chapter is also helping to achieve that.
Couple of examples of sensor or system which can analyze and report status of the car driver behavior:
Seat belt monitoring
Is a system which has been installed in our cars since ages and annoying you if you are not properly fastened. The proper use of the data from the seat belt can help to adjust insurance price accordingly and can help to prevent unnecessary depths by limiting the spread or even not giving chance to start a car.
Blind Spot Warning / Lane Change Warning
While changing a lane, BSW/LCW feature of V2X notifies the driver about other vehicle travelling in the same direction to avoid collision.
Intersection Movement Assist
IMA sends an alert to the driver in case of a potential collision at cross points in the road.
Do Not Pass Warning
DNPW is similar to the BSW/LCW feature, which notifies the driver about another vehicle travelling in the vicinity, but in the opposite direction.
24 Left Turn Assist / Right Turn Assist It
Is a feature similar to IMA that notifies the driver of a potential collision with another vehicle at the intersection while turning left/right.
Forward Collision Warning
FCW assists the driver in maintaining a safe distance with the vehicle in the front to avoid rear- end collision.
Electronic Emergency Brake Light
On application of emergency brake, a notification is sent to the surrounding vehicles about the braking event to alert the surrounding vehicles to avoid any accidents.(Carter and Chang, 2006) (Carter and Chang, 2009)
And much more, for example the data gathered by telematics sensors covers an extensive range of driver behaviors and what is very important for my future concept, as by monitoring tailgating, over speeding, rough cornering, harsh braking and aggressive acceleration we can decide what type of driver it is. According to all mentioned parameters the suitable insurance plan or proper rating for the driver could be given. Without mentioned types of sensors and systems, it would be impossible to get the detailed data about the status of the car and driver behavior.
Summarizing, currently almost all parts of your car, car and driver behavior could be analyzed, the challenge for technologies to make it cheaper and more affordable for every car manufacture.
2.1.2 The way how does it work
Data collected by the telematics device, such as the vehicle's GPS position and speed, and the g- force measured by the built-in accelerometer, are forwarded to a data center or differently saying to cloud in a packaged format. Then, the data is decoded.
The telematics system and other linked hardware or sensors such as location, speed, trip distance / time, idling, hard braking and driving style, seat belt condition, car fuel consumption, vehicle diagnostic faults, battery voltage, and other engine data will collect a large amount of data.
In the figure below you can see basic graphical example how car can analyze and send information about faulty battery. The information could be sent to the multiple destinations, one of the
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destinations could be your dealer center where they will prepare everything for maintenance, but this is discussion for next chapters.
Most of the time the information about car condition and faults are stored in the cloud and distributed into a car management, fleet management, insurance reporting and etc. software system, accessible from different smart devices like a mobile device such a smartphone or tablet for the end users, or a desktop computer.
Using the software, users are able to view and analyze exported reports and gain business benefits.
Then for the enterprise it could be internal calculation systems which are calculating and analyzing gathered data.
Figure 2 Scheme of how a telemetry system is used in a hybrid car (Aris, Sahbusdin and Amin, 2015)
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An example of a hybrid vehicle's layout is shown in Figure 2. With the introduction of IoT and Big Data technologies, the vehicle's efficiency, maintenance, security and communication can be further. Most of the sensors already mounted in the new cars and could be used for predictive maintenance with a certain degree of adoption. Based on a conversation with engineer from one of the interviews (Annex B), Volkswagen group is currently developing and designing maintenance technology based on the time and quantity of use of certain parts of the car.
Figure 3 Vehicle data communication system (Aris, Sahbusdin and Amin, 2015)
Figure 3 illustrates the example of an auto's internal communication system. With the high-speed communication network, the vehicle's active and passive safety features can be implemented. The vehicle-vehicle communication is achieved by implementing the concept as shown in Figure 4. It will happen with the aid of emerging technology such as 5G that are becoming more common in Europe and the world, I will address it further in the next chapter. So, returning to the above figure, I can see a good example of sensors already installed and used in the car.
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Figure 4 provides a summary of the real-life telematics device architectures that were introduced and used on the markets. The technical overview includes end-to - end architecture along with a description of the components which constitute the implementation of real-life telematics systems. It also provides information about the data model used in the accounting process, the specifics of which are clarified in the following section. (Husnjak et al., 2015)
Figure 4 Overview of a technical solution of real-life telematics system (Husnjak et al., 2015)
2.1.3 The influence of 5G
5G is a superfast communications protocol that is likely to have far-reaching implications for many things vehicle related, especially safety-critical driver assistance systems.
