McKinsey claims that the overall market for automotive software and related electronic components will grow by 7% CAGR from 2020 to 2030.1 . In 2010, on average a car included 10 million lines of software code, while it ran on 100 million lines of code in 2018. 2
In 2026 the cars with increased self-driving capabilities are estimated to run 300-500 million lines of code. We examine the use cases of APIs in the automotive industry, solutions, and databases to provide information to automotive businesses, dealerships, and individual vehicle owners or prospective buyers.
Top 7 use cases and examples of APIs in automotive industry
Based on the digital transformation in the automotive industry, modern use cases of APIs, and the cars of today and tomorrow, we list the top 7 use cases of APIs in the automotive industry.
1. Mobile and vehicle applications integration
One of the innovative uses of APIs in the automotive industry is the integration of mobile apps on a driver’s smartphone and their vehicle’s Human Machine Interface (HMI). Using mobile apps, the driver can control numerous car functions such as:
- Unlocking and starting your vehicle remotely.
- Make calls, return missed calls, and listen to voicemail with a voice remote.
- View apps such as Calendar, Apple Music, Gmail, etc., on a vehicle’s info system. (see Figure 1).
API & real-life example
Figure 1: Apple CarPlay
Source: Apple. 3
Apple CarPlay is an example of mobile and vehicle application integration API. It supports over 600 hundred car models and is ready to use after purchasing the vehicle.
2. Identifying vehicle identification numbers (VIN) & license plates
There are several APIs used for identifying license plates and VIN. The users can use these APIs to translate a simple picture into characters showing a car’s VIN, license plate, or barcode. Such services can reduce human errors in occasions such as secondhand car shopping, warranty check-up of vehicles, identifying auto thefts, etc (see Figure 2).
API & real-life example
Figure 2: VIN and Barcode identification use cases.
Source: Vehicle Databases 4
An API example for this use case is OCR API services.5 It can scan:
- VIN
- License Plates
- Barcodes
- Documents
Below, you can see how a VIN scanner works and what it could be used for.
3. Vehicle data history report
There is a growing number of APIs for the automotive industry produced by third-party developers. Some of them allow the user to access a vehicle’s complete history. Such use cases of APIs are especially beneficial for dealerships and customers looking to buy cars with a good record.
API & real-life example
An Example of an API is CARFAX.6 You can check a vehicle’s entire history by simply entering its VIN. Via CARFAX, the following information is provided:
- The number of owners
- Ownership type
- Length of ownership
- Traffic accidents
- Mileage rollback
See Figure 3 below for an extraction from the vehicle history report.
Figure 3: Extraction from Vehicle History Report
Source: CARFAX. 7
Below, you can see a video explaining the significance of apps such as CARFAX and how to use them.
4. Vehicle specifications
You can get detailed information about a vehicle’s specifications using certain APIs. By entering a registration/plate number, the user can get the following:
- Make/Model
- Engine type
- Body style
- Trim
- Exterior and Interior optional equipment.
Real-life example
The Global Automotives Cloud API is a service that provides detailed vehicle information based on registration or license plate numbers. By inputting a vehicle’s registration number and country code, users can retrieve data such as the vehicle’s make, model, engine type, body style, registration date, and Vehicle Identification Number (VIN). 8
5. Mobility-as-a-Service (MaaS) APIs
Mobility-as-a-service (MaaS) is a type of service that allows users to plan and book various mobility services. With the rise of smartphones and the growing need for on-demand services, apps such as Uber have proven to be prevalent. API systems provide interactive services for drivers, car dealers, importers, third-party companies, and many other businesses. From renting a vehicle to transmitting driving statistics to repair shops and insurance companies, APIs and web applications in MaaS services are widely used in the automotive industry.
API & real-life example
A Web application and API example for MaaS is RentalCars. 9 You can rent a car from anywhere, whether a small road trip or a 15-day car trip to another country.
6. Vehicle repair and maintenance
Certain APIs are used to identify if a vehicle needs repair or maintenance. Such APIs can be used in dealerships, for personal use, repair shops, etc.
Real-life example
An example of this API is CarMD.10 It works on vehicles sold in the US since 1996 and provides data on OEM (Original Equipment Manufacturer) and non-OEM repairs and maintenance. This API provides the following:
- Mileage due
- Cost of the repair
- Part needed for the repair
- Identifying whether it is OEM or not
- Estimation for the length of repair
7. Auto insurance
Many services in the insurance industry already utilize APIs. In the auto insurance industry, APIs are used to increase revenue, improve the quality of services, and increase the variety of services offered. For commercial auto insurance companies, the use of APIs is included but not limited to:
- Improve the underwriting process with vehicle and API integrations, extracting data such as the number of full brakes per mile, miles driven, location of driving, and average speed.
- Reduce operating costs of businesses by maintaining communication across carriers and vehicles.
- Improve auto insurance companies’ customer user experience via API integrations, reducing manual effort and improving automation.
