AIMultiple ResearchAIMultiple Research

5 Use Cases of IoT in Automotive in 2024

5 Use Cases of IoT in Automotive in 20245 Use Cases of IoT in Automotive in 2024

According to Statista, from 2016 up to the pandemic, there had been an aggregate decline of 14% in vehicle production.

One possible reason for the negative growth could be a lack of innovative features in vehicles. After all, car technology has not improved drastically for years. Figure 1 showcases innovative features in German cars from 2010 to 2019. As you can see, the trend is almost flat, averaging 9.935% for nine years.

Figure 1: Percentage of innovation features in German cars. Source: Statista

Bar graph showing the percentage of "innovation intensity" in cars from 2010 to 2019.

IoT; however, possesses the potential to revolutionize the way people interact with their vehicles and opens new marketing opportunities for manufacturers to entice people to purchase cars again.

In this article, we will explore use cases where the implementation of an IoT ecosystem within automotive productions can rekindle customers’ interest in vehicles and revive the industry.

What are the use cases of IoT in automotive?

Some of the use cases of IoT in automotive include:

1. Automotive maintenance system

The sensors embedded in different components of a car can collect data and share it with analysts via on-premise databases or on the cloud. This data is then processed either manually or via an algorithm that can analyze future outcomes of the component based on its performance. This feature can assist the driver in predictive maintenance.

2. Self-driving system

Self-driving capability is increasing amongst vehicles. Tesla is the most culturally popular company associated with this technology. The autopilot feature allows drivers to forgo active control of the steering wheel and let the AI dictate driving speed, braking, parking, lane changing, and other maneuvers.

This technology is not mature yet, as there have been sorry accidents, including a fatal one involving a Tesla Model S, killing a 22-year-old college student.

Nevertheless, autopilot-induced accidents for Tesla, for instance, are reported to be one for every 978,000 miles. The hope is that once the technology is fine-tuned, driving will be safer, seamless, and more comfortable than it’s ever has been.

Safer driving will be achieved by nearby vehicles’ positions being collected and shared with other drivers in the vicinity via Bluetooth or 5G signals. Tesla, itself, uses 8 cameras, 12 ultrasonic sensors, and a forward radar to read lane lines and identify nearby cars for autopilot driving. A comprehensive implementation of this technology in other cars in the market will lead to less dangerous roads.

3. Vehicle security

External sensors and cameras convey the vehicle’s condition and status to the owner’s smartphone via vehicular telematics (see Figure 2). Theft auto is reduced as a result of this: any forced entrance will trigger an alert and notify the owner via their smartphone. Or, because most automobile corners are equipped with sensors and cameras, any tiny mishap — a scratch, a dent, or an unintentional bump of someone’s leg — will be quickly recorded and displayed on the car’s screen. This will help to decrease unreported hit-and-runs and can also help with validating insurance claims.

Figure 2: Tesla’s telematics capabilities. Source: The Verge

Elon Musk says that Teslas will soon be able to stream Netflix and YouTube  - The Verge

4. Fleet management

GPS tracking allows for keeping track of millions of trucks and shipping containers that are on the road. This is a benefit when companies are monitoring their supply chain distribution. In addition, cargo sensors are capable of monitoring the temperature of environment-sensitive cargo, such as fruits and vegetables. This helps reduce food spoilage.

5. Software updates

Cars equipped with IoT technology, like smartphones, can receive software upgrades (see Figure 3). Improved locking mechanisms, stronger cyber security, a better in-car entertainment experience, navigation, and more features might all be included in these improvements.

Aside from what was previously mentioned, most known auto manufacturers do not have any significant over-the-air (OTA) software update options. Tesla, on the other hand, has consistently gone beyond “luxury” improvements to substantially improve the driving experience via software updates. For example, Tesla’s software programmers were able to release an update that included hazard lights automatically flashing following a sudden break in speed.

Figure 3: A Tesla scheduling software update. Source: Tesla

What are automotive IoT’s challenges?

IoT in automotive shares many similar challenges with IoT implementations across other sectors, such as:

  1. Hardware: Expenditure on multitude of devices need to be made.
  2. Analytics: Investing in IoT should move in parallel with purchasing the right analytical tools.
  3. Monitoring: To keep the IoT ecosystem functioning, you have to constantly monitor it.
  4. Connectivity: You have to use the best communication protocols for your network to get the most out of it.
  5. Data security: Cyber threats are always a challenge that need addressing with devices that are connected to the internet. Consider investing in reliable cybersecurity tools for addressing the issue.

For more on the internet of things

To learn more about the use cases of IoT in different sectors, read:

Finally, If you believe your business will benefit from an IoT solution or device, feel free to check our data-driven hub of IoT solutions and tools.

And we can guide you through the process:

Find the Right Vendors
Access Cem's 2 decades of B2B tech experience as a tech consultant, enterprise leader, startup entrepreneur & industry analyst. Leverage insights informing top Fortune 500 every month.
Cem Dilmegani
Principal Analyst
Follow on

Cem Dilmegani
Principal Analyst

Cem has been the principal analyst at AIMultiple since 2017. AIMultiple informs hundreds of thousands of businesses (as per similarWeb) including 60% of Fortune 500 every month.

Cem's work has been cited by leading global publications including Business Insider, Forbes, Washington Post, global firms like Deloitte, HPE, NGOs like World Economic Forum and supranational organizations like European Commission. You can see more reputable companies and media that referenced AIMultiple.

Throughout his career, Cem served as a tech consultant, tech buyer and tech entrepreneur. He advised businesses on their enterprise software, automation, cloud, AI / ML and other technology related decisions at McKinsey & Company and Altman Solon for more than a decade. He also published a McKinsey report on digitalization.

He led technology strategy and procurement of a telco while reporting to the CEO. He has also led commercial growth of deep tech company Hypatos that reached a 7 digit annual recurring revenue and a 9 digit valuation from 0 within 2 years. Cem's work in Hypatos was covered by leading technology publications like TechCrunch and Business Insider.

Cem regularly speaks at international technology conferences. He graduated from Bogazici University as a computer engineer and holds an MBA from Columbia Business School.

To stay up-to-date on B2B tech & accelerate your enterprise:

Follow on

Next to Read


Your email address will not be published. All fields are required.