Category: Blog

29 June, 2021 . 6 mins read

The Rise of Demand-Responsive Transport and the Technologies Behind It

Discussions surrounding transportation technologies have always been dominated by the automotive industry, with electric vehicles and autonomous driving being the two hottest topics recently. But we seldomly hear about how these technologies can be applied for public transit and mobility services. There is no doubt that the automotive industry has been driving innovations and breakthroughs through electrification, automation, and connection. Yet, the automotive industry is only one part of the mobility scene. Other forms of public and private transit make up a significant part of our daily travels as well. Therefore, it is equally important to apply the technologies to these industries. To truly improve the quality of mobility for all, we need to think beyond the perspective of drivers and seek ways to make travel better and more enjoyable for all kinds of passengers.

The good news is that there are many firms in the industry actively working on applying these transformative automotive technologies to other areas of mobility. Among them, demand-responsive transport (DRT) is one of the fastest-growing fields, with the potential to revolutionize mobility for all.

What is Demand-Responsive Transport?

For generations, public transit has always been a supply-oriented service, in which the time and location of supply is fixed on a schedule; ultimately, the user needs to adapt to the schedule to use the service. Such services are quite inconvenient for people living in suburban and rural areas, and nearly impossible to use for those with accessibility needs.

Demand-responsive transport (DRT) has the potential to solve these problems as it responds to individual demands by either matching passengers with the nearest supply available, or dispatching supply directly to serve them. A centralized system collects real-time location and occupancy data from every vehicle in the network, then uses these data to calculate optimized matches.

DRT can take many forms and opens a wide range of business opportunities. For instance, it can either be directly operated by a fleet owner or be entirely decentralized where drivers and riders meet through a third-party platform. In fact, one of the most well-established DRT services is ridesharing platforms, where independent drivers use their own cars to offer services to passengers. The role of the platform is to match the demand of the passengers with the supply from the drivers. These ridesharing platforms have been well received among urban millennials and have become a popular alternative to driving. However, apart from ridesharing platforms, there are many other applications of DRT that are less known. In this article, we will introduce how DRT is applied in a variety of mobility services.

Demand-responsive public transit

Believe it or not, DRT has already been applied to many of our public transit systems. Many public transit operators use real-time fleet data to increase efficiency and reduce the cost of fixed-route services. This is widely used for bus routes as buses are highly susceptible to unexpected traffic situations. The fleet managers receive data with regards to time, location, and vehicle occupancy rates, and redirect buses based on the data. This is especially useful during times of single-bound heavy traffic, where there can be many buses stuck in traffic going in one direction while the other direction without traffic is left with no buses at all. Under such situations, the fleet manager could ask the passengers of a relatively empty bus to get off and wait for the next bus behind, while redirecting the bus for a U-turn to serve the opposite direction.

Of course, the U-turn method is far from perfect since it would cause inconvenience to a small group of passengers. But the advanced fleet management systems today allow for more automated monitoring by studying the data patterns to predict times of unbalanced traffic and dispatch buses accordingly ahead of time.

Personalized transit services for rural and underpopulated areas

It has always been difficult for local governments to provide public transit to rural areas with low population density. Residents living in these areas might only get a few buses a day arriving at their stop, making public transit unusable. In this case, many municipal governments collaborate with local startups to establish transit-booking platforms for rural residents. Instead of running on fixed routes, the customers can either call or use their mobile apps to book their trip ahead of time. The service will then be dispatched to accommodate the specific needs of each customer. Instead of operating a bus on a fixed route, these transit-booking services can significantly reduce unnecessary operating costs while making mobility easier for rural residents.

On-demand transit services for people with accessibility needs

In many parts of the world, publicly funded paratransit services can be very limited or entirely absent. Even in developed countries with well-established paratransit services, the response time can be slow and reservation ahead of time is usually required. With the help of vehicle connectivity and advanced fleet management systems, more responsive and convenient paratransit services are slowly being tested around the world.

For instance, over the past year, AUTOCRYPT has worked with 2U Social Cooperative to establish a barrier-free transportation assistance platform for residents with accessibility needs in the city of Busan. Equipped with AUTOCRYPT’s fleet management system, the platform monitors the location of all vehicles in real-time, whereas the customers can request a vehicle anytime from the mobile app. Different from other mobility platforms, it also offers personalized accommodation such as text-to-speech services for those with vision impairments. Secure and automated payment is also supported.

demand responsive transport 2u
UI for AUTOCRYPT’s demand-responsive transport app, made for 2U Social Cooperative

The Technologies Behind Demand-Responsive Transport

The key to demand-responsive transport is internet connectivity and data sharing. To match demand and supply, fleet managers need to have access to the real-time location and onboard capacity of every vehicle, as well as the pickup location of every passenger. An advanced fleet management system makes this process even simpler as the system automatically analyzes the data to find the optimized match.

