Automotive Industry Leads the Way, but Faces Three New IoT Challenges
From Connectivity to Complexity
The automotive industry has long been at the forefront of connected products. But as the industry evolves rapidly, it faces a new set of major challenges, some of which are now beginning to affect other sectors as well.
Building on her expertise in the automotive IoT landscape, Marie Högberg, Head of Automotive at Telenor IoT, highlights critical new challenges facing the industry. “We are entering a new phase where it’s no longer enough for the technology to simply work—it must also be adaptable, smart, and secure. The automotive sector was an early adopter of IoT, starting with basic vehicle connectivity that has since become central to meeting modern customer expectations. With the rise of electric and software-defined vehicles (EDVs and SDVs), AI, and advanced IoT solutions, manufacturers now operate in a significantly more complex environment.”
“It’s an industry that has clearly demonstrated customer value through IoT,” says Marie Högberg. “But today, it’s a completely new playing field, more complex on multiple levels.”
IoT Predictions 2025: The Connected Car Guides the Way
The Three Major Challenges in IoT Development
1. The Puzzle of Global Network Orchestration
Telenor IoT’s new report, IoT Predictions 2025, highlights three key challenges facing the automotive industry. The first is global network orchestration—ensuring seamless, reliable connectivity for vehicles across different countries and networks.
Managing roaming, regulatory compliance, and customer experience on a global scale requires specialized knowledge. Most manufacturers don’t want or need to become connectivity experts. Automated network management is essential, and many companies rely on partnerships with network operators to scale effectively.
“In the past, a single supplier could often cover most regions. That’s no longer the case,” explains Högberg. “Manufacturers are now dividing suppliers regionally or even locally, and assembling a working global solution has become a puzzle.”
At the same time, customer expectations have evolved. Connectivity should work just as well in Tokyo as it does in Berlin, without the user ever noticing the complexity behind the scenes.
As users, we expect connectivity to just work, wherever we are. That puts huge pressure on manufacturers to deliver seamless functionality.” Marie HögbergHead of Automotive at Telenor IoT
2. Navigating Regulations and eSIM Adoption
A second challenge is regulatory compliance. From SIM card requirements to browser access in infotainment systems, global and local rules set boundaries that manufacturers must navigate.
“For example, permanent roaming restrictions mean you can’t rely on roaming everywhere, you need local SIMs,” says Högberg. “Some services can only be offered in specific markets. That’s why your IoT partner must understand and manage regulatory compliance to ensure uninterrupted service.”
At the same time, technologies like eSIM (Embedded SIM) are transforming how manufacturers approach scalability and lifecycle management. An eSIM is a SIM card with built-in software that makes it possible to update network profiles wirelessly, without the SIM card needing to be replaced. This simplifies the management of connected cars and makes it possible to control connection profiles dynamically over the long life of the car.
“This opens up major cost-saving opportunities and long-term flexibility for car manufacturers,” says Högberg. “It’s a shift that benefits the whole industry.”
3. Cybersecurity Becomes Business-Critical
The third major challenge is cybersecurity, now a top priority across the automotive landscape.
“It’s one of the most talked-about areas for a reason,” says Högberg. “Cybersecurity is no longer an afterthought. It’s central to IoT.”
With over 150 million lines of code, countless components, and constant over-the-air updates, today’s cars present a vast attack surface, not only in the vehicle itself but across the broader digital ecosystem. Given the importance of over-the-air updates for software-defined vehicles (SDVs), automakers need partners who can guarantee the safety of their vehicles.
“It’s essential to build security into the design from the start, and that means choosing suppliers who can take full responsibility for secure, end-to-end solutions,” she explains.
Lessons for Other Industries
These challenges aren’t exclusive to the automotive sector. Other industries are beginning to face similar complexities as they scale their connected solutions.
Geopolitics Slowing Global Progress
As the world becomes more geopolitically fragmented, the challenges for globally connected products also increase. For the connected car, this means that a universal approach is becoming increasingly difficult to maintain.
The connected car may no longer be able to be managed globally, but you have to think much more regionally. This applies to both how you choose partners and where you manage and save data. The world is changing, and that affects development. It simply slows down, because it is not easy to handle these challenges, says Marie Högberg.
She believes that there is also an overconfidence that connectivity should just work automatically.
“There needs to be a greater awareness of the complexity that must be handled correctly. Many people think that you can just press “connect”, but it’s not that simple. There is a lot of technology in it that is not noticeable in the background that has to work 24/7. With the brand and the entire car as a product today being largely defined by how well the connection works, this becomes very important. But it requires more expertise than many people think.”
The Right Partnerships Make the Difference
Scaling IoT globally requires adaptation to local conditions. Industries should embrace the complexity and lean on experienced partners.
“No one has the full solution, but the right partner makes all the difference. You have to be willing to explore, test, and use your data effectively. That’s where the real opportunities lie,” she says.
There’s huge untapped potential in other verticals that haven’t yet adopted a software mindset. Think about how we update our phones regularly, it should be the same for connected products.”
Marie HögbergHead of Automotive at Telenor IoT
How Telenor IoT Helps
Telenor IoT has worked with the automotive industry and other sectors from the beginning.
Telenor IoT wants to be the partner companies turn to when you want to scale smartly, concludes Marie Högberg. By using partners, we can help customers, among other things, to:
- Simplify complex rollouts by securing global connectivity, while also negotiating favorable pricing
- Navigate customer billing, local licenses, and permit requirements for a broad range of connected services
- Recommend the best-suited technologies
- Assist with complex regulations and laws globally and locally
By addressing these challenges with the right strategy and partners, companies across all industries can fully realize the potential of IoT—just as the automotive sector has begun to do. Find out more about Telenor IoT’s Managed IoT Connectivity Solutions.
This article is based on an interview originally published (in Swedish) by Nyteknik. You can read the original version here.
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