Five ways IoT is impacting customer experience in the automotive industry

November 12, 2021 | 3 minute read
Jessica Kaufman
Senior Product Marketing Manager
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IoT in the automotive industry

The automotive industry is, by nature, innovative. From the early days of steam-powered cars to today’s electric vehicles, automobiles have changed the way we work, live, and play. The innovation continues today, thanks in large part to the Internet of Things (IoT).

IoT has opened a new world for customer experience in the automotive industry—from connected cars to self-driving vehicles, these are realities of today and no longer science fiction.

Let’s explore five major applications and impacts of IoT on the automotive industry.

1. IoT-connected cars

In 2020, 91% of new cars sold in the US were IoT-connected. That’s more than 13 million connected vehicles sold in the US alone. And that number is only expected to increase. It’s estimated that by 2025, 115 million connected cars will be sold. It’s almost impossible to think of driving a car that doesn’t link to your smartphone, stream your favorite playlist, or provide real-time traffic alerts.

2. Predictive maintenance

Most of today’s vehicles include sensors that monitor engine status, temperature, electrical systems, speed, and navigation. IoT collects that data and evaluates any potential malfunction, shares the data via the cloud, then notifies the driver. Identifying upcoming service needs or part failures before they arise can help reduce breakdowns, enable easy maintenance, and extend the life of the vehicle.

3. Enhanced engineering and production

IoT allows automotive manufacturers to improve engineering and production to meet increasing demand. It also collects information about how a driver uses certain features and functions, enabling manufacturers to modify, improve, or remove them from future designs. Critical errors in the system can also be collected, which manufacturers can use to provide real-time support and updates to drivers.

4. IoT enables a better car-buying customer experience

Let’s face it, for many of us, the thought of buying a car sends shivers down the spine. IoT is helping to change that. While walk-ins to a dealership remain the most common form of initial contact, 92% of buyers do their research online. Check-in kiosks could allow those customers to sign in and then send their online preferences to a sales associate. The sales associate would have a better understanding of each customer’s preferences and anticipate their needs before the first interaction, resulting in a more positive customer experience.

5. Improved road safety

IoT can also be used to make roads safer through alerts that detect accidents and bad driving. There are currently more than 60 million vehicles in the United States that include automotive advanced driver assistance systems (ADAS), which includes technologies such as adaptive cruise control, collision warning, and automatic emergency braking. These systems are designed to avoid collisions by alerting drivers to potential hazards or taking control of the vehicle to avoid any danger. ADAS is only possible due to IoT.

New consumption models/options

Mobility-as-a-Service (MAAS) is gaining popularity and will continue to transform urban mobility, driving innovation and delivering options that weren’t even on our radar just a few years ago. By 2025, the mobility services market is expected to exceed $230 billion dollars worldwide, making it an important growth driver for the connected car market.

What’s next for the automotive industry?

More than simply a way to get from point A to point B, automobiles have already become an extension of our daily lives. Thanks to in-car Wi-Fi, vehicles have become mobile offices. And as the reality of autonomous cars sits in the not-too-distant future, more data will be used to improve the safety and efficiency of drivers and vehicles alike.

Want to learn more about how IoT can help your organization optimize your customer’s experience? Check out Oracle’s IoT Service Monitoring for Connected Assets and take a brief self-guided product tour.

Jessica Kaufman

Senior Product Marketing Manager

Jessica Kaufman is a Senior Product Marketing Manager at Oracle with more than 10 years of industry experience.


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