Are Cars Still Poised to Become the New Smartphone?
Written by Jason Craker on
Eighteen months ago, we drew a provocative comparison between cars and smartphones, suggesting that vehicles were on the cusp of becoming platforms for personalised, service-driven ecosystems. Since then, that analogy has become even more relevant—but also more nuanced.
The smartphone has been with us for nearly two decades. In that time, it has evolved from a mobile communication device into an indispensable tool, capable of managing nearly every aspect of modern life. Cars, meanwhile, are in the early stages of a similar evolution, somewhere between the iPhone 2 and iPhone 3, to borrow a comparison.
Today’s connected vehicles hint at a future where they serve not only as transport, but also as platforms for convenience, productivity, and personalisation—integral tools for navigating daily life. Yet, as with the early days of the smartphone, the industry is still working out how to fully unlock this potential.
What opportunities do software-defined vehicle configurations provide in the future?
The Car as a Platform
The modern vehicle is increasingly becoming a living ecosystem. With over-the-air (OTA) updates, cars now stay “fresh” long after leaving the showroom. The potential is clear: instead of growing obsolete, cars could continually evolve, much like how smartphones regularly receive software updates that enhance functionality.
While hardware limitations will always exist—there are only so many times you can update an ageing CPU—the concept of a car that adapts over time is no longer theoretical. From customising vehicle performance (e.g., temporarily boosting EV range for a weekend road trip) to pay-per-use features like Pay&Go, Advanced Navigation, and, cars are steadily becoming more personalised, dynamic, and adaptable.
But the transformation doesn’t stop there. The car is now being repositioned as a platform for how we live our lives on the move. Autonomous driving aside, vehicles are already creating space for new forms of engagement: work, entertainment, and even wellness. From taking video calls in a parked EV to streaming Netflix while charging, the car is evolving into a multi-functional environment that can also monitor your health!
This shift will accelerate as vehicles integrate more deeply with external ecosystems—from smart homes and energy grids to retailers and service providers. In short, cars continue to become highly connected hubs that make daily routines simpler, smoother, and more intuitive.
Beyond Transport: Driving Value Through Connectivity
As OEMs and tech firms continue to build connected infrastructure—think toll roads, parking facilities, and urban spaces—all capable of communicating with vehicles, a vast world of opportunity opens up. Imagine cars automatically paying for parking or tolls based on passenger numbers, routing drivers through less congested areas, or even pre-ordering your favourite coffee from a drive-thru en route to your next meeting.
These services go beyond mere novelty. They hint at a future where data, convenience, and user personalisation come together to create tangible value for consumers. Just as Hive or Alexa-enabled homes automate heating, lighting, and security, vehicles will soon be making similarly proactive decisions—seamlessly integrating with your lifestyle.
It’s not a leap to imagine vehicles communicating with your smart home. Heading home from a winter swim? Your car could trigger the heating or start filling a hot bath before you even walk through the door. These are not pie-in-the-sky concepts—they are the logical next step for ecosystems driven by customer-centric design and robust vehicle-to-X (V2X) communication.
The Data Revolution (And the Legislation to Match)
Of course, at the heart of all this lies data. The sheer volume of data generated by modern vehicles—location, driving habits, vehicle health, road conditions—is staggering. But up until now, the ability to harness and share this data has been limited by both technological barriers and regulatory red tape.
That’s changing. A major development on the horizon is the European Data Act, which comes into force in September this year. This legislation will empower vehicle users—fleet owners and private consumers alike—to access and share data generated by their connected vehicles. The act aims to drive innovation by opening the doors for partnerships between OEMs, service providers, and third parties, enabling new services and use cases that previously felt out of reach.
Imagine fleets using this data to optimise maintenance, routing, and fuel efficiency—or individual consumers choosing to share their driving habits with a coffee chain in exchange for personalised offers and convenience in an integrated rewards program. Commercial partnerships like this could prove highly lucrative and redefine the customer relationship between consumers, OEMs, and brands.
What OEMs Must Do Next
Despite the promise of technology, there’s still a cultural and operational gap to close. Many OEMs are still fundamentally manufacturers, with retail and service innovation sitting lower on their list of core capabilities. Yet, this connected future—where vehicles deliver personalised, flexible, and intuitive services—requires a shift in mindset.
OEMs need to move beyond the transactional model of selling cars and start thinking like platform providers, curating ecosystems that engage customers long after the initial sale. Whether it’s partnering with retailers for in-car services, enabling fleet customers to maximise vehicle uptime, or simply helping drivers navigate their daily routines more efficiently, the possibilities are vast.
Importantly, this isn’t just about selling data or subscriptions. It’s about creating “Wow!” moments—services that surprise and delight, that feel indispensable, that emotionally connect with customers and create long-term loyalty, with brand advocacy
The Bigger Picture
This evolution also plays into wider societal shifts: the drive toward sustainable energy (with vehicle-to-grid technology turning cars into mobile batteries), the growth of the circular economy, and the increasing push for smart cities.
As vehicles become more intelligent, connected, and collaborative, they will cease to be just modes of transport and become vital nodes in the larger web of modern life.
In the end, the car-as-a-smartphone analogy holds firm—but it’s also just the starting point. If OEMs embrace the opportunity, the vehicle of tomorrow could be as transformative as the mobile phone has been over the last 20 years.
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