Automotive IoT: what it is and why startups in this niche are worth it

 Key takeaways

• • Some benefits of automotive IoT include reduced emissions, predictive maintenance, vehicle connectivity, smart infrastructure, and fleet management.
  • Generally, IoT can be applied in manufacturing, data retrieval, autonomous vehicles, and cybersecurity.
  • The future of IoT in the automotive industry will be marked by the widespread adoption of autonomous vehicles, a focus on data security, and increased personalization.

5 benefits of IoT in the automotive industry

Automotive IoT has the potential to save money for the business, optimize supply processes, and reduce emissions. That’s not all of them — read on to find out more.

Reduced emissions and optimized energy usage

IoT makes vehicles smarter and more efficient, so much so that it can help save money on gas. Special sensors and connected systems monitor fuel consumption and give out warnings if there are leaks or other things that waste fuel.

For example, automotive IoT technology can detect if the driver slams too much on the brakes before the stoplights. This habit wastes fuel, so IoT devices try to prevent that with feedback. The driver can then make necessary adjustments to minimize wasting fuel and, subsequently, needless emissions.

Predictive maintenance and hazard prevention

Automotive IoT sensors can help drivers keep their connected cars in check. They track important data about the vehicle that can’t usually be seen by the naked eye: tire pressure, brake condition, engine coolant levels, and so on. You practically have a pocket mechanic who checks the car for anomalies at all times.

🌟 Purrweb’s case   An example of an IoT app with predictive maintenance capabilities is Shockers, which has an advanced dashboard with crucial stats, such as how many shots were fired from a manufacturer’s stun gun. It’s a feature-rich app that also monitors important data via IoT sensors. For example, when the trigger was pulled, the duration of the shot, and so on.

But we digress. Still, if some car component has excessive wear, the IoT sensor can easily detect this. It can even send this data to the driver’s phone. This info allows them to take action immediately and prevent mishaps before they happen.

Vehicle connectivity

Simply put, IoT lets connected cars “talk to each other.” Certain vehicles can access special systems to communicate with other vehicles and infrastructure.

It makes driving safer and more convenient. For example, connected cars can share data with traffic lights and road sensors through IoT. If a particular lane has more cars on it than others, it could send a signal to approaching drivers to pick a different route, reducing traffic.

Smart city infrastructure

IoT devices can be placed all over the city to improve the experience for both drivers and pedestrians. In parking lots, special sensors can provide real-time data on available spaces and guide drivers to open spots. This reduces time spent searching for parking and improves traffic flow.

Another useful feature of automotive IoT is that some systems dynamically adjust parking prices based on demand. It makes mobile payments more convenient, too.

Vehicle fleet management

Logisticians and drivers can manage transportation and track vehicles in real time to optimize routes. If a delivery is delayed or goods aren’t getting shipped on time, IoT devices let them pinpoint the cause, e.g., route issues, vehicle performance, or something else.

There’s a lot less money poured down the drain, and shipping becomes more efficient overall.

🌟 Purrweb’s case   One app we’ve made, Cargo, has this built-in. Users can check the delivery status the courier sets via the app, so there’s no need to manually call them and ask about progress. We’ve managed to release this platform on time. In the end, the app was bought out by a different company.

4 general use cases of IoT in the automotive industry

IoT has greatly changed the automotive industry. It practically improved the field for both companies managing logistics, car suppliers, and drivers. So, let’s explore four general use cases: manufacturing, data retrieval, autonomous vehicles, and cybersecurity.

Manufacturing

This is a complex process — luckily, IoT makes it less painful for manufacturers. Its effect is so great that IoT has become a vital part of the automotive industry. Let’s delve deeper into the “whys” of it.

Better supply chain management. IoT devices let manufacturers plan productions, monitor every step of the process, and deliver products on time. Raw material procurement, assembly, and delivery to dealerships — companies can analyze this process in full and prevent any disruptions or delays.

For example, some IoT-enabled dashboards can help manufacturers visualize their whole supply chain. It makes it easy to track the progress of orders, shipments, and inventory across multiple suppliers. If there are any issues, the manufacturer can either reroute shipments or accelerate production.

