iot for the automotive industry

Benefits of Custom Automotive IoT Development

Numerous modern devices, from refrigerators to home lighting systems, incorporate computer chips, sensors, and other gadgets. While that seems normal today, the Internet of Things is dramatically revolutionizing some industries. Automotive is one of them.

According to Precedence Research, the global automotive IoT market will expand from almost $104 billion in 2022 to over $621 billion in 2030. The increased demand for automotive IoT, the shift to autonomous vehicles, and the growing popularity of electric cars can explain these staggering numbers.

But why exactly are these automotive IoT solutions so popular? And how can they benefit auto businesses? This article will provide in-depth answers to these questions, explaining the importance of IoT for the automotive industry and outlining the core IoT solutions and services.

Automotive IoT’s Popularity and Growth Factors

Automotive IoT refers to devices like sensors, GPS trackers, and cameras connected to the cloud or data center, which provide real-time data that facilitates auto manufacturing, fleet management, and car connectivity. But not only these capabilities drive this sector’s growth.

The global automotive industry experienced automobile sales decrease and production delays due to the pandemic and semiconductor deficiencies. Chip shortages alone led to 11.3 million vehicles being withdrawn from production in 2021. Car sales have only recently started to recover, but Statista predicts that the sales volume in 2023 will still be lower than in 2019.

Given the current situation, the auto sector began to look for means to increase its efficiencies, optimize costs, and streamline production. Automotive IoT solutions and services turned out to be one of the viable innovations for this.

Besides this, Precedence Research states that the automotive IoT market will expand because of the following factors:

  • Increasing government initiatives for smart cities development to improve the safety and convenience of passengers and pedestrians
  • Growing demand for connected vehicles in recent years
  • Greater need for autonomous vehicles to prevent road accidents
  • Rising demand for hybrid and electric vehicles as an environmental-friendly initiative

Thus, IoT vehicle solutions provide means for car-to-car interaction, smart tools for enhanced road safety, better auto production and maintenance, and automation of these processes — the main reasons for the popularity of these technologies.

Benefits of IoT for Automotive Sector

As you already figured out, IoT auto solutions facilitate numerous automotive processes. But what significant benefits might businesses and car owners expect? Let’s get this clear.

Streamlined Automotive Manufacturing

IoT vehicle solutions can assist in data collection and processing on manufacturing sites. They help to optimize and partially automate the entire car production process, ensure a higher level of safety for workers, and reduce expenses.

Predictive Maintenance

IoT-enabled automobiles are easier to maintain. Thanks to the data collection from sensors and chips, the system will alert car owners in advance if certain parts of the auto wear out or break.

Better Driving Experience

Car owners can benefit significantly from the Internet of Things. In particular, such things as navigation solutions, telematics, and infotainment systems will ensure a high level of comfort and efficiency when driving.

Remote In-Vehicle Software Updates

Thanks to the vehicle connectivity offered by the IoT, updating software in a car has never been smoother. Now, car owners can upgrade software remotely instead of going to the automobile manufacturer directly.

Increased Road Safety

IoT vehicle solutions also include security systems. They enable cars to recognize objects, pedestrians, and traffic lanes, automatically brake in case of danger, etc. All this reduces the factor of human errors and significantly increases road safety.

Remote Vehicle Information Access

Car owners can take another advantage of the Internet of Things: remote access to vehicle information. In this way, they will be able to check the fuel level and car’s location simply from their smartphone.

Improved Fleet Management

IoT allows for more efficient and cost-effective fleet management capabilities. It’s possible owing to advanced functionalities like real-time data collection on vehicle location, speed, fuel level, and load, along with weather and traffic data. With this logistics IoT, fleet managers may build the most optimal routes and supervise drivers.


Infotainment is not possible without IoT. Such systems allow connecting the car owner’s smartphone and other devices with the automobile’s onboard computer for accessing music streaming, navigation, hands-free calling, and voice assistance capabilities.

Better Traffic Prediction

IoT sensors built into cars or CCTV cameras help collect data about road traffic. Processing and analyzing this data makes it possible to predict the most jammed locations and solve the problems of congested roads before they arise.

IoT Transport Solutions: How They Work

At this point, you may wonder how all these automotive IoT technologies work. You require IoT hardware like sensors, monitors, and other devices on the one hand and software like mobile and web apps on the other.

