The Benefits of Automotive IoT In The Automotive Industry

Published on 06 Feb 2023

Benefits, Automotive, IoT, Automotive, Industry

Statista reports that since 2016, vehicle production has dropped by 14%, primarily because of the pandemic. Moreover, inadequate innovation in the automotive industry can also be to blame for stagnant development. In any case, progress in vehicle technology has been slow as of late. However, things are about to change soon.

The Internet of Things (IoT) has revolutionized many sectors, and the automotive sector is no different. Everyone must face the fact that our connected devices influence our way of life.

According to independent market research by GlobeNewswire titled "Automotive IoT Market by Platform-Global Forecast to 2025," IoT in the automotive industry is projected to reach $541.73 billion by 2025.

As we go from the age of products to the age of services and experiences, from the age of functionality to the age of information as the main object of creating value, and from warehouses to highly networked systems, the automotive industry is trying to maximize its potential with IoT.

See also: Anonymous bidder pays $28 million for space flight with Jeff Bezos

The Impact of IoT On The Automobile Industry

The phrase "Internet of Things" (IoT) refers to interconnected electronic devices exchanging data through the Internet. This paves the way for high-tech automobile components like electronics, actuators, and sensors to talk to one another and to other online-connected cars.

Contemporary WiFi abilities, performance, and combustion data, plus temperature management systems, are only the top of what IoT in automotive manufacturing can do, with many more applications emerging as technology advances. Let's look at how the Internet of Things impacts the car industry.

The Internet of Things' Primary Function in the Automotive Sector

The Internet of Things (IoT), smart sensors and gadgets, edge computing, mobile applications, and cloud services will alter how people interact with and use their vehicles. The automobile industry may benefit from the Internet of Things (IoT) by increasing efficiency, decreasing costs, and enhancing quality control in the design process.

Thanks to Industry 4.0 and AI, the potential uses of the Internet of Things in the automotive sector are almost limitless.

Top Five IoT Applications in the Automotive Industry

Connected car solutions, advanced driver assistance systems, in-car infotainment systems, navigation and telematics solutions, planned maintenance remedies, Vehicle-to-Vehicle (V2V) implementations, Vehicle-to-Infrastructure (V2I) applications, and Vehicle-to-Everything (V2X) communication applications are just some of the cutting-edge solutions being developed by the automotive industry using IoT technologies. The automotive IoT has been briefly covered; now, let's move on to the five most important benefits of IoT in the automotive industry and real-world uses.

1) Fleet and Driver Management

The fleet management system is the newest example of the Internet of Things (IoT) in the automobile industry. Compliance with environmental and safety criteria is the primary benefit of IoT applications in the automotive sector, beginning with enhanced maintenance and logistics to monitor driver performance.

IoT can be used for more than just tracking vehicles in fleet management. It can also be used to keep tabs on gas mileage, share data on driver productivity and health, notify you when it's time to move, schedule preventative maintenance, and integrate a service condition monitoring system.

One of the major benefits of IoT in the automotive industry is the dependable connectivity to the cellular networks provided through numerous networks, including 2G, 3G, and 4G/LTE. This enables IoT sensors installed in autos to transmit signals and set warning alarms for low battery, coolant temperature, or engine maintenance.

With Internet of Things (IoT) technology, fleet management may automate several tasks, including route planning. As a bonus, this helps the fleet management industry increase customer satisfaction via reliable, on-time service.

2) Real Telematics for Automobiles

Vehicle telematics allows for the monitoring of a vehicle's whereabouts, movements, conditions, and actions within a fleet. Smart cloud-connected IoTboxes, which interconnect telematics devices to provide real-time data on car status, driver health, and transportation optimization, are a major advance in IoT for the automobile industry.

When Internet of Things (IoT) technologies are combined with telematics, vehicles may be equipped with better communication and interaction capabilities.

Telematics' many uses include the notification of onlookers and emergency personnel of impending collisions, remote access to operational data, speed restriction limitations, turn-by-turn instructions with improved third-party information, and more.

3) The Cell Phone as a Means to an End (CV2X)

Mapping, entertainment, and access to emergency services remotely all need an internet connection. In the automotive industry's IoT use case, automobiles are connected by a cellular vehicle-to-everything (CV2X) network. The communication between devices and the network are the two modes of operation for CV2X.

Device-to-device communications enable vehicle-to-vehicle (V2V), vehicle-to-infrastructure (V2I), and vehicle-to-pedestrian (V2P) interactions (V2P). V2V, V2I, and V2P allow connected roads via innovations including collision avoidance, data exchange about speed, location, and the route across a single network, informing the driver about traffic light priority/timing, and safety warnings for pedestrians and cyclists.

Device-to-support systems for vehicle-to-network (V2N) communications through cellular networks make real-time traffic reporting and routing feasible, thus opening the door for cloud services to be implemented into these end-to-end systems.

4) Predictive Maintenance Based on IoT

Big data, cloud computing, edge computing, and sensors work together to offer data collecting, analytics, and prediction technologies based on Internet of Things connection tools. To reduce breakdowns and make maintenance easier, it analyzes the vehicle's chance of failing, shares this information through the cloud, and sends notifications to the user.

The following are the most significant advantages of predictive maintenance in automotive IoT systems.

  • Find out ahead of time whether there will be any problems with a component.
  • Find out how long it will continue to work and whether it needs any repairs up to 75%.
  • Checks the electrical system's voltage, current, temperature, and velocity.
  • Reduce operational costs while simultaneously boosting security.

5) In-Car Entertainment Systemainment System

Many automakers collaborate with tech giants like Google and Apple to create IoT use cases like in-vehicle infotainment, made possible by mobile networks and sophisticated software.

Examples include Apple Carplay for in-car entertainment in high-end vehicles, Google Maps for navigation, and Google Assistant for hands-free help while driving. The owner's expectations for the car's entertainment are now accessible on the owner's smartphone, thanks to a connected network that certifies the car to open, shut, and self-start.

See also: US Congress introduces 5 bills to reign in tech giants


The Internet of Things is becoming a critical component of the next generation of automobiles. With a single swipe, you can view and control your vehicle's data inside the app. According to the Business Insider projection, the automotive IoT has a $267 billion market opportunity for certain application cases.


Featured image: Image by usertrmk


Subscribe to to learn about new updates and changes made by tech giants that affect health, marketing, business, and other fields. Also, if you like our content, please share on social media platforms like Facebook, WhatsApp, Twitter, and more.