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Connected vehicle technology explained

Connected vehicle technology integrates IoT to enhance driving through features like telematics, onboard sensors, and data transmission. It improves safety, navigation, and efficiency while allowing remote control via smartphones. A comprehensive car insurance policy is essential for financial security in case of accidents or damage.

  • 19 Mar 2025
  • 3 min read
  • 26 views

The automobile industry is getting more exciting by the day, driven by innovations like the IoT (internet of things). The IoT features a network of internet-connected devices that gather and share data. By connecting vehicle components to the internet, drivers can use their smartphones to control some functions of their vehicle.

Integrated vehicle technology continues to open up a world of possibilities that transform the experience for drivers, passengers, and automakers. Statistics by industry experts reveal that by 2025, the global market value for augmented reality will be $198 billion.

Read on to discover exciting details about connected vehicle technology.

Features offered by: Connected vehicle technology

Connected vehicles, or smart cars, are modern, high-tech vehicles that use integrated car software to enable communication between vehicles, the Internet, and other external devices.

The following are features of connected vehicle technology, or cars controlled using the internet of things (IoT).

 

  • Multi-channel communication

One of the core features of connected vehicles, this involves translating the data transmitted across various channels. The multichannels share data between the integrated channels and collect plenty of sensitive information about their surroundings. 

 

  •  Advanced car security

Digital car keys have replaced conventional keys. These keys use smartphone technologies to start, lock, and unlock the cars.

 

  • Onboard sensors

Connected vehicles feature various data collection sensors, which feed your car computer’s system with real-time data. These sensors focus on car speed, location, performance, and more, providing data that guides crucial driving decisions like speed adjustment or braking.

Examples of the onboard sensors include GPS, cameras, accelerometers, and gyroscopes.

 

  • Central telematics systems

This system functions as the brain of connected vehicles. It receives data transmitted by the onboard sensors. The system then processes the data and communicates with other systems, like the driver’s smartphone and infotainment system, to offer the necessary services.

For instance, the telematics system can send alerts about traffic conditions and potential road hazards and even offer essential navigation assistance.

 

  • Data transmission

The collected data is transferred to a central server or cloud using Wi-Fi, Bluetooth, or cellular networks.

 

  • Data processing

Data is analysed using advanced algorithms, which generate real-time insights, recommendations, or alerts to spot potential maintenance issues and enhance driving efficiency.

 

  • Connectivity options

Connected vehicles use either of the following ways to stay connected.

  • Tethered connectivity: This option uses your smartphone’s hotspot network to connect your vehicle to the internet. It’s considered the most affordable connection, although sometimes, it may be unreliable.
  • Embedded connectivity: With this option, the vehicle has an in-built internet connection, which provides a reliable connection.

Conclusion

The automobile industry is going through a remarkable technological shift. Modern cars are being enhanced with thrilling technological features as the market for connected cars keeps growing. As a result, car drivers can now enjoy a safer and smoother driving experience courtesy of the integration of technology. To further enhance safety, it is crucial to acquire a comprehensive car insurance policy that offers coverage for accidents, theft, and other unforeseen events, ensuring you're financially secure on the road.


Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information. 

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