IoT Applications in Smart Vehicles: 10 Game-Changing Use Cases

IoT applications in smart vehicles are revolutionizing transportation, enhancing safety, efficiency, and connectivity, revolutionizing the automotive industry. The global automotive IoT market in revenues is to reach around $274.70 Billion by 2025, with the U.S. accounting for the biggest revenue share of $98.86 Billion. ​

One application is predictive maintenance. Various vehicle components are monitored by IoT sensors alerting the driver about the possibility of any kind of problem before it becomes a serious problem. For example, sensors in modern automobiles—like engine health and tire pressure—can perform preventive maintenance, also increasing the reliability of the vehicles concerned. ​

Another great step is vehicle to vehicle communication (V2V). Cars can share real time data exchange with this technology to prevent colliding and improve traffic running. For example, features such as forward collision warnings or lane change alerts are possible due to V2V communication and overall make roads safer. ​

IoT applications are also present in fleet management. Today, companies can monitor vehicle performance, fuel consumption and location, allowing for the routing route compression and decreased operational costs. For example, DHL uses its SmarTrucking solution that is based on IoT technology to track the truck in real time and optimize fuel management. ​

Moreover, smart infotainment systems have changed the in car experience. Personalized entertainment in these systems provides a degree of driver and passenger satisfaction, as well as navigation assistance and connectivity features. The platform of ConnectedDrive in BMW integrates IoTs to offer real time traffic information and smart navigation services. ​

These examples highlight how IoT applications in smart vehicles are not only enhancing safety and efficiency but also reshaping the future of transportation.

1. Vehicle-to-Vehicle (V2V) Communication

With Vehicle-to-Vehicle (V2V) communication, car can exchange real time information with other nearby cars including speed and position. The technology helps to improve road safety as it allows cars to anticipate and react to possible hazards. Thus, for example, a car that brakes suddenly can warn other cars by V2V communication about the collision. ​

The global V2V communication market now moves forward at a rapid phase. It is to grow from $24.28 billion in 2024 to reach $27.1 billion in 2025, with a CAGR of 11.6%. ​

Several automotive manufacturers have incorporated V2V capabilities in their vehicles. For example, Dedicated Short-Range Communications (DSRC) technology came with the 2017 Cadillac CTS sedan and would allow the vehicle to communicate with similarly equipped vehicles to enhance safety. ​

Last year, the Federal Communications Commission (FCC) approved new rules to open up more spectrum for cellular vehicle-to-everything (C-V2X) communications technology. Instead of creating a new network, C V2X works through existing cellular networks to warn of dangerous road conditions, traffic jams, or the existence of pedestrians, cyclists, and other vehicles. ​

V2V technology has been a focus of the National Highway Traffic Safety Administration (NHTSA) for more than a decade. V2V communications allow vehicles to have a clear knowledge of each other’s locations all the time, which enhances the safety and efficiency of the roadways, according to them. ​

As V2V technology becomes more widespread, it is to play a crucial role in reducing accidents and improving traffic flow, marking a significant advancement in IoT applications in smart vehicles.

FURTHER READING:

1. What is Industrial Internet of Things (IIoT)? Definition, Benefits & Applications

2. What is IoT Data Analytics? A Detailed Guide for Beginners

3. 10 Best IoT Cloud-Based Platforms to Consider in 2025

2. Vehicle-to-Infrastructure (V2I) Communication

Vehicle-to-Infrastructure (V2I) communication refers to the vehicle connectivity allowing vehicles to interact with the road infrastructure including traffic signals, signs, etc, for safety and efficiency. These devices enable vehicles to access real time traffic conditions, road speed limits and any possible hazard information. For instance, a car that is moving towards a traffic signal can get the signal status information so the speeds can change. ​

There is great growth in the V2I communication market. The market size, in 2024, was at $423.98 million. According to projections, it will register a CAGR of over 36.9% to exceed $25.15 billion by 2037. ​

Smart parking is one of the practical usages of the V2I technology. In this system, the vehicles receive information from the road infrastructure, informing them on available parking spaces; thereby, decreasing the time spent in searching for a parking spot and reducing traffic congestion. ​

