REVIVING UP EFFICIENCY: THE WAY INTERNET OF THINGS IS TRANSFORMING

THE AUTOMOTIVE INDUSTRY

TABLE OF CONTENT

Contents Pages

1.0 Introduction 2-3

2.0 Issues of Internet of Things in the Automotive Industry 4-9

2.1 Cybersecurity Risks
2.2 Data Privacy Concerns
2.3 Complexity of Integration
2.4 Ethical Considerations in Data Usage
2.5 Interoperability and Standardization Challenges

3.0 Proposed Solutions 10 - 14

3.1 Implement a Comprehensive Cybersecurity Framework
3.2 Implement a Comprehensive and Transparent Data
Governance Policies
3.3 Data Standardization: Develop and Enforce Data
Standardisation Policies

4.0 Limitation and Conclusion 15

5.0 References 16 - 18

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1.0 Introduction

Figure 1: IoT and the Automotive Industry

In today's globalised world, advancements in information and communication technology

(ICT) are becoming increasingly crucial to all humans. Humans and ICT appear to be
inextricably linked and have become a need in everyday life. Through this development, the
term Internet arose which is proof of the progress of information technology and
communication itself is developing among mankind. Before delving further, the term Internet
is derived from the combination of the terms internet and network, resulting in internet, or
between networks. Each computer and network is directly or indirectly connected to
numerous main lines known as the internet centrepiece and is differentiated from one
another by a unique name known as a 32-bit IP address.

The theory of the Internet of Things is a part of our time, and the current work
strives to demonstrate its primary uses in many aspects of our lives, as well as the key
benefits, development patterns, issues, and challenges that must be handled. IoT is defined
as "a global network infrastructure that connects physical and virtual objects through the
use of data capture and communication capabilities." This infrastructure encompasses
current and future Internet and network improvements. It will provide particular item
recognition, detecting, and connection capabilities as the foundation for the creation of
autonomous cooperative services and applications (Angelova et al., 2017). These will be
distinguished by a high level of autonomous data collecting, event transfer, network
connectivity, and interoperability.

Aside from the media, music, services, computer, textile, and software industries, the
automotive industry is also embracing the Internet of Things in order to become one of the

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world's largest economic contributing industries. The adoption of IoT into the automotive
industry has given global car manufacturers and consumers new options. With use in both
the industrial and commercial spheres, IoT in automotive manufacturing has emerged as an
essential platform for a wide range of multifunctional applications. The worldwide
automotive market has been significantly impacted by the applications of the Internet of
Things, ranging from automated transportation systems to linked autos.

That impact gave us a great influence to choose this theme and make an in-depth
study on the application of the Internet of Things in the automotive industry. However, every
advancement created for the purpose of simplifying and increasing productivity inevitably
leads to the emergence of some issues. In the meantime, we have identified several issues
in the study of this report such as cybersecurity risks, data privacy concerns and complexity
of integration. We have also proposed several solutions to overcome every issue that arises
related to how the Internet of Things is transforming the automotive industry.

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2.0 Issues of Internet of Things in the Automotive Industry

2.1 Cybersecurity Risks

The Internet of Things (IoT) has revolutionised vehicle connection and functionality
in the automobile sector, and also poses serious cybersecurity dangers. Vehicles are
becoming linked systems that can communicate with other devices and networks rather than
being separate mechanical entities due to the Internet of Things. While improving features
like autonomous driving, remote diagnostics, and real-time navigation, this connection also
exposes cars to cyberattacks. These flaws might allow hackers to access car control systems
without authorization and pose a serious risk to public safety. Cybercriminals could, for
example, alter engine, steering, or brake systems, resulting in disastrous mishaps. According
to studies, the growing number of IoT devices in cars increases the attack surface, hence
automakers must give cybersecurity top priority (Checkoway et al., 2011).