Clearly, demand-responsive transport systems need to share and process a lot of data, which may contain the personal and payment information of the passengers and drivers, as well as other information on driving behaviour and vehicle maintenance. Hence it is crucial to have the necessary security measures to keep communications safe from hackers and other external threats. As a result, encryption and authentication technologies are just as important as the internet connectivity itself.

AutoCrypt FMS builds fleet management solutions for demand-responsive transport by putting security as the number one priority, actively working with firms who wish to provide smart mobility services. By building a secure foundation for all vehicle-related connections, AUTOCRYPT seeks beyond the automotive industry and looks forward to bringing smart mobility for all. 

To stay informed with the latest news on mobility tech and automotive cybersecurity, subscribe to AUTOCRYPT’s monthly newsletter.

7 June, 2021 . 7 mins read

The Changing Automotive E/E Architecture and What it Means for the Supply Chain

Computer on Wheels: The Software-Oriented Car

The E/E architecture of the car is changing dramatically. As the common saying “computer on wheels” suggests, automotive technologies are now divided into two streams: the “wheels” and the “computer”. The “wheels” represent the hardware, the good old engines and hydraulics that keep the car rolling, while the “computer” represents the software programs that give instructions to the hardware on what to do. Cars are literally becoming computers, where software programs utilize hardware resources to deliver results.

This is not to say that hardware is no longer important. Of course, the core of the vehicle still lies in its hardware, which serves as an ultimate indicator of its performance. However, as OEMs continue to introduce software-enabled features from adaptive cruising to hands-free voice command, the average car buyer is caring less and less about horsepower and torque, but more about tech features and carbon footprint. As a result, most of the innovations and breakthroughs in the automotive industry today occur on the software end, guided by four major industry trends: connectivity, electrification, automation, and mobility-as-a-service (MaaS).

Likewise, the more consumers demand these features, the more OEMs must focus on improving them. This cycle has not only brought significant changes to the car manufacturing process but has forced the OEMs and Tier 1 suppliers to redefine their roles and responsibilities, leading to a ripple effect down the entire supply chain.

In this article, we will look at some major changes and trends with regard to vehicle architecture.

Centralization of the E/E Architecture

Up until recently, Tier 1 suppliers have been responsible for both hardware and software. They supply OEMs with complete vehicular parts integrated by the necessary software, while software firms mostly acted as Tier 2 suppliers who served their technologies to the Tier 1 suppliers. This architecture worked because when electronic systems were first brought into cars, they were simple programs that served as add-ons to the existing hardware. Each of these systems were built into an electronic control unit (ECU), which would then get integrated into the hardware. Individual ECUs have very low computing power such that every ECU is designed to control only one part of the hardware. Take the remote key fob for example: the ECU that manages the door lock system receives the signal, then instructs the door on what to do.

However, as more and more sophisticated add-on features were built into the car, the traditional architecture has become very costly and inefficient. Drivers today expect their smart keys to not only control the door lock system, but also allow them to remotely switch on the car, adjust the climate, and even give the car instructions for self-parking. This means that the smart key features alone require up to a dozen of ECUs each in charge of a single function.

To support even more complex features like the adaptive driving assistance system (ADAS), which requires the cooperation of many cameras and sensors, a typical car today can contain up to a hundred ECUs. Clearly, this scattered vehicle architecture is becoming increasingly expensive and unsustainable because there is simply not enough space in a car to accommodate hundreds of ECUs and wires.

This has led to a major change in the electrical and electronic (E/E) architecture of the car. Instead of having an entirely distributed model, with every ECU serving a particular function, the industry is moving towards a centralized E/E architecture. OEMs are starting to group all ECUs by their domains of service in a process called domain consolidation. For instance, all ECUs and sensors with regards to the powertrain are grouped into one domain, while all these with respect to the infotainment system are grouped into another domain. The entire domain is then controlled by the domain controller, which consolidates all the functions within that domain to ensure optimized system performance. Lastly, a gateway collects all information from the domain controllers and communicates such information with external parties when necessary.

