How IoT in Automotive is Changing the Industry: What You Need to Know

The automotive industry is always on the lookout for ways to build more connected ecosystems. A great way to do this is by tapping into the power of the Internet of Things (IoT) to meet customer needs and stay ahead of the competition.

IoT is creating huge value in the automotive world. The changes it’s bringing are shaping the future of the industry and pushing it forward.

In fact, according to Statista, the global automotive IoT market is expected to hit around $219.61 billion by 2026. This just goes to show how crucial IoT will be in the automotive space.

So, it’s time to rethink how connected systems work with IoT in automotive. In this article, we’ll dive into the IoT use cases in automotive industry. Stick around to learn more!

The State of IoT in Automotive Industry

Let’s take a second to think about the automotive industry. It’s full of sensors, gadgets, apps, cloud systems, and more. At first glance, it might seem tricky to keep all of these things working together smoothly, but thanks to the Internet of Things (IoT), it’s actually pretty simple.

IoT helps connect all these complex devices—like sensors, GPS trackers, and cameras. Once everything is linked to the cloud, it provides real-time data that can help fine-tune the whole system. The best part? These connected devices can now talk to one another, share data, and work together seamlessly, all without human intervention.

IoT in Automotive

With IoT tech, automotive solutions are becoming smarter, safer, more efficient, and even more comfortable. In short, IoT is making the automotive industry more exciting than ever. Let’s take a look at some of the benefits.

Benefits of IoT in the Automotive Industry

In the vast world of automotive, IoT is driving innovation and boosting efficiency. From enhancing the user experience to making vehicles safer, IoT’s impact has been nothing short of game-changing. Here are a few major benefits IoT brings to the table.

Smarter Infrastructure

With the help of IoT and AI, drivers can now access key information about the roads and infrastructure around them. This not only makes driving more enjoyable but also makes the roads safer and helps cut down on accidents. IoT tech also helps with things like:

• Smart parking management
• Reducing traffic jams
• Intelligent street lighting
• Efficient energy management

Connected Vehicles

IoT plays a huge role in connecting smart transportation systems and vehicles. This lets vehicles talk to each other, which is a big part of what makes intelligent transport systems work. Cars can now share important info, like their speed, location, and more, helping drivers stay safe and informed on the road.

Predictive Maintenance

IoT solutions can monitor a vehicle’s condition and predict any potential problems before they happen. Sensors gather important data—like fluid levels, engine status, temperature, fuel consumption, and navigation—and use that info to predict when your vehicle might need maintenance. This helps prevent major issues before they get out of hand.

Fleet Management

IoT also makes it easier to manage fleets of trucks and other vehicles. By using data collected from sensors, drivers and fleet managers can access real-time information and make better decisions about routes, fuel usage, and overall performance.

Lower Emissions

IoT can help reduce emissions by improving vehicle-to-vehicle communication and optimizing how cars use fuel and energy. This leads to more eco-friendly driving and helps reduce the automotive industry’s environmental footprint.

Popular Application of IoT in Automotive

IoT Applications in Autonomous Vehicles

Autonomous vehicles are where imagination meets reality, and the Internet of Things (IoT) is right at the center of it all. These self-driving wonders use a network of devices and sensors to guide, make choices, and keep passengers safe.

By combining IoT with autonomous driving, the automotive industry is stepping into the future, completely reshaping how we think about transportation.

IoT use cases in the automotive industry

1. IoT in Sensor Fusion and Perception

Sensors act as the vision and hearing for autonomous vehicles. These self-driving cars rely on sensors to accurately understand their surroundings and safely navigate the roads with little to no human input.

Thanks to advancements in sensor and communication technology, autonomous vehicles are getting better at detecting obstacles and making smart decisions in real time. Companies like Honda, Volvo, and BMW are already working hard to develop these driverless cars. The sensors they use help the vehicle “see” everything around it, ensuring the highest level of safety as the car operates on its own.

2. IoT-Based Predictive Analytics for Autonomous Driving

Self-driving cars are getting smarter every day, and IoT is playing a huge role in improving the overall driving experience. Autonomous vehicles can collect live data from their environment using sensors like lidar, radar, and cameras.