In addition, the automotive industry is always facing a torrent of advanced

cyberattacks directed at the IoT infrastructure in automobiles. Modern cars are appealing to
cybercriminals because they are connected. One example is, 2015, Jeep Cherokee hacking
incident, where researchers remotely controlled the vehicle's critical components, including
as the steering and brakes, via the Uconnect infotainment system (Miller & Valasek, 2015).
The incident demonstrated the importance of having robust cybersecurity defences and the
potential consequences of delaying them. To protect cars against these kinds of attacks,
automakers need to make investments in cutting-edge encryption, secure communication
protocols, and frequently update the security.

Furthermore, maintaining cybersecurity in IoT-enabled automobiles is getting harder

and harder due to the complex supply chain in the automotive industry and the rapid
advancement of technology. Each car contains a large number of interconnected parts that
are purchased from several vendors, and any one of those sellers may be vulnerable.
Because of this interconnection, cybersecurity must be approached holistically, including all
aspects of the vehicle's lifespan, including maintenance and software upgrades, in addition
to design and manufacture. To find and fix vulnerabilities across the supply chain,
automakers need to work with cybersecurity specialists, embrace industry standards, and
conduct stringent testing processes (Petit & Shladover, 2015).

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 Improving customer education and awareness is also essential for improving
automobile cybersecurity. The possible cyber hazards connected to the Internet of Things
(IoT) technologies in automobiles are frequently unknown to vehicle owners. Prioritising
customer education on safe habits, such using strong passwords, upgrading software often,
and staying away from unreliable third-party apps, should be the top priority for
manufacturers. The industry may improve vehicle cybersecurity defences against
cyberattacks by promoting a cybersecurity-aware culture. In conclusion, even if the
automotive sector benefits greatly from IoT, it is critical to address the cybersecurity threats
it poses to ensure the dependability and safety of linked cars.

2.2 Data Privacy Concern

It keeps growing, this responsibility for wage war against data privacy in the
automobile industry to track the usage of such technologies. ⁤When cars become connected
with one another more and more information will be generated which includes personal
driving acts along with sensitive locations visited. ⁤The manufacturers and other service
providers are keen on having this kind of data since it is also important for them while cyber
attackers wish to lay hands on it too>> By default, unauthorised access or misuse of these
details would only put privacy belonging to vehicle owners as well as operators at risk
thereby leading towards severe outcomes that may go beyond imagination.

One particular such issue is the fact that there are no standards for how information
should be collected, stored or shared among those involved in the industry. Manufacturers
and providers may gather data without asking for the car owner’s permission and then share
it with others, thereby violating his or her right to privacy. Moreover, this can also happen
when they give out such details to third-party suppliers, insurance companies or even
government departments which would lead to an unauthorised access as well as misuse of
personal information (Sfar, Zied and Challal, 2017). For instance, according to the United
States Government Accountability Office report 2017 based on their research findings some
automobile makers have been found to take advantage of loophole; allowing them access to
certain private records without seeking approval from respective owners.

Another concern is that among the connected cars are those that are most
vulnerable to cyber threats. Through vulnerabilities found in the software and hardware of

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the car, they could obtain sensitive data that associates with location, driving patterns, and
personal information, potentially leading to identity theft, financial fraud, and, in the worst
case scenario, physical harm.. In addition, interconnecting IoT devices with other systems
within the context of the home and city causes an expansion of the attack surface, making
the attainment of data privacy and security more difficult.

To address all the problems mentioned above; motor vehicle manufacturers and
those offering car services must take these problems seriously into account, which involves
among other things putting in place data protection mechanisms that use encryption
methods, storing it securely and handling it with restricted access rights imposed. Besides,
they have to obtain clear consent from owners before gathering or sharing any information
related to their vehicles. Governments as well as other relevant bodies should also be
actively involved in developing regulations concerning privacy protection and security
standards within the automotive industry.