One of 5G’s biggest strengths is low latency, which simply means less delay between a command being given and received. In human terms, that could mean the time between seeing an obstacle and hitting the brake pedal.
In data terms, the 20 milliseconds for 4G drops to between one and five milliseconds for 5G. The latency in human reaction time is around 200 milliseconds, so there is more chance of avoiding a collision if 5G is there to step in.
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Even though 5G networks are still an ongoing task for mobile operators, the pace of rollout and launches is gathering. By the end of 2019 - 61 operators in 34 countries had launched one or more 3GPP-compliant 5G services, according to the GSA (Global Mobile Suppliers Association). For those, 49 providers launched 5G mobile services, while 34 launched FWA (fixed wireless access) or broadband services in their home. In addition, the GSA said 77 operators had deployed 3GPP- compliant technology in their networks and 348 operators were investing in 5 G in 119 countries.
(McLellan, 2020)
3GPP Release 16, expected to be completed by mid-2020, is a significant landmark as it completes phase 2 of the 5G specification, catering for stand-alone networks that not only offer enhanced mobile broadband (eMBB) and FWA, but also ultra-reliable low-latency connectivity (URLLC, significant for automotive applications) and massive machine-type connectivity (mMTC, important for IoT use cases). Release 16 also includes cellular V2X (C-V2X) specifications which cover areas such as platooning, extended sensors, automated and remote driving.(McLellan, 2020)
The channel of propagation is one of the key performance factors which impact any communication system. Vehicle high speed, dynamic environments often cluttered with static and mobile scatters, and low antenna heights create unique challenges for V2X communications compared to other communication systems. In addition, the variety of applications envisaged support for the 5G V2X network – from simple safety applications to high-precision radio positioning to advanced autonomous cooperative driving applications - results in considerably different channel modeling requirements. (Fallgren et al., 2015)
V2X allows vehicles to interact with moving, fixed, and temporary objects, warning a driver until it comes into sight of what is around the corner. That could be roadworks, a pedestrian, an emergency oncoming vehicle or a broken-down car.
Early efforts were focused on regular wireless transmission of data, using the same technology as a home wireless network. Problem is, its reliability is about as good as that of a home wi-fi network, well.
5G, on the other hand, has been designed to be reliable for use with all types of machines and to enable you to hear your mum properly when you phone her. This can hold up in busy urban environments and cope with high-speed moving objects, and it is expected to be a big enabler to allow autonomous vehicles to communicate with each other and other.
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The 5GCAR initiative, led by telecommunications giant Ericsson, culminated last year by demonstrating, among other things, how 5 G would help to synchronize the speed of motor vehicles – something that is always bad for human drivers.
It will take time to roll out intelligent and autonomous 5G-based features, so roadside cameras will be used to enable systems to identify and track vehicles that are not equipped with 5G and pass details of their speed, position and trajectory to those that are equipped with a maneuvering system. Other trialed features include a see-through mode, where a car can obtain data from those in front of its forward-facing cameras, giving its driver a view of the road ahead in real time, unhindered.
Roadside sensors may also detect people walking out of a blind spot, such as a car waiting for traffic lights to turn right. The system can distinguish between a potential collision with a person and a non-critical situation, such as a person on course but who has not yet reached the danger zone.
All this would involve a vast amount of data transfer and that's where 5 G scores as well, because it is 100 times faster than 4G. There is still a long way to go but 5G deployment started earnestly last year after a long wait and will hopefully keep up with the changing vehicle technology.
Clearly the pieces are moving into place in the automotive space for the rapid growth of 5G- connected IoT solutions. That is certainly the view of analyst firm Gartner, which forecasts that the automotive industry will be the largest market opportunity for 5G IoT solutions by 2023 in October 2019, representing 53 per cent of the total 5G IoT endpoint market that year.
Gartner predicts the installed base of the 5G IoT endpoint will grow almost 14-fold in the next three years, from 3.5 million units in 2020 to 48.6 million units in 2023. Outdoor security cameras will dominate the industry by 2020 (2.5 m units, 70 percent market share), but automotive systems will have overtaken these by 2023.
