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How IoT Will Make Smart Cars Even More Connected

Here is a great re-post from Business Insider. It shows how BMW, Chrysler, GM, Ford, Toyota Tesla and the rest are ramping up their IoT efforts in a big way.

By Andrew Meola

Automakers are ramping up their connected car efforts for several reasons. Internet connectivity in vehicles allows car companies to release software updates in real time, which is extremely important during a recall.

Second, automotive companies can use data from the car to analyze its performance and obtain valuable data on how drivers use their cars. Finally, more connectivity provides more ways for automakers to cross-sell their products and services to customers.

So which automotive companies are leading the pack in this connected car push? There is no clear winner, but several companies are setting the tone. BMW is the champion, according to a KPMG survey of 200 automotive executives. Daimler, General Motors, Toyota, and Tesla are also near the top of the list.

As far as tech companies, AT&T is a prime example. The telecommunications giant added 2.7 million connected cars in the U.S. in the first three quarters of 2015. But Microsoft, Apple, Pandora, Sprint, Google, and other tech heavyweights are all throwing their considerable muscle behind connected cars.

And all of this effort will not go unnoticed or unappreciated by consumers. A recent Google survey found that 30% of U.S. smartphone users get "anxious" without their smartphone on them, and 68% check their smartphones within 15 minutes after waking up in the morning. Connected cars allow people to stay connected more frequently and remove that anxiety.

The government is also cracking down on texting while driving, a problem that connected cars would solve by letting drivers keep their hands on the wheel and their eyes on the road even as they communicate with others.

Consumer interest in the connected car is growing, and that will rapidly translate into dollars. Approximately 62% of U.S. consumers were aware of the term "connected car" in a recent AT&T and Ericsson survey. And Google Trends shows the term "connected car" is reaching new highs every month. As a result, estimates say in-car infotainment centers will generate $15 billion in sales in 2021, up from $7 billion in 2016.

The Future of the IoT in Transportation

The Internet of Things will become increasingly important in transportation and logistics in the next several years, especially as self-driving cars hit the road in increasing numbers. But this is just one area that the IoT will totally transform.

Source: Business Insider I Intelligence - Automotive Industry Trends: IoT Connected Smart Cars & Vehicles

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