Internet of Things Technology for Connected Cars: The Future of Automobiles is Here

Your car is like your second home, so why not make it just as comfortable and functional. Technologies can help with that. We already have smart houses, but smart technology is relatively new in the automobile industry. The Internet of Things (IoT) for connected cars is changing the automotive sector and the way we use cars It also dramatically improves safety.


By 2020 more than 250 million connected vehicles will be on the road, according to Gartner, and McKinsey & Company predicts the global market for car data could grow as high as $750 billion by 2030.

In this article, we discuss how IoT technology for connected cars will change the auto industry.

What Does a Connected Car Mean?

The term connected car means that the car can communicate and interact with the Internet and services outside of the car. Connected cars can also interact with other vehicles and an entire ecosystem of connected transportation infrastructure.


The emergence of this technology creates a new market for mobile apps that interface with a vehicle’s infotainment and telematics systems, as well as for apps that run on Original Equipment Manufacturer (OEM) platforms. Connected cars also open new opportunities for parking lot management companies, apps for connected and autonomous cars and other domains related to autos.


The companies that develop IoT solutions for connected cars can help the automotive industry manage and maintain the integrity of the embedded systems by collecting data for the lifespan of the vehicle including pre- and post-production.

Benefits of connected cars and IoT Technology

Connected cars bring a diverse array of benefits to their owners including:

Advanced Navigation

You may think that the GPS in your car is the latest navigation, but it’s not. Connected cars take navigation to the next level. When connected, cars include smart navigation integrated with location-based services and connected to data from other devices. For example, it can suggest the best restaurant based on reviews from TripAdvisor, offer a better route based on weather, traffic, or other conditions, access your calendar to keep track of time to get to work, a meeting, etc.

Cost Savings

Reaching a destination quickly saves fuel expenses. And because connected cars help reduce accidents and traffic violations, drivers will save on fines.

Safety Records

Thanks to connected cars, drivers can predict traffic and accidents, easily find their parking space or lock the car remotely. The central monitoring system tracks the “health” of the car, alerting the driver to warning signs and needed fixes.

Entertainment and Concierge Services

IoT in your car is also an entertainment and service provider. Drivers can get different content like radio, streaming music or audiobooks, as well as use the connected car as a concierge service.

What We Can Expect from Connected Car

Connected cars can assist drivers with various functions from navigation to entertainment while driving.

Here are some common actions connected cars can do:

• Quickly search for places and spots you would like to visit
• Create smart route directions
• Provide roadside assistance
• Send notifications from your social media, email and other communication channels
• Conduct self-diagnostics
• Send notifications on necessary maintenance
• Help search for your parking space
• Alert you to traffic and accidents on the road

And this is not the full list of the functions of connected cars. Thanks to your mobile phone, you can remotely manage your car as well. For example, locking the car, monitoring it, and different things like starting the car’s engine, turning on the air conditioning in the summer or making the windows frost-free in the winter.


The Internet of Things enables connected cars to be in real-time communication with the surrounding connected ecosystem.

These connected vehicles include a wide range of features, and customized electronic systems can include access to the Internet, tire pressure monitors, wireless hotspots and Bluetooth connections.

There are two types of technologies that deliver IoT solutions to connected cars:

• Vehicle-to-vehicle (V2V) enables vehicles to wirelessly exchange data related to speed and location of the vehicle to help avoid car crashes.

• Vehicle-to-infrastructure (V2X) enables communication between road infrastructure technologies and other cars sending data about road accidents,traffic, etc

Another feature connected cars offer is an On-board diagnostic (OBD-II) connection, which allows access to vehicle diagnostic trouble codes that monitor different road conditions.

Examples of IoT in Connected Cars

The market for connected cars that have IoT is new, but already diverse.

• Infotainment. Companies like Telenav have already implemented cloud-integrated platforms with access to Amazon Alexa, apps, and even seat heating or climate adjustment.

• Predictive Maintenance. Progress is the company that implements machine learning into anomaly detection to help automakers decrease costs.

• Fleet Management. Bransys created the EZtoTrack platform which helps fleet managers track tractor-trailers on the road.

• Parking. ParqEx created a mobile app that connects owners of private garages with spot seekers.

These are a few examples of how IoT is used in connected cars, and the number of companies that are adding it is growing.

Are There Any Safety Issues?

Safety is the biggest advantage of connected cars. This solution can dramatically decrease car accidents and other safety issues on the road. Thanks to IoT in connected cars, drivers can foresee circumstances on the road like traffic, accidents, weather conditions, etc. Car owners can monitor, lock, and conduct other actions in their cars remotely, which is also a big advantage for safety.

There can be possible negative safety issues with connected cars as they offer drivers many great things and drivers can get distracted.

Wrapping Up

Automation and smart technology solutions such as IoT for connected cars offer businesses different possibilities, and more ways for consumers to use their cars conveniently. This market is still emerging and undoubtedly will bring even more innovative solutions that will change the automobile industry in the future.

Product Manager at Archer Software. Experienced technical manager and consultant with a demonstrated history of working in the information technology and service industry. Skilled in product development following LEAN and AGILE philosophy.