The automotive industry is becoming increasingly competitive, and automotive companies are turning to automotive IoT (Internet of Things) to stay ahead and meet customers’ expectations.

IoT for Automotive Industry is a network of devices connected to the cloud, such as cameras, sensors, GPS trackers, etc., that provide real-time data. This data assists in optimising the car manufacturing process effectively.

The applications of IoT and automotive industry have opened up new possibilities for automakers and buyers worldwide, including connected devices for cars and automated vehicles. The Internet of Things automotive industry has seen significant advancements in the recent years.

As a leading IoT development company in Melbourne, we have prepared a comprehensive guide that will explore the various applications of IoT in the automotive industry and how this transformative technology is driving innovation across multiple aspects of the industry.


What is IoT?

The Internet of Things (IoT) is a network of countless sophisticated devices, including sensors, electronics, actuators, gateways and platform hubs. These devices are connected to each other through wireless networks, allowing them to share data and interact without human intervention.

Initially, automotive IoT was mainly used in manufacturing to increase autonomy and lower production costs. However, the technology has now expanded to more general and commercial applications.

The automotive industry has also embraced IoT, and numerous Automotive IoT use cases have revolutionised how people interact with their vehicles. IoT smart cars can now communicate with each other, share data, and operate with minimal human input.

Key Trends and Statistics on Automotive Internet of Things

Automotive IoT

  • According to GII Research, the global Automotive IoT market is estimated to reach USD 101.14 billion by 2031, growing at a CAGR of 8.4% from 2024
  • The connected car IoT market share was the second-largest segment in the overall IoT market in 2022, accounting for $73.8 billion.
  • Companies like Texas Instruments, NXP Semiconductors, IBM, Microsoft, and Audi are key players in the IoT and automotive industry, developing hardware, software, and service solutions.

The Advantages of IoT in the Automotive Industry

Automotive IoT is emerging as a vital tool for innovation and efficiency in the automotive sector. The benefits of IoT are broad and game-changing, from rethinking user experiences to reinforcing vehicle safety.

Here are some of the primary benefits of IoT for automotive industry:


Technology Driven Infrastructure

With the help of AI technologies, IoT in cars, drivers can access important information about roads and infrastructure. This improves the driving experience, enhances road safety, and reduces collision rates.

IoT automotive solutions when integrated with custom mobile app development can be particularly helpful in managing smart parking, preventing traffic congestion, implementing intelligent road lighting, and ensuring proper energy management.

Predictive Maintenance

Connected car IoT sensors can monitor the condition of vehicle and predict potential issues with the help of smart AI and ML solutions integrated with IoT. They gather essential information about fluid levels, engine status, temperature, fuel consumption, navigation, etc.

This data can be used to predict when a vehicle needs maintenance, preventing serious issues from occurring.

Intelligent Transportation Systems

Automotive Internet of Things can connect smart transport systems and vehicles with each other, enabling vehicle-to-vehicle (V2V) interaction.

This is a critical component of an intelligent transport system as it allows IoT cars to share important information such as route speed, location, and more.

Personalised Driving Experience

IoT-powered infotainment systems learn driver preferences and adjust settings, accordingly, creating a personalised driving experience.

For instance, imagine climate control that automatically adjusts to your preferred temperature or a navigation system that suggests your favourite coffee shop based on your daily routine.

Reduced Emissions

By optimising routes and engine performance based on real-time traffic and weather data, automotive IoT can help reduce fuel consumption and emissions. This not only benefits the environment but also saves drivers money at the gas pump.

Data-Driven Insights

The vast amount of data generated by IoT smart cars 2024can be used to gain valuable insights into driver behaviour, traffic patterns, and vehicle performance. 

This data can be leveraged to improve connected car IoT design, develop new services, and make informed business decisions.

The Advantages of IoT in the Automotive Industry

Applications/ Use Cases of IoT In Automotive Industry

Let’s talk about the most essential real-time automotive IoT applications:

1. Fleet Administration

IoT automotive solution has several use cases, including fleet management systems. These systems help fleet operators monitor and manage vehicle fleets, optimise routes, schedule maintenance, and track fuel consumption to reduce costs and improve efficiency.

Moreover, Internet of Things automotive when combined with taxi booking app development can provide driver performance and health statistics, detect drowsiness, and send idle alarms. IoT and cars sensors signal warning alarms for low battery, engine maintenance, and coolant temperature, among others.

Fleet managers can automate various procedures like trip planning, product delivery, and superior service with IoT in vehicles, resulting in improved customer experience.

2. Automated Vehicles

Autonomous vehicles are a trending topic among automotive makers, but a fully independent vehicle IoT is yet to be developed. However, semi-autonomous vehicles that partially assist drivers with driving, braking, parking, and lane-changing activities have been manufactured.

Semi-autonomous cars make on-spot decisions while partly controlling vehicle operations to reduce the load from the driver.

Connected cars are integrated with IoT systems, including different proximity sensors and cameras, to reduce human error and make driving more comfortable and safer.

3. Live Vehicle Tracking and Monitoring

The automotive industry is utilising IoT in many ways, one of which is through cloud connected IoT boxes linked to telematic devices that provide real-time data on driver health and vehicle status.

This combination helps track IoT cars’ movement, position, conditions, and behaviour within a fleet. By utilising vehicle IoT telematics, car owners can remotely monitor their vehicles.

Telematics provides several benefits, such as remote vehicle speed limit controls, remote access to vehicle operation data, and vehicle collision notifications to third parties and emergency responders.

4. Application Upgrades

IoT-integrated vehicles receive app maintenance upgrades that help improve locking mechanisms, enhance the in-car entertainment experience, reinforce cybersecurity, improve navigation, and other features.