In 2023, the leading use case for 5G in automotive space will be embedded connected car modules for commercial and consumer vehicles (19.1 m units, 39% market share), predicts Gartner, followed by fleet telematics devices (5.1 m units, 11% market share) and in-vehicle toll devices (1.5 m units, 3% market share). (McLellan, 2020)
As part of this work, emphasis is placed on the use of new technologies to improve the work of services associated with dealer and insurance companies.
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With the advent of new technologies, the V2X concept, as well as connected cars, gets a dramatically greater advantage over other types of technologies that help smart cars.
In particular, 5G technology provides an opportunity for developers of V2X and connected cars, in areas such as connectivity, low latency and others. But, with regard to communication with dealerships and insurance companies, this technology also offers an opportunity for dealers and insurers to improve the quality of the transmitted data, as well as to improve the speed of data transfer.
Speaking about insurance companies, in their cases it is very important to timely and fully receive data related to telematics, car sensor readings, systems for collecting information about the quality and nature of the driver’s ride, and so on.
In this case, this allows you to create the most high-quality picture of the use of the vehicle in the fastest way, allows you to include much more details in the transmitted data, and receive data in real time. This scenario allows insurance companies to timely generate models of how the vehicle is used by drivers and based on a larger amount of data to generate better reports and relevant scenarios of relations with drivers.
As for dealerships, in their cases it is very important to timely and fully receive data related to telematics, readings from car sensors, systems for collecting information about the quality and nature of the driver’s ride, and so on.
Again, the main improvement coming with 5G technology is its higher speed and throughput. This opens up the possibility for developers of both automobiles and telemetry systems, as well as developers of analytical software to transfer much more information with less loss, with greater speed.
This allows you to create a model on the fly that describes the nature of the use of the vehicle, the behavior of the driver, which accordingly affects the relationship of the dealership with a particular driver. For example, if a driver performs driving in a quality and tidy manner, without obvious errors and does not violate traffic rules, this increases his rating in the eyes of the dealer company, and accordingly he is rated higher than less tidy drivers. With this, the driver moves higher in the ranking, and accordingly, much more opportunities are opened for him.
As for the car-sharing, with the improvement of technologies in this area, for example, as already mentioned with the advent of 5G technology, over time, this will lead to a decrease in the number
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of cars in free private use and an increase in the number of cars in car sharing services, which leads to an increase in the volume of collected information, and more qualitative processing of this very information with the already mentioned advantages. Also, reducing the number of private cars will lead to improved air quality.
In addition to the advantages already mentioned, another advantage may be a reduction in the area of parking lots, which will lead to positive consequences in the infrastructure of cities, an increase in the number of buildings, and the expansion of residential areas and park areas.
2.1.4 Cellular V2X and 5G
According to the section 2.1.3 and already discussed advantages and current state of development of 5G technology, I want to get a bit mor deeper how does it work in case of communication for vehicles.
According to the conducted secondary research, I have found that cellular-based V2X most probably will be the main radio interface to support 5G vehicle communication through three following modes, namely cellular V2X, cellular-assisted V2V, and cellular unassisted V2V, respectively. (Fallgren et al., 2015)
Figure 5 Vehicular network with partial cellular coverage (Fallgren et al., 2015)
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First of all, Cellular V2X refers to standard uplink and downlink communication through telecommunications link, where a vehicle communicates with a base station or Roadside Unit (RSU). RSUs will be deployed close to the roads to improve coverage and bandwidth, as well as to reduce latency through fast radio access, managed network resource allocation, and handover from one RSU to another.
Cellular-assisted V2V is a solution where the base station coordinates the communication between vehicles by providing control information and instructions to vehicles (kind of the Edge computing or Fog computing, which we would discuss in the next section). This solution is perfect solution for extremely low latency and high reliability V2V communication, as the network infrastructure establish resource availability when it is necessary and time-consuming data transmission over the cellular network is bypassed. As the coverage of the network is not everywhere on the highest level yet (of course hopefully will be solved with Elon Mask “Starlink”
company), cellular V2V solution would help to offload the traffic, as data exchange between cars in a certain geographical location could be realized by V2V.
Finally, cellular-unassisted V2V is a solution where vehicles communicate without the involvement from the base station. Therefore, resources are still dealt under the control of the cellular network. Out-of-coverage users further remain synchronized to the cellular network and follow a common time reference. In this sense, even out of coverage users can be considered as part of the cellular network and their transition to one of the other modes can be very fast.