This centralized E/E architecture is expected to significantly reduce the number of wires and increase the overall computing power of the vehicle. Expected to become the predominant vehicle architecture by the mid-2020s, this new model will help OEMs reduce manufacturing costs and free up room for more software features to further enhance the capabilities of autonomous vehicles, contributing to a seamless driving experience.

Segregation of Hardware and Software

The increased complexity of software-enabled features has led to another change: the separation of hardware and software in the car manufacturing process. As the E/E architecture becomes centralized, it is no longer efficient to build hardware parts with individual software programs attached. Manufacturers now need to build more complete software programs that oversee a whole domain of functions. As a result, it becomes more efficient to segregate the manufacturing process of hardware and software components.

Therefore, instead of having a single piece of software added onto every hardware element, both the hardware and the software are treated as core components in the architecture. Additionally, with the increased sophistication of software technologies, software components need to be developed on specialized and segregated platforms from the hardware.

Soon after, the industry may reach a point where a few software programs take control of all the functions of the hardware, just like how a single operating system controls all the hardware of a computer.

What it Means for the Supply Chain

For many decades, the automotive supply chain operated like a tier system. The OEMs were at the top of the pyramid, after which Tier 1 suppliers like Magna, Bosch, and Continental supplied completed parts to the OEMs. Raw materials were provided by Tier 2 suppliers. With a sudden surge in software needs throughout the past two decades, software firms joined the supply chain at Tier 2. These firms provided middleware and software development kits for every hardware component and sold them to the Tier 1 suppliers so that they could integrate them into the hardware. Many of the Tier 1 suppliers also set up their own software divisions or acquired software firms to enhance their power.

Today, most Tier 1 suppliers are responsible for integrating software functions into hardware parts, after which the finalized parts are sold to the OEMs. In other words, Tier 1 suppliers oversee the software integration process, while OEMs have the power of determining which parts to use.

However, the current model is facing another disruption. As the E/E architecture gradually becomes centralized, software programs are clearly becoming more crucial to the car. At the same time, the segregation of hardware and software means that more specialized software providers will emerge in the market. The role of the OEMs will be to consolidate the software platforms into their vehicle hardware. Currently, most software components are non-differentiated, meaning that they could be installed across different vehicles. As the centralization process continues, a significant portion of software will be differentiated, which means that they would need to be programmed specifically for individual car models. As such, it is crucial for OEMs to work closely with the software suppliers because once a software platform is fixed, the entire system would need to be built on that platform. Once a software platform is locked up, it becomes very expensive for the OEM to switch to other alternatives.

Clearly, these changes will likely disrupt the tier system and flatten the automotive supply chain so that suppliers of hardware, software, and semiconductors, along with OEMs, play equally important roles. Instead of having one supplier working on top of the other, horizontal collaboration is more important than ever. Eventually, the automotive market could look very similar to the PC and smartphone markets, where hardware manufacturers consolidate components provided by semiconductor firms and software companies.

AUTOCRYPT and Its Role in the Automotive Supply Chain

An automotive cybersecurity vendor, AUTOCRYPT is taking a crucial role in the software end of the vehicle manufacturing process. As an end-to-end solution provider that covers every dimension of security from in-vehicle and V2X, to EV charging and fleet management, AUTOCRYPT is actively working with OEMs and infrastructure developers to build a strong foundation for connected mobility by offering a complete cybersecurity ecosystem.

To stay informed with the latest news on mobility tech and automotive cybersecurity, subscribe to AUTOCRYPT’s monthly newsletter.

27 May, 2021 . 8 mins read

The Future of the Car: A Paradigm Shift of the Century

A key characteristic of the fourth industrial revolution is that conventional machines and electronics are reinvented or combined into “smarter” all-in-one products, blurring their original definitions. For instance, the smartphone was reinvented by combining a conventional cellphone and a computing device. The smartwatch was created by combining a conventional watch and a computing device. The smart speaker was a combination of a conventional speaker and a computing device. The list goes on. Instead of drawing new things out of scratch, the fourth industrial revolution seems more like an overhaul to our existing world, where we reinvent existing items and redefine their purposes, often by combining them with computing capabilities and connecting them to the cloud. What’s more interesting is how people’s perceptions and attitudes towards these products change as they experience and interact with them. Since these reinvented products tend to serve a variety of purposes that overlap with one another, users have more options available at their hands to do the tasks needed, making daily lives more seamless.

