How Can IoT Benefit the Automotive Industry?


IoT, or the internet of things, has brought about a revolution in a wide array of industries, and the automotive industry is not an exception. IoT, without any doubt, lies among the hottest topics of discussion. The impact of IoT on the automotive industry is truly exceptional. According to a market research conducted by GlobeNewswire named “Automotive IoT Market by Platform-Global Forecast to 2025″ revealed, the automotive IoT market is expected to reach about 541.73 billion dollars by the year 2025. The compound annual growth rate is expected to be 16.4 percent from the year 2019 to 2025.

The automotive industry is leveraging the power of IoT technology and making the best possible use of the technology to bring about results that are immensely beneficial for both the consumers as well as the manufacturers.

There are a number of ways in which IoT can bring about an improvement in the automotive industry’s business operations and offer superior services to its customers. It is precisely the reason why several players in the automotive industry are looking forward to hiring a professional IoT software development company to make the best out of the emerging technology.

Let us now understand how IoT can benefit the automotive industry.

IoT technology

Predictive Maintenance of Vehicles

When it comes to the maintenance of vehicles, usually, there are two approaches.

  1. Preventive Maintenance – In this approach, once the owners notice that the vehicles’ oil will get spent soon, they go to a mechanic for an inspection and the oil is changed.
  2. Predictive Maintenance – On the other hand, the predictive maintenance approach works in a bit different manner. The IoT for automotive service has a special system that keeps track of the status of different parameters in the vehicles in real-time. Once the data is analyzed, the system sends a notification about the time when a service is required.

This proves to be extremely beneficial since the system is able to show exactly at what point of time the service and oil change is required. There is no need to guess. The system is completely secure and helps save a lot of time, effort, as well as money.

Enhanced Safety

With the help of the internet of things, safety is readily enhanced for both vehicles and the ones inside them. IoT has the potential to change the way people drive. The automotive sector can implement sensors into vehicles that are based on IoT to enhance the safety of drivers. Once drivers’ safety is increased, it is evident that other passengers’ safety is also increased.

In addition to monitoring the traffic patterns and making sure whether the weather conditions are suitable for driving safely or not, IoT technology in vehicles can ensure driver’s safety to the fullest. IoT has the potential to analyze the behavior of drivers and keep a close watch on their driving habits and the health of the drivers in real-time to readily bring about a reduction in the chance of accidents.

IoT solutions can play a crucial role in helping to appropriately tackle these issues since most accidents are caused due to errors by a human. The systems based on the internet of things can also predict the action of drivers, keep track of their heart rate and drowsiness and send them alerts at the time when they tend to feel sleepy for the purpose of keeping mishaps at bay. Moreover, advanced IoT solutions can easily connect with the smartwatches of the drivers in order to get health-related data in real-time and enhance their safety to a great extent.

Easy and Convenient Fleet Management

The implementation of IoT in automotive industry has brought about tremendous development in the field of fleet management. Trucks and other vehicles are now integrated with location tracking, weight measurement, and a number of other useful sensors. The volume of data gathered by the IoT-based sensors from a large fleet is stored in a cloud application.

The collected data is then processed with the help of different analytics features and conceptualized into a visual format for easy understanding. A fleet manager or operator can conveniently go through the visual format information and keep track of various parameters associated with the fleet. Let us understand some of the major benefits of a fleet management system integrated with IoT.

  • Live location monitoring of the fleet
  • Different performance statistics or parameters of the fleet such as fuel, mileage, etc.
  • Total weight or Volume tracking of cargo carried by the fleet
  • Proper management of route
  • Easy tracking of traffic conditions on the road
  • Driver and time management
  • Optimized maintenance of vehicles and much better logistics
  • Keeping a watch on the performance of drivers and propose steps for improvement along with monitoring the status of vehicles, thereby contributing to better safety and more optimal fuel consumption
  • Scheduled preventative maintenance

Connected Vehicles 

The idea of connected vehicles is not at all a new one. However, IoT in the automotive industry has propelled the idea to a great extent. In this case, the vehicles are connected over an IoT network known as CV2X or cellular vehicle to everything that helps connect vehicles and smart transport systems with each other.

Connected vehicles facilitate the very quick transmission of data and help increase the response time of drivers via enhanced vehicle communication. Depending upon the connection of the vehicles with different objects, the CV2X or cellular vehicle to everything is categorized into the following four types.

  1. V2V or Vehicle to Vehicle
  2. V2I or Vehicle to Infrastructure
  3. V2P or Vehicle to Pedestrians
  4. V2N or Vehicle to Network

Smart Infrastructure for the Drivers

One of the biggest advantages of the internet of things in the automotive industry is that in addition to vehicles, the roads, as well as the infrastructure, are also connected to a shared network. This, in turn, plays a significant role in facilitating seamless communication. The major benefits here are listed below.

  • Smart, easy, and convenient parking management
  • Proper management of energy
  • Helps in the prevention of traffic jams
  • Network charging stations for the electric vehicles
  • Smart roads connected to the shared network play a crucial role in contributing to a safer driving environment
  • Smart lighting for the streets and roads

In addition to the advantages offered by IoT in automotive industry mentioned above, there is a wide range of others too. Those can also be utilized in this way depending on the specific needs and requirements of vehicles. Therefore, the internet of things certainly has the capability to bring about a transformation in the entire automotive industry in different respects.


After reading through the post, it is quite clear about the role of IoT in automotive industry and how beneficial the technology can prove to be in this sector. It is true that the technology is evolving with newer additions on a regular basis. Moreover, the fullest potential of IoT technology has not yet been utilized by the automotive industry. However, the rate of adoption of the internet of things in the automotive sector has seen a significant rise over the past few years and is expected to continue in the time to come.


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