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IoT in automobile industry

With a yearly output in excess of 70 million units, the automotive domain is one of the largest industries in the globe. Going by global estimates, the international turnover of the automotive industry during 2017 was an astounding 3 trillion US$, reaching a cumulative international GDP of 3.65%.  

But, the cumulative yearly sales with regards to automobile units sold has been somewhat stagnant since 2016. Annual car sales have been ranging from 75 to 80 million units over the past half a decade. One of the factors owing to which the automobile industry has not been able to make inroads with regards to its yearly production output and sales is due to innovation lacking in vehicle technology. Today’s clients seek a lot more from their product, they want bang for their buck, they want their money’s worth. Just a cutting-edge driving experience doesn’t cut it anymore. What they want is state of the art and future oriented tech which they can leverage to connect and interact. IoT has been creating disruption in industry and has been enabling the automobile industry to develop a breed of next-gen vehicles. 

The proliferation of IoT in the automobile industry has provided new opportunities for vehicle manufacturers for producers and customers internationally. With utilization at both industry and commercial levels, IoT in the automobile sector has become a noteworthy breeding ground for variable multi-purpose applications. From cars that are online to automated transporting frameworks, the leveraging of IoT have had a considerable impact in the international automobile market.  

Internet-of-things 101 

The internet of things is an extended network of hundreds of thousands of connected devices such as sensors, electronics, actuators, gateways, and platform hubs. These gadgets connect and communicate with each other through a wireless network. This interconnected network of things partake in data sharing and are autonomous with regards to their operation. 

Research put out by Gartner indicated that more than 20 billion IoT devices would be online by the end of 2020. Manufacturing firms were amongst the first to leverage IoT for autonomy purposes and to minimize production expenditures. A bit later it was applied in more commercial and generic use cases. Nonetheless, the potential that IoT has for the automotive sector are vast. Various automobile use cases have propped up that are creating a revolution in the ways in which people communicate with their vehicles. In this blog by AICoreSpot, we will explore 5 significant IoT use cases in the automobile sector. 

  • Fleet administration 

IoT implemented in the automobile industry has created significant advancements in the domain of fleet management. Trucks today feature weight measurement integration, location tracking integration, and various other sensors.  

The amount of sensory data collected from a big fleet of trucks is documented into a cloud-based app. This information then undergoes process through various analytics functionalities which is subsequently visualized. A fleet manager can simply sift through this data to survey various aspects related to their fleet. A few of the advantages conferred by an IoT-based fleet management system onto a fleet administrator are: 

  • Real-time location tracking of the fleet 
  • Weight/volume track of cargo that fleet is holding 
  • Performance stats such as fuel levels and mileage 
  • Monitoring the traffic situation on the road 
  • Route administration 
  • Time and driver administration 


  • Connected vehicles 

The concept of connected vehicles has been doing the rounds for a while now. According to estimates by Gartner, the end of 2020 would have witnessed 250 million connected cars on international roads. These vehicles are interconnected through an IoT network referred to as CV2X that gets cars and smart transport systems connected. 

Connected vehicles enable swifter transmission of information and enhance driver’s response times via improved vehicle communications. On the basis of the car’s connection with various objects, the CV2X is classified into four categories. 

  • Vehicle to Vehicle (V2V) – These connections enable cars in proximity to engage in information sharing with each other. The information mainly constitutes data in relation to location, dynamics, and speed. V2V facilitates prevention of road accidents and enable emergency vehicles such as ambulances and fire trucks to easily weave through traffic. 
  • Vehicle to infrastructure (V2I) – V2I is in reference to networked vehicles and road infrastructures. The infrastructure with regards to V2I mainly constitutes traffic lights, lane demarcations, and toll booths. V2I mostly enables smoother flow of traffic and helps in avoiding long lines at petrol stations or toll booths. 
  • Vehicle to pedestrians (V2P) – By leveraging a mobile app, pedestrians can get connected with C2VX networks. Pedestrians can leverage this app to identify taxis in proximity and survey the ETA with regards to transits. Additionally, they can get connected with the pedestrian walking systems and modify traffic signals when crossing roads. 
  • Vehicle to network (V2N) – Intelligent Transport System (ITM) and weather forecasting department can also get connected with the network to warn drivers about alterations in weather or provide data with regards to road accidents. Furthermore, a vehicle can connect with mobile phones. The driver can leverage voice commands to manage the music system and GPS of the vehicle while they drive. 


