The Rise of Connected Vehicles

Connected cars, equipped with internet access and the ability to communicate with external devices, are becoming increasingly common on the road. By 2025, the number of connected cars in operation is projected to exceed 400 million, up from approximately 237 million in 2021.

This growth is strongly supported by advancements in 5G technology, which offer faster and more reliable communication channels. With these networks, vehicles can receive over-the-air software updates, integrate seamlessly with smart home systems, and deliver more advanced navigation and infotainment experiences.

In parallel, the global automotive IoT market is expanding at a rapid pace. Valued at around USD 131.2 billion in 2023, it is expected to reach USD 322.0 billion by 2028, representing a compound annual growth rate (CAGR) of 19.7%.

Consumer interest in connected services is also rising, particularly for features such as real-time traffic information, remote vehicle diagnostics, and personalized infotainment. However, willingness to pay for these offerings differs significantly by region, with higher acceptance levels reported in markets like China and India compared with the United States and Europe.

Challenges and Considerations

Despite the promising outlook, integrating IoT into vehicles also introduces several critical challenges that must be addressed:

  • Cybersecurity Risks: Connected vehicles are vulnerable to cyberattacks, making robust security measures essential to safeguard data and protect passenger safety.
  • Data Privacy: The collection and use of personal data raise significant privacy concerns, requiring transparent data-handling policies and strict compliance with relevant regulations.
  • Infrastructure Development: The performance of connected vehicles depends heavily on supporting infrastructure, such as 5G networks and smart traffic systems, which remain underdeveloped in many regions.

FPT: Powering vehicle connectivity with bespoke IoT solutions

FPT offers a comprehensive suite of IoT solutions that elevate vehicle connectivity, intelligence, and safety. These offerings span from real-time V2X communication and rich telematics analytics to seamless OTA updates, advanced driver-assistance features, and deep integration with electric vehicle ecosystems.

We provide end-to-end IoT capabilities that enhance how vehicles connect, operate, and interact with their surroundings:

  • Vehicle-to-Everything (V2X) Communication: Enables real-time data exchange between vehicles, infrastructure, and other road users to improve traffic management and overall road safety.
  • Telematics Services: Delivers detailed insights into vehicle performance and driver behavior, supporting more effective fleet management and highly personalized in-vehicle experiences.
  • Over-the-Air (OTA) Updates: Allows remote software updates so vehicles stay current with the latest features, performance enhancements, and security patches without service center visits.
  • Advanced Driver-Assistance Systems (ADAS): Leverages IoT data to power features such as adaptive cruise control and lane-keeping assistance, strengthening driver safety and comfort.
  • Electric Vehicle (EV) Integration: Connects EVs with smart grids to optimize charging schedules, charging efficiency, and overall energy consumption.

Through this portfolio, FPT is helping shape the future of connected mobility, advancing a safer, more efficient, and more enjoyable driving experience.

Conclusion

IoT integration is redefining what vehicles can do, turning cars into intelligent, connected platforms that communicate with their surroundings and unlock safer, more efficient journeys. As connected vehicles surge toward hundreds of millions worldwide and the automotive IoT market accelerates, the opportunity to elevate navigation, diagnostics, and infotainment has never been greater. Yet this future of mobility hinges on how effectively we confront cybersecurity threats, protect personal data, and build the 5G and smart infrastructure it all relies on. By delivering V2X, telematics, OTA updates, ADAS, and EV integration, FPT is helping the industry move from vision to reality. The question now is how quickly organizations will adapt to harness IoT responsibly and lead in this new era of mobility.

Sources

Frequently Asked Questions

What IoT and connected vehicle solutions does FPT offer? FPT provides end-to-end IoT solutions, including V2X communication, telematics platforms, OTA update frameworks, ADAS enablement, and EV–smart grid integration. These offerings help OEMs, Tier-1s, and fleets enhance safety, connectivity, vehicle intelligence, and operational efficiency across their programs.

How does automotive IoT improve safety and driving experience? Automotive IoT connects vehicles with other cars, infrastructure, and cloud platforms to share real-time data. This enables collision warnings, optimized routing, predictive maintenance, and personalized in-car services, leading to safer travel, reduced congestion and fuel use, and a smoother driving experience.

How is IoT transforming mobility and where does FPT lead? IoT is turning vehicles into software-defined, always-connected platforms that enable new digital services and revenue streams. To achieve this vision, the industry must address security, privacy, and infrastructure gaps. FPT positions itself as a key partner to design, build, and scale these connected ecosystems.

What are the main cybersecurity and privacy risks in connected cars? Connected vehicles face risks such as remote hacking of vehicle systems, unauthorized access to telematics data, and misuse of personal information. OEMs must implement strong security, encryption, secure OTA updates, and clear data policies, while complying with privacy regulations in each target market.