We live in an age where failing to adopt new technologies can quickly make even the biggest corporations obsolete. Nokia and Motorola are two classic examples of how giants can fall if they hesitate to leverage technology. The benefits of IoT connectivity go far beyond initial cuts in costs earned from automation and data exchange. With the emergence of IoT in the automotive industry, manufacturers that successfully integrate this technology into their products can expect to enjoy entirely new revenue channels that are just waiting to be explored.

The continuous growth of IoT in the automotive industry will revolutionize the way people interact with mobility solutions, and in turn, affect the way manufacturers generate income as a whole.

The Rise of IoT in the Automotive Industry

From Software Updates to Oil Changes

Post-purchase interaction between consumers and manufacturers has always been a central part of the automotive industry. The physical nature of transport means that vehicles undergo wear and tear that can’t be predicted…or, can it?

By implementing IoT components, a vehicle’s status can be constantly monitored, allowing for predictive maintenance that preempts breakage or malfunction. IoT use cases have shown that not only does this lead to happier and safer owners, but it also generates invaluable data for manufacturers about systems and parts.

An IoT network maintains a reliable link between manufacturers, owners and repair services. In this way, maintenance schedules can be optimized, and if the car is autonomous, repairs can be made without the involvement of the owner at all.

Avoiding the Dreaded Recall

The number and scale of car recalls in the last few years has shown an alarming increase, with a significant portion being due to software issues. The economic damage of recalling hundreds of thousands of vehicles is huge, not to mention the damage done to the brand. With IoT components in cars, software updates are implemented as soon as improvements have been made, whether that’s bug fixes or efficiency enhancements.

Going Electric

The introduction of IoT connectivity can boost an electric vehicle’s market value, and seriously cut production costs. Being a benchmark within the electric car industry, power monitoring and optimization is important to both manufacturers and users. With regular software updates, and the continuous streaming of data on usage, performance and service needs, manufacturers can constantly improve their products and stay competitive.

The Self-Driving Dream

The potential advantages of autonomous cars in safety and user experience are numerous. Above all, this is a product that people want. IoT connectivity can take into account a huge array of environmental factors, and could be used with machine learning to constantly improve the performance of an entire network of cars, not to mention individual components.

Keeping up with Compliance

Changes to regulations in the automotive industry can be a major sore point for manufacturers. With IoT connectivity, vehicles and individual parts can be modified remotely to meet regulation updates on carbon emission, user experience, and for safety features such as emergency calls.

IoT implementation in Automotive Industry

Shared Mobility

We’re witnessing a dramatic change in how we use vehicles as a community. The desire to own a car is becoming less popular, and car-sharing and on-demand ride services have emerged as real crowd pleasers. Manufacturers will need to adapt to this disruption in the market to stay relevant, and the new channel of opportunity provided by IoT product development can greatly assist in making that happen.

IoT in Smart Cities, and Beyond

The benefits mentioned above are really only the tip of the iceberg as the introduction of IoT into the automotive industry will affect sectors from insurance to urban infrastructure.

This complete paradigm shift will transform cities dramatically, and will set the foundation for how we use and develop IoT technology moving forward.