Thus we see the automotive industry which is IoT enabled has a big problem with
privacy of information, this means that car manufacturers and service providers must ensure
they take measures on data security & privacy so as not to expose any personal data about
the owners or drivers. To achieve this goal it would be necessary for all relevant
stakeholders in the field such as governments around different countries together with their
respective regulatory bodies come together and develop standard set rules concerning
safeguarding against unauthorised access or accidental disclosure of sensitive information
stored within electronic devices utilised for controlling vehicles.

2.3 Complexity Of Integration

Many organisations still rely on their legacy systems, which prove to be vital in
day-to-day operations. Having been around for years, mainly while containing the most
valuable data and business logic which supports organisational success, these systems fall
under the legacy category. All the same, these systems are hard to flexibly change or
reconfigure, making it difficult to be integrated with any new technologies, including IoT
devices.

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 Legacy systems often feature technology far past its prime and accordingly are hard
to integrate with modern IoT systems. "70% of organisations consider legacy systems to be
a major obstacle to digital transformation," according to McKinsey. This is because usually
the legacy apparatus may not have proper APIs, data formats, and communication protocols
set up to allow it to integrate seamlessly with Internet of Things devices. Legacy systems
have been identified as both costly and time-consuming to replace. It is estimated that "the
cost of replacing legacy systems can be 5-10 times higher than the cost of maintaining
them" (McKinsey, 2018). The big challenge in integrating legacy systems with IoT devices is
the organisation's agility in responding to the changes in their market conditions. It will
make organisations less competitive and less agile, making it hard to persevere and
outperform between other competitors in the industry.

The problem of integrating the IoT with legacy systems is due to the deep
dependencies that have accumulated over the years. This makes it difficult to fully
understand and determine the best way to integrate such systems with IoT devices and
platforms. Legacy systems usually have a web of interdependent, interconnected
components, making it quite a daunting task to understand the inner dependencies and,
eventually, the best integrative route with IoT devices and platforms wherein the
independent components communicate and exchange information (IEEE, 2019). These deep
dependencies can take the form of tightly coupled components, custom or proprietary
protocols, legacy data formats, or complex business logic. Additionally, custom or proprietary
protocols may prevent interoperability with other devices and platforms composing IoT,
which normally follow standardised protocols (IEEE, 2019).

2.4 Ethical Considerations in Data Usage

The amount of data that is being collected in cars has greatly increased with the
integration of IoT, including sensitive personal data about drivers and passengers. This
information is useful for increasing safety, providing individualised services, and optimising
vehicle performance. But it also brings up important moral questions about consent, privacy,
and possible information misuse. IoT-enabled cars collect data that can be misused if
improperly managed, such as location history, driving habits, and even biometric data (Sicari
et al., 2015).

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 The ownership and control of data is a significant ethical concern. Although drivers
may believe they are the owners of the data that their cars produce, this is frequently not
true. It's common for manufacturers, insurers, and outside service providers to assert their
rights on using this data sometimes even without the vehicle owner's express consent. This
may result in circumstances where data are used for uses other than those for which the
user has given consent, such as targeted advertising or data sales for secondary purposes
(Brey, 2005). Trust can be damaged and ethical transgressions can result from a lack of
transparency and control over personal data.

Furthermore, using data for behavioural analysis and profiling may lead to bias and
discrimination. For instance, insurance companies may unfairly charge higher premium
based on driving habits associated with specifics demographic groups when they use
telematics data to analyse risk profiles. Similarly, when law enforcement uses vehicle data
for surveillance, concerns are raised about privacy infringement and potential abuse of
power (Gasser, 2004).

Strong data governance frameworks that put user consent and transparency first are
crucial for reducing these ethical concerns. Clear policies defining the goals of data
collection, its intended use, and who has access to it should be put in place by automakers.
Regulatory agencies must also create and implement legislation that guarantees ethical data
usage and protects consumer privacy. In order to promote a more moral approach to data
management, these regulations ought to require that users have control over their data,
including the right to opt-out and request that their data be deleted (Langheinrich, 2001).