The automotive industry is no exception. However, changes here are less visible as they occur at a slower pace. Perhaps it is because cars are relatively expensive items with longer lifecycles, or because cars directly determine our physical safety, or that cars have been around for much longer compared to other electronic devices and appliances. Indeed, since the world’s first engine-powered vehicle was invented by Carl Benz in 1885, essentially the same car concept has been with us for more than a century now. Yes, the appearance of cars has evolved considerably, but their functionalities and benefits have remained unchanged. For over a century, people have viewed the car as a mode of transportation for people and goods from point A to point B.

With the fourth industrial revolution, we are finally starting to witness a change to the century-old definition of the car. This enormous paradigm shift can be characterized by several seemingly unrelated industry trends.

2000s: Car Tech

For many decades, the only digital technology the average car had was the radio. Yet, starting in the 2000s, new technologies began to emerge, one after the other. From GPS navigation to Bluetooth, hands-free calls to voice command, phone mirroring to video streaming, the car had become a sophisticated computer with countless features.

As people interacted with these new features, their perceptions and expectations changed. These changes made it more challenging than ever for automakers to build a satisfactory car. In the past, a car was judged only by quality, comfort, and performance. Excelling any two of the three aspects would pretty much guarantee success. This was how big and prestigious automakers survived all these years of competition. But even the big names are facing difficulties today because consumers are so used to car tech and demand more and more of these tech features manifested in the most intuitive and useable manner.

The increased demand for car tech signaled the beginning of the paradigm shift; cars were no longer a simple means of transportation, but an experience to enjoy.

2010s: The Growing Popularity of SUVs

This is by far the most visible change that can be easily observed by anyone attentive to the road – sedans are being taken over by SUVs. Almost every automaker worldwide has reduced sedan lineups, favoring prioritization of the rollout of SUVs. Even OEMs that traditionally focus on the niche market are now abandoning sedans and moving to SUVs as an attempt to capture the mass market. Porsche is a typical case where the brand repositioned itself from a sports car brand to a brand focused on luxury SUVs. Even Rolls Royce, Bentley, and exotic makers like Lamborghini are adding SUVs into their flagship lineups.

Statistically, the market share of SUVs has increased dramatically over the past decade. Between 2010 and 2019, the global market share of SUVs in total car sales increased from 17% to 41%, with the figure reaching as high as 50% in the US. In a matter of a decade, SUVs have become the most popular car segment on every continent.

Why are SUVs becoming more popular? While there are many hypotheses, most of them point to a change in the general public’s perception. SUVs can make people feel more powerful, and while sedans are built with performance in mind, SUVs allow for more space and a greater onboard experience, rather than the drive itself. Therefore, since the paradigm of the car is shifting away from driving and more towards the onboard experience, there are simply fewer and fewer reasons to buy sedans over SUVs.

2020s: Environmental Responsibility

For decades, cars have been blamed as a major culprit for climate change and global warming. This forced the industry to seek more sustainable options, going from gasoline to hybrids and now towards electric. The electrification trend is less related to the car itself, but more of a result of external pressure.

Why has the electric car gained popularity in such a short period of time? This can be attributed to multiple reasons, such as better battery technology, success in Tesla’s marketing campaigns, and increased environmental awareness worldwide. But the most critical reason behind this trend is that people are gradually seeing cars as more of an innovative tech than a conventional machine. Since the paradigm shift has already blurred the definition of the car and changed public perception of what a car should be like, it is now a lot easier for people to adopt electric vehicles. It is also easier for EV makers to experiment with bold and exotic designs.

An interesting phenomenon is that the more people interact with electric cars, the more their perceptions of the car will shift towards them. This again further accelerates the process of EV adoption. Based on this effect, it certainly won’t be long before EVs surpass ACE vehicles in sales.

2020s: Autonomous Driving

Autonomous driving has been one of the most controversial topics in the automotive industry due to a wide range of concerns on safety and legality. Now, with the advancement of big data and artificial intelligence, along with the increased stability of the cellular network, the public is now finally ready to trust the car to drive itself. Even though most of the current semi-autonomous vehicles rely on cameras and sensors, this is about to change as V2X technology starts to roll out in newer vehicles. When V2N technology gets adopted by the mid-2020s, many of the vehicles on the road are expected to reach full autonomy.

Again, the public’s increased acceptance for autonomous driving is not only due to technological advancement, but rather, caused by the paradigm shift. Reemphasizing the point that cars are now more associated with their onboard experience rather than the driving experience, people are more willing to let the car do the driving and focus themselves on the cabin experience.

2020s: Mobility as a Service

The paradigm shift has redefined the car to become less of a transportation tool and more of a mobility experience. Now some may ask, what about those who only want a simple transportation tool without having to own a bunch of add-on features? Those needs can be answered by a new market: mobility-as-a-service (MaaS).

