Request Demo

All You Need to Know about Connected Vehicle Technology

Published On April 3rd, 2024 823Automotive IoT
Explore More About IoT Solutions

In recent years, the automotive industry has witnessed a remarkable transformation. So much so this transformation has left us all feeling a bit like we’re living in the future.

Gone are the days when vehicle were mere machines for transportation. Today, they have evolved into something far more intriguing – connected vehicle technology, or connected vehicles as commonly referred to. From helping us navigate through traffic to providing entertainment on the go, connected vehicle technology has revolutionized how we experience our journeys.

And it is no surprise that the connected vehicle technology market is witnessing a towering spike in the last few years.
According to markets and markets, the global market value of connected vehicle solution will reach $56 Billion in 2026.
Globally, some of the largest automakers are investing heavily in the technology.

So, let’s learn everything about connected vehicle technology in this blog — what exactly connected vehicle technology is, how it works, and the incredible features it brings to our modern world.

What is Connected Vehicle Technology?

Connected vehicle technology, refers to a vehicle integrated with advanced digital and communication technologies. The integration enables vehicles to interact with each other, the infrastructure, and even with other external data sources — traffic signals, IP CCTVs, and digital signages. Consequently, it enhances safety, convenience, driveability, and efficiency in ways you would’ve never imagined. 

One of the critical components behind connected vehicle technology is Vehicle-to-Everything (V2X) communication. This system allows vehicles to communicate with each other (V2V), with roadside infrastructure (V2I), with pedestrians (V2P), and with the cloud (V2C). To illustrate, V2X will enable features like collision avoidance, traffic signal optimization, and real-time traffic updates.

Another crucial element that enables vehicle connectivity is telematics. It is a technology that collects and transmits vehicle data with external systems. Telematics systems monitor aspects like engine performance, location, and driver behavior. This invaluable data is then used for vehicle diagnostics, predictive maintenance, and personalized insurance policies. 

Likewise, just like our smartphones and PCs, connected vehicles receive Over-The-Air (OTA) updates. It allows manufacturers to remotely update software, fix vulnerabilities, and add new features — all without having to inspect the vehicle in person. 

Want to Build Your Connected Vehicle Platform? Let’s Discuss

How Does a Connected Vehicle Work?

The working of a connected vehicle is relatively complicated. We have tried to simplify it here for you.
A connected card uses a combination of hardware, software, and communication protocols to enable vehicles to interact with other vehicles, infrastructure, and external data sources. 

Here’s a breakdown of how it works, along with examples:

1. Hardware and Sensors

  • Onboard Computers: Modern vehicles are equipped with onboard computers that control various systems, such as the engine, transmission, and safety features.
  • Sensors: Sensors are fixed throughout the vehicle. They gather data on factors like speed, acceleration, braking, and tire pressure.
  • GPS Receiver: A GPS receiver determines the vehicle’s location.

2. Vehicle-to-Vehicle (V2V) Communication

  • How it works: V2V communication allows vehicles to exchange information with nearby vehicles. It relies on dedicated short-range communication (DSRC) or cellular networks.
  • Example: Imagine a vehicle ahead suddenly brakes hard. Now, it can send a V2V message to nearby vehicles, warning them to slow down or take evasive action to avoid a collision.

3. Vehicle-to-Infrastructure (V2I) Communication

  • How it works: V2I typically uses cellular or Wi-Fi networks. It enables vehicles to communicate with roadside infrastructure like traffic signals and road sensors. 
  • Example: Traffic lights can send real-time data to vehicles, helping them time their approach to cut down fuel consumption and ease traffic congestion.

4. Telematics

  • How it works: Telematics systems collect vehicle data, such as speed, location, and engine diagnostics. The data is then sent to a central server using cellular networks.
  •  For example, insurance companies use telematics data to curate usage-based insurance policies where safer drivers pay lower premiums based on driving behavior.

5. Infotainment Systems

  • How it works: Infotainment systems provide in-vehicle entertainment, navigation, and smartphone connectivity. They often feature touchscreens, voice recognition, and internet connectivity.
  • Example: The driver uses voice commands to find directions, access music, or send messages. Infotainment systems improve overall convenience and reduce distractions while driving. 