This application of IoT in the automotive industry is significant as it improves both vehicle safety and performance, as well as the overall driving experience.

5. Cellular Vehicle To Everything (CV2X)

Cellular Vehicle-to-Everything (CV2X) is an impressive IoT use case in the automotive industry that helps connect cars with each other.

Depending on the type of connection between the vehicle and different objects, CV2X can be segmented into four sub-categories:

Vehicle-to-Vehicle (V2V)

V2V connection allows vehicles in close proximity to share data with each other. The data mainly includes information related to location, speed, and dynamics.

V2V connections help prevent accidents and enable emergency vehicles like ambulances and fire trucks to move easily through traffic.

Vehicle-to-Infrastructure (V2I)

V2I connection refers to a network of vehicles and road infrastructures. The infrastructure in V2I consists of traffic lights, lane markings, and toll booths.

V2I generally facilitates smooth traffic flow and avoids long queues at toll booths or petrol pumps.

Vehicle-to-Pedestrians (V2P)

A pedestrian can connect with the CV2X network through a mobile application. A pedestrian can use this application to locate nearby taxis and monitor the estimated arrival time for transits.

They can also connect with the pedestrian walking system and change traffic signals to cross a road.

Vehicle-to-Network (V2N)

The Intelligent Transport System (ITM) and weather forecast department can also connect with the network to alert drivers about changes in weather conditions or an accident on the road.

Moreover, a vehicle can be connected to smartphones. This way, the driver can use voice commands to operate the music system and GPS of the car while driving.

Cellular Vehicle To Everything

6. Assess the Driver's Health Status

Wearable mobile app development solutions integrated with IoT technology in vehicles can collect data from car sensors to analyse a driver’s physical and psychological conditions. This data can help detect the driving pattern and behaviour of the driver, which can be used to provide extra support and security to the drivers.

Additionally, the collected data can be used by insurance companies. Some companies even incorporate IoT-enabled active wellness seats for drivers.

These seats monitor the heart rate and breathing rhythm of the driver, alerting them if they are showing signs of fatigue or if they need to take a nap. This helps reduce the risk of accidents.

The Future of IoT In the Automotive Industry 2024 and Beyond

The integration of IoT in automotive industry and Blockchain app development has unlocked new value for all businesses involved and will continue to evolve in the upcoming years. It is reshaping how we perceive the automotive industry, which is actively working on self-steering, smart parking, AI-driven acceleration, and braking in Tesla vehicles.

Tesla and some of the latest models of Mercedes-Benz, Audi and BMW are adopting IoT technologies, setting an example for Internet of Things automotive to support their forward-thinking action plans for fully autonomous vehicles.

These advancements made by automotive companies in vehicles have the potential to revolutionise the industry, making driving safer, smarter, more efficient, and more sustainable than ever before.

Here are some potential developments of IoT for automotive that we can expect to see in 2024 and beyond: –

  • The integration of IoT in vehicles will lead the way to the adoption of fully autonomous vehicles.
  • The data collected by IoT sensors about the driver’s preferred seating position, music choice, temperature settings, etc., will help provide more personalised driving experiences to the individual who is in the driving seat. The level of personalisation is expected to grow in the coming years.
  • The use of IoT automotive solution will help optimise engine performance, reduce vehicle emissions, and improve overall sustainability. In the future, it is expected to provide even greater efficiency in transport management.
  • As IoT is increasingly integrated into vehicles, there will be a growing need for enhanced cybersecurity measures to protect sensitive data from cyber theft.

The Bottom Line

Internet of Things automotive industry has become popular in the past decade. It is used to optimise and transform business processes with its exciting applications.

IoT plays a significant role in enhancing the quality of customer and driver experiences. Therefore, it is high time for you to consider accelerating the development of IoT in your business and improving your brand experience.

How Vrinsoft Pty Ltd Can Help You Utilise IoT In the Automotive Industry

The use of IoT technology in the automotive industry is rapidly increasing. We are approaching a time when advanced and fully autonomous vehicles will become more prevalent in the market.

As a result, both established automotive companies and startups are working towards creating more connected devices to enhance their automotive IoT solutions.

At Vrinsoft Pty Ltd, the best IoT app development company in Australia we can help you achieve this forward-thinking vision by developing intuitive 5G and IoT technology for your automotives. Our team of skilled IoT developers can assist you in making your automotive IoT project a success and accelerate your journey towards digital transformation.

FAQs on the Application of IoT in Automotive Industry

What is the application of IoT in the automotive industry?

Automakers use IoT applications to create cutting-edge technologies such as predictive maintenance solutions, Advanced Driver-Assistance Systems (ADAS), navigation and telematics solutions, in-vehicle infotainment systems, cellular vehicle-to-everything (CV2X), and more.

How IoT is changing the automotive industry?

IoT for automotive vehicles allows to communicate with each other, infrastructure, and the cloud. This connectivity enables real-time data sharing, improving safety and navigation. Predictive maintenance, remote diagnostics, and over-the-air updates become possible, offering a seamless driving experience.

How does the Internet of Things influence Vehicles?

IoT significantly influences automotives, allowing them to connect to Wi-Fi and other vehicles on the road. This high level of connectedness improves vehicle performance, driving experiences, safety, and efficiency. Furthermore, automotive IoT is the driving force behind the development of self-driving vehicles, which have the potential to revolutionise how we drive and interact with our vehicles.

What is the scope of IoT in the automotive sector in the future?

The future of IoT in the automotive sector is promising. Automotive IoT applications improve vehicle performance, efficiency, driver experiences, and safety. Moreover, Internet of Things in cars, such as enhanced analytics, increasing automation, greater connection, completely autonomous vehicles, and so on, can be expected in the future, leading to safer, more efficient, and more sustainable transportation.

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