IoT technologies are taking the automotive industry by storm. Here are 5 major applications of IoT in the automotive industry that are driving this growth:
1. Improved Productivity
The IoT helps make engineers more productive by reducing the need for human interaction with machines. With smarter products, production and maintenance processes can be automated through better tools, sensors, and remote monitoring solutions.
For example, Latronics, a company based in the UK, provides RFID tags to automobile manufacturers to track vehicle parts during assembly. This prevents employees from having to manually search through large volumes of parts in search of the right ones needed for assembly.
Further, this helps companies streamline their inventory management and logistics process as they no longer have to worry about keeping large inventory counts on hand for parts that might not be needed immediately.
2. Improved Safety
The amount of accidents occurring in the automotive industry is a major cause for concern. By using IoT data, companies can become better able to improve safety features within their vehicles to help prevent accidents from occurring.
This is done through the installation of event-based sensors that collect data during the perimeter of the vehicle’s operation. This data can then be collected and analyzed by cloud-based solutions to help provide real-time alerts and warnings about potential accidents that may trigger before they actually occur.
Through this data, automakers are able to identify potential hazards early and make necessary changes to their vehicles to ensure safer operations for drivers.
3. Improved Vehicle Diagnostics
Early detection of vehicle diagnostic issues is an important component of helping to prevent large-scale costs that come with delayed repairs or production shutdowns. By integrating IoT sensors into vehicles and their surrounding environment, data can be collected in real-time that can help identify potential vehicle failures before they occur.
This enables repair and maintenance technicians to take proactive steps to ensure vehicle safety and avoid any unexpected downtime for the company and its customers.
4. Improved Driver Assistance
As a result of the increasing use of technology in vehicles, drivers are now more distracted than ever. This is leading to increasing collisions and devastating accidents. As such, drivers are much more dependent on their remote support systems.
With the installation of smart technologies, drivers can access over-the-air updates that keep their vehicles as up-to-date as possible. This reduces the risk of accidents by keeping drivers updated with critical safety issues they should be aware of while operating their vehicles.
5. Improved Highways and Roadways
The use of safety and guidance technology has significantly contributed to a better road environment through the use of connected cars, wireless infrastructure and other vehicle automation systems.
Connected sensors help enhance traffic flow and capacity on major highways by providing real-time data that warns drivers about potential hazards in their surrounding environment. This helps provide the added safety features that drivers are looking for in order to navigate these congested and dangerous highways.
Global car sales decreased again in 2021, to little under 70 million units, after falling for years (there were 80 million in 2017).
There are many other industries that can benefit from IoT technologies as well. Though automotive is one of the first applications to adopt, it will be interesting to see where other industries end up, especially in smaller markets where demand may not be as high as it should be.
Nevertheless, as cars become more connected and IoT technologies increase their capabilities, numerous new professions and employment opportunities will open up for those who have the necessary technical know-how.
Why Automotive IoT is Important for the Economy
IoT The Automotive Market was valued at USD 47.10 billion in 2020 and is expected to increase at a CAGR of 25.5% from 2021 to 2028, reaching USD 289.36 billion by 2028.
With the constantly growing number of connected devices and growing concerns about overall car safety, it’s not surprising that we are seeing so many innovations and developments in the automotive industry.
However, it is surprising to know that there are only a few brands able to offer solutions for the challenges facing this industry. It’s safe to say that the automotive industry is undergoing sweeping changes at a speed greater than what we have ever seen before.
Today, more people are realizing the huge potential of IoT applications in the automotive business and investing time and money to utilize them. Moreover, more auto brands realize its importance and how they can use them to their advantage in order to launch products with improved performance, increased safety features, and better customer experience.
How to Get the Most Out of IoT in Automotive Industry
In order for companies to achieve their goals and vision, there are several important steps that must be taken.
Among them are the following:
1. Creating a Data-Driven Culture Within the Company
The automotive industry is traditionally known for its focus on specialized labor with little focus on analysis. The best way to win over consumers and catch up with the competition is to ensure that the company has a data-driven culture that focuses on reporting. Data or metrics must be accessible, timely, and proactive. Management must then leverage data for forecasting, budgeting, planning, and reporting to make it actionable.
2. Assimilating Data from Diverse Sources
Automakers today are being pushed towards developing self-driving vehicles in order to compete with rival car manufacturers and tech companies. While this is an admirable goal, one of the biggest challenges lies in finding ways to assimilate data from diverse sources such as cameras, GPS trackers, radar system sensors and other third-party products such as speed cameras and traffic lights.
A large amount of this data is collected but not released to be used in vehicle planning and mapping. Blending the data with video, radar and other current datasets can help automakers arrive at actionable insights.
3. Creating an Open Platform for Data Sharing
By creating a platform for data sharing, automakers can expose their data to third-party developers and agencies as well as get product feedback from users. They can then create a comprehensive application that integrates all the relevant data points for use in decision making, thereby driving innovation through open-source software development.
4. Organizing and Structuring Data into a Single Point of Information
The next step is to organize the collected data into a single point of information. This single database contains all vehicle-based telematics event data as well as in-vehicle driving patterns, driver behavior, and other important performance-related statistics.