This data helps create a detailed map of the environment, recognizing everything from road signs to traffic lights, as well as predicting the behavior of other vehicles. With continuous improvements, IoT is pushing the boundaries of what self-driving cars can do, helping design future-ready vehicles that are both smart and safe.

3. IoT-Enabled Fleet Management and Optimization

Autonomous and IoT-connected cars are at the heart of intense research and development. As the world rapidly changes, the shift to ACES fleets (autonomous, connected, electric, and shareable) is becoming more of a reality.

IoT is already revolutionizing fleet management. By using IoT-powered solutions, fleet managers can track and optimize their operations, from monitoring vehicle maintenance to managing cargo. Some key use cases include:

• Predictive maintenance
• Route planning
• Asset and cargo management
• Boosting service efficiency
• Reducing waste
• Improving passenger and driver safety

IoT Applications in Automotive Cybersecurity

As cars get more connected, they also become more vulnerable to cyber threats. But here’s the good news—IoT is stepping up not just as a risk factor but as a strong line of defense.

In the world of automotive cybersecurity, IoT is quietly working behind the scenes to protect vehicle data, driver privacy, and onboard systems.

1. IoT-Based Intrusion Detection and Prevention

With connected cars, the risk of security breaches is real. That’s why intrusion detection systems (IDS) are becoming more important. These systems help cars detect and defend against unauthorized access.

An IDS monitors for external attacks and sends that data back to the manufacturer. During an attack, the system can trigger alerts, notify special OEM departments, or even disable certain functions to keep the vehicle safe. All of this helps protect both the driver and the car from hackers.

2. IoT-Powered Secure Communication Protocols

Connected cars rely on wireless technologies like Bluetooth, Wi-Fi, and cellular networks to function. But with all that wireless communication comes the risk of attacks like eavesdropping or data theft. That’s why secure communication protocols are critical.

Ensuring that communications are authenticated and encrypted can help prevent man-in-the-middle attacks. IoT protocols and standards are essential here, allowing car manufacturers to build a safer, more secure environment for connected vehicles.

IoT Applications in Automotive Manufacturing

IoT is transforming automotive manufacturing, bringing in new processes and setting fresh standards for the future. Let’s take a look at some key applications that are making a real impact.

1. IoT in Supply Chain Management

Building cars and trucks involves assembling tons of parts, and things can get complicated quickly with so many steps in the process. But IoT is shaking things up in the supply chain, making it more exciting for manufacturers.

As the industry modernizes, we can expect supply chains to become faster and more resilient. With technologies like AI and IoT, the supply chain is becoming “smart,” meaning it can sense, process, and respond to changes in real-time.

For example, decisions about moving inventory between factories can be powered by a smart supply chain, which can recommend the best course of action for approval.

By combining cloud and AI, the whole supply chain can act like a digital brain, making informed decisions that help reduce delivery times, cut inventory costs, and even boost overall efficiency.

2. IoT-Enabled Predictive Maintenance

IoT is making waves in automotive manufacturing, especially with predictive maintenance (PdM). PdM is a game-changer in an industry where any downtime can lead to big losses.

With IoT, manufacturers can constantly monitor equipment in real time and predict when something might break down. This means fewer unexpected repairs, smoother operations, and lower maintenance costs.

3. IoT-Based Quality Control and Defect Detection

When it comes to making cars, quality control is everything. There’s no room for mistakes. IoT is stepping in to make sure everything goes smoothly, helping manufacturers deliver top-quality vehicles.

By using IoT, AI, and even augmented reality (AR), manufacturers can catch defects early and make sure each vehicle adheres to top safety standards. IoT also makes inspections easier by sending automatic alerts when something’s off, making quality control faster and more precise, which ultimately saves time and money.

IoT Applications in Connected Cars

When we talk about next-gen vehicles, connectivity is at the heart of it all. Simply put, a connected car is a vehicle that uses the internet to communicate with other systems. One key application of IoT in cars is safety, especially through vehicle-to-everything (V2X) communications, which include vehicle-to-vehicle (V2V) and vehicle-to-roadside communications. Let’s dive into some cool IoT applications in connected cars.

1. IoT-Enabled Telematics and Remote Diagnostics

Telematics combines IT and telecommunications to track and monitor vehicles. This tech helps keep tabs on things like a car’s location, movements, and other diagnostics. For example, with IoT-enabled telematics, you can monitor real-time data on tire pressure, fuel usage, and even vehicle breakdowns.