For those who choose to not purchase the complete experience and only want a minimalistic ride, MaaS is becoming an appealing alternative to owning a car. With the help of big data and machine learning, ride-hailing and ridesharing services are becoming increasingly popular among those who do not like owning cars. Advanced fleet management systems allow the operator to perfectly match vehicle supply to passenger demand, dispatching the perfect number of vehicles to each area in need, and automatically carpooling those on the same routes. These on-demand services will completely transform public transportation so that people no longer need to look for bus stops and are no longer confined to living near subway lines.

The New Paradigm: A Lifestyle on the Go

In essence, the car is becoming less and less of a transportation tool and more of a mobile home characterized by entertainment, convenience, and comfort. With more and more workers working remotely, people are now having more time and freedom to live and travel to any place they like. The car represents this dynamic lifestyle, offering a private space that feels like home, with all the enjoyment, convenience, and comfort of home. Only automakers that can best adapt to the paradigm shift will survive the 2020s.

14 May, 2021 . 6 mins read

V2N, the Game Changer for Mobility

In a previous article DSRC vs. C-V2X: A Detailed Comparison of the 2 Types of V2X Technologies, we explained the differences between DSRC and C-V2X. We mentioned that since these two technologies rely on different wireless communication protocols, there has been no controlled side-by-side comparison on their efficacy. Despite so, based on their real-world usage today, the consensus is that both DSRC and C-V2X are fully capable of direct V2X communication.

However, industry policymakers, infrastructure developers, along with automotive manufacturers, are still racing towards C-V2X deployment even though DSRC is a more mature technology that has already undergone all testing stages. The reason for favoring C-V2X, as we stated last time, is that despite both technologies having similar capabilities today, it is unlikely to remain so in the future. Those in favor of C-V2X argue that the technology provides more room for future improvements and will eventually be much more useful than DSRC.

Hence, in this article, we will explain what exactly the potentials of C-V2X are, starting with the table below:

On the right side of the table, we can see that C-V2X can be broken down into two different modes. The first is direct C-V2X mode. Utilizing the PC5 interface, direct C-V2X is based on unicast communication and operates under the same mechanism as DSRC does. In other words, it enables a vehicle to directly send and receive wireless messages to and from other vehicles and roadside units, given that they are within a certain distance. This kind of unicast communication is what V2X was originally meant for.

All the potentials of C-V2X lie in its second mode, V2N (vehicle-to-network) mode. V2N utilizes a network communications interface called the Uu interface, which essentially enables broadcast communication via existing cellular mobile networks. The ability to connect to the mobile network is a crucial feature that WLAN-based DSRC technology cannot provide. The illustration below shows how direct C-V2X and V2N work together.

Despite all the potentials, V2N technology is not ready for deployment until around 2025. Without V2N, direct C-V2X and DSRC are very comparable in the meantime. Thus, many automakers still choose to implement DSRC in the short run given all the sunk cost invested into the technology.

Nevertheless, key industry players are developing C-V2X to keep themselves prepared for the game-changing potentials of V2N, because broadcast communication will certainly take mobility to the next level.

V2N and Its Potential Benefits

Direct V2X technology – both DSRC and direct C-V2X – is quite capable of ensuring a safe and seamless autonomous driving experience. Then why do we still want to connect vehicles to the mobile network? Skeptics believe that V2N is the result of mobile network operators lobbying policymakers to secure themselves a new revenue source. This is undeniably one of the driven forces for V2N, but there are also many other positive reasons for adopting V2N.

Easy and cheap implementation. Implementing V2N is not difficult. Since V2N operates via cellular mobile networks, a large part of the physical infrastructure is readily available. Most urban areas already have LTE-capable cell towers and are slowly upgrading into 5G infrastructure. If we need the very same technology to provide internet connections for smartphones and IoT, we might as well just use it for vehicles – there is very little reason to not use a technology that is readily available. Additionally, adopting V2N is relatively cheap because both the PC5 and Uu interface can be easily combined into a single C-V2X chipset. Therefore, automotive OEMs and infrastructure developers do not need to spend extra to enable both modes.

