Home Automotive How the Data from the IoT can Affect Automobile Industry?
How the Data from the IoT can Affect Automobile Industry?

How the Data from the IoT can Affect Automobile Industry?


The IoT and the network of connected things are changing trends in a variety of industries. Amongst all, Automobile Industry is significantly affected by the rise of the IoT. According to IHS Automotive, “There will be more than 150 million connected cars by the end of 2025, generating, approximately, 3TB of data every day”. Companies will articulate this information to design user-centric products, and develop a sustainable road map to keep their business alive and kicking till the long run.

Revolutionary innovations in the tech world have altered, almost, everything. The objects that were once known as “things” are changing into information hub, making them an integral part of a huge network called the “Internet of Things.” This, in turn, has provided an opportunity to manufacturing companies to collect data and capitalize the information.

In Automobile Industry, connected cars are the future. The chips embedded in these cars allow both customer and manufacturer to gain valuable insight about their products. Let’s look into some advantages the IoT will provide Automobile Companies.

Customer Centric Data for Car Manufacturers

Technical statistics and condition of parts are vital information for the car manufacturer. Besides that, data such as where and how the car is used helps the manufacturer to integrate right components and elevate the efficiency of their product. Dealers can use this information to order the most required spared parts and forecast early predictions related to the condition of the car.

Such information is already used by a plethora of car manufacturers and dealers. It would be legit to say, shortly, such system will allow users and manufacturers to strengthen their relation, which will directly contribute to better services and trust building.

Customer Based Insurance

Information related to acceleration, braking, driving speed and car condition aids in lowering the risk of accidents, allowing the drivers to select the right insurance. Such system is already introduced in some countries, although in most cases, many insurance companies are unable to calculate the premium using the telematics data.

Driving Information

The introduction of advanced IoT and connected devices in automobiles has eased drivers in many ways. Now connected cars can inform the drivers about the nearest gas station, economy routes for driving and fuel consumption. Apart from that, cars can per-inform drivers about the service time by not just relying on mileage but by comparing their cars with similar other models. This information helps the user to define the parts that are not performing well, and maintain the vehicle before a serious problem arises.

Creates a Better Relationship with Clients

Data collected from automobiles allow the manufacturers to understand how customers use their products. It helps them tailor better offers to retain their existing customers and attract new ones. Dealers can know when an error is detected, and pre-inform the client about the problem. Such information can mitigate the risk factors and helps customers to know how great their services are.


Our world is stepping into the new horizons of the tech world. All of the things that we believed could never happen are now possible, thanks to the internet of things and connected devices. As said, the Internet of Things is just warming up; it will offer new innovations in the days to come. We’ll just have to be ready to embrace them.