4 Uses Of IoT In The Automobile Industry That Stand Apart

Over the past few years, automobiles didn’t offer astonishing features and most innovation in these products were always limited to cabin space, aesthetics, infotainment, and engine capacities.

But the emerging IoT field brought several exciting additions to recent cars. IoT-enabled vehicles come equipped with facets like predictive maintenance, AI driven driver attention system, seamless telematics, and much more. 

It is these exciting features which is why the automotive IoT market projected to grow by 21.12% every year. This figure implies that IoT in vehicles will continue to add features that redefine our perception of modern cars.  

If you too are an enthusiast in modern-day cars, here are some notable use cases of automotive IoT that will spark your interest. 

1. Self-driving system

Known predominantly as autonomous cars, self-driving vehicles do not need a driver to perform any activities. The main aim of such a technology is to prevent accidents that occur due to either human errors or old telematics systems. So, in a way, it is the same as the autopilot function of an airplane. 

However, in the case of automobiles, a completely safe self-driving vehicle is yet to hit the market. Nevertheless, advancements in IoT are guiding this concept to a positive state. 

According to Businesswire, by 2030, the global autonomous vehicle market is estimated to reach USD 60 billion which goes on to show the steady advancement towards such driverless vehicles.


The famous American autonomous car development company, Waymo, offers a promising future. Waymo self-driving cars have driven a staggering 20 million miles in 25 US cities using IoT technology. 

As you read, this count keeps increasing every day. 

It initially took 10 years for Waymo cars to drive around 10 million miles. However, with advancements in IoT solutions, these automobiles covered the next 10 million miles in one year. 

Additionally, by using sensors, radars, cameras, and other gadgets to detect the proximity of nearby objects, these cars have grown quite popular. 

2. Predictive maintenance

A car has several sensors located in different components. These sensors collect information on the condition of a car’s equipment and then the collected data gets sent to the respective company that monitors the current condition.

The company thereafter suggest preventive measures to avoid failure of any component. In addition, predictive maintenance also alerts you in case of any possible malfunction. This IoT-enabled application thus helps you detect potential damage before it even occurs and helps you make relevant decisions.

Moreover, it enables insurance companies to offer dynamic premiums strictly on the basis of maintenance data of a particular fleet owner.


Predictive maintenance is of vital importance in brands like Audi, BMW, Mercedes-Benz, etc. This technology is useful for fleet owners, insurance companies, and individuals alike.

For instance, fleet owners can plan in advance regarding the maintenance costs of their automobiles. Predictive maintenance, thus allows them to augment their profit margins and improve fleet utilisation percentage.

In addition, it also enables insurance companies to develop dynamic premiums. Hence, motor insurance becomes a profitable entity in the modern era. Finally, car owners get regular alerts of their vehicle’s health.

These alerts reduce breakdowns per 1,000 kms. As a result, they can make prompt decisions before the event of components failure.  

3. Connected cars

The concept of connected cars is similar to how a computer connects through the internet. In the case of cars, there is an IoT system called ‘cellular vehicle to everything’ (CV2X). Using this network, connected cars link with internal and external devices bidirectionally. In addition, IoT connects such vehicles with smart transport systems.

The primary aim of such connected cars is to improve driver response time through swift data transmission. This data sharing leads to the following benefits:

  • Prevention of accidents
  • Smooth traffic flow
  • Access to weather alerts
  • Ability to use voice commands 
  • Locate nearby public transport vehicles


The MG Hector is a suitable example of a connected car. This automobile is equipped with MG i-Smart, an IoT platform that provides several exciting features.

For instance, voice assist, 5G compatibility, remote monitoring, eCall, and magnet dealer management system are some notable features of the Hector, all of which serve to enhance your experience of using an automobile.

Moreover, this use case offers convenience, comfort, and ergonomics in a sophisticated manner. The IoT-based system uses AI, IPv6, GPS, mobile compatibility, and similar functions to ease everyday driving. As a result, you feel a noticeable difference between such cars and conventional vehicles.

4. Vehicle telematics

Automotive telematics is a system that enhances the safety and efficiency of vehicles. This IoT-based solution uses GPS, vehicle diagnostics, black box, and wireless technologies for transmitting data to analyst who uses it to improve driver safety and automobile performance. 

Moreover, it also helps with:

  • Real-time vehicle tracking
  • Fleet management
  • Safety communication
  • Emergency warning systems

So, overall, telematics augments a car’s safety, navigation, and infotainment systems, making your automobile almost foolproof. You can avail such IoT innovations from tech companies that specialise in this domain.


Brands like BMW, Hyundai, Maruti Suzuki, Volvo, Mercedes-Benz, etc., have an embedded telematics system with around 62% of global cars in 2020 having had an OEM embedded telematics system. This number is bound to increase every year due to the several benefits of automotive telematics.

IoT in automotive industry: A promising future

By 2026, the global automotive IoT market is projected to reach over USD 100 billion. This is because IoT ended a long era of sluggish innovations in automobiles. 

However, there are some challenges that plagues this technology too. 

The need for multiple devices, analytical tools, connectivity, and data security requires more robust infrastructure. Nevertheless, there is improvement in all these facets with each passing day.


IoT is the perfect solution for automobile manufacturers to captivate the interests of Millennials and Gen Z. Importantly, this technology combines essential elements to create smart and safe vehicle systems. This makes it a trendsetter in the automobile market with many brands also incorporating these systems in their existing models.

Hence, it makes perfect sense to shift your focus on to IoT-embedded vehicles and explore IoT solutions when purchasing your next vehicle. If you aspire to leverage IoT, tech companies like ValueScale can offer apt solutions.

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