THE IOT AND THE AUTOMOBILE INDUSTRY 1

The Internet of Things and The Impact on the Automobile Industry

Gwyneth Duus

Professor Henning

Southwest Minnesota State University

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Abstract

This report presents the current status of the Internet of Things and the automobile industry, the

impacts of the IoT on the automobile industry, current issues and proposals on how to resolve

them, and future impacts the IoT may have on the automobile industry. The connections between

the IoT and the automobile industry will be explained, as well as the concerns of having

connected vehicles.

Keywords: Internet of Things (IoT), automobiles, automobile industry, issues, impacts

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Table of Contents

Abstract 2

Summary 4

Introduction 6

Understand the Internet of Things (IoT) 6

Current Impacts the IoT has on the Automobile Industry 7

Issues With the IoT and Automobiles 8

How These Issues Can Be Solved 9

Future Impacts the IoT Could Have on the Automobile Industry 10

Conclusion 11

References 12
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Summary

Purpose of the report

The purpose of this report is to inform the readers of the Internet of Things and its current

and future impacts on the automobile industry as well as benefits and issues, and ways these

issues could be resolved.

Understanding the IoT

The Internet of Things, which is often referred to as connected devices, can be seen all

over in our society today. There are many different “smart” and connected devices and they are

constantly evolving to fit into our everyday lives. The IoT has had a significant impact on the

automobile industry as well.

Current and advancing use of IoT in the automobile industry

The IoT has impacted the automobile industry in many ways. Many connected vehicles

today have hands-free calling, built-in GPS systems, and infotainment systems. Some connected

vehicles may also include real-time updates on the condition of the vehicle itself, which can

improve the safety of the vehicles and passengers.

Issues with the IoT in the automobile industry

There are also issues with connected vehicles. Hacking is a big concern with connected

vehicles since it can put the owner’s safety and data at risk. While companies can release updates

to combat hacking, these are not long-term solutions, but hacking and data privacy and safety are

issues that need to be addressed with connected vehicles.

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How these issues can be solved

Improving cybersecurity in connected vehicles is the most effective way to address the

issues of hacking and improving data safety in connected vehicles. Since hacking can cause

serious danger to owners of connected vehicles, staying one step ahead of hackers will improve

not only combat the hacking, it will also help with data privacy and improve the safety of the

vehicle and the owner.

Future of the IoT in the automobile industry

Automobile industries will have to find ways to address the previously mentioned issues

in order for the IoT to continue impacting the auto industry. This is a big step in making sure

connected vehicles continue to be successful in the future. Some companies are looking at new

platforms that can allow owners of connected vehicles to have more control over their data,

which could help the future of the IoT and the automobile industry as well.
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The Internet of Things and The Impact on the Automobile Industry

Introduction

In our world today, the Internet and connected devices are everywhere. It has become an

important part of our lifestyles. Almost everyone has a smartphone, smart tv, smart car, or some

sort of “smart” device. These devices are all part of the Internet of Things or the IoT. For this

report, the main industry that will be focused on is the automobile industry. The IoT is important

to the automobile industry because it helps to improve the safety of the vehicles and drivers. This

report will consider this claim by discussing what the IoT is, the current status of the IoT in the

auto industry, issues concerning connected vehicles and how to solve them, and the future

impacts the IoT may have on the automobile industry.

