The use of the term “Automotive IoT” relates to inserting IoT technologies into automotive systems and operations and generating new and smart applications and solutions to make them safer for driving.

The Internet of things (IoT), which will play a pivotal role in future businesses, is already a key part of technological advancements across all industry verticals. Global companies are looking for ways to participate in the digital revolution by either investing in/acquiring start-ups or collaborating with technology leaders.

IoT, in short, is an intelligent network made up of embedded devices that communicate and transfer information to each other. So, when the data is analyzed for actionable information, it can be used to improve decision-making and customer engagement.

IoT, like many verticals, is growing rapidly in the automobile industry. It transforms it by cutting costs and increasing productivity, as well as providing a better customer experience. Everybody is using IoT to benefit, from automakers to parts manufacturers.

Automotive IoT applications

IoT applications are emerging in the automotive industry, and more specifically in the passenger vehicle segment. These include apps integration, navigation tools, and advanced hardware that allow users to connect their cars via smartphones.

However, IoT is not only beneficial for users but can also be a positive tool for automakers. Automakers can use the valuable data from IoT devices to:

  • Track car performance.
  • Understand driving patterns.
  • Cross-sell and upsell relevant products and services.

Insurance companies and automotive IoT companies use it to monitor drivers’ driving habits, and auto parts vendors, so, it is possible to increase operational efficiency and reduce downtime. Also, logistics and supply chain management companies use IoT to track and manage their fleet.

Overall, we can summarize that IoT will also transform the auto-allied industries to become Automotive IoT industries.

As the industry evolves in connected and driverless cars, the IoT will be more integrated into auto industry offerings.


In conclusion, IoT is certain to transform the auto industry, as well as the transportation and logistics industries. This will also open up new opportunities for the software industry since the software is an integral part of the IoT ecosystem. In a nutshell, IoT is 90% hardware and 90% software.

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