IoT in the Automotive Industry

Automotive Industry

January 2, 2019

The automotive industry has undergone some significant changes over the past century. But, when you think about the most talked-about features in today’s vehicles, you probably don’t immediately think about the Internet of Things (IoT). In an industry that must maintain a laser-focus on safety and reducing risk, innovators are slow to adopt new technologies until they have been proven.

That said, IoT in the automotive industry is transforming the way today’s cars are designed. Safety is still front and center, but features that deliver convenience and enhanced customizations offer a way for consumers to access a truly individualized driving experience.

A matter of convenience

As a population, we have moved gradually from paper maps to GPS navigation devices, to turn-by-turn mapping on our mobile devices, to fully integrated navigation systems built into our cars. Many vehicles now come equipped with Wi-Fi or 4G cellular hotspots, making it easier for us to seamlessly connect our lives from wherever we are.

The ability of cars to connect to the internetis key here. Connectivity not only allows us to connect with the rest of our online world, but it also provides a way for manufacturers and service providers to analyze data and improve their service delivery. It would also be safe to say that the marketing potential is also attractive, as connectivity allows advertisers to target us based on our behaviors, much like they do on our mobile devices or computers.

Industry and logistics

In industry, the world’s top logistics and transportation providersdepend on IoT to assure accuracy, optimize costs, and improve customer service. From guidance systems that can predict traffic and redirect a route to pinpointing the location of each individual shipment, vehicle, and driver, IoT is helping to drive costs lower and improve productivity and accuracy. To that end, there is a downstream expectation of a certain level of service that only IoT can deliver.


With self-driving cars and self-guided delivery fleets now a reality, the auto industry has necessarily stepped up its game. As time goes by and competition for market share becomes more cutthroat, these changes are in high demand, and the manufacturers that are able to answer these needs will dominate the market.

Risk management

Most new consumer vehicles are equipped with safety features such as proximity sensors, reverse cameras, and various sensors, features that would not be possible without IoT.

In the insurance industry, IoT delivers valuable insights and potential savings for both insurer and insured through usage-based insurance (UBI). This concept that has two distinct advantages: first, it gives drivers an incentive to maintain better driving habits in order to reduce their premiums and, second, it reduces insurance payouts, which will eventually drive insurance costs and risk down.

Signs of the times in the automotive industry

The automotive industry is at a critical turning point in its evolution and IoT is one of the most significant ways that manufacturers can deliver on the needs of both consumers and industry. Better control, more understanding, enhanced convenience, lower costs, and improved safety are just a few of the ways we will realize the benefits.

If you would like to learn more about IoT in the automotive industry, explore our solutions today.

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