For example, there is the U.S. 33 Smart Mobility Corridor in Ohio. The 35 miles of U.S. 33 between Circleville and Waverly has fiber optic cables along with Dedicated Short Range Communications (DSRC) units every 600 meters. These are installations, where vehicles and infrastructure ought to make communication in order to increase traffic flow and safety. ​

On the other hand, communication between V2I also helps in the promotion of road safety. For instance, it can detect the arrival of a pedestrian at a crosswalk, thus activating the signal, prefer cyclists over motor vehicles, or warn a driver about an upcoming road curve, forcing the driver to slow down. ​

3. Predictive Maintenance

IoT technology enables predictive maintenance for monitoring the vehicle health in real time, helping to proactively spot and solve potential problems before leading to expensive repairs or spontaneous breakdown. As such, this approach improves the reliability of the vehicle itself and ultimately the safety and efficiency of the road.​

Automotive predictive maintenance market registered a growth in 2022, where the IoT segment accounted for a majority of the share with a 35% share. Indeed, IoT is playing a crucial role in allowing continuous monitoring of vehicles and data in real time. ​

Over the years, modern vehicles have featured a set of equipment such as sensors that keep on collecting data concerning parameters like engine performance, tire pressure as well as brake efficiency. IoT enabled sensors will be able to monitor engine temperature and vibration patterns to alert when failure could be around the corner and what can be done for any maintenance or repair. ​

Implementing predictive maintenance through IoT applications in smart vehicles has proven to be highly effective. Several studies have indicated that, properly implemented, the IoT based predictive maintenance can achieve prediction accuracies greater than 90%, resulting in significant reduction of unexpected downtime and maintenance costs. ​

With this, automotive manufacturers continue to adopt predictive completion methods in order to increase the performance of the vehicle and customer satisfaction. For instance, BMW put into use a system based on AI to watch conveyor technology while assembling the car, detecting possible faults in advance and protecting the car assembly from more than 500 minutes of deterioration per year. ​

4. Fleet Management and Telematics

IoT applications in smart vehicles have revolutionized fleet management, particularly through the integration of telematics systems. These systems that involve GPS tracker, sensors, and communication networks gather data pertaining to the vehicle performance, location and the driver behavior. Such real time information will not only help in reducing costs and enhancing operational efficiency, but also in safety.​

The global market of IoT fleet management is growing at a remarkable rate. It was a $11.1 billion industry in 2023 and will grow up to $37.7 billion by 2030 at a 19.1% CAGR. ​

Real time vehicle tracking is one common application if IoT in fleet management. GPS devices and sensors used by fleet managers enable them to monitor the exact location of each vehicle in the fleet and perform route optimization and efficient dispatching. ​

Another critical aspect of it is predictive maintenance. Vehicle health indicators like the engine performance and fuel efficiency are monitored by IoT enabled telematics systems. A good example of this would be Volvo Trucks that use IoT based telematics to deliver predictive maintenance as an IoT product as a service, notifying fleet operators of any upcoming mechanical problems before they occur, thereby reducing the asset’s downtime and its lifetime. ​

IoT applications also enhance driver behavior monitoring. Therefore, it can sense harsh braking or speeding using sensors, resulting in safer operations and with fewer accidents and less accident costs. ​

5. Advanced Driver Assistance Systems (ADAS)

Modern vehicles gain new safety and driving convenience through the Advanced Driver Assistance Systems (ADAS). These systems utilize IoT applications in smart vehicles to monitor surroundings and assist drivers in real-time.​

There is fast growth of the global ADAS market. In 2024, it brought in nearly $58 billion, and its forecast continues to grow in the future years. ​

Some ADAS technologies include collision detection, lane departure warnings, adaptive cruise control, and automatic emergency braking. They are always on the lookout for hazards surrounding the vehicle, alert drivers to them and can, if necessary, intervene before an accident can take place. ​

Notably, the penetration of select ADAS features has advanced considerably. For instance, IAEB is present in 34.2% of vehicles as of model year 2023 and zero percent in model years 2015-2018. ​