In all three mentioned modes above, the cellular network controls to certain level – the data transmission between the vehicles and ensures that their needs in terms of data rate, reliability, and latency are satisfied. (Fallgren et al., 2015)
2.1.5 V2X and fog computing
Many of the networking techniques developed on purpose to help the Internet of Things (IoT) development and fog computing can be extended and adapted to networks supporting connected vehicles by considering the connected car as a dynamic cyber-physical system.
The end devices and devices in between in the network, reached the certain maturity level when they can perform certain calculations and task without sending big amount of the data to the
“Cloud”. Initial intention, to perform less work at the end devices of the users, with development
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of technologies could be switched partially back to the Edge or Fog computing. “Fog” is literally something coming before the “Claud”.
“Fog computing is a system-level architecture which extends the clouds computing, network and storage capabilities to the edge of the network.” (Fallgren et al., 2015)
This technology includes, among others benefits, wireless optimization, communication protocols, data processing protocols, cloud and fog computing, software-defined networking (SDN), virtualization of network functions, etc.
2.1.6 The way how manufacture is planning to use it now
In the car industry, manufacturers, 3rd party telematic data hardware providers and insurers are realizing that they are creating lots of data without yet being sure how to monetize it as effectively Based on the gathered information mention in the Chapter 2.1.1 and from the conducted interviews, I have learned that most of the automotive industry players start to active test already used sensors in the car and implement missing one to identify the driver’s style and get more relevant information about car conditions more clearly.
Based on the gathered through interview and analyzed information I got following image about car manufacture targets and questions:
• How to optimize current hardware and sensors to properly gather and analyze the data?
• Optimization of data transfer / flow to the cloud technologies.
• To design the concept of data usage or / and presentation to the end users.
Based on previous sections introduction to the technologies, the following comment was received from both interviews: “It was very active development time of technologies during the recent decades, and car manufacturers and developers were trying to catch every new introduced technology and somehow implement it to the car. The current phase we would name like a maturity, then we have a lot of different information, sensors, technologies and the main target for us (developers) set, to optimize current processes and technologies to make them working faster. Of course, the development of 5G changing the game completely, as per now most of the calculations and information stored inside the car and now, we got opportunity to transfer almost all calculations to the cloud. This is very important especially for sport car as we can
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reduce from 5 to 30 kg approximately and this weight has a huge impact to everything” (Annex B, personal interview, 2020)
“…One of the current projects which we are implementing is optimization of sensors amount inside the car… Our target is to reduce amount of ECU from 2000 to 150 pcs.…” (Annex C, personal interview, 2020)
Beside all obvious and already implemented telematic sensors to increase your safety on the road that will be discussed more in detail in section 2.2.1.
One of the interviewed persons mentioned that starting from 2021 all new produced cars will be equipped with properly set up predictive maintenance services. System will calculate almost everything, how many time screen wipers worked, how many times your tire spin and conditions, and etc. Must probably during first one-two years this will not be available for end customers, as technology is fresh and should be properly tested.
Regarding the legal side about gathered information, answer was, that all dealers are gathering personal details about customers and all customers signing GDPR (if they would like to be I the dealer system), must probably the contract will be amended, to be legally allowed to gather technical data about your car.
2.2. Vehicle-to-everything (V2X) connectivity and possibility for use
Vehicle-to-X (V2X) is a quickly developing technology what is very important and being next step of evolution of vehicle-to-vehicle (V2V) technology. V2X technology enables smart cars to communicate with others IoT devices which are affecting the vehicle. When V2V creates the possibility to communicate only with other smart vehicles and has a limitation with interaction with surrounded devices end creates a lot of niches for external business development as well as better road traffic control for government and bring the future of self-driving cars closer to reality.
V2X allows vehicles to interact with other vehicles as well as be part of big eco-system with traffic lights, public transport, parking spots system, toll roads and many others 3rd party services and products.
V2X technology allows the smart cars to share the data between vehicles and items using discussed earlier technologies. That step in the technology development opens a great opportunity for innovation services and 3rd party solutions to make road and driving experience safer and
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brings additional add value for the end users and increases comfort of living in the city. V2X will be a key component in the near future for driver assistance and self-driving cars, as well will support to analyze efficiently driving habits of car owners, but as well of surrounding cars which will increase accuracy of the analyses. (Bosch mobility solutions, 2019)
As was mentioned one paragraph before, FOG computing and 5G are very important technologies which will support the development of V2X, therefore I would like to mention here that Artificial Intelligence (AI) will help to make that connection more intelligent. Because V2X is more than just connecting smart cars to the IoT things around. AI will help to bring the most relevant data to the drivers at the time when they exactly need it.