The worldwide market for automotive remote diagnostics is projected to hit $25.4 billion by 2027, growing at a 16.81% CAGR from 2021-2027. This shows how fast this technology is catching on.

Remote diagnostics in IoT-connected cars not only ensure your vehicle operates within the right parameters but also helps spot potential issues before they become big problems, reducing downtime and predicting when components might fail.

IoT in automotive industry

2. IoT-Based Vehicle-to-Vehicle (V2V) Communication

Here’s a sobering statistic: around 1.3 million people die every year in road traffic accidents. What’s more, these crashes cost some countries up to 3% of their GDP. But IoT-powered connected vehicles can help change that by giving drivers the tools they need to avoid crashes in the first place.

With V2V communication, cars can wirelessly share info about things like speed, location, and direction. IoT-enabled vehicles come with special software that processes this data to determine if there’s a potential crash risk. The system then sends visual, tactile, or audio alerts to warn drivers, helping them avoid accidents.

3. IoT-Powered Infotainment Systems

As the automotive industry evolves, we’re seeing a big push toward making vehicles more fun and convenient to use, especially with in-vehicle infotainment (IVI) systems.

Infotainment systems combine information and entertainment, bringing new capabilities to your dashboard. For instance, Apple’s CarPlay lets you make calls through your car’s console, while also giving you access to apps like Audible and Spotify.

Drivers can also use voice-activated navigation, send texts, and make calls hands-free. Because of these cool features, analysts predict the global automotive infotainment market will hit $20.7 billion by 2030, growing at a rate of 8.32% annually.

The Future of IoT in Automotive

As tech keeps evolving, the future of connected cars is looking brighter than ever. Here are some exciting trends and developments to keep an eye on:

5G Connectivity

The arrival of 5G networks is going to take IoT-enabled vehicles to the next level. Faster and more reliable internet will make real-time data sharing even smoother, opening up new features and possibilities for connected cars.

Over-the-Air (OTA) Updates

OTA updates, which let manufacturers update a car’s software remotely, are going to become the norm. This means your car can get new features or security fixes without you having to visit the dealership or service center.

Cybersecurity

As cars get more connected, they’ll also become more vulnerable to cyberattacks. Automakers will need to step up their game when it comes to cybersecurity to keep both vehicles and user data safe.

Smart Cities Integration

Connected cars will be a key part of smart city projects. They’ll be able to communicate with stoplights, traffic signs, and other infrastructure to enhance traffic management and cut down on congestion.

Car-Sharing and Ride-Sharing

Connected vehicles are set to boost the growth of car-sharing and ride-sharing services. With IoT, these services can better manage their fleets and run things more efficiently.

Challenges to Keep in Mind When Using the Internet of Things in Automotive Industry

While IoT is bringing a lot of exciting changes to the automotive world, there are also some challenges we need to think about:

• Data Privacy
  Connected cars gather a lot of data, which raises concerns about privacy. Automakers and service providers need to make sure they’re protecting this data and giving users control over how it’s used.
• Standardization
  To make sure everything works together smoothly, we need standard protocols for how IoT devices communicate in cars. This will help ensure that different brands and service providers can work together without any hiccups.
• Regulatory Compliance
  As IoT-enabled vehicles become more common, governments will need to set up rules to make sure they’re safe, secure, and that data is protected properly.
• Infrastructure Investment
  For IoT to really take off in the automotive world, we’ll need to invest heavily in infrastructure—like rolling out 5G networks and building smart cities.

Conclusion

IoT is a driving force behind smarter, safer, and more efficient vehicles in the rapidly evolving automotive industry. From autonomous driving to fleet management, predictive maintenance, and enhanced cybersecurity, IoT is reshaping how we view transportation and setting the stage for the future.

As IoT continues to revolutionize the industry, it’s clear that staying connected is no longer a luxury but a necessity. Whether you’re looking to optimize operations, improve safety, or innovate with cutting-edge technology, the time to embrace IoT in automotive is now.

Contact TECHVIFY today for a free consultation, and let our experts help you develop tailored IoT solutions to drive your success.