IoT applications in smart vehicles facilitate the functionality of ADAS by enabling real-time data exchange between sensors and control units. By having this connectivity, physics based driving dynamics can have immediate responses. This helps to improve the overall vehicle safety and performance.​

If ADAS were available for vehicles, it could prevent approximately 62 percent of all traffic deaths per year (or approximately 20,000 lives a year). Lane keeping assist features have the potential to eliminate 14,844 such deaths, and pedestrian automatic braking would keep 4,106 alive. ​

As long as the IoT technology advances, ADAS capabilities will improve, to the extent that they will make a huge impact on safe and efficient transportation systems globally.

6. Smart Infotainment Systems

Intelligent infotainment systems have become a crucial part of the contemporary conveyance as the built in entertainment and information provided by this systems has become extremely important for enhancing driving experience. These systems utilize IoT applications in smart vehicles to provide features such as navigation, media streaming, and connectivity options.​

According to projections, the in-vehicle infotainment market will grow from $16.4 billion in 2023 to $28.3 billion by 2028 at a compound annual growth rate (CAGR) of 11.6%.

Several automotive companies have deployed advanced infotainment systems. As an example, BMW has even tapped Huawei’s HiCar system to be embedded into China made cars by 2026 in order to boost connectivity and user experience. Additionally, Mercedes-Benz unveiled its luxury electric CLA, which features a superscreen that, among other things, can allow passengers to play video games or stream Netflix on the go. ​

These developments highlight the automotive industry’s commitment to integrating advanced IoT applications in smart vehicles, transforming them into connected hubs that offer both information and entertainment to occupants.

7. Remote Vehicle Monitoring and Control

Remote vehicle monitoring and control have become integral components of modern automotive technology, leveraging IoT applications in smart vehicles to enhance safety, efficiency, and user convenience. In the context of IoT, vehicle owners and fleet managers are able to watch and manage vehicle performance and operation from a distance via IoT enabled systems.​

One major application is for monitoring fuel consumption and analyze the consumption patterns. With the ability to gather real time data related to fuel usage these systems can find the inefficiencies of a vehicle and suggest how the driver could drive more optimally or choose a better route to cut down the fuel costs. And because of this, it also reduces cost and encourages environmentally friendly practices. ​

The second important point is the driver behavior monitoring. The advanced systems are able to detect unsafe activities such as harsh braking, rapid acceleration or excessive idling. While not all incidents are avoidable via altered operating procedures, fleet managers can positively impact safety and wear and tear on vehicles through managing these behaviors. ​

The integration of IoT in electric vehicles (EVs) has enhanced the scope of remote monitoring and control of the electric vehicle. For users or fleet managers, they can remotely adjust charging schedules and manage vehicle performance remotely to manage energy consumption of course, making sure the vehicles are ready at the right moment. ​

Furthermore, artificial intelligence (AI) can help improve safety of passengers and drivers in the automotive industry. For instance, AI technology information enables the supervision of driver attentiveness and distraction, such as mobile phone use or drowsiness, and thus decreasing the chance for accidents. ​

8. Autonomous and Semi-Autonomous Driving

Enhanced safety and efficiency of the automotive industry are changing due to autonomous and semi autonomous driving technologies. These systems rely on IoT applications in smart vehicles to process real-time data and make informed driving decisions.​

There is considerable growth in the autonomous vehicle market globally. In 2022, there were about 16,960 autonomous vehicles across the globe. In 2023, the number of VSAT terminals is to rise up to 21,150 units, which will go up to 26,560 units in 2024. An optimistic outlook shows that fleet ramps up significantly by 2030, to 125,660 units. ​

Autonomous driving technologies are still being tested in several companies. Nissan Motor Corp. is testing the cars on Yokohama’s crowded streets. Autonomous vans have an assortment of cameras, radars, and LiDAR sensors to perform without human intervention. ​

