The automotive industry is accelerating its digital transformation, with vehicles rapidly evolving into connected, software-defined machines. According to McKinsey, the overall market for automotive software and related electronic components will grow at a 7% CAGR from 2020 to 2030, reaching over $220 billion by the end of the decade.1
As a data extraction expert with over 10 years of experience, I‘ve witnessed the rising adoption of APIs across the automotive value chain. This growth is fueled by the increasing lines of code powering connected vehicles. In 2010, a car contained around 10 million lines of code on average. This number leapt to over 100 million lines by 2018, a 10x increase.2 Self-driving vehicles currently in development are estimated to run on a staggering 300-500 million lines of code.
To handle this complex software, today‘s cars rely on a vehicle data bus architecture called the CAN bus. This interconnected network enables microcontrollers and devices throughout the car to communicate. The CAN bus provides the foundation for telematics APIs to securely access real-time vehicle data.
But connectivity also poses cybersecurity risks. Automakers must ensure robust authentication and encryption mechanisms are in place around any external-facing automotive APIs. Still, 100% security is impossible, and hackers are constantly probing connected vehicles for vulnerabilities. Companies should take care to only expose non-critical APIs, and have plans in place to deactivate compromised APIs rapidly.
In this article, I‘ll apply my data extraction expertise to explore the top use cases of APIs in the automotive industry today. I‘ll also share key benefits they offer OEMs, dealerships, fleet operators and car owners based on over a decade of hands-on experience in this space.
What are Automotive APIs?
APIs (Application Programming Interfaces) enable software systems, apps and platforms to communicate with each other. In the automotive context, APIs allow vehicle apps to connect with mobile apps, external data sources, and back-end business systems.
Automotive APIs can be built directly into OEM and aftermarket vehicle parts and dashboards. For example, Google and Apple‘s CarPlay APIs are embedded by automakers directly into infotainment consoles.
Standalone automotive APIs also exist, such as diagnostics APIs offered by CarMD and Bosch. These are not tied to specific vehicles, but allow interfacing with their diagnostic data.
Lastly, many mobile apps use APIs to exchange data with vehicles. For instance, insurance and mileage tracking apps rely on APIs to pull odometer readings and location data from connected cars.
Automotive APIs power more than just in-vehicle use cases. They also enable connected mobility services through Mobility-as-a-Service (MaaS) offerings. And they allow businesses across insurance, dealerships and repairs to transform customer engagements using vehicle data APIs.
Top 7 Automotive API Use Cases
Based on the digital transformation underway in automotive, combined with my insider knowledge of API possibilities, here are 7 leading applications of APIs in today‘s connected vehicles and mobility services:
1. Mobile and In-Vehicle App Integration
A primary use of APIs in the automotive context is seamlessly integrating mobile apps on the driver‘s smartphone with a vehicle‘s Human Machine Interface (HMI) display. Apple CarPlay and Android Auto are the most widespread examples.
This mobile-to-in-vehicle app integration via APIs allows drivers to:
- Remotely unlock, start or heat/cool their cars using smartphone apps
- Access smartphone functions like calling, messaging, voicemail through voice commands
- View smartphone apps including Music, Maps, News, Podcasts and more on the dashboard screen
Apple CarPlay Display. Source: Apple3
Leading examples of these integration APIs include:
Apple CarPlay: CarPlay is natively built into over 600 car models globally as of 2022. It connects iPhones to the vehicle‘s infotainment system.
Android Auto: Google‘s platform mirrors Android phones. It comes pre-installed in 500+ car makes spanning a wide range of budgets and geographies.
Both platforms allow users to leverage the connectivity, apps and processing power of their smartphones while minimizing driver distraction. Core apps are optimized for voice control and safe in-vehicle use.
Companies can also develop custom integration APIs to enable mobile apps to communicate with a vehicle‘s CAN bus. This allows pulling real-time telemetry and infotainment data into third-party apps. However, OEMs carefully control access to the CAN bus due to the potential risks. Custom integrations require approval to ensure they don‘t compromise vehicle security and safety mechanisms.
2. Identifying VIN, License Plates from Images
Computer vision APIs empower software to identify key vehicle attributes from simple photos. This includes:
- Vehicle identification number (VIN)
- License plate numbers
- Barcodes
Extracting this information via APIs alleviates manual errors and delivers data instantly to streamline processes like:
- Buying and selling used vehicles
- Checking vehicle history during warranty and insurance claims
- Law enforcement identifying stolen or uninsured vehicles
License Plate Scan. Source: VehicleDatabases5
Leading examples of automotive photo scanning APIs:
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OCR API Services by VehicleDatabases – Claims over 99% accuracy in scanning VINs, plates, barcodes and documents from images and PDFs. 6
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Vericar – Offers 92%+ accurate scans of VIN, license plates, odometers and damage conditions from photos.
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Platesmart – Boasts 99% accuracy for license plate recognition. Offers free trial.
See how a VIN scanner powered by computer vision APIs works:
VIN Scanner Demo:
As you can see, modern computer vision APIs enable automating a wide range of manual processes involving vehicle identification and condition – delivering near-instant data with minimal errors.
3. Vehicle History Reports
Used car buyers often leverage vehicle history reports to validate a car‘s condition, accident history and title status before purchasing. However, retrieving these comprehensive reports manually requires calling providers and providing the 17-digit VIN.
