Connected Cars: How connected vehicles are redefining mobility

The automotive industry is undergoing a profound transformation: vehicles are increasingly evolving into digital, connected platforms on wheels. Car connectivity – meaning the technology surrounding the networking of vehicles with their environment, the internet, and other road users – is no longer a promise of the future but a technological reality.

Whether it’s live traffic data, software-based driver assistance, or real-time fleet management: connected cars offer new possibilities to companies, manufacturers, and drivers to make mobility safer, more efficient, and more sustainable.

Car connectivity describes a vehicle’s ability to connect with the outside world – whether with the internet, other vehicles, or infrastructure. Connected vehicles are no longer just a vision of the future. Instead, the digital networking of cars today forms the foundation for a new type of mobility – one based on data, digital communication, and real-time information. It’s not just about comfort for the driver, but above all about efficiency, safety, and new business models in the mobility sector. 

Although terms like “smart car,” “connected car,” and “autonomous driving” are often used synonymously, they differ significantly in content: 

• A connected vehicle (or connected automotive) can communicate with its surroundings – for example, with other cars, traffic infrastructure, or a cloud platform. 
• A smart car uses digital functions such as infotainment, voice control, or app connectivity – but is not necessarily permanently connected. 
• An autonomous vehicle makes driving decisions independently but requires robust car connectivity for environmental analysis and decision-making. 

Not every smart vehicle is automatically a connected car – and not every vehicle with connectivity features drives autonomously. 

A direct comparison shows how significant the differences between connected and traditional vehicles already are today – especially in terms of functions, data availability, and user value. 

Car connectivity is not a uniform system, but includes various types of communication through which a connected vehicle interacts with its surroundings. Depending on the application and technical implementation of connected cars, different interfaces are used. 

The key components of a connected vehicle at a glance: 

• On-board diagnostics (OBD) continuously collect technical data such as engine temperature, error codes, or driving behaviour. 

• M2M SIM cards enable communication with the outside world – nationally and internationally, often in real time. 

• GPS modules provide precise location data for navigation, tracking, or geofencing. 

• Through cloud connectivity via mobile networks (e.g., LTE, 5G), data is exchanged, software versions are updated, and services are provided. 

• Apps and OTA (Over-the-Air) updates allow vehicle settings to be changed via smartphone, remote diagnostics to be performed, or new functions to be installed.

Connected vehicles not only offer greater comfort for drivers – they also create concrete business value for companies, manufacturers, and mobility providers. 

• More efficient fleet management through live tracking, deployment planning, and condition monitoring 

• Fewer downtimes thanks to predictive maintenance 

• Increased safety through automatic emergency call systems such as eCall 

• Data-based analysis to optimise driving behaviour and reduce costs 

• Improved traffic management, as vehicles can share data with urban infrastructures 

Connected cars are more than just a technological upgrade – they create real added value for various stakeholders along the entire automotive value chain. Vehicle connectivity affects production, operation, usage, and infrastructure. 

Automotive manufacturers: For manufacturers, connected cars provide a direct link to the vehicle – and thus to the customer. Connected services enable new digital business models, such as: 

• Remote diagnostics and OTA updates 

• Data-driven product development 

• Individual service offers based on usage 

• Improved customer loyalty through personalisation 

Companies (e.g., fleet operators, logistics, car sharing): Connected vehicles enable precise control and analysis of fleets in real time. This reduces downtimes, lowers operating costs, and increases transparency. Additional benefits include: 

• Optimised routing through real-time traffic data 

• Predictive maintenance thanks to telematics 

• Driving behaviour analysis for efficiency improvement 

• Integration into existing ERP or fleet management systems 

Drivers: Even for end users of a connected vehicle – whether company car drivers or car sharing users – the benefits are significant: 

• Increased safety through eCall and driver assistance 

• Comfort through app-controlled vehicle functions 

• Real-time navigation with traffic avoidance 

• Transparency about vehicle status and maintenance needs 

Road users & cities: Through communication with infrastructure (V2I) and other vehicles (V2V), connected cars contribute to improving overall traffic – a key building block for smart cities. The benefits here include: 

• Dynamic traffic light control to reduce congestion 

• Faster response times in accidents or dangerous situations 

• Data basis for urban traffic planning 

• Greater safety for pedestrians and cyclists (V2P communication) 

For vehicle connectivity to function reliably and scale effectively, powerful IoT connectivity, stable networks, and strong technology partners are required. Telekom provides tailored solutions for this – from M2M SIM cards and connected telematics to powerful 5G networks and IoT tariffs specifically designed to meet the demands of the automotive industry and other companies.