Automotive Technology Innovation for 2022 and Beyond

As automotive technology trends continue to create new and exciting opportunities within the industry, tech-savvy companies are building and launching innovations that are changing the auto sector’s landscape. Businesses looking to follow suit and capitalize on the latest trends have a lot to discover, with autonomous vehicles, AI applications, V2X technology, tech-driven vehicle insurance, and voice-operated features taking center stage as some of the most important emerging technologies.

To keep pace with disruptive tech companies that are active in the automotive sector, and convert digital threats into opportunities in 2022, automakers and aftermarket players need to grasp how these developments are impacting their vertical, and see which companies are leading the way.

The tech: Vehicle-to-everything technology

Vehicle-to-everything (V2X) technology is a cover-all term for the connected communication inside a vehicle. The idea is that, via V2X, a vehicle can use its onboard communication tools to deliver numerous benefits to both the driver and vehicle. This technology provides businesses and individuals with:

• Easy vehicle data tracking for insurance
• Increased driver safety
• Improved traffic management
• Predictive maintenance

V2X will help improve driver safety by using big data that can adjust vehicle settings based on current road conditions and identify warnings and road signs. Vehicles should also gain more longevity through the use of cloud-stored vehicle data that can predict potential maintenance issues. Mechanics can use predictive data analytics to offer maintenance suggestions directly through the vehicle or a connected user device.

V2X functionality is also key to an autonomous vehicle’s ability to create a picture of its surrounding environment. Within a specified range, this technology can communicate with nearby vehicles, instantaneously helping to assess the risk of crashes and take evasive actions. This makes it an essential supportive technology for autonomous vehicles as they become a more regular part of the automotive industry in the coming years.

Experts estimated that the global automotive V2X market grew from $517.31 million in 2020 to $619.42 million in 2021, and they expect the market to reach $2.25 billion in 2025¹. Based on these numbers, V2X seems likely to continue experiencing exponential investment and growth.

A company to watch: NoTraffic

NoTraffic is an Israeli company using V2X technology to make roads safer and more intelligent. Their team, composed of “Traffic engineers, AI, cybersecurity, automotive, academic, and urban geeks” are developing an ambitious AI-powered traffic signal platform that will be able to improve road traffic through digital management. The technology connects drivers and shares data that helps reduce congestion, emissions, and accidents on city streets.

Having recently raised $17.5 million in Series A funding², the company has plans to initiate rapid-scale deployment and grow their team. NoTraffic set goals to expand into dozens of U.S. cities by the end of 2021, and has its sights set specifically on European and Asian markets.

A company to watch: Reach

Reach is a digital vehicle maintenance solution provider that aims to improve driver efficiencies across the transportation industries, focusing primarily on intermodal and trucking sectors. Their mobile app helps facilitate driver communication with service centers, resulting in more efficient maintenance workflows. This results in reduced vehicle downtime while maximizing technician productivity.

Reach is partnered with Bridgestone, which has enabled them to further both companies’ “joint vision of advanced solutions for vehicle maintenance and repair.” Together, they have created a one-stop shop for every vehicle maintenance requirement.

The tech: Human-Machine Interface

Human-Machine Interface (HMI) is artificial intelligence (AI) that features easy-to-use high-tech functionality to better operate vehicles. It allows drivers and passengers to interact with their vehicles more easily through touch screens, swipe and gesture functions, and speech recognition.

HMI safety features, such as gesture functions and speech recognition, allow the driver to focus on the road without additional dashboard displays or buttons, and increases overall driving safety and enjoyability.

Car makers are already implementing multi-information displays in vehicles. HMI solutions are enabling drivers to operate their vehicles more efficiently, using technology that, for instance, aids parking, recognizes objects around the vehicle, and alerts drivers when they are being distracted. All the while, passengers can enjoy online streaming entertainment or get work done on their own displays.

Investment and advancement in HMI features should continue to grow as these interfaces become a regular part of every modern vehicle. There will be an increased need for customizable technology for these interfaces, opening up an entire new sector of business within auto tech in what experts believe will become a $4.5 billion industry by 2026³.

A company to watch: Elektrobit

Elektrobit (EB), is a Finnish company developing HMI technology that has been installed in millions of cars for manufacturers such as Audi, Volkswagen, and GM, making it a big automotive technology player.

The company manufactures in-car sensors with an advanced HMI platform that gives the driver a real-time augmented reality experience via a heads-up display (HUD). The HUD provides visual information such as speed limit changes, upcoming cornering strategies, and helps drivers visualize the potential movement of other road users.

Their EB Cockpit System Solutions support the development of next-generation in-vehicle user experiences—from specification, de- sign, and conception to production engineering and integration of hardware, software, and third-party applications. The new solutions allow car makers to offload the creation of custom cockpit designs to EB’s team of experts.