Another thing IoT can help with is making supply chain processes more sustainable. Sensors can track waste, energy usage, water consumption, and more. Having this info lets manufacturers make informed decisions about how to minimize waste, reduce energy consumption, and lower carbon emissions. It’s even more useful if they operate in a country with strict environmental regulations.

🌟 Purrweb’s case   We’ve had a hand in creating a project that’s focused on minimizing waste and carbon emissions. Car manufacturers can also use it to calculate CO2 emissions, organize and store emission data, and calculate the cost of environmental damage compensation. All of the data regarding waste production is located in a convenient dashboard, so there’s no need to sort through large spreadsheets.

Quality control. Let’s take a factory specialized in car body stamping as an example. There, IoT sensors can monitor the hydraulic presses used to shape car body panels. If it detects irregular pressure or vibration levels, it might indicate that the press is worn out or needs repairs.

If you discover a defective component, IoT can help quickly identify where the part came from and how it was handled during production. You could even trace the issue back to a specific batch of parts or a particular supplier.

Once the car parts are finished and it’s time for quality assurance, automotive IoT can still be helpful. For example, during the painting process, high-definition IoT cameras can monitor the paint finish for uneven coats. The system can automatically stop the line and send the faulty part to a rework station.

Data retrieval

IoT devices can record all sorts of data. This makes them excellent tools to use in the automotive industry. Regular drivers, car manufacturers, and dealerships — they all benefit from IoT. Here are some ways they can do just that.

Telematics and better fleet management. IoT allows vehicles to share data about their location with other vehicles and satellite networks over distance. This feature comes in handy if you’re a logistics advisor managing shipments. You’ll know where vehicles are and will immediately get a notification if a vehicle strayed from the planned route.

Cellular vehicle-to-everything. Besides communicating with other vehicles, automotive IoT lets connected cars “talk” to their environment through cellular networks. They can transmit data to pedestrians, surrounding infrastructure, and the internet.

For example, the IoT modules inside a vehicle can detect pedestrians using the wearables they have on them, such as smartphones and watches. They also instantaneously exchange data with traffic lights, parking meters, and other pieces of infrastructure nearby.

Monitoring driver’s condition. Vehicles aside, IoT devices can monitor driver behavior on the road. Cameras can detect signs of fatigue, such as slow blinking, nodding off, or a generally sluggish appearance. They can also monitor unsafe driving behaviors like harsh braking, speeding, and idling. If the system identifies concerning signs, it can issue an alert and urge the driver to seek medical attention.

🌟 Purrweb’s case   We’ve already created apps with wearable devices in mind. One case revolves around smartwatches and fitness trackers. In the end, our developers have both developed and tested web- and mobile app versions in three months. Check it out in this article. We’ve helped develop an IoT app focused on wearables. Thanks to ready-made code, this project took us under 1,200 hours to complete, and we’ve already released the app on the App Store.

Autonomous vehicles

The majority of self-driving cars wouldn’t exist without automotive IoT. So, how does this technology help autonomous vehicles to function?

Assistance with driving and parking. Sensors and other IoT-style devices offer many different features to make parking and driving a better experience.

These include adaptive cruise control, where specialized radars help vehicles maintain a safe distance from each other by automatically adjusting speed. This minimizes the risk of rear-end collisions.

There’s also blind spot monitoring. Let’s take trucks and larger vehicles as an example. They are particularly prone to blind spots. So if a truck driver tries to change a lane, the chances of collisions increase drastically. In this case, IoT-enabled cameras detect vehicles hidden from view, provide alerts to the driver, and prevent accidents.

Scanning the environment. The Internet of Things is great for detecting potential obstacles and predicting collisions. Say you’re driving in an urban, narrow driveway. There’s a chance you’ll discover a short bollard installed — not tall enough to be seen by the naked eye in the dark but high enough to cause damage to the car. An IoT sensor can identify it and measure the distance — if it’s too close, it warns the driver.

This technology isn’t limited to spotting bollards. It could detect pedestrians jaywalking, obstacles, and sinkholes. Even animals that are trying to cross a highway. In such cases, an IoT system could brake automatically, saving both the driver and the animal.

