IoT in Automotive Industry

How IoT is making an Impact in the Automotive Industry

Before IoT connectivity was possible, there was a time when accessing, managing, and processing data individually was the norm. Well, all that has changed! We have IoT now. 

However, as they say about AI, it’s AI, not magic. Realistically speaking, the widespread adoption of IoT was only in the papers until recent times. At present, the IoT is anticipated to grow at a CAGR of 21.12% and reach USD 100.39 billion by 2026.

IoT is now a very important technology. It saves millions of dollars and makes transportation, supply chains, and fleets run more efficiently. 

More than any other industry, the automotive industry has undergone a revolution after the emergence of the Internet of Things. 

The word “game changer” would really fit the IoT when it comes to the automotive industry. 

What is IoT? And how does it work in the transportation industry?

Through the Internet of Things, people, businesses, and governments can now interact with a wide range of objects that were not in connection before. 

It lets us collect data, draw conclusions from that data, and then send instructions back to the cars, tractors, or whatever else to help them do their jobs better.

The IoT module has four parts: the machine you want to control; a module for collecting data; a module for processing data; and a module for sending and receiving data. 

When it comes to devices, there are two types of devices.

Devices that can control and monitor themselves (e.g., smart watering systems) and devices that are meant to do their task alone. So, IoT can’t help in the second case unless the device is changed or replaced with a smart system.  

Coming back to IoT modules

The primary goal of the data collection module is to gather physical signals from the “vehicle” and transform them into digital signals that a computer can process.

This is the part of the hardware that houses all the sensors for gathering data such as temperature, engine health, fluid levels, light, positioning, motion, vibration, and so on. 

Depending on your application, you’ll need a certain kind and quantity of sensors.

When it comes to the data collection module, the primary concern should be given to what kind of data it was designated to collect, what kind of sensors are needed for it, how fast you wish to collect it, and, of course, in any case, accuracy. 

Next comes the processing part. You do not need a supercomputer here. 

A clear understanding of why you are collecting data and what kind of insights and reports you are looking for will suffice. Also, answering these questions will give you an idea of what kind of architecture you need to have. 

The communications module may be a part of the same device as your other modules, or it may be a separate communications-only device. The term “gateway architecture” is frequently in use to describe this strategy.

How is IoT useful in the automotive industry?

  • Fleet management

The IoT has revolutionized fleet management. Fleet business owners are very happy because they have finally seen a huge spike in their revenue.

For many freight and transportation companies around the world, smart fleet management solutions, which are based on technologies like big data, cloud, telematics, and primarily IoT, have proven to be a real game-changer. 

A large fleet uses a cloud application to store the huge amount of sensory data that it collects.

Then, after going through different analytics features, this data will convert into a visual format. 

This information helps the fleet manager in tracking information such as idle time, positioning, speed, engine efficiency, etc. 

By monitoring these factors, fleet management companies can achieve

  • Bird’s eye view of the complete operations of the system.
  • Vehicle tracking in real-time.
  • The idle time of the vehicle will reduce to a great extent.
  • The measurement of the weight of the fleet is possible at any point in time.
  • Reduce breakdowns and unplanned engine downtime by remotely diagnosing maintenance needs and receiving alerts for predictive maintenance.
  • Driver behavior and safety hazards can be on track. 


  1. Predictive Maintenance

With the help of the right sensors, the engine, brakes, radiator, tire pressure, and other mechanical parts of the car can give information ahead of time, which is useful for early maintenance and to reduce wear and tear.

An example of this would be tire pressure. One reason why a car gets fewer miles per gallon is that it isn’t running right or has low tire pressure. 

By measuring the tire pressure using the right sensor, this problem can be shown to the driver on an app, infotainment, or dashboard screen so that good tire pressure can be maintained. 

2. Communication

There are a number of ways a vehicle communicates.

V2P (vehicle-to-pedestrian), V2N (vehicle-to-network), and V2I (vehicle-to-infrastructure). All of this is possible because of the C-V2X (Vehicle-to-Everything) low-latency platform.

When it comes to vehicle-to-vehicle communication (V2V) technology, it uses vehicle ad hoc networks (VANETs), which are wireless networks that let cars talk to each other and share information about how they drive. 

VANET technology is very important for making roads safer because it sends out alerts about problems before a driver notices them.

Also, VANET lets drivers share different alerts with other drivers or fleet managers through communication systems. This can help reduce accidents.

(V2V) communication and collision avoidance systems could be one of the main building blocks of future systems that allow cars to drive themselves.

3. Personalising customer experience 

Customers have become accustomed to personalized marketing strategies in recent years, in part because of the digital transformation brought about by the web. In the latest version of personalized marketing, customers are starting to value one-on-one interactions with brands.

McKinsey claims that successful personalization strategies lead to increased consumer engagement and revenue growth.

A pleasant customer experience is very important to a store’s bottom line. It is because it increases customer satisfaction by 20%. This results in increasing sales conversion by 10% to 15% and increasing employee engagement by 20% to 30%.

There is a widespread adaptation of IoT in customer engagement at present. The Internet of Things (IoT) could make the sales process better by giving employees the information they need to answer questions from customers right away. 

For instance, sensors that connect to a car’s onboard diagnostics (OBD) port can report on some things. It includes location services, power reserves, and engine performance.

If a customer walks into a dealership and asks to see a certain car in particular, the dealership can use the information from the sensor to quickly get the car from its exact spot on the lot.

4. Parking is now more accessible than ever! 

Did you know that 11% of global parking space has now become smart? What does that mean?

With the help of smart parking technologies, parking lot managers can keep tabs on the occupancy rate of their lots in real time, no matter where they are located.

A whole end-to-end solution for smart parking includes several elements. It includes automatic license plate recognition technology, smart parking meters, smart payments for parking, and parking help through digital signage and navigation apps, etc.

Final note…

The impact of IoT in the automotive industry does not end here. Car navigation, telematics, and entertainment are just some of the infotainment options made possible by smart apps and mobile networks.

The IoT is destined to be the future of the automotive industry. Its widespread application at present changes the game and is expected to bring further changes along the way. 

Perfomatix | Product Engineering Services Company