Currently V2X technology relies, on Wireless Local Area Network (WLAN) technology provide data exchanges. As telematics technology develops and amount of data is growing, it is all but certain that V2X will increase the need of cloud-based services and FOG solutions to improve the speed and amount of data exchange between involved devices.
In addition to the WLAN, one of the most important components of the V2X connectivity, is the connectivity control unit which is the core of commercial vehicle connectivity features. It allows commercial vehicles to interact with each other in the immediate surroundings and with objects.
This forms the basis for revolutionary driver assistance systems that see beyond what driver usually can see and therefore have the potential to improve road safety.(Bosch mobility solutions, 2019)
According to a 2017 World Health Organization report, about 1.25 million fatalities are caused every year because of road accidents. Most of these accidents are due to human mistakes during driving. The primary target for the adoption of connected cars is to avoid collisions and reduce fatalities on the roads (TechVision Group of Frost & Sullivan, 2017)
According to Mr. Eisenberg V2X offers drivers a lot of useful information and features, including the following:
• Emergency alerts from vehicle
• Pedestrian alerts
• Smart home connectivity
• Commercial and 3rd party enterprise offerings
• Smart city information
• V2V data exchange
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• Collision avoidance and advance alarm and notifications
• Road hazard warnings
• Traffic alerts and information (Aviram, 2018)
As telematics systems developed into more intelligent and end user available systems, and as autonomous cars finally starting to appear on the roads, V2X communication will become essential and very important for further improvement of road traffic quality. OEM systems may get the headlines, but aftermarket vendors and third-party V2X services and products will most likely dominate the market, what I will mention in my practical part, that small companies (aftermarket and third-party) more flexible for changes and need less time to start new product on the market comparing to the big automotive companies.
To finalize, most vehicles already allow drivers and external providers to watch, and to some extent, use and interact, with their vehicles by installing external devices. As society move toward an autonomous future, many use cases will believe on this connectivity and thus increase the need for wireless capacity and reliability using new technologies described in chapters above. Using all new technologies, cars are will communicate with one another and the infrastructure around, for example, to warn others about traffic incidents or poor road conditions. Or based on telematic data gathered inside the car and analyzed in the Cloud or Fox, the smart car of the future will be able to notify surroundings about dangerous driver and send information to the Police or Ambulance in advance prior something bad happens.
2.2.1 Smart car security: Good practices to improve car safety
V2X technology provides an opportunity to increase road safety and reduce the number of road traffic accidents, thereby reducing the number of injuries and deaths on the road.
With the advent of the possibility of continuous monitoring of all telemetric systems, both in a vehicle and in a central computing system that can be placed in the cloud, the opportunity to constantly monitor indicators and certain parameters of the vehicle’s condition, the way how driver is driving, the likelihood of collision with other road users or technical components of the car.
Also, using cloud technologies, such as fog computing, it is possible to collect and aggregate data from the entire fleet of cars, which leads to an increase in the number of parts that can affect certain traffic situations. For example, having experience in one traffic situation, developers can
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find out in advance what can happen to another car approaching the same traffic situation and prevent potential negative consequences.
Also, the complete coherence of the entire fleet of cars allows cars to share information about each other, which also avoids undesirable situations on the roads.
Transferring most of the calculations to the cloud can also reduce the complexity and weight of the car, which will positively affect its handling performance and improve not only driving comfort, but also allow a better and faster response to certain traffic situations.
2.2.2 Urban analytics for smart cities based on car telematics or V2X
Routes and traffic planning are important part of future Smart Car as well as important task for car telematics and the global target as a complete smart city. Therefore, smart city is starting from the smart car and smart traffic inside this city.
The important data sets for the smart city are following:
Traffic Arteries
It is important to identify considerable commercial and private traffic flows in your city and understand the timing of that traffic occurrence. Simulate the effects of blocked or closed roads and traffic disturbances and run day-to-day scenario analyses to validate your estimations and alternatives scenarios. With full integration of the smart car and V2X technologies it would be easier to estimate traffic, as car telematics will help to estimate traffic loads in next minutes and hour. Big data analyzes will help us to estimate traffic for longer period of time and using data mining technologies to optimize traffics.