Automotive data APIs streamline access to complete vehicle history reports by simply passing the VIN. Leading examples include:
- CARFAX Vehicle History API: CARFAX databases contain over 25 billion vehicle history records across North America. Their API returns full accident, registration and ownership history for any car or truck within seconds of passing the VIN. It‘s widely used by dealerships, insurers and buyers.7
Sample CARFAX Report. Source: CARFAX8
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NMVTIS API: Provides similar vehicle history data based on the National Motor Vehicle Title Information System database. Offers bulk VIN processing.
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NHTSA VIN Lookup API: Allows batch VIN lookups and delivers recalls, investigations and complaints data from the NHTSA.
See how CARFAX reports work in action:
CARFAX Demo:
Automating access to vehicle history gives buyers more confidence in used car purchases while helping dealers command higher prices for vehicles that check out.
4. Vehicle Specifications Lookup
Vehicle attributes like make, model, trim package, dimensions and factory options can be retrieved through specification lookup APIs.
These APIs allow passing the VIN or license plate, and return rich structured data on that exact vehicle. Use cases include:
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Dealerships quickly accessing correct specifications for any vehicle during listings, sales and service
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Insurance providers integrating with spec APIs to extract insured vehicle details including safety features
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Fleet managers tracking vehicle attributes across drivers
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Apps and sites like Kelley Blue Book displaying relevant pricing, reviews and details for any car
For example:
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The Global Automotive Cloud Specification API provides detailed technical specs for over 44,000 car models sold worldwide since 1942. Coverage includes US, European, Japanese and Korean makes.9
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Edmunds API offers vehicle features, reviews and imagery for researching models.
With spec lookup APIs, businesses no longer need to maintain manual databases or hunt down specifics. The precise vehicle attributes can be pulled instantly across regions and years.
5. Mobility-as-a-Service (MaaS) APIs
Mobility-as-a-Service (MaaS) platforms allow users to plan, book and pay for mobility services like ride-hailing, bike-sharing, parking etc. through a unified app. APIs are crucial to powering these MaaS offerings. They:
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Connect the MaaS app to diverse transportation operator systems for real-time inventory, booking and payments
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Allow integrating mapping/navigation services, traffic data and weather APIs for accurate ETAs and routing
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Enable value-added partnerships like reservations at destination restaurants
Examples of MaaS companies leveraging connectivity APIs include:
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Uber links users to vehicles, drivers, payments and navigation functions via public and custom APIs.10
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Citymapper brings together public transit, taxis, scooters and more into a single travel app for urban commuters, underpinned by transportation APIs.11
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Rentalcars.com allows reservation of rental cars across over 160 countries using enterprise inventory APIs.12
The breadth of transportation and mobility APIs available today enables creation of innovative MaaS apps that would not have been possible just 5 years ago.
6. Vehicle Repair and Maintenance Data
Diagnostic APIs deliver vehicle repair and maintenance data to inform proactive repairs and service.
They provide repair shops immediate access to expected costs, parts, repair times and procedures based on trouble codes extracted from the vehicle‘s OBD-II port. Drivers also use Bluetooth adapters and apps to self-diagnose basic issues before visiting repair shops.
Key examples include:
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CarMD draws repair data for US domestic vehicles from an extensive crowdsourced database spanning 1996 onwards. It reports upcoming maintenance needs, costs, repair times and procedures.13
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Bosch Automotive Aftermarket API provides similar commercial diagnostics data from Bosch‘s workshop equipment and expert knowledge.
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AUTOsist API applies AI to vehicle sounds and diagnostics data to identify impending failures before they occur.
By tapping diagnostic APIs, repair shops spend less time figuring out problems and provide more reliable maintenance advice. Meanwhile, drivers reduce diagnostic charges and save on breakdown repairs through early action.
7. Auto Insurance APIs
Insurers are offering usage-based "pay as you drive" policies by tapping into automotive APIs, including:
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Telematics APIs that retrieve odometer, location, driving behavior data from connected cars. This enables highly customized premiums based on actual driving patterns.14
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FNOL photo APIs like Mitchell allow uploading accident imagery from the scene directly into digital claims processes for faster settlements.
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VIN-based lookups integrate vehicle history and technical detail APIs into underwriting and quoting.
For example, Smartcar‘s API links insurer systems to in-vehicle 4G modems. It securely collects odometer readings and trip data for pay-per-mile billing:13
Smartcar API Integration. Source: Smartcar
And The Floow implements VIN-based risk models using vehicle history and technical specifications APIs:
"By calling The Floow API with a VIN, insurers get augmented risk models and scores accounting for over 500 individual risk attributes derived from that vehicle’s characteristics." 15
Insurers using automotive APIs deliver up to 20% in claims savings and improved customer retention of 25-50% through behavioral nudges and personalized premiums.16
The Growing Importance of Automotive APIs
This article explored leading applications of APIs across connected vehicles and mobility services. But the possibilities are multiplying rapidly alongside automotive software innovation.
APIs form the connective fabric that will enable vehicles to exchange real-time data with city infrastructure, businesses and each other in the future. They underpin the shift towards Mobileye‘s vision of crowdsourced HD maps.
For consumers, automotive APIs translate to added conveniences and hyper-personalized insurance, service and mobility experiences.
And they allow businesses across insurance, dealers, repair shops and mobility services to embed themselves digitally throughout the driver journey.
As next-generation vehicles evolve into software-defined autonomous machines, their value will increasingly derive from software and connectivity. This amplifies the role of well-designed APIs in the automotive value chain.
