Top 5 Major Applications Of IoT In The Automotive Industry

The Internet of Things is making its way to restructuring several industries of the global marketplace, including the automotive industry. IoT in automotive industry is an aspect that is changing our lifestyle at a pace faster than expected. When it comes to technology in the automotive sector, our cars have been connected for years, seamlessly connect to smartphones, provide real-time traffic alerts, stream our favorite playlists, and more.

There are numerous significant applications of IoT in automotive industry that have taken up the charge to transform the industry. But before we march ahead to shed light on the IoT’s applications, we would like you to have a glance at some of the most trending facts about IoT.

• 59% of vehicle & equipment purchases are already based on connected features in some way;
• 74% of the world’s top 50 OEMs in the automotive sector have deployed connected vehicle platform;
• The estimated OEMs annual revenue from the vehicle data by 2030 is estimated to be $450-$750 billion USD.

Here are the top 5 applications of IoT in the automotive industry.

1. Fleet Management

Amongst the top applications of IoT in automotive industry, there lies fleet management on the top position. It introduces fleet operators to a wide range of benefits, including monitoring driver performance, compliance with environmental & safety regulations, and more. Additionally, IoT enables monitoring fuel utilization, sharing driver’s health stats, and sending idle alerts.

The volume of sensory data collected from a large fleet of vehicles is stored in a Cloud application, and the data is processed through various analytics features and conceptualized into a visual format. A fleet operator can access this information and monitor multiple associated parameters. Numerous benefits that a fleet manager can avail are:

• Real-time fleet location monitoring
• Weight tracking of cargo carried by the fleet
• Monitoring stats like fuel and mileage
• Tracking traffic conditions
• Route management
• Time & driver management

The Internet of Things in automotive industry automates processes and trip planning while delivering high-quality and on-time deliveries.

2. Connected Cars

Technology is evolving at a rapid pace and is changing the way people and things communicate with each other. And the most extensive application of IoT technology for automobiles is connected cars. In layman’s language, any car that can connect to the Internet is called a connected car. Usually, the cars connect via WLAN. Furthermore, a connected car can always access the Internet and perform functions as requested by the user.

A connected car comes with a host of features that improve the overall driving experience and bring safety with its advanced safety features. Connected cars warn the driver of external hazards and internal responses of the vehicle. More importantly, the central monitoring system tracks multiple sensors that inform about the car’s health condition.

Connected cars also track the vehicle’s speed and proximity with other vehicles to avert collisions. 

Autonomous cars might be the future of mobility, but at present, connected cars are gaining the limelight. With the introduction of innumerable smart vehicles, consumers are getting inclined towards connected cars. In the coming years, 5G technology will make connected cars even more intelligent and safer. And with this, you can obtain a clear idea of the potential of IoT technology for automobiles.

3. Predictive Maintenance

IoT-based predictive maintenance allows efficient prediction of vehicle failure and reduces maintenance issues. As per a report, predictive maintenance possesses the potential to:

• Reduce costs by 12%
• Reduce downtime by 9%
• Reduce safety, health, and environmental risks by 14%
• Shoot up the lifetime of an asset by 20%

With the advent of applications of IoT in automotive industry, predictive maintenance plays a critical role in collecting data on a vehicle’s part performance. Simply put, it evaluates the risk of malfunction of the vehicle, transmits the data over Cloud, and notifies the user about breakdown and required maintenance.

Data captured by IoT devices gives businesses the opportunities to predict, plan, and take measures proactively. Predictive maintenance is performed chiefly while the equipment is running and operating without any disruptions. This involves, for example, the replacement of damaged vehicle equipment during the next visit to the workshop before it fails completely.

Predictive maintenance delivers a variety of benefits- both for the manufacturer and the user. It brings improvement of economic efficiency, determination of the best possible time for upcoming maintenance, and improvement of machine performance.

4. Autonomous Vehicles

Autonomous vehicles are one of the most startling features of IoT technology for automobiles. Various car manufacturing giants are eying to develop fully autonomous cars that will exercise complete control over driving without human intervention.

The most prominent benefits of autonomous vehicles are:

• 90% reduction in traffic deaths
• 60% reduction in emission of harmful gases
• 10% improvement in fuel economy
• 40% reduction in travel time
• 50% increase in consumer savings

The Future Of Driving report from Ohio University says,”The impact of driverless cars is that such cars can be parked in 15% less space. Currently, cars need to be parked with enough space between them for the driver to exit after parking and enter when removing the car from the parking space. With self-driving cars, vehicles can be stacked right next to each other. Urban areas facing acute space shortage will gain from the transition to driverless cars.”

However, a fully independent vehicle is still to be developed. Admittedly, there are semi-autonomous vehicles that partially assist drivers by providing assistance in driving, braking, parking, and lane-changing activities.

5. In-vehicle Infotainment & Telematics

Automotive manufacturers are developing automobiles with integrated infotainment systems that provide entertainment and information. Modern in-vehicle infotainment systems connect with smart automotive technologies like V2X connectivity solutions, telematics devices, sensors, and more.

As per sources, in-vehicle infotainment is estimated to reach USD 30.47 billion by 2022.

In-vehicle infotainment integrates with various other in-vehicle and external systems to provide maximum benefits to the driver and passengers. A smartphone-enabled dashboard ensures car owners about its security, surveillance, and safety. External sensors and cameras track the vehicle’s condition and transmit the data to a mobile application. The Telematics system alerts the owner if someone tries to open the vehicle forcefully.

Summing Up:

Applications of IoT in automotive industry have brought humongous transformation in the modern world. It has not only brought ease and entertainment but also safety and comfort for drivers and passengers.

The market is flooded with various software companies that assist the automobile industry in leveraging the potential of IoT. Connecting with one of the most trustworthy and reliable IoT development companies to seek IoT-based application development services is the most critical step you can take towards revamping your automobile company.

It’s time to shift into high gear because the road ahead is full of opportunities. Drive away faster!