2.5 Interoperability and Standardization Challenges

The swift advancement of IoT technology in the automobile industry has given rise
to noteworthy obstacles concerning standardisation and compatibility. Car IoT systems
consist of the multitude of networked devices that follow different standards and protocol.
The ability of these systems to interact with one another is essential to the proper operation
of IoT enabled vehicles, but a key barrier is the lack of international standards
(Bandyopadhyay & Sen, 2011).

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 The IoT ecosystem's fragmented structure is one of the primary obstacles. There are
incompatibilities because different manufacturers create proprietary systems that are suited
to their particular requirement. The automobile industry's potential for innovation and
all-encompassing IoT solutions were restricted by this fragmentation, which hinders various
systems from collaborating effectively, making it more difficult to integrate third-party
devices (Gubbi et al., 2013).

Furthermore, as IoT technologies advance quickly, new gadgets and communication

protocols appear on a regular basis. This makes standardisation efforts more difficult
because it is difficult to keep up with these developments and maintains backward
compatibility with systems that are already in place. Because of this, cars that have IoT
technology installed now may have trouble connecting to newer upgrades or devices, which
could cause usability issues as well as higher expenses for both manufacturers and
customers (Vermesan & Friess, 2013).

Industry participants, standards organisations, and regulatory bodies must work

together to address these interoperability and standardisation issues. Adopting
interoperability frameworks and open standards is essential. The goal of groups like the
Industrial Internet Consortium (IIC) and the Open Connectivity Foundation (OCF) is to
develop IoT solutions that are standardised and widely applicable in a variety of sectors,
including the automotive industry (Minerva et al., 2015).

Regulatory bodies also assume a crucial function in promoting industry players'

cooperation and adhering to set standards. They can accomplish this by establishing explicit
interoperability standards, offering incentives, and implementing certification schemes. By
facilitating the integration process, cutting expenses, and stimulating innovation, these steps
can ultimately benefit consumers by delivering more dependable and adaptable IoT-enabled
automobiles (Atzori et al., 2010)

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3.0 Proposed Solutions

3.1 Implement a Comprehensive Cybersecurity Framework

Addressing cybersecurity risks and data privacy issues in the automotive IoT
ecosystem requires a comprehensive cybersecurity framework. This framework should
incorporate progressed encryption strategies, secure communication conventions, frequent
security updates, and robust data governance guidelines to recognize and moderate any
conceivable vulnerabilities (Audits, 2024). Strict cybersecurity measures are required to
ensure against unapproved get and cyber-attacks due to the connected nature of the
automotive IoT biological system. Automakers should deploy secure communication
protocols and end-to-end encryption to prevent unwanted access and data breaches.
End-to-end encryption ensures the data travelling between car components and exterior
systems is safe and incoherent by programmers. Secure communication conventions like
Secure Sockets Layer (SSL) and Transport Layer Security (TLS) encourage levels of security
by ensuring that data sent between computers is scrambled and secure from interception
(Zimperium, 2024). Customary security appraisals and opportune software overhauls are
pivotal to quickly settling and rapidly resolving any vulnerabilities. To promptly remedy any
vulnerabilities, it is essential to do frequent security audits and update software at the
appropriate time. While frequent software updates guarantee that any newly disclosed
vulnerabilities are fixed rapidly to avoid exploitation, security audits entail systematic reviews
of car systems and networks to find and repair security problems.

In the long term, it will be necessary to implement a comprehensive strategy for

lifecycle security that addresses all aspects, from software updates and maintenance to
manufacturing and design. This entails working with cybersecurity specialists and carrying
out exacting testing protocols. Automotive manufacturers must ensure that all parts are
created with security in mind by including security elements in the vehicle's architecture
throughout the design and manufacturing phases (Micu, 2024). This entails putting secure
boot procedures in place, using secure hardware modules, and ensuring no software is
vulnerable. Manufacturers can keep ahead of growing risks and take advantage of the latest
security technology breakthroughs by working with cybersecurity specialists. Thorough
testing processes, such as vulnerability assessments and penetration testing, assist in
identifying and reducing any security concerns before releasing automobiles into the market.
In the automobile sector, a comprehensive cybersecurity strategy is crucial, as stated in

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McKinsey & Company research that states that "security needs to be baked into the vehicle's
architecture from the beginning" (McKinsey & Company, 2019).

