How is IoT Changing the Face of the Automotive Industry?

Internet of Things (IoT) has paved its way to the majority of the sectors and has revolutionized the lifestyle. As per a report, the IoT connections would increase from 12.3 in 2021 billion to 27 billion by 2025.

The automotive industry is one of the major sectors that has welcomed the adaption of IoT. Resarchandmarket report predicts that the automotive IoT market is set to reach $541.73 billion by 2025.

What Role Does IoT Play in Automotive Industry?

IoT is advanced-level automation that eliminates the need for human intervention by connecting billions of devices worldwide to the internet. The use of IoT in automobiles has resulted in a drastic change in the way users communicate with their automobiles. 

Some of the common examples of IoT in the automotive industry are smart sensors and gadgets, mobile apps, and cloud services. Connected car solutions, in-vehicle infotainment systems, predictive maintenance solutions, Vehicle-to-Vehicle (V2V) applications, etc., are all gifts from the world of IoT. 

The Actual Transformation of Automotive Industry since the Introduction of IoT

The automotive world has witnessed a remarkable transformation since the introduction of IoT. From maintenance to infotainment, IoT has automated almost everything in vehicles. 

Predictive maintenance is possible due to IoT

There is no need to wait for the actual problem to arise in the vehicle. IoT facilitates predictive maintenance. With the help of cloud computing, analytics, big data, and data collection, the performance of each part of the vehicle can be evaluated. For example, a basic transponder by autopropad can effectively perform various diagnostic functions in the vehicle and send the data to its users.

The advanced level analytics helps to assess the possibility of malfunction and sends the data to the users. It has reduced the number of breakdowns since effective maintenance is now possible using IoT. 

Here is what IoT offers with predictive maintenance:

  • Malfunction or failure of vehicle parts can remain predicted so users can take appropriate actions to prevent its occurrence
  • Calculation of the remainder of the useful life of the vehicle is possible
  • Enhanced safety due to timely maintenance of vehicular parts

Optimized Transportation with Real-Time Telematics

With telematics, it is possible to monitor the vehicle’s movement, location, or status within the fleet. The telematics device can be connected to the IoT boxes that transmit the data through the cloud with real-time insights. 

The use of telematics has facilitated easy and remote access to comprehensive vehicle information. It is possible to control the speed limits remotely, check navigation, and even notify third parties in case of an accident. 

Also Read: The Architecture of Internet of Things (IoT)

Advanced Infotainment with IoT

There are endless possibilities when it comes to infotainment using IoT. The combined use of smartphone and IoT devices allows users to open and close doors or even start the vehicle with a click of a button on their mobile phones. 

Google Maps, Apple Carplay, and Google Assistant are a few common examples of how IoT enhances the infotainment experience for its users.


IoT is set to become the latest sensation in the automotive industry and remain a part of our day-to-day lives. The least human intervention and detailed information of automobile with remote access is possible – all thanks to IoT!