6. Over-The-Air (OTA) Updates

  • How it works: OTA updates allow manufacturers to update a vehicle’s software and firmware remotely. This brings visible improvements to the vehicle performance while adding new features and fixing existing vulnerabilities.
  • Example: Tesla regularly sends OTA updates to its vehicles, adding features like autopilot improvements and entertainment options without requiring a visit to a service center.

The connected vehicle technology thus creates a network of vehicles, infrastructure, and pedestrians on our city roads.
It is worth noting that this technology is ever-evolving and paves the way for future developments in IoT vehicles and fully autonomous driving.

What are the Benefits of Connected Vehicle?

From predicting traffic patterns to offering emergency assistance, connected vehicle bring along a slew of benefits with them. Let’s understand the benefits the technology provides vehicle users in this section. 

1. Traffic Prediction – Predict and avoid traffic congestion
Connected vehicle can analyze real-time traffic data to give drivers crystal-clear traffic congestion predictions. As a result, drivers can take less congested routes, saving time reducing mental stress and focusing only on driving. 

2. Emergency Assistance – Receive help during accidents
In an accident or emergency, connected vehicle can automatically alert emergency services with your location and other vital information. It ensures faster response times and results in saving thousands of precious lives.

3. Remote Software Updates – Stay up-to-date effortlessly
Manufacturers can remotely update your vehicle’s software in the case of an IoT automotive. 

Since the software plays a significant role in the making of IoT vehicle, it can add new features and improve vehicle performance without requiring a visit to the dealership. For consumers, your vehicle will be up-to-date and secure as long as you own it. 

4. Predictive Maintenance – Prevent breakdowns proactively
Connected vehicles care for their own health, alerting you and your mechanic when necessary maintenance is needed. This proactive approach prevents breakdowns and saves you money on costly repairs.

5. Easier Parking – Master tight parking spots
IoT automotive, like connected vehicle, often come with parking assistance features that help you find a suitable parking spot for your vehicle. Advanced connected vehicles can even assist you with the right parking maneuvers, which makes parking in tight spaces hassle-free. 

6. Improved Infotainment – Enjoy entertainment and connectivity on the go
With access to the internet and smartphone integration, connected vehicle tech offers a wide range of entertainment and information options. In other words, it makes your journeys more enjoyable and productive with features like streaming music, navigation, and voice commands.

7.  Fleet Management – Manage Vehicles Fleets Effortlessly
One of the biggest beneficiaries of connected vehicle technology is businesses with vehicle fleets — vehicle rental companies, taxicab companies, public utilities, etc. IoT vehicles allow for real-time vehicle tracking, monitoring fuel efficiency, and optimizing routes. 

This way, fleet managers can allocate resources efficiently, reduce operating costs, and improve overall fleet productivity with the help of data-driven insights provided by connected vehicle systems. This benefit will be particularly significant for logistics and delivery companies, as well as industries where a large number of vehicles are involved in daily operations.

What Are the Use Cases of Connected Vehicle Platforms?

Connected vehicle platforms offer diverse use cases across industries and diverse verticals. They have streamlined operations, enhanced safety, and improved efficiency wherever they’re employed. 

  1. Transportation and Logistics: Real-time fleet tracking predictive maintenance for efficient operations.
  2. Automotive Industry: Remote diagnostics, over-the-air updates for enhanced vehicle maintenance and features.
  3. Insurance: Usage-based premiums, streamlined claims processing.
  4. Smart Cities: Traffic management, smart parking solutions.
  5. Public Transportation: Passenger information, efficient maintenance planning.
  6. Emergency Services: Crash detection, rapid vehicle identification.
  7. Retail and E-commerce: Last-mile delivery optimization, inventory tracking.
  8. Energy and Utilities: Energy-efficient routing, grid management.
  9. Healthcare: Mobile clinics, ambulance service improvements.
  10. Agriculture: Precision farming, fleet management for optimized resource use.

What Are the Types of Connected Vehicles?

Based on the underlying technology, connected vehicles are broadly classified into seven types.

1. Vehicle to Vehicle (V2V): Vehicle communicate for safety
V2V technology facilitates communication between vehicles. It allows them to exchange data for safety and traffic management.

For example, when a Vehicle detects sudden braking, it sends a warning signal to nearby vehicles, thus preventing collisions and vehicle crashes. 

2. Vehicle to Infrastructure (V2I): Connect with traffic signals
This technology connects vehicles with roadside infrastructure like traffic lights and signs. This helps in providing real-time traffic data and improving traffic flow. 

