The future of the automotive industry will be shaped by a range of disruptive themes, with the internet of things (IoT) being one of the themes which will significantly impact the potential growth of leading companies in the industry.  A detailed analysis of the theme, insights into the leading companies, and their thematic and valuation scorecards are included in GlobalData’s thematic research report,Internet of Things (IoT) in Automotive – Thematic Research.  Buy the report here.

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In the automotive industry, IoT refers to the use of connected sensors and actuators to control and monitor the environment, the things that move within it, and the people that act within it. The global IoT market is forecast to register a compound annual growth rate (CAGR) of more than 11% during 2020-2024, according to GlobalData estimates. Enterprise IoT dominates the overall IoT market, generating 76% of total revenue in 2020. 

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IoT is one of the primary enablers of digital transformation in the automotive sector. It brings together various technologies, like AI, 5G, edge computing, and cloud computing, which helps reduce latency levels to allow real-time decision-making and reduce the need for human intervention in IoT ecosystems. The connected car will increase data generation exponentially and establish itself as a key component of the IoT ecosystem, and eventually, an extension of consumers’ automated homes. Automakers must use this abundance of data to pivot their business models towards software and reduce their dependence on Big Tech to meet the needs of their customers. 

However, not all companies are equal when it comes to their capabilities and investments in the key themes that matter most to their industry. Understanding how companies are positioned and ranked in the most important themes can be a key leading indicator of their future earnings potential and relative competitive position.  

According to GlobalData’s thematic research report, IoT in Automotive, leading adopters of IoT in the parts and tires subsector of the automotive industry include: NVIDIA, Bosch, BYD, Panasonic, and Continental.  

Insights from top ranked companies  

NVIDIA  

NVIDIA has parlayed its GPU technology developed for the gaming industry into the core embedded supercomputer platform of choice for hyperscale data centres, crypto-currency mining rigs, and deep learning neural networks. In addition, it is intent on forming the AI processor core of the automotive industry of the future. NVIDIA won over Baidu Apollo, Audi, and Volvo, but lost Tesla, which opted to develop its own AI chip with AMD. NVIDIA will supply Daimler with its Drive Orin platform – similar to Tesla’s Autopilot system-on-a-chip. This will equip Daimler’s cars with the hardware needed for self-driving but allow the company to trial a few different software providers without being tied to one in particular.  

Bosch 

Bosch offers a range of products and solutions pertaining to connected mobility. It is currently working alongside Microsoft to develop an open technology platform to connect vehicles to the cloud. The new platform, which will be based on Microsoft Azure and incorporate software modules from Bosch, will enable software to be developed and downloaded to the control units and vehicle computers. Bosch is working with Daimler to develop level 4 and 5 driverless vehicles. In December 2019, Bosch launched a small number of self-driving S-Class luxury sedans in San Jose with safety drivers to test the technology. Bosch stands out as a leading supplier of intelligent auto-grade sensors and fused sensor systems. 

Continental  

Continental has developed a tire monitoring platform, ContiConnect, using Vodafone’s IoT SIM technology. Continental’s wireless sensors, mounted inside the truck tires, collect tire pressure and temperature data. The data is transmitted as soon as the sensors come within range of the receiver unit at the terminal. The data is then sent to the backend, analysed, and displayed in the ContiConnect web portal. 

To further understand the key themes and technologies disrupting the automotive industry, access GlobalData’s latest thematic research report on IoT in Automotive

   

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Frequently asked questions

  • 1. How are Automotive companies using Internet of Things (IoT) technologies?

    Automotive companies are using IoT technologies to improve the efficiency of the automotive value chain. IoT is being used at all stages of the value chain, from supplier network to sales and post-sale activity. Tier 1 and 0.5 suppliers are driving the development of connected car technologies, while auto manufacturers are using the Industrial Internet to streamline production processes and increase efficiency. IoT is also being used in the post-sale layer of the value chain through telematics-based insurance and predictive vehicle maintenance.

  • 2. How do internet of things (IoT) technologies impact the Automotive industry?

    IoT technologies are one of the primary enablers of digital transformation in the automotive sector. When combined with other emerging technologies such as AI, 5G, edge computing, and cloud computing, companies can expect to enjoy enhanced operational efficiency, reduced costs, improved decision-making, and better customer experience. IoT technologies are also helping automotive companies to address challenges related to electric vehicles, smart grids, and ESG regulations.

  • 3. Who are the top adopters of internet of things (IoT) technologies in Automotive?

    The top adopters of IoT technologies in the automotive industry include leading automotive companies such as BMW, BYD, Ford, Honda, Daimler, Tesla, Volkswagen, Toyota, Volvo, General Motors, Audi, Geely, and SAIC Motor.

  • 4. Who are the leading vendors of internet of things (IoT) technologies to the Automotive industry?

    Some of the leading vendors of IoT technologies to the automotive industry include Alphabet (parent company of Google), Cisco, Huawei, IBM, Microsoft, Oracle, PTC, and SAP. Specialist IoT vendors in the automotive industry include Siemens, Microsoft, AT&T, IBM, Alibaba, Deloitte, Accenture, and GE.

  • 5. How do internet of things (IoT) technologies benefit Automotive companies?

    IoT technologies benefit automotive companies by improving the efficiency of the automotive value chain, streamlining production processes, reducing costs, improving decision-making, and enhancing customer experience. IoT technologies also help automotive companies to address challenges related to electric vehicles, smart grids, and ESG regulations.

  • 6. What are the challenges with adoption of internet of things (IoT) technologies in Automotive?

    The challenges with adoption of IoT technologies in the automotive industry include the high cost of implementation, lack of standardization, data privacy and security concerns, and the need for skilled personnel to manage and maintain IoT systems.

  • 7. Who are the leading specialist internet of things (IoT) vendors and service providers in Automotive?

    Some of the leading specialist IoT vendors and service providers in the automotive industry include Alphabet, Baidu, Didi Chuxing, Grab, Uber, Lyft, and The Floow.

  • 8. What are the components of the internet of things (IoT) value chain?

    The IoT value chain is composed of five layers: devices, connectivity, data, apps, and services.

GlobalData

GlobalData, the leading provider of industry intelligence, provided the underlying data, research, and analysis used to produce this article.

GlobalData’s Thematic Scorecard ranks companies within a sector based on their overall leadership in the 10 themes that matter most to their industry, generating a leading indicator of their future earnings and relative position within key strategic areas.