IoT Automotive – Automotive Industry Trend


“The automotive industry trend is connected cars.

It will continue in the next 5 years.”

The Internet of Things is breaking fresh ground for car manufacturers by introducing entirely new layers to the traditional concept of a car. This upgrade — the connected, smart car — comes as a revolutionary way for us to drive and stay in touch with the world around us at the same time.




How smart cars are connected

Automakers have correctly noticed a growing trend and a significant business opportunity for connecting their cars. Business Insider (BI) Intelligence premium research service expects 381 million connected cars to be on the road by 2020, up from 36 million in 2015. Furthermore, BI Intelligence forecasts that connected cars will generate $8.1 trillion in sales between 2015 and 2020.

In the last several years, connected cars have exploded thanks to the IoT. Currently, automakers are connecting their vehicles in two ways: 1) Embedded cars, this type uses a built-in antenna and chipset, 2) Tethered connections, this type uses hardware to allow drivers to connect to their cars via their smartphones.

App integration is becoming commonplace in today’s vehicles. Google Maps and other navigation tools have begun to replace built-in GPS systems. Music apps such as Spotify remove the need for traditional or even satellite radio.

Examples of the transformation of the automobile today are:

  • Tesla, the electric car giant, plans to create solar roofs with integrated battery storage.
  • Self-driving car technology that is “ten times safer” than manual driving
  • Stop and go autopilot, which allows cars to drive themselves in traffic jams by analyzing the lane ahead of them and moving appropriately.
  • Remote valet assistance through a smartphone, smartwatch, or key fob.
  • Highway autopilot with lane changing, which included blind spot technology to shift lanes.

Now, we’re starting to get into cars that require a driver behind the wheel, but have an option for the driver to push a button to let the car drive itself. The ultimate goal is to have totally driverless vehicles that do not require a driver behind the wheel, or even a steering wheel at all. BI Intelligence expects these cars to hit the market after 2020.



Connected-car - Main Areas



  • Internet connectivity in vehicles allows car companies to release software updates in real time, which is extremely important during a recall.
  • Automotive companies can use data from the car to analyze its performance and obtain valuable data on how drivers use their cars.
  • More connectivity provides more ways for automakers to cross-sell their products and services to customers.

The companies investing more time and money on the connected car trend are: BMW, Daimler, General Motors, Toyota, and Tesla.

As far as tech companies, AT&T added 2.7 million connected cars in the U.S. in the first three quarters of 2015. Other tech companies working on connected cars with automotive manufacturers are Microsoft, Apple, Pandora, Sprint, and Google.

Consumer interest in the connected car is growing with estimates of $15 billion in sales in 2021, up from $7 billion in 2016.


Strategic Solution

Service providers, insurance carriers and auto manufacturers are racing to connect vehicles using telematics devices to deliver safety related value-added services designed to offer drivers information, protection, and lower premiums.

These value-added services include emergency services, remote vehicle diagnostics, vehicle tracking and recovery, safe driver and no-texting services and teen driver management.

Additionally, insurance carriers are using the vehicle telematics data to analyze driving patterns, encourage safe driving practices and reward customers with lower premiums for good driving behavior.


Automotive Industy Trends


The Internet of Things will become increasingly important in transportation and logistics in the next several years, especially as self-driving cars hit the road in increasing numbers. Transportation is just one area the IoT will totally transform.


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