Driverless trucks are also revolutionizing the freight transport sector. For instance, the plan of Aurora Innovation is to deploy autonomous trucks for freight haulage between Dallas and Houston. These are trucks which are equipped with advanced sensors and AI systems, aimed to achieve ‘level 4’ autonomy meaning they can run without a human driver in certain places. ​

Although progress has been made, safety, nevertheless, is an ongoing issue. There were 3,979 incidents of autonomous vehicles between August 2019 and June 2024, with 473 of them in 2024. These data demonstrate the continuous improvement need of autonomous driving systems for safety reasons. ​

9. Usage-Based Insurance (UBI)

The automotive insurance industry is being revolutionized through Usage Based Insurance (UBI), which helps set the premium of an individual based on their driving behavior. This innovative approach relies on IoT applications in smart vehicles to monitor real-time data, such as mileage, speed, braking habits, and acceleration patterns. But by studying this data, insurers can create individualised insurance policies that pay out for more constant driving and smaller dangers.

In recent years, the growth of the UBI market has been spectacular. Records have shown that it was valued at approximately $48.38 billion in 2023 and is estimated to be $63.29 billion by the end of 2024. However, analysts still anticipate growth with the market expected to reach $175.27bn by 2028 at a compound annual growth rate (CAGR) of 29.0%. This rapid adoption highlights the increasing role of IoT applications in smart vehicles in shaping the insurance industry.

A few insurance companies have introduced their own UBI programs and come up with a form of personalized coverage. Allstate’s Drivewise software tracks drivers’ driving behavior via a mobile app and reimburses safe drivers with discounts. Geico DriveEasy uses telematics to monitor driving behavior and adjusts premiums based on this behavior. Nationwide’s SmartRide program features an initial sign up discount and discounts to safe drivers as much as 40% on premiums.

However, some challenges remain. A significant issue is that data is collected continuously without an awareness of how insurers use the data. Many telematics devices are known to misinterpret some driving behaviors as well. Finally, an example of this could be sudden braking to avoid an accident being flagged as aggressive driving, and so affecting someone’s premiums unfairly.

10. Electric Vehicle (EV) Charging Optimization

Optimizing Electric Vehicle (EV) charging is essential to enable EV ownership more efficiently and conveniently. By leveraging IoT applications in smart vehicles, the charging process can be streamlined, benefiting both users and the broader energy infrastructure.​

IoT enabled smart charging systems support the effective communication between EVs, charging stations, and operators. It allows for continuous monitoring and management of the energy consumption to get more efficient practices in charging. An example of use case for IoT is where ChargePoint uses IoT to provide smart charging solutions that help enhance efficiency and save on energy waste. ​

Owing to IoT integration in EV charging infrastructure, there has been a sharp rise in IoT connectivity revenues. EV charging is by far the biggest IoT revenue segment in Europe and will represent almost 7% (fourth biggest) for the region by 2032, with smartwatches, and factory fit connected cars with electricity smart meters. ​

Many companies are coming up with creative means to upgrade the EV charging experience. Take for instance Revel, an EV charging operator, and a startup called Juice, which specializes in computer vision are collaborating to put smart cameras at charging sites in New York City. The technology identifies the vehicles by the model and the license plates and lets it charge automatically by setting up a one time initial sign up and thus make multiple apps or a credit card swipe unnecessary. ​

Conclusion

The integration of IoT applications in smart vehicles is revolutionizing the automotive industry. These technologies are transforming the way we use our vehicles by enhancing safety with advanced driver assistance systems, optimizing fleet management, and ultimately enabling autonomous driving. In fact, notably, the global automotive IoT market is expected to grow to $ 98.86 billion in the United States by 2025, demonstrating strong support for such new innovations .​

At Designveloper, we recognize the immense potential of IoT in reshaping transportation. Our team has extensive experience in developing cutting-edge solutions that align with these advancements. For instance, we collaborated with LuminPDF to enhance their document management system, showcasing our ability to integrate complex functionalities seamlessly.​

As the automotive landscape continues to evolve, embracing IoT applications in smart vehicles is not just an option but a necessity. By leveraging these technologies, businesses can achieve greater efficiency, safety, and user satisfaction.