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    Home » The Rise of Connected Cars: How the Internet of Things is Transforming the Automotive Industry

    The Rise of Connected Cars: How the Internet of Things is Transforming the Automotive Industry

    autoexpresscarBy autoexpresscarFebruary 26, 2025No Comments6 Mins Read
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    The Connected Car Revolution: How IoT is Reshaping the Automotive Landscape

    Today, computer chips and sensors are becoming ubiquitous, finding their way into everything from household appliances to wearable technology. However, few sectors are experiencing as dramatic a shift due to the mass connectivity of devices, or the Internet of Things (IoT), as the automotive industry.

    Understanding the Connected Car

    A connected car is essentially a vehicle that leverages internet connectivity to communicate with external systems. These systems encompass features such as smartphone apps for remote car access, GPS navigation, and vehicle-to-vehicle communication. These internet- and cloud-connected cars generate and transmit vast amounts of data – between 20 and 200 megabytes daily, according to Darren Mann, the Vice President of Global Operations at Airbiquity, a Seattle-based company whose services are utilized by major automakers like GM, Ford, and Toyota. This data is then used for manifold purposes, from designing safer roadways and predicting equipment failures to enhancing the in-car entertainment experience.

    Benefits of IoT in the Automotive Sector

    Remote Software Updates

    Connected cars are streamlining processes for both drivers and manufacturers, especially concerning software updates. “Vehicles have become increasingly complex over time,” stated Mann. “Traditionally, the only way to update cars that came off the factory line was by returning them to a dealer. Obviously that’s not only an inconvenience for the consumer, [it] becomes very costly for the car manufacturer.” Thanks to IoT connectivity, crucial software-dependent components can be updated ‘over the air’. For example, a malfunctioning headset is now more likely to receive an over-the-air software update instead of requiring a visit to a dealership. Even a vehicle’s electronic control units (ECUs) are now remotely updatable, and over-the-air (OTA) updates can enhance vehicle performance. Tesla, a leader in software innovation, has deployed OTA software fixes for everything from battery efficiency to suspension adjustments.

    Mann predicts that future automotive IoT developments will also include more feature enhancements offered through pay-as-you-go subscriptions. Services like Audible audiobook streaming could be integrated remotely if a driver is on a long road trip. Advancements in technology require keeping pace with emerging liabilities and being able to implement fixes swiftly. When new vulnerabilities appear, connected onboard software lets manufacturers “immediately distribute a patch that addresses that vulnerability in a matter of days or minutes.”

    Predictive Maintenance

    One of the most promising aspects of automotive IoT is predictive maintenance. An array of sensors and computer chips embedded throughout a connected car collect performance data. This data is then processed in the cloud to anticipate when a component might need maintenance, long before it fails. In a fully connected system, a driver could also directly relay a maintenance alert to the manufacturer or a mechanic. Complex systems utilize artificial intelligence (AI) for even greater predictive accuracy, and offer cost savings.

    Easier Parking

    American drivers spend an average of 17 hours per year searching for parking, equating to $73 billion annually in lost time, wasted fuel, and increased emissions. Automotive IoT directly addresses these issues. Recognizing this potential, the market projects smart parking solutions to be valued at over $16 million by 2028. Companies like Otonomo utilize mapping data to identify available parking spots. Otonomo incorporates car data into the cloud for the analysis of factors such as traffic and parking, focusing on transportation planning in urban areas. This allows city planners to assess parking availability and utilization duration.

    Infotainment

    Nearly every new car features a central dashboard screen that serves as the vehicle’s infotainment system. Connected cars are accelerating the growth of the automotive IoT industry. Infotainment systems range from vehicle-specific systems like Kia’s UVO or Jeep’s Uconnect to mobile-compatible systems like Samsung’s Exynos Auto and Android Auto. Speech-activated navigation, texting, and calling are key benefits. Connected cars and infotainment systems now go hand in hand, as the latter relies heavily on IoT connectivity. The connected car allows for the seamless integration of vehicle audio systems with personal smart devices. Apple’s CarPlay, for instance, allows drivers to make calls through the console and integrate apps such as Spotify, Audible, and Pandora.

    Traffic Prediction

    Traffic congestion is a significant inconvenience, and can also contribute to accidents. IoT sensors in CCTV cameras and along highways collect data to alleviate traffic burdens and anticipate congestion. Public safety agencies and IoT companies are collaborating to this end. Connected cars can exchange information, including signal phase and timing data, to predict and report traffic patterns. This enhances fuel efficiency and road safety. As more data becomes available, these predictions will become more accurate. Autonomous vehicles are also improving traffic patterns and car connectivity, and a simulation study found that autonomous vehicles decreased travel time by 17 percent.

    The Challenges of Connected Cars

    Data Security

    As with any technological shift involving substantial data collection, automotive IoT raises privacy concerns. Data about driving habits, can be of interest to insurers. Because car manufacturers generally control this information, consumers should be informed, according to Mann. “When you buy a car, you’re entrusting your automaker [with your information],” he said, and it’s the automaker’s responsibility “to make sure that they’re treating your data as they should be.” Simultaneously, regulations such as the California Consumer Privacy Act (CCPA) and the General Data Protection Regulation (GDPR) are being implemented to provide consumers with greater control over their data and impose substantial penalties for data breaches.

    Connectivity Issues

    The data connection itself is also evolving. Advancements in car safety technology, like automatic emergency braking, are improving, but vehicle-to-vehicle connectivity has the potential to create a genuine breakthrough. But the standardization of connectivity methods, whether 5G or WiFi, is still pending. Businesses like Airbiquity that offer connection-agnostic solutions will be ready for any outcome. “We developed a platform that enables [automakers] to use whatever channels are available,” Mann said. “So the technology isn’t going to be about any one particular predominant standard; it’s more about making sure you can support multiple standards, and the beauty of the product.”

    Operating Systems

    The relationship between the auto and tech industries hasn’t always been smooth, particularly when it comes to infotainment and cloud links. As an example, the German car manufacturer Volkswagen has developed its own operating system in-house, VW.OS, supplied by CARIAD. Automakers such as Toyota and Mercedes-Benz are also developing their own software. “Historically — and this is probably not so prevalent in today’s industry — car manufacturing really wasn’t about software,” Mann said. “The mindset change that’s happened recently is that software development is part and parcel of that ecosystem.”

    While we wait for the full spectrum of automotive IoT benefits, consumers are already enjoying many advantages. “Just like connected devices in the house, people expect convenience and ease of use,” Mann said. “It’s just a natural progression for cars.”

    automotive industry autonomous vehicles connected cars data security IoT
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