Smoother traffic. Cooperative Intelligent Transportation Systems (C-ITS) rely on real-time data sharing to make traveling on the road safe and seamless. When all cars are connected to a mobile network, it becomes easier for C-ITS to provide timely and reliable information about traffic conditions and road hazards. For instance, under DSRC or direct C-V2X, cars will only receive information on the approach of an ambulance when it approaches within a few hundred meters. This may not be a sufficient distance to ensure every vehicle gets out of the way in time, especially under heavy traffic. However, when all vehicles are connected to the mobile network, the entire traffic can prepare for emergency situations well ahead of time.

More powerful route planning. Again, since DSRC and direct C-V2X only allow a vehicle to communicate with nearby units that are within a “relevant” distance of usually 300 to 500 meters, it cannot foresee situations beyond this limit. Even though this distance is sufficient to ensure a safe and smooth experience at the current moment, it does not help interactive route planning because it is not possible to project the traffic flow on the roads far ahead. V2N can help autonomous vehicles to plan well ahead of time and choose optimized routes based not only on real-time traffic information, but also based on projected future traffic from the planned routes of other vehicles.

Economies of Scale. V2N enables the collection of vehicle and traffic data into cloud servers. Having such enormous panel data is especially helpful for road infrastructure improvement. After machine learning, AI-generated predictive models can be used to calculate optimized solutions for adjusting the lengths of traffic lights based on time of day or variating speed limits based on weather condition. The big data also open a world of new opportunities and business models that can be integrated with the in-vehicle infotainment system, along with other possible features such as interactive parking, wireless car payment, and more.

Faster speeds. Since C-V2X is upgradable into 5G and 5G NR protocols, V2N will always be on par with the latest and fastest internet speeds available. Clearly, the speed of communication is a very crucial factor in autonomous driving safety. 5G and 5G NR chipsets will also allow vehicles to communicate with smartphones in a timely manner, truly enabling V2P (vehicle-to-pedestrian) communication, which would remarkably improve pedestrian safety and save millions of lives.

AutoCrypt V2X, the Foundation for the Future of V2N

Whether it be DSRC or C-V2X, cybersecurity is the foundation that keeps these technologies evolving. As V2N connects the entire world of traffic via the cellular mobile network, the industry is expected to face unprecedented cybersecurity threats. AUTOCRYPT takes this threat very seriously. AutoCrypt V2X has been working with OEMs and smart infrastructure projects around the world. With profound expertise in encryption and PKI technology, it plays a crucial role in building a safe environment for V2N.

To keep informed with the latest news on mobility tech and automotive cybersecurity, subscribe to AUTOCRYPT’s newsletter.

21 April, 2021 . 6 mins read

When Last Mile Delivery Turns Autonomous – What are the Considerations?

As more of our lives becomes connected to networks and online services, we are finding that previously labor-intensive tasks like getting groceries or using public transportation are becoming streamlined as reservations and payments can be made online, even bringing items to your front door. But with increased connectivity comes greater expectations for faster, efficient, affordable, and secure services and deliveries.

The delivery process may seem straightforward – order your product, the seller arranges products for delivery, and the delivery service brings it to you – the actual process of getting the many different products with different supply chains together in one place, then arrange the transport going from the hub to the final destination. This portion of the trip is called “last-mile delivery” as it’s one of the trickiest parts of the supply chain process. Not only is last mile delivery the part that we as consumers often care the most about, last mile delivery accounts for around 53% of the total cost of shipping and sellers are taking less of a cut as supply chains struggle to meet demand and deadlines.

last mile delivery challenges

(Source: EFT)

Last mile deliveries are often inefficient because of the sheer volume of deliveries necessary with a low drop size. This means that efficiency is virtually impossible with retail sales only going up, especially with a global pandemic.

Taking care of the last-mile challenge

The supply chain management industry experts have been looking for solutions to this dilemma. Many have pointed to models that utilize digital platforms to crowdsource local services to ensure that consumers are able to get what they need. Instead of manually dispatching delivery people to make the trip, platforms will utilize machine learning and AI to quicken this process.

Another solution that many companies are already cashing in on is the concept of autonomous delivery technology, with the market expected to reach 84.72 billion USD by 2030. In order to make last-mile deliveries more efficient and truly door-to-door, development has been focused on autonomous pods, which can navigate more difficult and uneven terrain to ensure completion of delivery.

Smaller pods focus on small, dynamic designs to ensure efficiency in last-mile delivery. This allows for reduced costs in the delivery pod itself, as well as increased security as the vehicles do not actually carry human beings, allowing for more focus on the actual delivery and of the safety of those around them. Especially with the global pandemic, solutions like autonomous delivery allow for contactless service, without driving up costs. Analysts at McKinsey found that semiautonomous and autonomous technology reduce delivery costs on average by approximately 10 to 40 percent.