It also includes contextual information such as traffic conditions, weather and other environmental factors that can affect vehicle operations. By integrating all this data with existing automotive sources, auto OEMs will be able to make decisions more effectively in order to prevent accidents and loss of time on the road.
5. Generating Predictive Insights
By correlating data with in-vehicle sensors, algorithms, and other emerging technologies, automakers will be able to generate more efficient decision-making. This will help them build better vehicles that offer customers a more pleasant and safe experience.
At the end of the day, it’s the successful integration of IoT data into policy and product design that can make all the difference for the automotive industry. The faster OEMs are able to incorporate IoT into their products and further grow their presence in this fast-growing market, the larger impact they will have on industry growth and profitability.
8 Benefits of IoT in the Automotive Industry
According to a recent report conducted by the strategic consulting and market research firm BlueWave Consulting, the global IoT in the automobile sector is expected to be worth USD 58.7 billion in 2021.
As the number of connected devices becomes widespread, it is important for all digital brands to have in-built safety systems that can help protect the customers from any potential threats.
One of the most common problems facing digital brands, which interconnect with each other, is hacking and data theft. This, in turn, would lead to fraudulent transactions carried out by the automaker with money collected by hackers. Therefore, building safety mechanisms into connected devices is a great idea for all digital brands and especially for those working on connected car systems.
Having first-class security in place will enable companies to prevent fraudulent activities from being carried out against your brand while raising customer trust by ensuring they are safe while being online.
2. Connected Vehicles
Connected car systems are becoming a necessity for car owners. However, it is important to note that very few brands offer this service, leading to large potential gaps due to a lack of availability.
The number of connected vehicles will grow, and the consequences are that companies can expect big growth in the number of sales and save time in the process of going about their daily routines.
Despite the pandemic-related global decline in car sales, which decreased 16% globally, electric car registrations surged by 41% in 2020.
3. Increased Mobility
The main purpose of digital devices is for us to have better access and mobility when on the move. For instance, if your smartphone helps you carry out work at work or connect with your loved ones, it is because connectivity has been made possible by digital devices and IoT.
The same is true for the connected car market. Brand owners have now realized the value of digital technology and its ability to help them solve some of their problems. Data generated from these systems can be used to improve performance, diagnose issues, predict upcoming issues, increase safety and make a positive impact on the consumer experience in general.
4. Vehicle History
Digital brands are able to record your driving style via connected car systems and apply this data to their fleet in order to provide you with a lifetime of experiences that are accurate and useful when it comes to managing your vehicle and maximizing its efficiency. The process of recording your driving experiences allows you to monitor your driving behavior, which allows for more proactive maintenance and better customer service.
5. Safety Features
Connected systems are able to make it easier for brand owners to integrate safety features in their vehicles and offer customers a series of valuable services when they come in contact with an accident or challenge while on the road.
For example, the vehicle can use seat pressure sensors to see if the driver is sitting on a seat that is too hard or too soft, which could indicate some underlying issue that needs addressing.
These types of health-related issues are a major concern for the automotive industry, especially when you consider the amount of time that people spend in their vehicles. By being able to monitor your driving through connected systems, auto companies can make it easier for you to be proactive and address issues quickly before they become a major problem.
The collection and analysis of data is one of the most important features in connected systems. This is because future predictive maintenance alerts are able to be issued based on how your vehicle is behaving at any given time.
For instance, if your vehicle is functioning well, regular maintenance will not be required as often and therefore costs will go down while profits rise due to savings made during the process.
The connected system is also able to predict maintenance needs before they become a problem, which is a major development for the automotive industry. This means that your car can be around for years instead of months, which means high customer satisfaction and increased profits.
7. Increased Fuel Efficiency
The connected car market has evolved in such a way that it can be used to increase fuel efficiency and the overall performance of your vehicle. This is because connected systems allow you to monitor your driving style and make adjustments that are able to improve fuel efficiency while also lowering emissions at the same time.
The International Organization of Motor Car Manufacturers (OICA) predicted a 16% drop in global vehicle manufacturing in 2020, with fewer than 78 million vehicles produced globally.
8. Increased Customer Satisfaction
Greater customer satisfaction can be achieved when you consider the fact that brands and manufacturers can use connected systems to monitor your driving style and improve your overall experience.
The Future of Automotive IoT
As IoT continues to grow and reach new levels of integration, we will see more companies taking advantage of its capabilities. The global automotive IoT market is expected to increase at a CAGR of 26.7% from 2016 to 2022, reaching USD 82.8 billion from USD 20.0 billion in 2016.
This will lead to a greater number of IoT applications in the automotive industry as well as other markets. As such, it is important to stay up-to-date with IoT trends in order to be prepared when the time comes.
In the coming years, we can expect to see the emergence of a variety of business models that focus on providing new avenues for people looking for employment within the field. As well, growing numbers of individuals interested in working for themselves will also emerge; this is only natural considering how much money there is to be made from investing in and operating an IoT startup company.