Understanding the Internet of Things

The Internet of Things is often referred to as connected devices. This is because the IoT

is exactly that: a bunch of devices that are connected to and through the internet that are able to

send and collect data. In the auto industry, examples of connected devices would be “smart” cars,

vehicles with infotainment systems, self-driving vehicles, and any vehicle that is connected to

the internet in some way. Bhavya and Radhika say that “the Internet has become ubiquitous, has

touched almost every corner of the globe, and is affecting human life in unimaginable ways”

(2018, p. 169). Wheaton somewhat mockingly describes the IoT as such: “Your fridge is going

to keep an eye on your milk supply. Your toothbrush is going to rat you out to your dentist”

(2015). The IoT has made a large impact on our world today, and there are many impacts and

benefits that come from having connected vehicles resulted in the IoT’s impact on the

automobile industry.
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Current impacts the IoT has on the automobile industry

The IoT has made its way into the auto world and has made a significant impact. We have

vehicles with infotainment systems, smart cars, and even self-driving cars. Coppola and Morisio

(2016) explain how “original electronic equipment for cars consisted of a small number of

Electronic Control Units (ECUs)” and how they are all separate and serve their own individual

functions. The following image, taken from the same journal article, shows examples of ECUs

on modern cars.

Figure 1

Connected cars have many benefits that can be useful to owners. There are infotainment

systems, which allow owners of these vehicles to use GPS systems, make hands-free calls,

connected their phone (along with their contacts and music) to their vehicle, and even listen to

music through services such as SiriusXM. These infotainment systems, while they may seem

distracting, make it easier for owners to make hands-free calls as well as easier for them to

answer calls. The GPS function also cuts out using a cellphone for GPS, which is more
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distracting than the infotainment system. The infotainment system makes it easier to use GPS

and make/answer calls so drivers will not be tempted to use their phones.

Another benefit that some vehicles may have are real-time updates on the condition of the

vehicle itself. This improves the safety of drivers as well. If, for example, there was a serious and

dangerous issue that the driver would not be able to easily notice, this function would be very

useful. It is hard to always know when something is wrong with a vehicle, and in some cases the

owners may find out when it is too late. Real-time updates on the condition of the vehicle can be

incredibly useful and even life-saving for the owner. As connected vehicles continue to advance

in the future, there will likely be more beneficial changes as a result.

Issues with the IoT and automobiles

While there are many benefits to having connected vehicles, there are also many concerns

that come with them as well. Wheaton mocked the IoT and how outrageous some of the

connected devices we have now are (such as fridges) but he also says that “it’s just that mundane

appearance that seems to paper over how frightening all of this stuff can be” (2015). While

Wheaton may be mocking how many connected devices we have now, he acknowledges that all

these connected devices can be frightening due to how big of a role they play in our everyday

lives.

The issues that come with connected vehicles are especially worrying since they can

cause real, physical harm if something goes wrong. Hessman says that “as the industry moves

more towards the next generation of self-driving cars and vehicle-to-vehicle communication,

carmakers are starting to worry about the risks that are accompanying all of the ports of the

technologies driving it: The Internet of Things” (2013, p. 44). There are many small issues that
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car owners have with their connected vehicles, such as with their infotainment systems which

Newcomb says “continue to frustrate car owners” (2016, p. 42). One of the bigger and more

pressing issues with connected cars is hacking.

Hacking has always been an issue with any connected and electronic device. People hack

computers, phones, and even hit big companies which have been issues in the past. Now that

connected cars are becoming more and more common, so is the issue of hacking them, which is

practically a sport at this point according to Hessman (2013, p. 44). One big example of this is

when two security researches remotely hacked a 2014 Jeep Cherokee and this resulted in Fiat

Chrysler recalling 1.4 million of the vehicles (Rash, 2015), and they hacked into it through the

vehicle’s “Uconnect radio system, controlling various aspects of the vehicle, like the radio

volume, the head, the door locks, the wipers–oh, and the steering” (Wheaton, 2015). According

to Rash (2015), it was possible to hack into the Jeep’s Uconnect system because it uses a data

connection that links it to the outside world.

Another concern is, as Newcomb says, that “car companies are forced to hand over

valuable data that’s potentially the most lucrative aspect of connected cars” (2016, p. 42).

Owners of these connected vehicles want to know and make sure that their data is safe, as with

any other smart device. Improving and guaranteeing the safety of data is another issue that

automobile companies will have to address.

