The future of the automotive industry will be shaped by a range of disruptive themes, with the internet of things (IoT) being one of the themes which will significantly impact the potential growth of leading companies in the industry.  A detailed analysis of the theme, insights into the leading companies, and their thematic and valuation scorecards are included in GlobalData’s thematic research report,Internet of Things (IoT) in Automotive – Thematic Research.  Buy the report here.

In the automotive industry, IoT refers to the use of connected sensors and actuators to control and monitor the environment, the things that move within it, and the people that act within it. The global IoT market is forecast to register a compound annual growth rate (CAGR) of more than 11% during 2020-2024, according to GlobalData estimates. Enterprise IoT dominates the overall IoT market, generating 76% of total revenue in 2020.

IoT is one of the primary enablers of digital transformation in the automotive sector. It brings together various technologies, like AI, 5G, edge computing, and cloud computing, which helps reduce latency levels to allow real-time decision-making and reduce the need for human intervention in IoT ecosystems. The connected car will increase data generation exponentially and establish itself as a key component of the IoT ecosystem, and eventually, an extension of consumers’ automated homes. Automakers must use this abundance of data to pivot their business models towards software and reduce their dependence on Big Tech to meet the needs of their customers.

Desktop
Mobile
Mobile

However, not all companies are equal when it comes to their capabilities and investments in the key themes that matter most to their industry. Understanding how companies are positioned and ranked in the most important themes can be a key leading indicator of their future earnings potential and relative competitive position.

According to GlobalData’s thematic research report, IoT in Automotive, leading adopters of IoT in the parts and tires subsector of the automotive industry include: NVIDIA, Bosch, BYD, Panasonic, and Continental.  

Insights from top ranked companies  

NVIDIA 

NVIDIA has parlayed its GPU technology developed for the gaming industry into the core embedded supercomputer platform of choice for hyperscale data centres, crypto-currency mining rigs, and deep learning neural networks. In addition, it is intent on forming the AI processor core of the automotive industry of the future. NVIDIA won over Baidu Apollo, Audi, and Volvo, but lost Tesla, which opted to develop its own AI chip with AMD. NVIDIA will supply Daimler with its Drive Orin platform – similar to Tesla’s Autopilot system-on-a-chip. This will equip Daimler’s cars with the hardware needed for self-driving but allow the company to trial a few different software providers without being tied to one in particular.

Bosch 

Bosch offers a range of products and solutions pertaining to connected mobility. It is currently working alongside Microsoft to develop an open technology platform to connect vehicles to the cloud. The new platform, which will be based on Microsoft Azure and incorporate software modules from Bosch, will enable software to be developed and downloaded to the control units and vehicle computers. Bosch is working with Daimler to develop level 4 and 5 driverless vehicles. In December 2019, Bosch launched a small number of self-driving S-Class luxury sedans in San Jose with safety drivers to test the technology. Bosch stands out as a leading supplier of intelligent auto-grade sensors and fused sensor systems.

Continental 

Continental has developed a tire monitoring platform, ContiConnect, using Vodafone’s IoT SIM technology. Continental’s wireless sensors, mounted inside the truck tires, collect tire pressure and temperature data. The data is transmitted as soon as the sensors come within range of the receiver unit at the terminal. The data is then sent to the backend, analysed, and displayed in the ContiConnect web portal.

To further understand the key themes and technologies disrupting the automotive industry, access GlobalData’s latest thematic research report on IoT in Automotive

   

Data Insights

From

The gold standard of business intelligence.

Blending expert knowledge with cutting-edge technology, GlobalData’s unrivalled proprietary data will enable you to decode what’s happening in your market. You can make better informed decisions and gain a future-proof advantage over your competitors.

GlobalData

GlobalData, the leading provider of industry intelligence, provided the underlying data, research, and analysis used to produce this article.

GlobalData’s Thematic Scorecard ranks companies within a sector based on their overall leadership in the 10 themes that matter most to their industry, generating a leading indicator of their future earnings and relative position within key strategic areas.