The future of mobility promises to be a revolution that encompasses much more than just autonomous driving. Millions of cars are expected to drive in a connected manner in the future, and Japanese tech investor Softbank has recognized that this is a lucrative business. With an investment of 473 million euros, Softbank acquires 51 percent of the Irish data specialist Cubic Telecom, thereby becoming a partner of VW as well.
For Softbank, this is a crucial step to grow beyond Japan and become part of the rapidly expanding global market for high-quality Internet-of-Things products. The mobile subsidiary Softbank Corp. is thus entering the fast-growing market of connected cars, as emphasized by Junichi Miyakawa, CEO of Softbank's mobile subsidiary.
Through the partnership with Cubic Telecom, SoftBank aims to create a globally leading platform for connected cars and develop connectivity platforms for the next generation's social infrastructure. This aligns with Cubic Telecom's vision, which has been building its own platform for cars, agricultural vehicles, and transportation since 2016.
The Irish already play a significant role in the networking of VW vehicles and are among the largest investors in the software subsidiary Cariad. Softbank plans to further expand this partnership and extend the platform to other Japanese manufacturers, truck manufacturers, and container transporters. Through the integration with Softbank's satellite network and AI technologies that Softbank has invested in, Cubic Telecom's platform becomes even more powerful and versatile.
A central aspect for the business of the future is the use of data. McKinsey predicts that by 2035, 95 percent of all cars will be connected and generate data throughout their entire lifespan, earning money through software and digital services. According to Softbank, the global market for these digital services in cars will grow to 250 to 400 billion dollars per year in the long term.
Through the partnership with Cubic Telecom, car manufacturers can access the platform to retrieve data from their connected vehicles, transmit wireless software updates, and offer additional services. This allows manufacturers to focus on other software services and technologies such as autonomous driving and bypass the expensive development of their own systems.
The partnership between Softbank and Cubic Telecom is also of great importance for the tech investor, who is one of the largest investors in high-tech start-ups. The subsidiary Softbank Corp. is investing heavily in robotics and AI technologies, and the current investment in Cubic Telecom once again demonstrates the investor's interest in future technology.
Although Softbank now owns 51 percent of Cubic Telecom, the company emphasizes that it is not an acquisition but a partnership. The previous shareholders Cariad and the chip manufacturer Qualcomm will also continue to be involved, and Barry Napier will continue to serve as CEO of Cubic Telecom. However, Softbank will have three seats on the board of directors, the same as the previous investors.
Both companies agree: This partnership will have a significant impact on the connected car market, and the number of connected vehicles accessible through Cubic Telecom's platform will exponentially increase in the coming years.
