The global IoT market was worth $622 billion in 2020 with a Compound Annual Growth Rate (CAGR) of more than 10% over the period, according to GlobalData forecasts. IoT is one of the primary enablers of digital transformation in the automotive sector. It brings together various technologies, like AI, 5G, edge computing, and cloud computing, which helps reduce latency levels to allow real-time decision-making and reduce the need for human intervention in IoT ecosystems. The connected car will increase data generation exponentially and establish itself as a key component of the IoT ecosystem, and eventually, an extension of consumers’ automated homes. Automakers must use this abundance of data to pivot their business models towards software and reduce their dependence on Big Tech to meet the needs of their customers.