Building Foundations for Auto Innovation: Saving Lives, $35bn, and the Path to Level‑5 Autonomy

While autonomous vehicles dominate headlines, the automotive industry must first establish a robust connected‑car ecosystem. Over‑the‑air (OTA) software and data updates are the linchpin—an IHS Market study from 2015 projected OTA could save manufacturers more than US$35 billion worldwide by 2022. Beyond the financial upside, OTA enables real‑time transmission of vehicle‑centric data, enhancing safety, cybersecurity, diagnostics, insurance, and even smart‑home integration.

Timeline to Full Level‑5 Autonomy

IoT Now: How far are we from Level‑5?

Scott Frank: Full SAE Level 4/5 autonomy won’t be mainstream until at least 2030. However, we’re already seeing public trials and carefully managed roll‑outs in select commercial settings starting late 2018. Automakers will gradually scale production, with an estimated one million autonomous vehicles annually by 2026—roughly 1% of global light‑vehicle output in 2016.

Safety, Efficiency, and Environmental Gains

IoT Now: What tangible benefits does this level of autonomy bring?

SF: Autonomous cars promise to reduce traffic accidents by over 50%, saving countless lives and property. Their sensors and real‑time data access enable optimized routing, cutting fuel consumption and reducing emissions by up to 60% compared to conventional vehicles.

The Cost of Ignoring OTA

IoT Now: What are the financial repercussions of not developing OTA?

SF: Without OTA, automakers lose billions in potential savings. Manual software updates are labor‑intensive—estimated at $50 per half‑hour of technician time. Across hundreds of millions of vehicles, the global savings reach an estimated $35 billion, as highlighted by the 2015 IHS Market report. OTA adoption is already accelerating, with a SBD Research forecast that a third of new U.S. vehicles will support OTA by 2025, and GM pledging full OTA enablement across its lineup by 2020.

Airbiquity’s OTA Solution

IoT Now: What is Airbiquity doing to address these challenges?

SF: OTA represents a two‑sided coin for Airbiquity. It cuts recall costs, speeds cybersecurity responses, and unlocks post‑sale enhancements. It also powers data collection and analytics, driving operational efficiencies and new driving‑centric services. Airbiquity’s OTAmatic™ simplifies OTA at scale: it manages multi‑ECU software updates, provides policy‑based back‑end tools, and delivers global service coverage. OTAmatic can be deployed in Airbiquity’s Choreo™ cloud, major public clouds like AWS or Azure, or on‑premises in customer data centers.

Data Sharing Across Stakeholders

IoT Now: What types of data will flow between vehicles, insurers, owners, and mobility providers?

SF: Two primary data categories emerge: vehicle operational data and driving‑behaviour data. The former—system and component status—is typically owned by automakers or mobility providers for maintenance, recalls, and cybersecurity. The latter—location, speed, braking—belongs to consumers, who can opt‑in or out. As OTA ecosystems mature, data sharing will grow, but clear ownership boundaries and consumer incentives will be essential.

Edge vs. Cloud Processing

IoT Now: How much data processing should occur in‑vehicle versus remotely?

SF: The optimal split depends on data type, analytics complexity, and network bandwidth. A balanced approach—leveraging on‑board edge computing for time‑critical tasks and cloud resources for heavy analytics—will be key. Efficiently orchestrating this hybrid model will require advanced edge‑to‑cloud strategies.

Real‑Time Analytics and Emerging Automakers

IoT Now: Does real‑time data analysis raise the bar for new entrants?

SF: Absolutely. Both established and emerging automakers that fail to embed real‑time data and analytics into their connected‑vehicle stack risk losing competitive advantage in safety, features, customer service, and operational efficiency.

AI & ML: Shaping the Driver Experience

IoT Now: How will AI and machine learning influence vehicle interfaces and routing?

SF: AI—integrated with voice assistants like Alexa and Siri—will drive command and control, while machine learning will proactively suggest routes and features tailored to individual habits. These capabilities are critical for personalized experiences in vehicle sharing and on‑demand autonomous ride‑hailing services.

Integrating Autonomous with Legacy Traffic

IoT Now: What challenges arise when autonomous and non‑connected vehicles share roads?

SF: As autonomous fleets grow, a transitional period will see mixed traffic. Dedicated autonomous lanes may eventually appear on major roads to enhance safety, but on smaller streets vehicles will share lanes. Some cities may create autonomous zones that exclude non‑autonomous cars. Collaboration among automakers, regulators, and local governments will be crucial to navigate these scenarios.

Scott Frank, vice president of Marketing at Airbiquity in the US, was interviewed by Jeremy Cowan, editorial director of IoT Now and IoT Now Transport.