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The Internet of Automotive Things: What Marketers Need to Know Now

eMarketer Report

By: eMarketer

Published: February 23, 2016

Jump to: Executive Summary | Table of Contents | List of Charts

Executive Summary

Though the internet of things (IoT) is still in its early stages, it is already changing the global automotive business and the way consumers think about vehicles. It is also helping industry marketers gather valuable consumer data and use it to deliver more personalized experiences.

  • IoT applications have wide-ranging impact across the industry. Automakers have seen early success with smart factories and supply-chain monitoring. Now, connected car applications are becoming mainstream.
  • According to one source, more than 40 million US vehicles were connected to the internet at the end of 2015. Another source predicts that there will be 250 million connected vehicles on the road globally by 2020. Smartphones are currently the top conduit for in-car connectivity, but vehicles will soon become IoT hubs in their own right.
  • Automakers, dealers, aftermarket providers, insurers, telecom providers, electronics manufacturers and IT firms are all vying for a stake in the automotive IoT. It remains unclear what role each will play.
  • The IoT will give industry marketers more ways to communicate with target audiences, more data to target personalized messaging, valuable feedback about what they are doing right and more ways to enhance customer service.
  • Obstacles to wider IoT implementation include security and privacy, lack of common standards, data fluency and low consumer acceptance.

"The majority of auto-industry IoT applications are related to manufacturing and distribution, but a host of in-car connectivity features are attracting attention and gaining in popularity."

Table of Contents

What is the Automotive IoT?

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Implications for Marketers

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Overcoming Challenges: Where the Rubber Hits the Road

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10 charts are included in the full report:

The Internet of Automotive Things: What Marketers Need to Know Now

Ways in Which Their Company Is Using Internet of Things (IoT) Technologies According to Automotive Executives Worldwide, April 2015 (% of respondents)

What is the Automotive IoT?

Current vs. Expected Internet of Things (IoT) Budget According to Business Executives Worldwide, by Industry, 2015 & 2018 (millions)

Current vs. Future Top 10 Industries for Internet of Things (IoT) App Development According to Software/App Developers in the US and Western Europe*, Feb 2015

The Automotive IoT in Action

Automotive Trends that Are Important* According to Automotive Executives Worldwide, Nov 2015 (% of respondents)

Ways in Which Their Company Is Using Internet of Things (IoT) Technologies According to Automotive Executives Worldwide, April 2015 (% of respondents)

Connected Cars Worldwide, 2015-2019 (millions)

Attitudes Toward the Technological Future of Cars According to Internet Users Worldwide, by Generation, March 2015 (% of respondents in each group)

Implications for Marketers

Usage of Vehicle Data* Among Automotive Executives Worldwide, by Company Department/Function, Nov 2015 (% of respondents)

New Connections = New Business Models

Best Opportunities for Automotive Industry Growth* According to Automotive Executives Worldwide, Oct 2014 (% of respondents)

Overcoming Challenges: Where the Rubber Hits the Road

Strategic Challenges of Big Data and Analytics According to Senior Data/IT Decision-Makers Worldwide, Spring 2015 (% of respondents)

Low Consumer Awareness and Adoption

Importance of Select Connected Car Features/Services for Their Next Car Purchase According to Car Shoppers in China, Germany and the US, Aug 2015 (% of respondents)