How To Play The Connected Car Revolution

As technology continues to advance, consumers are demanding more and more of their devices to offer some type of connectivity element. From washing machines to lightbulbs, manufacturers are working to integrate technology into their products in order to give consumers a more streamlined experience. No sector has been more focused on this kind of integration than the auto industry, which has been working to incorporate as much technology as possible into the latest car models. It appears that cars are only going to continue getting smarter in the years to come, so many investors are looking for a way to jump on board the connected car revolution by betting on firms with a good foothold in the industry. Communication As cars become smarter and come equipped with self-driving options, communication will be key. Companies like NXP Semiconductors NV NXPI are working to solve communication problems by creating chips that are able to send and receive information with similarly equipped cars. Not only is the firm working to allow cars to communicate with one another, but its chips are also capable of helping with things like traffic planning by allowing cars to send traffic flow information to city infrastructure. Cloud Technology Cloud computing has been a hot topic over the past year as companies from every sector look for ways the technology can improve their operations. The auto industry is no exception, Harman International Industries Inc. HAR says it is working to develop cloud services for connected cars. The company believes that by storing drivers' data like entertainment options and driving information in the cloud, it can provide a more positive connected experience and offer tighter cybersecurity and safety protection. Car Makers Of course, traders can also invest in the carmakers themselves. Tesla Motors Inc. TSLA has emerged as a favorite in this arena as the company already has some of the most advanced connected car models on the market. However other firms like General Motors GM also have a foothold in the market with long-standing services like OnStar that have been continuously updated.