How connected cars and vehicle tracking systems are redefining the rules of transportation?

John Greenough of Business Insider Intelligence, rightly said, “the market position of the car today is similar to where the smartphone was in 2010 — it’s just taken off and is ready to explode.

Today the scenario of the car market is changing at a very fast pace. Nowadays the dashboards of many cars come with added features and functionalities on display like the integrated GPS, rear mounted radars and car cameras, internet-connected displays with touch screen controls and many more.

The rapid advancements in telematics and mobile internet speeds has brought the concept of connected cars on the forefront. Basically it is the merger of internet-connected vehicles with telematics tech through Vehicle-to-Vehicle, Vehicle-to-Infrastructure and Vehicle-to-Smartphone models.


Thus, cars will get connected to the cloud through internet/4G or an upcoming 5G connection and will smartly navigate through the road using GPS, in turn help you find your favorite restaurant or just play the music of your choice. Moreover, it will guide you through the best routes, assess any potential hazard or accident-prone sites along the way and communicate the potential issues in the vehicle using on-board diagnostics, before these issues leave you stranded.


A study by Ernst & Young predicts that 88 % of all new cars globally will have integrated telematics by 2025. A 2016 report from BI Intelligence demonstrates that when it comes to connected car manufacturing and ownership, the market is on the verge of developing exponentially and rapidly, with a predicted 380 million connected vehicles on the road by 2021. McKinsey predicts that the value of internet connectivity components and servicing to rise from $30bn today to $170bn by 2020 – a nearly six-fold increase.

How the Connected Car can benefit the business owner?

As a business owner, you may want to keep a track on your cars. Connected car systems can allow you to see where your cars are, how they’re being driven by your drivers and whether they need maintenance. And you can monitor every activity remotely from your office. As everything is monitored real-time through this technology, the logistics and haulage companies will be able to run far more efficiently which in turn means packages are delivered faster and with less chance of damage.

Use Cases:

The connected cars are going to bring forth the following innovations on the table:

Steering the driver-less car revolution

The development of connected car technology will eventually lead to the rise of autonomous or driver-less vehicles. Your cars can run errands for you, while you socialize or sleep some extra time in the morning. Most predictions suggest that fully autonomous cars will be commonplace on the roads by around 2040. The first steps have already been taken: automatic breaking is already being implemented in cars today, and the Google Self-Driving Car is being fine-tuned over in the US.

Vehicle tracking

Just imagine: you buy a brand new super swanky car, and on day two it gets stolen. Telematics tracking systems allows you to not only know where the car is at any time, but where it is heading and how fast it is going, so the criminals in question are likely to get caught. The car may even interact with the police and help them locate it, in the event of theft. Today vehicle tracking is a hot concept among high end cars, and soon likely to get common with all modern models in years to come.

On-board diagnostics

Connected car systems mean that cars will know when they have a problem. They will know exactly what’s wrong with them and how to fix it, as well as where to go to fix it. They will call you on your phone, even if you are miles away from the actual car and notify you what’s wrong with them and what to do.

Improved safety

Cars will be safer than ever quite simply because cars will be connected with each other. They will know the location of other vehicles and the upcoming hazards on the road before you do. They will have the ability to warn you about them, possibly even opting to avoid the obstacle autonomously. They will even communicate directly with emergency services if there is an accident.

More efficient fleet management

Fleet management have traditionally been expensive. However, widespread adoption of connected services in the consumer segment will disrupt the traditional model. While GPS technology can track an individual vehicle’s location, status and speed, this is not true in case of a fleet. A fleet management solution is hence needed to enable vehicle tracking – providing a variety of benefits to businesses that rely on rapid delivery of products and/or services. Information provided by telematics can help fleet services to better allocate resources; manage fuel and labor usage and costs.

Reduce traffic congestion

Connected cars can reduce the likelihood of traffic congestion on city roads. The smooth flow of traffic, can create greater fuel efficiency and driver safety. KPMG predicts that automatic braking systems linked to connected vehicles could eliminate traffic jams by 2020.

Example of a Vehicle Tracking software by Yelowsoft

A unique aspect of YelowTaxi, a tracking solution made by Yelowsoft is, tracking  has been made available as a value-added service across the entire range of products it serves. A tamper-proof, dedicated GPS device powers the tracking system and allows you, as the business owner, to track the movement of your vehicle fleet, from any corner of the world with the computing device of your choice

An Integrated Future

The future for connected vehicles is full of possibilities, as well as a few potential risks. As everything is connected over the internet, the whole process generates a huge volume of data; there is fear over digital privacy and data hacking.

We are likely to see the real shift in the social and cultural attitude of people in terms of car ownership, once more automated and connected vehicles start plying on the road.

The evolution of connected cars will further evolve the roads and the entire connected world around them, transforming the way we experience mobility. As we move closer to autonomous drive, automotive IoT innovations will continue to help eliminate human error, and make the driving experience more efficient, safe and pleasurable.

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