The Rise of Connected Cars

How IoT is Transforming the Automotive Industry

The automotive industry is one of the biggest manufacturing industries in the world. In order to meet consumer demand as well as stay ahead of the competition, automakers and other stakeholders in the wider automotive industry are utilizing IoT technologies to facilitate everything from improved efficiency and advanced vehicle management capabilities to offering a superior driving experience. And that’s just for the cars themselves. When it comes to the wider ecosystem, IoT is enabling things like smart manufacturing and add-on services.

IoT has already revolutionized any number of industries, and the automotive sector is no different. IoT is propelling the automotive industry into unprecedented innovation and transformation, with the benefits far-reaching. From enhancing vehicle connectivity and improved safety and security to value added systems and the impact on the larger automotive ecosystem, IoT solutions are unlocking the full potential of connected vehicles, smart manufacturing, and fleet management. To use a well-worn pun, the road ahead is full of exciting developments that promise to shape the future of transportation.

With IoT technology, the way we design, manufacture, operate, and interact with our vehicles has already transformed in significant ways.

What is automotive IoT?

Automotive IoT is the integration of devices and sensors into vehicles, creating a system for connected cars, which in turn enables things like predictive maintenance, fleet management, OEMs, and insurance.

quotes icon

Connected cars simplify life for both drivers and manufacturers, particularly when it comes to software upgrades.

Vehicles are increasingly complex and previously, the only way to update cars was to return them to the dealer, something that was inconvenient for the consumer and costly for the manufacturer. IoT connectivity allows manufacturers to update a car’s many software-reliant components over-the-air, including many of the vehicles electronic control units.

Additionally, evolving technology allows manufacturers to address new liabilities, deploying fixes remotely rather than dealing with issues on a case-by-case basis. When a new vulnerability is identified, IoT connect onboard software allows manufacturers to immediately address that vulnerability quickly and remotely.

And as embedded automotive IoT solutions continue to evolve, more complex innovations will make their debut. The continual advancements in both the speed of mobile communications and the technology inside vehicles will allow automotive manufacturers to offer even more new services as we go forward.

Benefits of automotive IoT

The IoT brings benefits to both the automotive manufacturer and the consumer include:

  • Optimized manufacturing

IoT technology enables a high level of automation and predictive maintenance during the manufacturing process, eliminating or significantly reducing the likelihood of human error. After sale, manufacturers can draw on IoT-generated data to know when servicing is required and alert the customer about this. Manufacturers can also gain a competitive advantage by leveraging IoT data to tailor future vehicle design based on customer needs.

  • Enhanced safety

Connected vehicles can contribute to greater road, driver, and pedestrian safety by utilizing real-time analysis of data from multiple sensors. With IoT, drivers are always aware of the condition of their car and thus can avoid roadside breakdowns or malfunction-related accidents. Additionally, the car’s system can alert drivers to pedestrians, cyclists, or other potential hazards and even initiate emergency braking.

  • Personalization

Connected cars can offer a more customized experience to consumers through personalized in-vehicle infotainment systems, connecting with smart home systems, and even car settings such as music choice, seat position, and optimal temperature.

  • Cost savings

IoT-connected cars save money for both consumers and manufacturers. Predictive maintenance isn’t just for the factory – IoT data can alert drivers to when their vehicle needs service, as well as any unexpected faults or problems. Additionally, connected vehicles increasingly reduce insurance premiums, which we’ll discuss next.

  • Reduced insurance premiums

The evolution of telematics makes it possible for insurance companies to offer more personalized policies. By using real-time driving data, insurance companies can now price their policies more accurately, moving away from a pricing model that largely relied on general demographic information.

quotes icon

By sharing driving data on things like acceleration, braking, turns, and peak activity time consumers can get discounts and rewards based on safe driving habits.

Sharing that data also allows consumers to better understand which factors contribute to their insurance costs.

  • Reduced emissions

Optimizing the car manufacturing process with IoT is one way the automotive industry can help reduce emissions and air pollution. When it comes to the vehicles themselves, connected cars can leverage data to optimize fuel consumption and energy usage levels, as well as reduce traffic congestion by allowing drivers to maintain optimal speed without unnecessary acceleration or stops.

  • Road and traffic management

Leveraging data from IoT-enabled cars to detect congestion, road conditions, or even air quality allows cities to adjust and/or improve thinks like traffic light timings, road surfaces, and pathways, which ultimately leads to better urban infrastructure.

If you would like to learn more about how IoT can enable your automotive solution, please get in touch

Get in touch