Autonomous delivery challenges

We can already see this crowdsourcing model mentioned in the previous section in the real world, prevalent in industries like transportation (think ride-hailing apps), food delivery, and retail apps. But this solution isn’t without challenges of its own, as local services still have a high maintenance cost, and with actual human drivers, there’s likely going to be a larger margin of error and limitations.

This is why tech industry experts say that long-term, autonomous driving technology is the answer. Autonomous vehicle technology has made great headway in the last decade – from the testbeds to public roadways — and while use cases are moving from theoretical plans to reality, there’s still a lot of doubt and logistical issues when it comes to application.

Technology and infrastructure limitations

While there are some companies who have gotten the autonomous delivery robot/pod concept to real-world application, there’s still a lot at risk in terms of how the technology works. Passenger vehicles have yet to be at a Level 4 of autonomous driving (according to the SAE regulations), so it’s not completely realistic to expect autonomous pods to be at this level. We need to be careful to ensure that the priority is placed in keeping human beings (pedestrians and vehicle passengers) safe when pods are navigating through streets.

While the technology is being developed, we also must remember that technology can’t be the only thing to change. Cities also need to ensure that current infrastructure supports the autonomous delivery movement, for example, making sure that roads are paved properly and that any obstacles like potholes or cracks are quickly repaired.

Lack of universal standards and liability regulations

To deal with the infrastructure challenges mentioned in the earlier section, there needs to be universal regulations that allow for both services and end users to use services more effortlessly across state or even country-lines.

In countries like the United States where there are differing federal and state regulations, using mobility services like last-mile deliveries with autonomous technologies can be a challenge. For example, in the state of Pennsylvania, autonomous delivery bots are allowed to maneuver their way through sidewalks as well as roadways. They are technically considered “pedestrians” meaning that the bots can move at a maximum speed of 12 miles per hour in a pedestrian area with a load limit of 550 pounds. This isn’t true for all states as some have no regulations regarding delivery systems like this, while others require permits to be issued by the state.

These technicalities can make a major difference when it comes to not only service operations, but also liability frameworks in the case of an accident. As autonomous technology has not yet been perfected, there is risk when it comes to operation no matter how safe the company deems it. A universal standard or regulation will allow for the risk to be minimized, as much as possible.

Risks of security breach

Because of the groundbreaking nature of this technology, many often focus on the issues surrounding the technology itself. However, we must remember that this technology is connected in nature, meaning that thousands of messages containing data are being exchanged each second in each vehicle. With data like PII, vehicle data, as well as access points to connected devices, a successful breach can be a goldmine for malicious actors.

While autonomous delivery vehicles like pods or robots do not carry any passengers, the personal data that they carry, their operations on pedestrian sidewalks, as well as the close nature of door-to-door delivery still carries implications that we must consider before application.

Short and long-term solutions for autonomous delivery

The technology for autonomous delivery bots will continue to progress. But how quickly this happens depends on other factors. In the long run, standards and regulations will have to be made by legislators and committees, which will influence new infrastructure that will enable this kind of technology to have more widespread adoption.

In the short-term, however, both manufacturers of these pods as well as service providers can prioritize security like authentication and encryption, ensuring that the data stays private. Security solutions can be built into the chipsets in the manufacturing stage, protecting data privacy before vehicles, and pods, hit the road. Solutions like these can ensure that vehicles of all sizes protect not just the items carried inside, but also those around them.

12 April, 2021 . 6 mins read

What is the Security Credential Management System?

We all know that vehicle-to-everything (V2X) communication constitutes the core of autonomous driving. By enabling vehicles and infrastructure to share live information, a safe and seamless autonomous mobility experience can be accomplished. But how exactly does the information sharing process work?

Just like how we communicate with each other via text messages, vehicles communicate with nearby entities by transmitting basic safety messages (BSM) between one another. However, different from us sending text messages, vehicles can send, receive, and process thousands of messages per minute. Every BSM a vehicle sends out contains the current time, along with the vehicle’s speed, location, direction, path, and other safety-related information. The vehicle that receives the BSM will use such information to determine whether it should change its speed and direction, or simply just send an alert to the driver. Despite seeming like a lot of work, this process is totally seamless, where hundreds of BSMs are sent, received, processed, and acted upon within each second.

Sounds easy? While the concept of V2X communication may seem very straightforward, we must figure out how to keep these communications perfectly accurate and effective. A failed, inaccurate, or miscommunicated text message is not usually a great deal. But a failed BSM is a matter of life and death. In fact, it would be fair to say that only 10% of the V2X communication technology is about communication itself, while the rest 90% is about ensuring that these communications are flawless and secure.