Cybersecurity

IoT devices can help both share and encrypt data:

Over-the-air software updates. This is much more convenient for users. Instead of driving to a dealership or a manufacturer’s office, your car updates automatically. The engineers send an update package directly to the vehicle, so the driver doesn’t have to do anything at all.

Hacking and fob attack prevention. IoT devices can help prevent thieves from getting into and unlocking your vehicle. For example, special modules encrypt the signals transmitted between a key fob and a vehicle. This foils any attempts to hack the car and get in.

It’s a good defense against relay attacks, as well. Usually, hackers adopt a tool that receives signals from a key fob and transmits them to a vehicle. However, because IoT tools can help you encrypt these signals, the hackers’ attempts at stealing signals become pointless.

3 examples of IoT in the automotive industry

Many top-of-the-line car brands have adopted IoT in their manufacturing with great success. Let’s discuss some of them here:

Tesla

If you ask anyone about autonomous vehicles, chances are, Tesla will be mentioned first. It’s not a coincidence: they were the first company to integrate advanced IoT systems into their cars on such a massive scale.

One key feature is the autopilot. The ability to drive autonomously owes its existence to IoT. Tesla has specialized cameras, GPS, and sensors that help connected cars stay in their lane and drive safely.

MBUX system

 Utilized by Mercedes-Benz, this automotive IoT system is responsible for infotainment. These features aren’t centered on safety but rather on quality of life:

Voice control. Instead of reaching for a console, drivers can use language to adjust settings. Changing the temperature of the car, planning a route, or changing the radio can all be done by voice. The only thing the driver has to do is say, “Hey, Mercedes.”

Personalized experience. The automotive IoT systems inside the car track data, including preferences. They can then use it to make driving more comfortable for a specific driver. For example, if they have a favorite seat position, the IoT-enabled motors can adjust it for them.

Data retrieval. Since MBUX is an automotive IoT system, it can connect to the internet to retrieve data. This includes weather updates, showing what roads are under construction, and so on.

OnStar

This automotive IoT system was developed by General Motors and has three main features.

Automatic crash response. OnStar can detect accidents through accelerometers. If it identifies a crash, the system sends out alerts with the vehicle’s GPS location to emergency services.

Vehicle diagnostics. If the vehicle is in need of an oil change or tire replacement, OnStar sends a notification to the driver’s phone.

Theft recovery. OnStar helps track and recover stolen vehicles. If the thief has already driven off with the car, the owner can disable the engine online.

The future of automotive companies focused on IoT tech

What does the future have in store for car manufacturers? We have some clues, seeing that more people are buying electric cars each year:

Widespread adoption of autonomous vehicles

The automotive industry moves closer to fully autonomous vehicles, and this means IoT technologies are going to be used much more often. After all, self-driving cars cannot function without it.

Because the demand for self-driving cars and IoT increases, so does the worldwide market size. According to Statista, the amount of connected IoT devices worldwide is going to increase threefold from 2021 to 2025. Not only that, but the niche automotive IoT market is set to increase up until 2029. So, creating a startup in this niche could prove profitable.

Another result of this is that established automakers might try collaborating with automotive startups more often. One example of this is Tesla — it acquired a startup called DeepScale to integrate deep neural networks for its autonomous vehicles.

Focus on automotive cybersecurity 

While IoT technologies are known to be safe, they aren’t perfect. The sensors track and transmit a lot of sensitive data, and a leak of any kind could be very damaging to business. That’s why companies in the automotive industry are going to look for additional safety measures.

This is another chance for niche automotive startups to seize the opportunity. Tools focused on tampered data detection in IoT devices are few and far between, so creating a product in this niche could be a smart choice. If you want, you could try combining it with blockchain to make data transfer even more secure.

Personalization

As automakers gain access to a large amount of user data through automotive IoT, they can generate and analyze detailed insights into user preferences. This data lets them create tailored experiences for drivers.

The in-car experience becomes more customizable. The vehicle could make small adjustments for drivers, like choosing a comfortable seat positioning or appropriate ambient lighting. The same goes for something more complex, like emotion recognition and vocal tones.

As we’ve said, vehicles can also integrate with other IoT devices, like smart home tools, to make the experience more personalized. Say the driver is getting home in their car. Once it reaches the house, it can interact with devices inside to turn on ambient home music and adjust lighting.

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