Strategic Intelligence: The Internet of Things in Automotive (2025)

Strategic Intelligence: The Internet of Things in Automotive (2025)

Summary

Automotive companies are investing in IoT technologies to enhance vehicle performance, safety, cost efficiency, and user experience. The automotive industry is increasingly channeling resources into IoT initiatives and is expected to maintain this momentum in the future.

Connected cars are critical for the future of transport

As the world becomes more technologically advanced and intertwined, so will our vehicles. As vehicles are integrated into the digital ecosystems, they are evolving from mere transportation assets into mobile data hubs, playing a major role in traffic management, urban services, and the implementation of smart cities. By enabling real-time data exchange between vehicles, infrastructure, and mobility platforms, connected cars will lay the foundation for seamless, efficient, and sustainable transport systems. With sensor and embedded systems, vehicles are gaining real-time awareness of their environments, enabling autonomous driving, predictive maintenance, and dynamic mobility services.

IoT has reshaped automotive manufacturing

Original equipment manufacturers (OEMs) have embraced the Internet of Things (IoT) across their value chains, enabling a transition to smart connected factories. Through real-time data collection from sensors, machines, and production lines, OEMs gain enhanced visibility into their operations, allowing them to reduce downtime, boost efficiency, and improve quality control. Many OEMs have implemented several advanced technologies-such as AI and mobile robotics-into their factories and plants, with IoT providing the foundation for data collection. The enhanced connectivity that comes from IoT extends beyond the factory floor, enabling suppliers and logistics partners to form closer links, creating a more agile and data-driven supply chain.

The data layer is the core source of value in automotive IoT

While sensors and connectivity are essential enablers for IoT, the real value that is derived from these processes comes from the data. In today’s automotive landscape, data has become a strategic asset-key not only to manufacturing efficiency but also to service innovation, customer experience, and long-term competitiveness. Data has moved from being a byproduct to a core driver of innovation, becoming essential for the progress of autonomous driving, connected cars, and AI-enabled features.

Key Highlights

• IoT technologies are revolutionizing the automotive industry, enhancing everything from manufacturing to vehicle operation and maintenance. The rapid adoption of these technologies has been fueled by reduced latency, increased computing power, and the decreasing cost of sensors, resulting in quicker returns on investment for automotive companies. IoT solutions empower manufacturers and fleet operators to automate processes, improve efficiency and safety, reduce costs, and support sustainability initiatives. Key IoT applications in the automotive sector include connected vehicles, predictive maintenance, fleet management systems, and advanced driver-assistance systems (ADAS).
• Sensors embedded in vehicles enable predictive maintenance when integrated with AI and other technologies. These sensors allow automotive companies to monitor vehicle performance in real-time, shifting operations from reactive to predictive maintenance models based on the vehicle's condition. With the advent of Industry 4.0 and advanced sensor technology, predictive tools are becoming increasingly sophisticated, collecting vast amounts of data to provide insights into vehicle operations and enabling timely interventions before issues arise. Additionally, these sensors facilitate teleoperation and autonomous driving capabilities, allowing vehicles to operate without human intervention.
• During the manufacturing phase, IoT technologies are essential for monitoring production processes, ensuring quality control, and optimizing supply chain management. In the realm of vehicle operation, connected vehicles utilize IoT sensors to gather data on driving conditions, vehicle health, and environmental factors, enhancing safety and performance. For instance, real-time data on tire pressure, engine performance, and fuel efficiency can alert drivers to potential issues before they escalate.
• Despite advancements in technology and improvements in safety statistics, the automotive industry continues to face challenges related to road safety. To further enhance safety and efficiency, the automotive sector must embrace IoT technologies on a broader scale, paving the way for smarter, safer, and more sustainable transportation solutions.
• In terms of fleet management, automotive companies leverage IoT-controlled logistics, automated routing, and energy management solutions to optimize operations. The customer engagement layer is particularly important in this context, as it involves delivering data-driven insights to consumers for enhanced user experiences, such as predictive maintenance alerts and driving behavior analysis. Furthermore, the automotive industry relies on IoT services for system integration and consulting, especially during the transition to electric and autonomous vehicles.

• This report provides an overview of the internet of things (IoT) theme and how it will impact the automotive industry.
• The report predicts how IoT adoption will evolve, including the key challenges it will solve.
• It includes selected case studies highlighting who is innovating in the automotive sector using IoT technologies
• The report also includes a comprehensive data analysis, including market size and growth forecasts for IoT.

• GlobalData’s thematic research ecosystem is a single, integrated global research platform that provides an easy-to-use framework for tracking all themes across all companies in all sectors.
• This report is essential for senior executives at automotive companies to understand the critical benefits from integrating IoT technology into their operations. Automotive companies who fail to implement IoT solutions will fall behind.
• In addition, the report identifies the leading IoT adopters in automotive, as well as specialist tech vendors in this space.