Globally, the automotive industry is one of the largest manufacturing sectors. According to Statista, the industry produced nearly 78 million vehicles worldwide by 2020. However, this figure represents a significant drop compared to the 97 million vehicles produced in 2018, largely due to volatile sales. Geopolitical factors aside, one of the main reasons for the sales decline is the lack of innovative features in new models. If four wheels and an engine are what consumers want, they are likely to opt for an older, cheaper, or even a used car. For automakers, new models need to embrace the future by leveraging IoT technology to attract consumers.
What is the Internet of Things (IoT) in the automotive industry?
In short, the Internet of Things (IoT) refers to a system of devices that exchange data via the internet. In the automotive industry, this allows advanced devices such as electronics, actuators, and sensors to share data with each other and with other vehicles connected to the internet. Modern Wi-Fi capabilities, engine performance metrics, and climate control systems are just the tip of the iceberg when it comes to what IoT solutions can offer vehicles; countless applications will emerge as the technology advances. With that in mind, here are four ways IoT devices are shaping the future of the automotive industry.
Connected cars
Cars connected via the Internet of Things (IoT) network can facilitate the rapid transmission of critical information, thereby improving road safety through enhanced communication. When intelligent vehicles connect to each other, they share information about their location, speed, and dynamics, which can predict and prevent accidents and alert drivers to approaching emergency vehicles. Cars can also inform drivers of potential hazards through data such as traffic lights, accident reports, and weather forecasts. This improves traffic flow, enhances safety, and empowers drivers to make informed decisions about routes and road conditions.
Predictive maintenance
When cars are equipped with IoT capabilities, embedded sensors collect performance data on specific components and transmit this data to the cloud. There, predictive analytics processes this data, assessing the condition of individual components and evaluating the risk of failure. Drivers are then informed of any issues and potential service and repair options. Whether monitoring fleet performance or improving the user experience for private car owners, industrial and commercial consumers can utilize predictive maintenance.
self-driving cars
With advancements in artificial intelligence and automation technologies, autonomous vehicles are gaining popularity in the automotive industry. Despite a recent decline due to the pandemic, Statista predicts the autonomous vehicle market will grow by nearly 60% by 2023. These "smart" cars greatly benefit drivers by assisting them with tasks such as driving, braking, parking, and lane changing. Integrating this IoT solution into new vehicle models will reduce human error, leading to safer road conditions.
fleet management
Recently, the trucking industry has undergone fundamental transformation and upheaval due to challenges such as labor shortages. Innovations in IoT technology have been driving a revolution in fleet management. Fleet operators can now collect vast amounts of data, from routes and traffic conditions to fuel consumption and performance metrics, and then use this data to track vehicles in real time, provide remote diagnostics, and improve operational efficiency and driver safety.
