How Interconnection Is Driving the Automotive IoT Into New Markets

Luke Harrison

When people think about the Internet of Things (IoT) in the automotive industry, the “connected car” immediately comes to mind. However, the IoT touches every aspect of the automotive industry supply/value chain, from manufacturing to driver/car protection insurance. In an article that I’ve recently written for the IoT Automotive News, “IoT and the Automotive Industry in the Interconnected World of Equinix,” I look at the automotive industry through an IoT lens.

One of the biggest impacts of the IoT in all industries will be the increase in its market size. That’s bound to happen when there are billions of connected devices and increasing amounts and types of IoT data traffic moving between access, edge and core networks all around the world. For example, the enormous growth of big data analytics at 53% CAGR (2012 – 2018) tops all of the different types of IoT traffic growth, as illustrated in the graphic below.

IoT Market Growth ($ Billions), Devices and Traffic Type (CAGR) 2012 – 2018


Source: Cisco Systems

“The Internet of Things Vision” blog gives a holistic view of the IoT and serves as a good backdrop to the many industry-specific IoT use cases being realized in the world today, such as in the automotive industry.

The automotive industry is also preparing for the transformative use of sensor data and feedback analytics. For example, HERE, a division of Nokia that was acquired by the Volkswagen Group (VW AG) for its RandD and IP techology to build map data and navigation systems for VW AG’s next generation cars, is expected to increase its data respositories from five petabytes (PB) to 150 PB in the next five years. The industry is also leveraging best-practice security efforts from the military, aerospace and aviation industries to protect all of the IoT data organizations will be capturing and storing.

And to keep up with the increasing magnitude and scale of IoT data that the automotive industry is generating, companies are beginning to leverage hybrid cloud models and harness global interconnection-oriented, colocation data center platforms.

To learn more about the IoT developments that are impacting the automotive industry, and the innovative Interconnection Oriented Architecture that companies are adopting to speed ahead of their competition, read the “IoT and the Automotive Industry in the Interconnected World of Equinix.”

Luke Harrison
Luke Harrison Principal Global Solutions Architect at Equinix EMEA