IOT Impacts Connected Cars

Connected cars are becoming a huge source of revenue and automotive manufacturers are eager to add connectivity to their vehicles. A connected car provides massive amounts of data to the vendor, and the revenue from connected car Internet services is expected to be mainstream wholesale within just five years. These types of services will be worth over $152 billion by the year 2020 according to a recent study.

Like other things on the Internet, connected cars have become an open market free of middlemen between car manufacturers and the industry. Car manufacturers have to deal with a growing aftermarket that is focused on specific applications and are therefore able to stay ahead of in-house developers.

Finance and insurance. Insurers are now able to get a detailed, real-time grasp of driving behavior and apply rates. The impact? Connected vehicles are fundamentally changing how drivers and insurers underwrite risk. The growth of auto lending has spread the use of low-cost, aftermarket OBD devices that can monitor driving behavior. These technologies have dramatically reduced the risk associated with lending, and the costs connected to borrowing, by introducing discounts and refunds for safe driving habits.

The growth of connected car sales. For consumers, the connectivity of vehicles offers a number of valuable services, such as navigation, traffic updates, nearby services, entertainment, triggered emergency calls and vehicle diagnostics.

In-vehicle connectivity also helps automakers maintain a constant relationship with their customers. For example, they can use emails or messages to notify drivers that their vehicles are due for service, along with which local dealers are available and when. They could even let the driver book the service simply by pressing a button on the dashboard. An automaker may also use in-vehicle connections to monitor the performance of the car and design future models.

Entertainment. Smartphone operating system vendors could play a major role in the explosive development of the connected car market through innovative aftermarket devices and gaming platforms. There are a number of interesting software startups developing onboard diagnostics-based tools that could soon become mainstream.

Archer Software is a recognized provider of embedded software solutions for connected cars. Additionally, we have a broad base of expertise in developing mobile applications for Android, iOS, Windows Phone and Blackberry, including geolocation and geopositioning services. You can learn more about our work with connected cars at Automotive custom software development.

For more information about how we can develop connected car software solutions that are right for you, contact our experts at