The impact of vehicle electrification and connectivity on electrical system design

Just over  100  years ago,  Henry  Ford disrupted the auto industry of the time with the introduction of the mass-production moving assembly line. To say that the auto industry is again in flux is almost cliché.   
 
Several technology and business transformation trends are in play, signaling substantial long-term changes. Although still in early stages,  their confluence is already having a  profound effect on automotive companies and the future of the mobility landscape as a whole.   

Electrification

Many consumers recognize the value of electric vehicles in reducing environmental impact. A survey from AAA shows that 20% of drivers want an electric vehicle and will likely choose an EV for their next vehicle, up from 15% percent in 2017. However, limited travel range of today’s electric vehicle and their high purchase cost—even when considering tax relief (which eventually be phased out)—erect tall barriers on the road to broad adoption.

Today, less than 5% of vehicles sold in the US use electric propulsion. While US buyers remains somewhat tepid about electric vehicles, China's electric car market is booming, growing twice as fast as the US. Aiming to meet air quality standards by 2035, China is driving large-scale transition to EVs through market initiatives, charging infrastructure and strict policies.

By 2022, the combined sales of EVs and internal combustion vehicles in China will represent over half of global car sales volume. The Chinese auto market represents an enormous market opportunity for American and European OEMs that are investing heavily to seize the opportunity, and so do many startups. Angel List lists nearly 600 electric vehicles startup companies in the US, with an average evaluation of $4.2 million. But competing with dozens of indigenous Chinese OEMs and suppliers and gaining market share, especially in the non-luxury vehicles segment, is not going to be easy for foreign manufacturers.

Connectivity

Internet-connected infotainment systems are platforms for delivering an increasingly rich set of content and services to drivers and passengers. While OEMs have been offering connectivity, telematic services and infotainment systems for many years, monetizing these services continue to be weak. But this is about to change.

Today’s consumers demand connectivity, sophisticated mobile apps and rich online content. An Autotrader study shows that connectivity is becoming an important factor in car buying decision. According to this study, 48% of car buyers prioritize in-vehicle technology over more traditional considerations such as brand name, body style and performance.

In the past, OEMs offered sophisticated head units and brand-name high-end audio systems, but these were mostly available in high-end models, assuming luxury car buyers will be willing to pay a premium for high-tech features and expensive annuity-based services, a model that has seen only moderate success.

Today, as the Autotrader study shows, 56% of car shoppers, especially the under-35 demographic, know exactly what in-vehicle technology they like and are less willing to compromise on the features they want. Realizing this demographic shift, OEMs are moving to better align the value proposition to demographics by adding connectivity and in-vehicle features across their portfolio, including their non-premium brands.

Globalization and Personalization

Globalization and changing demographics are forcing OEMs to innovate differently. In- vehicle software-defined systems allow automakers to offer a wide range of features to better meet market demand and cater to the ever-changing tastes and whims of customers across different geographies and age groups and help create and bolster brand differentiation.

The ability to tailor functionality seemingly effortlessly to markets and demographics at minimal manufacturing cost is tempting for marketers and design engineers alike. Driven to outdo the competition, automakers rush to implement new performance, comfort and safety features. Some creative marketers and industrial designers envision a configurable and customizable dashboard that ditches most hard buttons in favor of an iPad-like console and augmented reality-enhanced information—an idea many engineers eschew. But one thing is abundantly clear: electronics and software are defining the competitive battleground of the future.

Complexity Outpacing Capabilities

Automobiles have always been an assemblage of mechanical, electrical, hydraulic and pneumatic subsystems. These systems were unsophisticated, and their integration was sufficiently straightforward that they could be designed, prototyped and validated using commonly-used mechanical engineering methods.

Automotive design engineering began experiencing a major shift in the 1980s, as advanced vehicle electronics and embedded control software were introduced into cars to handle increasingly stringent emission regulations.

Modern vehicle control systems are no longer just a limited number of loosely-coupled subsystems with simple interfaces. Nowadays, embedded control and user interface software govern practically all aspects of both vehicle operation and driver experience. They are large-scale software-controlled concurrent and distributed systems with complex system interactions that are difficult to simulate and test thoroughly.

Transform the Organization

As the entire automotive industry is undergoing transformational changes, product organizations must also transform and modernize century-old thinking to be better equipped to address the new challenges in product development. Some methods and practices that have been for decades may not suffice anymore. And some of these have been in place for so long that organizations will find it difficult to wean from and evolve swiftly to tackle the challenges of 21st century automotive manufacturing. Automakers need to invest in realizing integrated processes and tools environment that allow, and, in fact, encourage the mechanical, electrical and software domains to intelligently collaborate to ensure first-pass success, while reducing cost and time to market.

Automakers should focus on enhancing product lifecycle thinking, enabling a digital thread of information and decision-making processes that allow all stakeholder gain accurate and unbiased insight and drive better product design, supply chain and customer-facing decisions.

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