  • Automobile maintenance systems 

Predictive analytics is a groundbreaking functionality of IoT enabled automobiles. The sensors featured in various parts of a vehicle obtain information and upload it to a platform. This information subsequently undergoes process through algorithms that are capable of analyzing the future outcomes of a specific part based on how its been performing. 

IoT automobile maintenance system also enable an individual to take the requisite steps in prevention of vehicular parts from sudden failure. Much like dashboard indications on a car, this system cautions the driver with regards to potential failures in the car’s mechanisms. However, these warnings are pre-delivered to the driver’s smartphone, long before the issue even happens, enabling them to take proactive steps to manage mechanical failure. It saves on expenditure and time that happens when parts fail during a drive. 

The functionalities of predictive maintenance can have implementation on individual vehicles and fleets. It is really advantageous especially for load bearing vehicles that commute for days on end prior to getting to their intended destinations. By leveraging the automobile maintenance system an individual can validate the how their cars are performing and fix its components prior to failure occurrence. 

  • Self-driving vehicles 

Self-driving vehicles are all the rage amongst car makers. Several car producers are attempting to produce a 100% autonomous vehicle that will take over all driving responsibilities from the driver. With several proximity sensors and cameras, vehicles that feature integration with IoT systems can minimize human error and make driving a safer, and more convenient experience. 

  • In-vehicle infotainment and telematics 

In-vehicle WiFi functionalities driven by 4G/5G connectivity has facilitated telematics functionalities to IoT-based automobiles. Telematics is in reference to the long transmission of computerized information. By leveraging telematics, a vehicle owner can maintain a bird’s eye view on their cars from remote locations. 

Via mobile phone-based dashboards, vehicle owners can make sure that their vehicles are secure, safe, and monitor it at any time. External cameras and sensors engage in tracking of the car’s physical state and transmit the information to a smartphone app. Telematics systems combined with real-time alerts ring alarms in the owner’s mobile phone if anybody attempts to forcibly enter the vehicle without the requisite access, such as in instances of theft. The smart vehicle equipped with IoT also informs the relevant authorities such as ambulance and fire services in scenarios of emergency. 

WiFi functionalities have also spurred smart infotainment systems combined with other smart vehicle functionalities. The owners can get connected to various gear such as GPS and audio systems within a vehicle by leveraging their mobile phones and operate them remotely. Presently there are several built-in and 3rd party apps that an individual can leverage to get their cars connected to their smartphones. 

Voice commands in these apps enable an individual to play their favorite audio tracks, perform video streaming, or take calls with minimal effort. The GNSS and GPS systems within the infotainment systems also provide onboard navigating and detailed data with regards to gas stations, restaurants, and other noteworthy locations in close proximity. 


IoT combined with other disruptive tech is creating a revolution within the automobile sector. Progress in this domain has facilitated the emergence of groundbreaking development in automotive tech with regards to connected and self-driving vehicles. It utilization has redefined car inspection and maintenance functionalities and put forth new mediums of entertainment. Furthermore, vehicular telematics is enabling long-range information communication that has facilitated the development of IoT-driven fleet administration systems. 

IoT within the automobile industry is becoming more significant by the day. With the improvements in the tech related to IoT, there is bound to be refining of automobile use cases that will crop up that will revolutionize the ways in which we communicate with our cars and other vehicles. 

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