API & real-life example
An API example is Smartcar. The API platform communicates directly with 4G and 5G modems that are built into the vehicles. By retrieving data from cars, such as odometer readings, vehicle attributes, and location, it draws usage-based insurance (UBI).11 The Smartcar API platform bridges insurance companies and their customers’ cars.
You can see a demo of SmartCar below.
What are automotive APIs?
APIs in the automotive industry serve as connections that enable vehicle apps to communicate with other applications or software platforms. APIs can be integrated into a vehicle’s OEM and non-OEM parts, ready to be used. They can also serve as an application that performs a specific function regarding a vehicle’s software or a connection between a mobile app.
APIs in the automotive industry are not only limited to vehicle-only use cases. They can serve as Mobility-as-a-service APIs for individuals to utilize services on demand or allow businesses to reach out to customers more quickly.
The wide applicability of APIs is one of the reasons why they’re gaining prevalence and momentum over the years.(Figure 4)
Solutions and databases in the automotive industry
1. Automotive software solutions
Automotive software solutions are crucial for managing various functions within a vehicle, such as driving assistance, infotainment, and vehicle diagnostics. With vehicles running hundreds of millions of lines of code, robust and scalable software systems are necessary to ensure real-time processing, security, and seamless communication between vehicle components.
- Vehicle operating systems (OS): The backbone of automotive software, enabling communication between hardware and software, including infotainment systems, navigation, and autonomous driving features. Popular operating systems like QNX, Android Auto, and Automotive Grade Linux (AGL) offer diverse solutions for automakers to integrate software with vehicle hardware.
- Vehicle control software: This includes software for managing the core driving systems such as engine control, braking, suspension, and powertrain management. These solutions ensure that the vehicle responds appropriately to changing conditions, including weather, road conditions, and traffic.
- Autonomous driving software: As the push for self-driving cars continues, sophisticated software platforms are necessary for processing data from sensors like cameras, LiDAR, and radar. These platforms process data in real-time to help vehicles navigate safely without human intervention.
2. Databases for automotive industry
Databases in the automotive industry store critical data related to vehicle performance, history, customer preferences, and maintenance records. These databases are central to the efficient functioning of APIs and other software solutions that facilitate the smooth operation of services like vehicle tracking, repair management, and insurance integration.
- Vehicle history databases: Services like CARFAX and AutoCheck rely on vast databases that store comprehensive vehicle history information. These databases can contain data on a vehicle’s past owners, accident reports, mileage, and maintenance records, offering critical insights for potential buyers and dealerships.
- Vehicle registration and VIN databases: The Global Automotive Cloud and other platforms maintain detailed databases of vehicle registrations, including VIN data. These databases provide essential vehicle specifications, history, and even global tracking capabilities, aiding businesses in ensuring accurate vehicle identification.
- Maintenance and repair databases: Companies like CarMD offer extensive databases for vehicle diagnostics and maintenance data. By providing access to data on the cost of repairs, necessary parts, and historical repair data, these databases help auto repair shops, vehicle owners, and businesses make informed decisions regarding vehicle upkeep.
- Insurance databases: Platforms like Smartcar utilize data from insurance companies and vehicle telematics to offer personalized insurance services. APIs connected to databases allow insurers to extract critical data such as vehicle usage, driver behavior, and maintenance history, offering usage-based insurance (UBI) models that benefit both the insurance provider and the customer.
- Fleet management databases: For businesses managing large fleets, database solutions like Fleet Complete and Geotab provide real-time monitoring of fleet vehicles. These databases track vehicle location, fuel usage, driving behavior, and service schedules, ensuring optimal fleet performance and reducing operating costs.
3. Database integration with APIs
As seen in the use cases discussed earlier, APIs are vital for connecting databases with third-party services. Through these API integrations, businesses can access real-time data on vehicle performance, maintenance schedules, and insurance details, automating and improving the accuracy of services offered. Whether it’s accessing a vehicle’s history via a VIN or providing repair estimates through diagnostic data, APIs bridge the gap between complex automotive databases and end-users.
See the following articles for more information on APIs:
External Links
- 1. Automotive software electronics market 2030 | McKinsey. McKinsey & Company
- 2. Global Automotive Supplier Study 2018 | Roland Berger . Roland Berger GmbH
- 3. iOS - CarPlay - Apple. Apple
- 4. OCR Scanning APIs for VIN Numbers and License Plates.
- 5. OCR Scanning APIs for VIN Numbers and License Plates.
- 6. vehicle history report | CARFAX.
- 7. vehicle history report | CARFAX.
- 8. Automotive Cloud – Automotive Cloud Platform.
- 9. Billiger Mietwagen, Vergleich Preisen - Rentalcars.com.
- 10. CarMD. https://www.carmd.com
- 11. How APIs accelerate commercial auto insurance underwriting · Smartcar blog. Smartcar Blog
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