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IoT has auto manufacturing in the fast lane

The Internet of Things (IoT) is transforming human lives and rapidly disrupting the way businesses function across industries. But IoT has found its widest application in the automotive industry.

Automotive manufacturers are seeing a growing demand for smart communication systems, connected cars, and in-vehicle infotainment across all markets around the world. According to research, the global market for IoT in automotive is projected to grow up to $104 billion by 2023.

Automotive IoT offers a wide range of advantages for automobile manufacturers to create, manage, and enhance innovative automotive solutions for the end-users.

Over the years, automotive IoT has led to several groundbreaking technological advancements such as smart navigation and telematics, advanced driver-assistance systems, predictive maintenance apps, vehicle-to-vehicle apps, vehicle-to-infrastructure apps, and vehicle-to-everything communication apps.

The use of IoT software, sensors, and connectivity beacons is now almost mainstream in high-tech smart vehicles. On top of the smart solutions within the vehicles, automotive IoT is also changing the traditional norms in road infrastructure, transportation, and logistics.

The roadblocks to innovation in auto manufacturing

The increasing popularity of electric vehicles (EVs) and hybrid cars is displacing the demand for traditional vehicles equipped with internal combustion engines (ICE). The widespread adoption of EVs and hybrids is already creating a long-lasting impact on the supply-chain of automobiles—but not without problems.

The COVID-19 pandemic put a bad dent in the auto industry and car sales dropped by 15% in 2020 alone. The problem is now further exacerbated by steep inflation rates across the globe, rising interest rates, and a general tendency to avoid traveling in the aftermath of the coronavirus.

The pandemic also caused several original equipment manufacturers (OEMs) and relevant vendors in the automobile industry to shut down their operations—causing a void in the supply-chain of vehicle accessories and distribution.

The slump in production and sales has caused automakers to incur heavy financial losses and be at the mercy of their respective governments for economic support and assistance.

But the biggest setback for automobile manufacturers is the fast-changing customer behavior. The economic slowdown, sharp inflation rates, and the spread of new technologies especially in the EV sector have led consumers to look for more affordable but smarter and environment-friendly vehicles.

Automotive IoT offers a roadmap for tomorrow

Automotive IoT employs the technology of embedding smart sensors in vehicles and connects them with car dashboards for critical, real-time diagnostics.

The use of IoT in the automotive sector offers many advantages such as advanced telematics, V2X (vehicle-to-everything) communication, and near field communication (NFC).

Enhanced connectivity in smart cars means real-time traffic reporting, minimizing road collisions, and advanced traffic routing—all of which will eventually pave the way for fully autonomous vehicles to take over the roads.
More number of EVs plying on the roads also means a more eco-friendly vehicular fleet since EVs produce 50% less CO2 emission than the typical ICE-equipped automobiles.

Manufacturing EVs is a win-win for all quarters since customers want them, governments offer subsidies to EV manufacturers, and it costs automakers less to produce and distribute EVs than the traditional vehicles.

Automotive IoT goes hand-in-hand with EVs because consumers today are inclined to buy and use cars that are closer to their smartphones in design and functionality than the cars of yesteryears. Consumers expect their vehicles to be run like a software application that they can personalize, operate, and interact with without the manual hassles.

Automotive IoT checks all the boxes and offers future-ready capabilities like self-driving which is predicted to be the norm in tomorrow’s hyperconnected world.

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