Additionally, it is critical to educate clients on cybersecurity and safe practices, such

as often upgrading software and avoiding untrustworthy third-party programmes (Praveen,
2023). The IoT devices in autos may constitute a security risk, but users are often unaware,
leaving them vulnerable to attacks. Manufacturers should make it a top priority to educate
their consumers about the need of staying up to speed on software updates, setting safe
passwords, and exercising care when installing third-party applications via user manuals,
websites, and in-car notifications. The industry can better defend automobiles against
cyberattacks and ensure owners take responsibility for keeping their vehicles secure by
promoting a culture of cybersecurity knowledge. The automotive sector may safeguard
customers and automobiles from cyber risks by implementing a thorough cybersecurity
framework. This will solve security demands and guarantee long-term compliance with
changing industry standards. This all-encompassing strategy improves the privacy and
security of connected automobiles (Montani, 2024). It stimulates development and
innovation in the automotive IoT ecosystem, opening the door for an increasingly safe and
secure future for automotive technology.

3.2 Implement a Comprehensive and Transparent Data Governance Policies

A concrete and viable solution to address ethical contemplations when utilising data
in the automotive IoT ecosystem is to implement a comprehensive and transparent data
governance policy. These arrangements should be outlined to guarantee that information is
collected, put away and utilised dependably, that a person's data protection rights are
regarded, and that more extensive societal concerns are considered (Cheryl & Ng, 2022).
These arrangements incorporate short-term and long-term strategies to supply prompt
protection and maintain moral data practices over time. In the short term, automakers can
begin to develop and enforce clear and transparent data management policies. This
approach ought to set out the reason for the data collected, the data handling strategy and
the data exchange protocol. Transparency is imperative so that users can know how their
data is utilised and who has access to it (Rushda, 2023). For example, manufacturers must
advise consumers when their driving behaviour or area history will be used for product
enhancement or marketing purposes. This transparency builds trust between users and
producers because users are more likely to agree to data collection if they understand and

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agree with the purpose of data collection (Alzaidi & Agag, 2022).

Manufacturers must eventually include ethical concerns in their fundamental business

procedures and product development methodologies. This entails continuous cooperation
with legislators, cybersecurity specialists, and consumer advocacy organisations to
guarantee that data governance regulations are resilient and adaptable to new issues. It is
essential to update or build regulatory frameworks that require adherence to ethical data
practices, safeguard individual rights, and foster accountability (Lukić, 2023). Regulations
could demand that data governance procedures be audited regularly or that manufacturers
get users' express agreement before sharing their data with other parties. Automobile
manufacturers should also invest in innovative technologies that improve data security and
privacy. While protecting sensitive data, anonymization and differential privacy techniques
may provide insightful information from aggregated data. For example, differential privacy
increases statistical noise in the data, making it harder to identify specific users while
maintaining accurate trend and pattern analysis capabilities (Devs, 2023). These
technologies assist in striking a compromise between preserving individual privacy and the
advantages of data-driven advancements.

Thus, comprehensive and transparent data governance policies are essential for
addressing the ethical considerations associated with the proliferation of IoT technology in
vehicles (Karale, 2021). By implementing specific measures, manufacturers may guarantee
ethical data processing, uphold individual privacy rights, and ease more considerable social
worries. In addition to offering customers instant protection, this approach creates a
long-term, sustainable framework for moral data practices backed by regulatory monitoring
and cutting-edge privacy-enhancing technology.