For instance, traffic signals communicate with connected vehicle, adjusting signal timing based on traffic conditions to reduce congestion.

3. Vehicle to Cloud (V2C): Access cloud-based services
V2C connects vehicles to cloud-based services for features like remote diagnostics, infotainment, and over-the-air updates. For example, Tesla vehicle use V2C to receive software updates and offer features like autopilot enhancements.

4. Vehicle to Pedestrian (V2P): Enhance pedestrian safety
It involves communication between vehicles and pedestrians. It improves safety by warning drivers of pedestrians in their vicinity. For example, a smartphone app alerts a connected vehicle when a pedestrian is about to cross the road, ensuring the driver takes necessary precautions.

5. Vehicle to Device (V2D): Link with smartphones and wearables
V2D connects vehicles with external devices like smartphones, wearables, or IoT devices to enable personalized services and data sharing. For example, imagine your smartwatch syncs with your IoT-enabled vehicle. It allows you to lock/unlock doors or start the engine remotely.

6. Vehicle to Network (V2N): Connect to the broader network
V2N connects vehicles to the broader network, i.e. to the internet. It facilitates data sharing, internet access, and remote monitoring.
For example, a connected vehicle accesses real-time traffic and weather information from the internet to provide the driver with up-to-date navigation guidance.

7. Vehicle to Grid (V2G): Integrate with the electrical grid
V2G allows electric vehicles to exchange power with the electrical grid, either charging from it or feeding excess energy back into it.

For example, an electric vehicle can discharge surplus energy back to the grid when unused. As a result, it can stabilize the power supply and potentially save electricity bills for the owner. 


Connected vehicle technology is reshaping the world of automobiles. The way we drive, commute, and manage our transport and fleets — everything is set to undergo massive transformation with the rise of the Internet of things.
Contus Tech wholeheartedly embraces the boundless potential of connected vehicle technology.
Over the years, we have been instrumental in empowering numerous businesses, renowned automakers, and distinguished manufacturers. Our portfolio includes industry leaders like Hyundai, Ford, Daimler, and JCB, who have entrusted us with crafting their cutting-edge, connected vehicle platforms. These platforms, designed and developed by Contus Tech, are at the forefront of innovation, driving efficiency and safety in the automotive landscape.

If your company aspires to harness the transformative power of a connected vehicle platform, our experienced team is ready to assist. 

Contact us today to embark on a journey toward a smarter, more connected future in the automotive industry.
Talk To Our Experts

Lokesh Kumar

Lokesh Kumar is a seasoned professional with a decade of experience in SaaS product development. Passionate about innovation and technology trends, Lokesh thrives on bringing cutting-edge solutions to market.


  1. Karine O'Brien says:

    The integration of connected vehicle technology is impressive, but I’m curious about the security measures in place to protect sensitive data. As vehicles become more connected, ensuring robust cybersecurity is paramount. Any insights into the measures being taken to address data security concerns in this tech landscape?

  2. Renee Robitaille says:

    This comprehensive guide on connected vehicle technology is a goldmine! The breakdown of communication protocols, V2V connectivity, and the role of sensors provides a clear understanding. Excited to delve deeper into this evolving technology and its impact on the automotive landscape.

  3. Steve Hayward says:

    Connected vehicle technology is a game-changer for urban mobility. The insights into how it improves traffic flow and enables intelligent transportation systems are particularly fascinating. Can’t wait to see these innovations play a role in creating smarter and more efficient cities!

  4. Maryse Ouimet says:

    As someone always on the lookout for the latest in automotive tech, this article covers all the bases. The insights into how connected vehicle technology is shaping the future of driving, from autonomous capabilities to enhanced safety features, are eye-opening. Can’t wait to experience these innovations on the road!

  5. Antonio Allard says:

    This article is a must-read for anyone involved in the automotive industry. The in-depth exploration of connected vehicle technology, its impact on manufacturing processes, and the potential for business models transformation is enlightening. It’s clear that staying updated on these advancements is key for industry professionals.

  6. Heather Clark says:

    This comprehensive guide on connected vehicle technology is a gem! It covers everything from vehicle-to-everything (V2X) communication to telematics. The potential for enhanced safety, efficiency, and overall driving experience is mind-blowing. Excited to see how this technology continues to evolve!

Leave a Reply

Your email address will not be published. Required fields are marked *