Why are Tech Companies Getting into Cars

Big tech compares are increasingly getting interested in the automotive industry. With a shift in consumer behaviour and a rising interest in electric vehicles consisting of various connectivity features, many tech companies plan on venturing into cars.  

Why are Tech Companies Getting into the Automotive Industry

In the future people are likely to use all-electric vehicles (EVs) at an increasing pace. Electric vehicles are connected with batteries and rely on software. Naturally, these software are developed and aided by tech companies. 

Case in point: cars with Apple car play, Android Auto, Google Alexa, smart infotainment system and other technical car features. 

Big tech companies are into cars already via these products, they have done proper research and development for various modern car features. Just like phones, tech companies foresee eventually updating cars in a similar manner. It’s a path that tech giants see as relevant, scalable and it is something they can build on with their current technical setup.

Following are some popular reasons why big tech companies are into cars.

Electric Vehicles are the Future

As mentioned earlier, electric vehicles will be used at a much larger scale to combat global warming worldwide. Thanks to auto manufacturers like Tesla, many other car companies are following suit and working on going electric. This makes all more sense for electronics companies like Sony or Apple to compete in the electric vehicle market. As it is, they are offering several infotainments and connectivity features in modern cars.

Another reason big tech companies are into cars or the automotive industry is that BEVs will not just grow exponentially amongst consumers, but they will have exponential growth in the public transportation segment as well. 

Big Tech Companies Already Have the R&D

While the concept is new, electric vehicles are expected to have a wider audience in the future. The probability of growth is tremendous. Cars are getting more reliant on wiring, batteries and programming instead of combustion engines. Therefore, big tech companies like Microsoft and Apple who have already mastered cellular technology and computers, feel they have enough knowledge, R&D and expertise to venture into the automotive industry and make a mark of their own.

Modern Cars Work With Computer Technology

The saying “computers on wheels” is already an outdated expression. In the future cars will become “server on wheels” with future electrical architectures. Thanks to central embedded artificial intelligence capabilities (AI in cars) compute clusters and connected experiences delivered via tech ecosystems and the concept of self-driving cars, big tech companies see entering the automotive industry as scalable. 

This direction directly leads to the tech giants like Apple, Microsoft, Apple, Amazon, and Sony. 

Electric Vehicles are Familiar Territory

EVs are powered by lithium-ion batteries, just like the mobile devices we carry with us everywhere. Mobile devices that are manufactured by none other than big tech companies such as Apple and Android. 

Information technology in the automotive industry makes electric motors a familiar territory for major electronics conglomerates. Case in point: Tesla has integrated its mobile applications to control Tesla autopilot cars. EVs share much of the same DNA as mobile phones and this is why big tech companies are into cars.

In 2016, Elon Musk – Tesla’s owner, told BBC, that it is an “open secret” that Apple is making a competitor electric car. On the other hand, several engineers said something similar. A reliable Apple analyst Ming-Chi Kuo predicted that Apple is working on an Apple Car and it is expected to be launched between 2023 and 2025, despite rumors about Apple ceasing its work on an autonomous vehicle and is instead focusing on software.

While Apple’s official website and other tech companies like Google have not revealed such plans officially. The insights from various auto experts and engineers point towards tech giants venturing into the manufacturing of electric cars.

Electric Vehicle Startups are Looking for Funds

Another expectation why tech giants are getting into cars is that they have the money. The generous pool of companies willing to get on the electric vehicle track lack funds. That said, big tech companies like Apple and Microsoft have the money to easily fund such companies to garner capital. 

That is all about why tech companies are getting into the automotive industry. If you are willing to purchase an electric car, take a look at these Tesla cars for sale in the UAE. You can also find a variety of other cars for sale in the UAE. 

If you like what you read, stay tuned to your favourite auto blog.