Parking
The main target is to identify trouble locations and adjust problems accordingly. Example of trouble locations are parking availability a challenge during certain times of day. Vehicles are driving around and waiting to find a parking spot and causing unneeded congestion or blocking traffic by parking incorrectly. Car sharing with smart parking notifications will help to reduce these problems. (Alsafery et al., 2018)
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Support your sustainability goals and lower your CO2 emissions by identifying areas in your city that are experiencing high engine load, by mentioned above reduction of cars itself and optimization of the roads this problem should be also solved. The current trends of hybrid and fully electric cars will support this intention.
The Internet of Things important part of car telematics and connected vehicles is also the trend towards "smart" products everywhere, starting in your home with smart products like all home equipment connected to your phone via Wi-Fi such as washer, refrigerators, cameras and light systems to products used in transport industry such as smart traffic lights that can adopt signal timing-based off-traffic flows throughout the day. Auto-sharing companies are another example of IoT in the automotive industry, where mobile application of an user can help him to find, reserve and use a vehicle just in couple of clicks.
Figure 6 Distribution of accident and trip times (Tobias Ippisch, 2010)
The need of additional traffic management sensors and collision prevention systems in the cars showing following research of Tobias Ippisch conducted in 2010. As we can see the number of reported accidents is correlated with the amount of conducted trips and as we can see vehicles
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and people are especially in the risk during high picks of traffic during the morning hours on the way to the work and at the evening coming back home.
“During morning and evening rush hour traffic, high vehicle density requires considerable driver involvement (i.e., distance keeping, lane changing, and overtaking), which eventually increases crash propensity if sleepiness affects driver attention. For past midnight rides, crash risks may further be amplified by poor lighting conditions and possible substance impaired driving after social and recreational events.”
Improved eco-system between smart city and car could significantly reduce the amount of accidents during the pick hours with proper connection between cars and city.
The specific infrastructure and environment should be created in order to make cars fully connected. The need properly adjusted and connected roads to help smart cars in the future. I expect to have a multi-connected smart “devices” on the roadsides, including the traffic and temperature sensors, control camaras and temporary road signs to adjust the traffic flow or speed.
The central hub should be established which will help to manage all devices to communicate between themselves as well with cars. All the devices should be properly connected between with support of fiber connection or / and wireless setup as well as with proper power supplies.
As we have already discussed the cellular network in section “2.1.4 Cellular V2X and 5G”, it is also important to mention the importance of the direct communication between vehicle and surroundings. This type of connection according to the research of McKinsey enables vehicles to communicate directly with their nearby surroundings without relying significantly on cellular networks. The example of such communication we can see on the Figure 7.
This type of communication includes vehicle-to-vehicle (V2V) communication, where vehicles communicate with other cars to send the information and warnings, avoid concussion or share traffic and road conditions immediately. As well as communication from vehicles-to- infrastructure (V2I), where vehicles communicate with city infrastructure such as pedestrian lights, road signals, and other road infrastructure to further improve safety measures for pedestrians and drivers. For example, a traffic light might warn the vehicle that it is turning red and the vehicle should adjust its speed. Or even preventable send the signal which will force car to lower the speed. (Heineke et al., 2019)
40 Figure 7 Direct vehicle communication (Heineke et al., 2019)
Using V2X technology in the future it will be possible to optimize the situation on city roads. The ability to collect information about the large number of cars, opens up the possibility of analyzing traffic situations and optimizing these situations accordingly.
For example, researchers at the University of Michigan and the Oak Ridge National Laboratory, and Bosch as a business partner, are working on the project, which aim is to develop a control system that enables a hybrid plug in car to interact and act on that knowledge with other cars and city infrastructure. By giving cars situational awareness and information, vehicles will be able to determine the best possible route effectively, accelerate and decelerate as required and control their powertrain. The aim is to increase the vehicle performance to the point that you can travel from one point to point another without stopping, which will have important life-changing effects to the environment, time and efficiency.
“You can reduce fuel and energy consumption, which benefits the environment and lessens our dependence on expensive energy sources and you make the traffic system work more efficiently by reducing congestion.” (Pioneering Research from Boston University, 2020)
But the integration with city is not the last piece of cake in case of communication and awareness about the situation. “At the fringes telematics is also a term used to describe 'connected car'
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features in general, which include live weather, traffic and dashboard parking data, applications, voice-activated features (as seen on the Parrot Asteroid car receiver) and even Facebook integration.” (Carter Jamie, 2012)
2.2.3 Predictable maintenance and repair
Maintenance management and engine diagnostic reports are essential to the long life of the personal car for the end user and important part of the business for dealer centers.