IoT car sensors and other accessories transmit data to the cloud, ending up in the end user’s application. The vehicle’s data can reach various consumers and final destinations, and some of them are as follows:

  • Vehicle-to-pedestrian
  • Vehicle-to-network
  • Vehicle-to-cloud
  • Vehicle-to-vehicle
  • Vehicle-to-infrastructure
  • Vehicle-to-grid

Then, end users leverage the received data for their purposes. It can be, as we mentioned, fleet management, traffic control and prediction, car maintenance, and more.

You require an expert team to implement such a system into your processes. In particular, these are such specialists as:

  • IoT hardware engineers — specialists who create and embed IoT sensors into vehicles
  • IoT software engineers — IoT transport developers who build and deploy IoT software solutions
  • Cloud developers — specialists who ensure the secure transfer of vehicle data to the cloud storage
  • UI/UX designers — experts who create user-friendly interfaces for automotive software solutions
  • QA specialists — professionals who test automotive software to ensure a smooth launch

Thus, to make the most of automotive IoT, you need to engage a software engineer Internet of Things and other team members. Read on to learn which services you can get precisely.

Automotive IoT Development Services: Software Solutions You Can Get

If you want to grow your business, smart automotive solution development is the best way to do this. Let’s see which services you can expect from experienced IoT developers.

Custom Automotive IoT Software Development

You can engage IoT automotive engineers to build custom software according to your requirements. These can be complex systems for transport management with numerous connected IoT devices or simple solutions for real-time data collection.

Automotive IoT Data Management and Analytics

You can also hire IoT developers to implement vehicle data collection and analysis solutions. Having experienced specialists on board, you create systems that will withstand large volumes of data for reasonable business decisions and more effective strategies.

Automotive IoT Software Modernization and Improvement

You can improve the existing smart cars IoT software by accessing the Internet of Things developers. These experts will bring a fresh perspective, add new features, and improve your tech solution’s security and performance levels.

Automotive IoT Devices Integration

Integrating automotive IoT devices with your apps, cloud services, and systems is possible with IoT transport developers. Leverage these specialists’ expertise to provide seamless data exchange between IoT hardware and software.

Automotive IoT-Enabled User App Development

Create a user-friendly system for effortless management of connected IoT devices with IoT developers and UX/UI designers. These experts will ensure that end users can conveniently control car sensors directly from their smartphones or laptops.

Automotive Cloud Solutions Development

Finally, ensure secure vehicle data transfer and storage by implementing cloud technologies into your IoT software. Such systems are not only safe but also easily scalable and performant.

These are the most common IoT smart transport development services. You may also wonder how much it all costs. Let’s compare IoT developers’ salaries in different countries for a more in-depth look.

CountryAnnual Salary
the USA$125,000
the UK$68,219

As you can see, IoT developer rates vary significantly across countries. Therefore, before looking for specialists, you should decide on the hiring model: in-house employees, an outsourced team, or freelancers.

After that, you should specify your project requirements and search for specialists with relevant technical expertise and a proven track record. Here are a few platforms where you can locate automotive IoT developers:

  • Job boards and vacancy aggregators. These websites allow you to post your job offer and review candidates. Some examples include Indeed and Glassdoor.
  • Freelance platforms.These will facilitate your search for freelance automotive IoT developers. Use Upwork or Fiverr.
  • Social networks. These platforms allow for building and maintaining professional connections with your developers. Try LinkedIn or Meetup.

On top of that, you can locate your automotive IoT development vendors by reviewing the dev companies’ websites directly. Use Clutch for that purpose.


The automotive sector looking for ways to reduce expenses and increase automobile sales by adopting IoT is doing the right thing. Yet, the Internet of Things can bring many other benefits to this industry apart from cost-effectiveness.

Consider streamlined auto manufacturing, predictive maintenance, increased road safety, better driving experience, improved fleet management, remote vehicle info access and software updates, and more precise traffic prediction. These are the numerous advantages that automotive IoT can offer.

To make these benefits a reality for your business, you need experts who can implement IoT technologies correctly. Our professional team has profound experience in IoT transportation development and can deploy projects fully corresponding to your requirements.

Want to access top-notch automotive IoT development services? Reach out to our reliable experts!