Automotive IoT And Its Benefits

According to Statista, the output of automobiles has decreased overall by 14% from 2016 till the epidemic. The lack of cutting-edge features in automobiles might contribute to poor growth. After all, advancements in automotive technology have been modest for some time. But it is not the same case in current times. 

The advent of the Internet of Things (IoT) has redefined numerous industries, and the automobile is no exception. One must acknowledge the truth that linked gadgets are altering our way of life.

The automotive IoT industry is expected to reach $541.73 billion by 2025, according to impartial market research by GlobeNewswire titled “Automotive IoT Market by Platform-Global Forecast to 2025.”

The automobile sector is attempting to maximize its potential with IoT as we go from the era of products to the age of service and experience, from functionality to information as the primary object of value creation, and from warehouses to intricately networked systems.

What does IoT mean for the automobile sector?

The Internet of Things (IoT) is a term used to describe a network of gadgets communicating online. This enables sophisticated automotive technology, such as electronics, actuators, and sensors, to communicate with one another and with other online-connected vehicles. 

With many uses to emerge as technology develops, modern WiFi capabilities, engine performance data, and temperature control systems are only the tip of what IoT solutions can provide for automobiles. Now let’s have a look at what is the role of IoT in the automotive sector. 

The Primary Role of IoT in the Automotive Industry

How you interact with and utilize your cars will change due to IoT connection, smart sensors and devices, edge computing, mobile apps, and cloud services. Implementing IoT applications in the automotive sector improves performance, lowers costs, and facilitates quality control in design.

IoT applications in the automobile industry are virtually endless, thanks to Industry 4.0 and artificial intelligence

Top Five IoT Use Cases in the Automotive Sector

The automotive industry is developing cutting-edge solutions using IoT technologies, including connected car solutions, ADAS, in-car infotainment systems, navigation & telematics solutions, predictive maintenance solutions, and Vehicle-to-Vehicle (V2V) applications, Vehicle to Infrastructure (V2I) applications, and Vehicle to Everything (V2X) communication applications. As we understand the automotive IoT in short, let’s move on to its top five real-time applications.

1) Driver and Fleet Management

The most recent IoT use case in the automotive sector, the fleet management solution, provides fleet operators with many advantages throughout their lives. The critical advantage of IoT applications in the automobile industry is compliance with environmental and safety requirements, starting with improving maintenance and logistics to monitor driver performance. 

In addition to vehicle tracking, monitoring fuel consumption, sharing statistics on driver performance and health, sending idle alarms, preventative maintenance, and integrating a service condition monitoring system are all extended uses of IoT in fleet management.

IoT sensors integrated into automobiles give signals and set off warning alarms for low battery, coolant temperature, or engine maintenance with reliable communication to the cellular networks through multiple networks, including 2G, 3G, and 4G/LTE.

IoT solutions for the automotive sector enable fleet management to automate various procedures, including trip planning. Additionally, this aids the fleet management sector in enhancing client satisfaction through punctual delivery and superior service.

2) Actual Telematics for Vehicles

The position, movement, condition, and behavior of a vehicle within a fleet may all be tracked via vehicle telematics. A significant development in IoT in the automotive sector is the smart cloud-connected IoTboxes that link telematics devices to offer real-time data on vehicle status, driver health, and transportation optimization.

Vehicles may be improved with electronics, connections, and hardware that enable them to talk and interact with other devices when IoT and telematics come together.

The use of telematics has several benefits, such as remote access to vehicle operating data, remote speed limit limits, turn-by-turn directions with enhanced third-party information, and vehicle collision warnings to third parties and emergency responders.

3) Cellular Vehicle To Everything (CV2X)

These services require a connection, including mapping, entertainment, and remote access to emergency services. A cellular vehicle-to-everything (CV2X) network is used in the IoT use case in the automobile industry to link cars. With CV2X, there are two operating modes: device-to-device and device-to-network.

Vehicle-to-vehicle (V2V), vehicle-to-infrastructure (V2I), and vehicle-to-pedestrian (V2P) communications are made possible via device-to-device (V2P). Through developments like collision avoidance, data sharing concerning speed, position, and the route over a single network, alerting the driver about traffic signal priority/timing, and safety alerts for pedestrians and cyclists, V2V, V2I, and V2P enable linked highways.

Real-time traffic reporting and routing are made possible by device-to-support networks for vehicle-to-network (V2N) communication through cellular networks, enabling cloud services to be incorporated into these end-to-end systems.

4) IoT-based Predictive Maintenance

Big data, cloud computing, edge computing, and sensors work together to provide data collection, analytics, and predictive technologies based on IoT connection tools. It assesses the vehicle’s likelihood of malfunctioning, communicates the data via the cloud, and alerts the user by lowering breakdowns and simplifying maintenance.

The following are the primary benefits of automotive IoT systems with predictive maintenance.

  • Determine any component failures before they happen.
  • Determine the remaining usable life and any potential repairs up to 75 percent.
  • Measures the electrical system’s performance, navigation route, temperature, and speed.
  • Lower operating expenses while improving safety

5) In-Vehicle Infotainment System

The mobile networks and intelligent apps provide a broad spectrum of infotainment in cars, starting with entertainment, telematics, and navigation, just as many automakers are working with Google and Apple to deliver IoT use cases like in-vehicle infotainment. 

For instance, Apple Carplay for high-end automobile entertainment, Google Maps for navigation, and Google Assistant for hands-free driving assistance. With a linked network certifying the car to open, close, and self-start, the owner’s expectations for the vehicle’s entertainment are now available on the owner’s smartphone.


The IoT has become a fundamental technology for next-generation vehicles. You can manage and access your vehicle’s statistics with only one swipe on the app. The Business Insider forecast estimates that use cases for the automotive IoT will have a spending potential of $267 billion. 

With IoT and WiFi capabilities supported by 3G/4G/5G functionality, the automotive industry is entering a new phase and creating space for more extensive adoption. Soon, all automobiles will be autonomous.