Preventative maintenance is critical to extending the health and life cycle of your vehicle. Most of the drivers does not know anything about technical conditions of owned car and even ignoring some warning signs on the cockpit what can cause big troubles for car itself but also for people around.
Although scaling back your preventive maintenance efforts might seem like a good idea to cut costs temporarily, it could have costly consequences as well. Skipping vehicle inspections could cause minor problems to grow into bigger ones.
For example, extending oil changes beyond their scheduled date means fewer lubricants for your engine that can cause engine damage. Same about suspension, any part of the suspension which was not changed on time can cause a damage for your tires wear or even more serious consequence.
Short term cuts can cost you more later on, so following manufacturer (OEM) or fleet management-recommended preventative maintenance schedules is more essential than ever.
When it comes to maintenance, how often you do it can affect how much it will cost you at the end. For example, an oil change for a basic diesel engine costs about 3,000 CZK. However, by carelessness regular oil change reminders, the lack of maintenance can lead to irreparable engine failure, possibly costing upwards of 200,000 CZK for a full engine replacement or more if replacing the vehicle entirely.
Likewise, spending about 1,500 CZK for regular tire rotations better deal rather the 20,000 CZK or more cost of replacing the tires or risking blowouts while on the highway. When routine preventative maintenance is ignored, the costs of repair can add up to more than the regularly recurring costs.
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Following these rules all parties will be in the position of Win-Win. As dealer center will be able to track and plan accordingly their maintenance services for future (if they would have on-line access to the current conditions of the car) and customer will be always safe and sure that car is in the perfect condition.
To know about the car condition of their customer is one of the crucial part of insurance companies as well as for car sharing companies. As insurance should be based on the driver habits not only on the roads but also toward the condition of the car, same as car sharing companies should be always be able to track the condition of the car to prevent possible money loses because of unexpected long repairs.
Save money with engine diagnostics
Cost containment in uncertain times is critical. Having a system in place to warn fleet managers or car owners of potential problems makes it possible for responsible persons to take proactive steps toward resolution.
As well as an optimization of car maintenance with predictive maintenance opportunities and remote diagnostics which also will save time and money for everyone as you do not need to go for useless physical checks to the service as almost everything will be done remotely. Optimization of fuel consumption by tracking idling and other driving habits.
Figure 8 Predictive maintenance of vehicles (Chaudhuri, 2018)
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Car is designed with different sensors to monitor conditions of the car engine sensors, outside and inside temperature, acoustic, vibration, battery-level, infrared and sound sensors all these sensors may form as initial maintenance indicators as shown in Figure 8. The requirements for operation are determined by inputs from these telematic sensors. Customers use cloud to power predictive maintenance systems that help them collect and manage vehicle data along with visualization and analytics software to make better choices.
Big part of the IoT systems have features such as real-time IoT big data visual exploration and analyses, instant visual event trending snapshots and key performance indicator insights, live and historical data app visualization mixed with IoT data and displayed on the dashboards that drivers can access and work with. As well as it potentially could be integrated with dealer/importer and head office organization services. As most of the guarantee-based repairs should be confirmed with importer/regional office and above certain threshold (for example guarantee repair above 10,000 EUR) the approval should be received from the head office. For these purposes, all three parties mentioned above utilizing internal ticketing system which theoretically could be integrated with direct data from the car.
2.2.4 Connected Vehicles from business perspective
The 5G technologies creating a wide range of business possibilities for innovation and creation of the additional business ideas and profit sources. There are two main drivers of the creation of additional business opportunities. First comes from the legal base, where regulatory institution will force to increase the safety of the driving and help in case of the accidents (different services which will adequately react and send signals to the emergency institution to help in case of the any accident or tracking systems which will track the driver’s behavior on the road and report unacceptable driving habits or over speeding). The second one comes from the private business sector as entertainment and infotainment as for example Netflix in your car. In additional high resolution and different vendor navigation systems, tracking systems and etc.
Technologically wise 5G is the major game changer for business model creating the new services and improving existing ones. More precisely, the new technology brings up improvements in the radio technologies for V2X, V2V and V2I communication.
“These enablers will bring components such as network slicing, mobile edge computing, cellular radio-based positioning and tracking, and sidelink. However, these components by themselves cannot guarantee the creation of new business opportunities but is important how they affect