The Role of the Security Credential Management System (SCMS)

The Security Credential Management System (SCMS) is a proof-of-concept (POC) security solution for V2X communication. Despite the fancy name, it is essentially a public key infrastructure (PKI) designed to secure V2X messages – in this case – the BSMs. The POC has been officially adopted as a protocol by the United States Department of Transportation (USDOT) and became an industry standard for all providers of PKI-based V2X security solutions, including AUTOCRYPT.

Just like typical PKIs, the main purpose of the SCMS is to ensure trusted communication by securing the message. This involves a three-step process: certificate issuance, encryption, and certificate-based authentication. In simple terms, the SCMS needs to first ensure that the message sender is a legally registered entity, then encrypt the drafted message, after which from the receiver’s side, it needs to ensure that the message is truly the original message and that it has not been altered during transmission. Nevertheless, there are still two major differences between the SCMS and traditional PKIs. 

The first difference is capacity. A single SCMS can issue up to 300 billion certificates per year, enough to support up to 300 million vehicles. On the other hand, the largest PKI to date is the Europay-Mastercard-Visa Consortium (EMVCo), which is only capable of issuing less than 10 billion certificates per year.

The second difference is that the SCMS faces a much more demanding situation. PKIs used for financial transactions have one sole purpose of ensuring security. Yet, the SCMS must excel in both security and efficiency, two attributes that are usually viewed as tradeoffs.

How Does the SCMS Work?

When a connected vehicle wants to join the V2X network, it must first send its registration request to the SCMS. After approving the request, the SCMS issues an enrolment certificate to the vehicle. The enrolment certificate acts as the ID for the vehicle, proving itself as an authorized participant.

Now that the vehicle is enrolled to send and receive messages. The SCMS still faces the task of securing the message. In this process, it needs to issue and manage several authorization certificates. Before sending out a message, the on-board unit (OBU) must receive an identification certificate. This certificate acts as a digital signature that gets attached to the message. To protect the privacy of the driver, the identification certificate is encrypted and turned into a pseudonym certificate that does not reveal the identity of the vehicle owner.

Before the receiver opens the message, the SCMS compares the sender’s digital signature with a list of previously revoked signatures to ensure that the signature is currently valid. After passing all verifications, the message is given to the receiver to process.

Other entities like roadside infrastructure also undergo the same process before sending a message. Roadside units (RSU) receive application certificates that are equivalent to the identification certificates of OBUs. However, in this case, there is no need to transform them into pseudonym certificates.

security credential management system chart

Why is the SCMS Useful for V2X Security?

Ensuring data integrity. In the V2X communication process, it is crucial to ensure that the message transmitted is not altered by any third party. Since the SCMS seals the messages with digital signatures, then verifies the signature upon receival. There is no endpoint for malicious actors to manipulate the message.

Ensuring data authenticity. Since an identity certificate is issued every time before a sender sends a message, there is no potential loophole for a threat actor to send fake messages in the identity of someone else.

Ensuring privacy. As mentioned above, the identity certificate issued to an OBU is encrypted into a pseudonym certificate. On top of that, the message itself only contains information on the vehicle’s condition and behaviour but not the vehicle’s identity. This makes it nearly impossible to trace the message back to the sender vehicle’s owner.

Ensuring interoperability. Instead of having V2X security providers developing their own set of mechanisms, the SCMS acts as a protocol that ensures all the developed solutions are interoperable with one another. This is a key benefit because interoperability is crucial to V2X communication.

Revocation. Different from traditional PKIs, the SCMS keeps a record of all revoked devices that had been reported with misbehaving, malfunctioning, or even malicious actions. The record helps prevent the same threats from reoccurring, significantly lowering the risks associated with the system.

AutoCrypt V2X, Securing Autonomous Driving with Decades of Experience in PKI

The SCMS protocol is complemented by a few other industry standards to ensure the deployment of secure and efficient PKIs for the V2X network. As such, AutoCrypt PKI is not only designed based on the SCMS, but also is in line with the Crash Avoidance Metrics Partners (CAMP) and the Cooperative ITS Credential Management System (CCMS). Combining AutoCrypt PKI with the software development kit installed locally into the OBUs, along with AutoCrypt LCM, the local certificate manager in charge of message encryption, AutoCrypt V2X is the most complete solution for autonomous driving.

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