The tech: AI-based vehicle insurance

While it may not grab the attention of autonomous vehicles or augmented reality interfaces, vehicle insurance is also going through tech-powered changes that are nothing short of revolutionary.

Experts predict⁴ that in the next decade vehicular AI will be able to suggest routes that are safer and trigger instant reductions in monthly insurance premiums; and it will do so in real time. When an accident occurs the car will be able to instantly determine the extent of the damage, after which the driver can send photos to the insurance company and, within minutes, receive claim approval via their car’s dashboard.

While implementation of this slick end-to-end process is still on the horizon, the technology is now available and ready for implementation. With $300 billion available annually in the automotive insurance market, the companies arriving earliest to this high-tech party will be able to reap the benefits from the start.

A company to watch: Qapter

Developed by leading automotive and insurance solutions provider Solera, Qapter is “the first globally available AI-based solution enabling end-to-end automation of the claims workflow.” The solution melds computer vision and machine learning algorithms to automate vehicle damage detection and repair estimates quickly and accurately.

In Q1 2021, Solera rolled Qapter out to auto repair and body shops across North America and Europe. These customers can now enable their appraisers to produce and deliver estimates in less than three minutes. Harnessing advanced AI tech, Qapter can “detect damaged parts, determine the type and severity of damage, define appropriate vehicle manufacturer repair operations, and create an estimate based on these predefined repair operations.” As a result, the solution’s users are able to resolve claims more quickly, shortening claim life cycles for all parties, from insurers and body shops to assessors and vehicle owners.

The tech: Autonomous long-haul trucking

The era of fully autonomous vehicles dominating roads is drawing near. While much of the public’s attention is on the thrilling prospect of a car share service like Uber scooting commuters around town sans human driver, driverless commercial trucks are closer to becoming mainstream.

Two companies leading the way in developing driverless commercial transport vehicles, Aurora and Kodiak, expect their trucks will be on American roads by 2023. This is a full year ahead of the estimated release of driverless passenger vehicles. Manufacturers have shifted their focus to driverless long-haul trucking over driverless taxis for two key reasons: the rise of e-commerce, and more technologically feasible development and implementation⁵.

This strategy of focusing on driverless trucks makes sense, considering autonomous vehicle development took on an estimated $120 billion in investment from car companies between 2017 and 2019⁶. Manufacturers are now ready to get their technology out into the world. The potential financial gains of getting into the commercial trucking sector are huge, raking in a whopping $791 billion per year⁷, giving automotive companies plenty of motivation to get vehicles on the road.

A company to watch: Aurora

Aurora is an American technology company founded by Chris Urmson, former lead engineer for Google’s self-driving car project. The company’s plan is to offer its fleet to logistics companies looking for trucks to deliver goods via a subscription program. The subscription will include Aurora Driver software, the Aurora Beacon mission control system, and a roadside assistance and extended support program called Aurora Shield.

With its rapidly expanding workforce, $2.5 billion in cash to spend, and a recently received $13 billion implied valuation⁸, Aurora is at the forefront of companies bringing driverless vehicle innovation.

How U+ can help develop your company's automotive technology

It’s a thrilling time in automotive technology, as long as your company has the right partner to help deliver the technology required. We at U+ understand that innovation is essential, as it enables companies to increase revenue, create new revenue streams, reduce costs, and improve the customer experience. From idea to launch, we have the startup DNA and team to help ensure your company’s innovations succeed.

The U+ Method can efficiently and effectively lead the development, implementation, market adoption, and improvement of innovations in any sector. To date, we have used this method to bring 100+ products to market, creating over $1 billion in value for Fortune 1000 companies, including several businesses in the auto industry. Our success stories in this space include driverless car fleet management software that we developed for Škoda Auto and an online used car sales platform we created for European Auto Group.

To learn more about the U+ mindset and approach, check out some of our many articles, and feel free to reach out to our CEO, Jan Beránek, to start a discussion about how we can help your company’s innovations succeed.

Footnotes

• Report Linker, Automotive V2X Global Market Report 2021: COVID-19 Growth And Change ↩

• Tech Crunch, Traffic management platform NoTraffic raises $17.5M in Series A to double team size ↩

• GlobalNewsWire, Automotive OS Market to hit USD 4.5 Bn by 2026: Global Market Insights, Inc. ↩

• McKinsey and Company, Insurance 2030—The impact of AI on the future of insurance ↩

• Reuters, Kodiak targets driverless trucks in 2023, partners with SK for Asian market ↩

• McKinsey and Company, The future of mobility is at our doorstep ↩

• CNET, Truckers make the world go round. Invisible truths you didn’t know about trucking in America ↩

• TechCrunch, SPACs keep rolling as autonomous vehicle startup Aurora target blank-check debut with $13B valuation ↩