How these issues can be solved

The issues presented can cause a lot of concern about having vehicles connected to the

IoT. The example of a connected car being hacked is very concerning, especially since the two

who hacked it were able to control the steering. This could be putting the lives of individuals
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who own connected cars at risk. While Fiat Chrysler released a software patch that fixed the

issue soon after the recall and hacking, Wheaton says that while it’s “great that the company can

fix the problem” it also “sort of implies it can be unfixed just as quickly” (2015). This can be

troublesome for owners of connected cars.

A solution to improving the safety of these vehicles would be to improve cybersecurity in

these connected vehicles. By making sure these vehicles have up-to-date security that would

protect them from being hacked, it would improve the safety of the vehicles, their owners, and

the data that is being sent and collected. However, as with any connected device, there will

always be updates in order to make sure the security is as up-to-date as it can be since hackers

are always working to find ways around security. Improving cybersecurity in connected vehicles

seems like the most effective way to improve physical and data safety when it comes to the

automobile industry and the Internet of Things.

Future of the IoT in the automobile industry

The IoT and the auto industry will continue to expand, but in order for connected cars to

retain their success and popularity among people, the auto industry will have to make

improvements and changes. Fiat Chrysler released an update to combat the hacking of their

vehicles, but other companies will have to improve their cybersecurity. Hessman quotes Michael

Assante, who is an advisor and director for the National Board of Information Security

Examiners, saying “[Assante] says ‘We’ve got to work as integrated teams” to help inform

engineers so they can “‘make better engineering decisions’” (2013, p. 44) and this is important

because the safety and lives of owners of these connected vehicles is at stake when someone is

able to hack the vehicle and completely take control of it. For the future of the IoT in the

automobile industry, this is one of the largest obstacles automobile companies will have to face.
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As stated before, improving cybersecurity can also help to protect the data of owners of

these vehicles. Inrix, which is a “prominent traffic and parking data provider” has “positioned

itself to provide car owners with more choices and automakers with a different option – the

ability to control their own car data” through their platform Open Car (Newcomb, 2016, p. 42).

By making it so owners of connected cars can control their data, they would likely feel as though

their data is more secure. If companies continue to provide platforms that allow more control of

data and more freedom for owners of these connected vehicles, the IoT and the automobile

industry will likely continue to grow and be successful in the future.

Conclusion

The internet is an important part of our society today, reaching across the globe, and

connected devices can be found in some way throughout the lives of many people. The Internet

of Things impacts people’s lives in many ways, and one way is through connected vehicles. The

IoT is important to the automobile industry because it helps to improve the safety of the vehicles

and drivers. This report considered this claim by discussing what the IoT is, the current status of

the IoT in the auto industry, issues concerning connected vehicles and how to solve them, and

the future impacts the IoT may have on the auto industry. While there are issues with connected

vehicles, the IoT has helped the automobile industry keep up with the technologically evolving

world.
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References
Bhavya, B., & Radhika, P. (2018). A Frame Work Based On IOT for Car Safety Management
System. International Journal of Recent Research Aspects (Special Issue), 169–174.
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Coppola, R., & Morisio, M. (2016). Connected Car: Technologies, Issues, Future Trends. ACM
Computing Surveys, 49(3), 1–36. https://doi.org/10.1145/2971482
Hessman, T. (2013). Rethinking Safety in the IoT World. Industry Week/IW, 262(12), 44.
Retrieved from
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Newcomb, D. (2016). Connected Cars Are Hardly “Smartphones On Wheels.” PC Magazine,
42–44. Retrieved from
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Rash, W. (2015). Fiat Chrysler Auto Recall Highlights Rising Fears About IoT Hacking. EWeek,
1. Retrieved from
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Wheaton, K. (2015). The Connected World Is a Better, Safer Place, as Long as You Don’t Turn
Your Back on Your Car. Advertising Age, 86(15). Retrieved from
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08784529&scope=site