The IoT is revolutionizing road journeys across the globe, and connected vehicle technology is at the heart of this evolution. Connected vehicle technology is just one example of how road operators, fleet managers and drivers are using connected vehicles and real-time data to optimize operations, reduce costs and improve safety.
But the possibilities extend far beyond connected vehicles. Discover how IoT is transforming various industries by exploring our collection of IoT use cases across transport & logistics, manufacturing, smart cities and utilities. See how businesses are utilizing connected technology to achieve real world results.
Connected vehicle technology enables vehicles to exchange data with external systems and services. Embedded cellular connectivity supports applications such as remote diagnostics, emergency assistance, infotainment, and software updates. In the EU, 112-based eCall has been mandatory for new types of passenger cars and light commercial vehicles since March 31, 2018. Satellite positioning systems such as GPS provide location information for navigation and other vehicle services.
900 million
Connected cars forecast on the road in the early 2030s
50%
of connected cars sold from 2024-2030 will be 5G embedded
US$3.6 billion
Global opportunity for automotive 5G connectivity enablement in 2027
Increasingly, connected car IoT applications are coming to market that enable the vehicle to perform over-the-air software updates and to integrate with other systems and services. This has contributed to accelerated growth in connected vehicle adoption which is driven by consumer users. Connected consumer vehicle numbers are set to increase from 162 million in 2023 to 294 million in 2027. In contrast, commercial connected vehicle numbers are projected to grow from 30 million to 73 million in the same period.
One reason why a car needs to be connected to the cloud, backends and other ecosystems is due to the ongoing transformation within the automotive industry. Traditionally, cars were fully assembled and finalized upon entering the market. However, with the emergence of the software-defined car, this paradigm is shifting. The software-defined car is characterized by constant development and updates throughout its lifetime.
Connecting the car to the cloud enables seamless integration of these updates, allowing for improved functionality and performance over time. This connectivity facilitates remote diagnostics, software upgrades and real-time data analysis, enhancing both the user experience and the overall efficiency of the vehicle. As technology evolves, cloud connectivity, backends and the rest of the ecosystem becomes increasingly integral to the automotive ecosystem, ensuring that cars remain at the forefront of innovation and adaptability.
In Q3 of 2023, two-thirds of cars sold globally featured embedded connectivity and by 2030, more than 90% of connected cars sold will have 5G embedded connectivity. We’re entering in an era in which we are as connected on the road as we are in our homes or workplaces. 5G can support demanding connected services through higher data rates and lower latency where the required network capabilities are available. Connectivity can also complement driver assistance and automated driving, alongside onboard sensors and computing.
Connected car IoT applications will include data-heavy infotainment use cases as well as new features and apps to enhance the user experience. This is essential for car makers as the driving experience shifts away from internal combustion engines toward full electric power. That will require IoT connectivity to keep users informed about the vehicle status, to support usage-based insurance and to incorporate third-party apps such as in-vehicle payments.
In addition, connectivity is crucial for consumer usage of cars due to its ability to enhance convenience, safety and entertainment. With connectivity, users can remotely access and control various features of their vehicles, such as locking and unlocking doors, starting the engine, or adjusting climate settings, using smartphone apps or other devices. This level of remote control provides convenience and peace of mind to consumers, especially in scenarios like remote start on cold mornings or locating a parked car in a crowded area.
Connectivity also enables real-time data transmission for navigation, traffic updates and vehicle diagnostics, contributing to safer and more efficient driving experiences. Connectivity opens up opportunities for in-car entertainment and infotainment services, such as streaming music, podcasts and internet browsing, transforming the car into a connected multimedia hub. Overall, connectivity significantly enriches the consumer experience by providing seamless integration with digital lifestyles and offering advanced features that improve convenience, safety, and entertainment on the road.
Connectivity requirements vary by application. Many telematics, infotainment, and software-update services can use 4G, while more demanding applications may benefit from 5G. Coverage and available network capabilities vary by market and route, so services should be designed to handle interruptions and changes in performance.
Satellite positioning and satellite communications serve different purposes: positioning systems provide location information, while satellite communications can provide an additional data connection where supported.
The business model for connected vehicles is still being developed with car makers currently investing in embedding the technology into cars and assuming the role of gatekeepers to the vehicle. Vehicles are problematic in terms of introducing innovation because of their relatively long lifecycles which means a vehicle could have obsolete technology when only a few years into its operating life. Careful consideration therefore needs to be given to the retrofitting and upgrade potential of systems deployed today.
Connected vehicle technology is delivering a series of benefits to drivers, such as:
Bandwidth requirements depend on the service. Vehicle-status reporting and remote commands typically need less data than video streaming or large software downloads. Choose connectivity based on application requirements, coverage, supported networks, and the vehicle’s expected service life.
4G LTE and 5G support a range of connected vehicle services. Wi-Fi and Bluetooth can complement cellular connectivity, while satellite communications may provide an additional option for supported applications and devices.
IoT Drive from Telenor IoT provides connectivity designed for connected-vehicle deployments across multiple markets and mobile networks. Available technologies and coverage depend on the market, network agreements, and vehicle hardware.
You can explore more on the IoT automotive case studies page or download Telenor´s Customer Cases booklet.
Connected vehicle services need connectivity that matches their performance requirements, target markets, and expected service life. Planning should account for coverage limitations, network evolution, and the ability to maintain and update services over time.
Telenor IoT supports vehicle manufacturers with connectivity across markets and mobile networks. Discuss your deployment requirements with an automotive connectivity specialist.
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