The automotive industry has been around for a long time now and has evolved ever since, but the major transformation that is supposed to happen is the vehicles driven by humans to the self-driving automobile industry. The driving force behind this ever-growing industry is the Internet of Things (IoT) which is helping the automobile sector to grow, and simultaneously the automobile sector will provide a big boost to IoT as well. Let’s see how IoT technology is paving a path for the automotive industry and connected vehicles in the future economy.
IoT is undoubtedly a significant driver in the smart and autonomous vehicle industry, and its growth has been exponential. As per a study by Gartner, there will be more than 250 million connected vehicles on the roads by the end of 2020. The IoT solution providers will be benefitted by this move and will be able to generate revenue of over 300 billion dollars.
IoT is the driving force behind Automotive Industry
IoT is revamping the automotive sector to meet new demands and expectations of the market. IoT has led to higher customer satisfaction, real-time scheduling, and product’s lifecycle revenue.
1. Design Ideation
The process of design ideation refers to the analytic techniques and tools that are required to monitor the product’s performance and using this information improve the design and ideation process. In this way, IoT makes it easier to manage the lifecycle of a product and accelerate the engineering and production timelines.
2. Customer Satisfaction
The vehicle available today has many critical software codes which require robust coding techniques and management. IoT-enabled components can better achieve customer satisfaction by providing updates to these codes for reliability purpose or new services. IoT-enabled cars are an excellent opportunity for manufacturers to sell software updates and delivering new and better features to its customers.
3. Real-time Scheduling
Process automation with the assistance of IoT-enabled systems and analytics can help manufacturers improve their product quality in real-time. Vehicle manufacturers can go for a lean manufacturing approach and support them in staying sync with the rapidly changing demands of the customers.
4. Lifecycle Revenue
Appropriate IoT infrastructure can assist in collecting data to get valuable insights on car condition, location, driver habits, and thereby create new revenue streams for car manufacturers. For Instance, manufacturers can use the collected information to offer their customers targeted commercial contents, some advanced features or infotainment content.
IoT is profoundly transforming the automotive industry and manufacturers can benefit from this opportunity. Moreover, these opportunities may soon become necessities for all the players in the car ecosystem if they want to stay ahead in the competition.