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3.3 Data Standardization: Develop and Enforce Data Standardisation Policies

This proposed solution for complexity of integration and interoperability and

standardisation challenges is data standardisation to develop and enforce data
standardisation policies (Mark A. Lemley, 2002). Data standardisation may be important to
enabling data use by boosting data portability and interoperability. Indeed, standardisation is
a prerequisite for the operation of industries that rely heavily on cross-firm and
cross-industry data sharing. Data standard divided into three which is data format
specification is created through data format specification outlining standards for naming,
types of information, metadata needs, and data structures. Frameworks such as ISO/IEC
11179 for metadata registries can be used. The International Organization for
Standardization (ISO) and the International Electrotechnical Commission (IEC) create the
specialised system for global standardisation. National bodies that are ISO or IEC members
contribute to the creation of ISO or IEC participate in the development though technical
committees created by their respective organisations to address specific areas of technical
activity. Technical committees from the ISO and IEC work together on issues of mutual
concern. Next, a data governance framework is a data governance framework that enables
you to implement data democratisation, allowing employees with varying skill sets to obtain
and respond to data. This autonomy and faith in data enables teams to correctly define
objectives, assess performance, strategize, and identify new possibilities (Gartner, 2019). In
addition, data standardisation is the process of converting data to a standard format. It is
accomplished by completing data cleaning and standardisation processes, which result in an
accurate and useful representation of data from various sources (Wookey, R., & Hryciw,
J.,2018).

In the long term,sustained interoperability by keeping data standards are important

for maintaining long-term system adaptability and integration across several systems. By
creating a common framework for the interaction and exchange of information between
diverse systems and applications. This standard framework ensures that information shared
across systems adheres to specified principles and structures, regardless of the technologies
or platforms employed. As a result, businesses may easily integrate new systems,
applications, and data resources into their existing infrastructure without facing compatibility
issues or data translation hurdles. Next, encourage system flexibility by allowing
organisations to evolve and adapt their IT environment over time. As business requirements
and new technologies evolve, organisations must be able to update, expand, or replace
existing systems while maintaining compatibility with previous infrastructure. Consistent data

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standards ensure that new systems may interact smoothly with older ones, maintaining data
integrity and reducing operational disruption. This flexibility enables businesses to create,
test new technologies, and respond quickly to market demands without being constrained by
rigid integration requirements.

In summary, companies may effectively navigate the complexity of contemporary IT

ecosystems and fully utilise their data assets by establishing the foundation for data
interchange and interoperability. Furthermore, by creating a standard framework for data
sharing and interoperability, companies may ensure the sustainability and adaptability of
their IT systems by embracing new technologies, adjusting to changing business demands,
and collaborating effectively with outside partners.

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4.0 Limitation and Conclusion

The findings of this study have to be seen in light of some limitations. The first
constraint that researchers encountered while conducting this case study was the time and
cost of a limited interview session. We are aware of the importance of using primary data in
a study to make it more professional and authentic. We should also have an interview with a
representative of an automotive company that is applying the Internet of Things (IoT).
Because of these constraints, we agreed with one vote to rely entirely on secondary data
such as the article reference of the journal on the website.

Besides, another constraint faced by the investigators is during the process of

producing case studies. We have spent three weeks researching and reading journal articles
on websites related to the Internet of Things (IoT) application processes by companies in
the automotive industry. We understand this situation because the existing automotive
companies today need to take the time to switch to the application of the Internet of Things
(IoT) within the industry in an effort to improve their business strategies. Our research finds
that the number of companies that apply the Internet of Things (IoT) is limited. This will
lead readers to relate Tesla a lot while they make reference to this case study.

As a conclusion, every technology naturally has risks and it depends on how we use
them for the advancement of industry. Despite some issues, the transformation of the
Internet of Things (IoT) in the automotive industry has proved to guarantee consumer
satisfaction alongside efforts to the industrial revolution 4.0 before the human revolution
works with advanced technology and AI-driven robots to improve processes at work which is
known as Industry Revolution 5.0 . Thus, these IoT applications need to be applied in a
modest way for common progress, especially among companies in the automotive industry
in the future.

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