The global vehicle analytics market is expected to grow at a CAGR of around 24.5% from 2020 to 2027 and expected to reach the market value of around US$ 7,300.2 Mn by 2027.
Vehicle data holds great promise for OEMs in terms of generating new revenue streams and expanding the potential of connected vehicle capabilities, including Usage-Based Insurance (UBI), real-time analytics, data marketplaces/monetization, and more. With analytics, an optimal trigger event based on fuel level, location, and direction could be created for drivers to assist them in maintaining various car-related issues. Analytics can reveal which customers are willing to monitor their driving in exchange for other benefits such as lower insurance rates or extended warranties. This can help to reduce traffic, CO2 emissions, and travel costs.
Analytics is taking auto industry to new heights
Digitalization is ushering in a new era of advanced manufacturing in the automotive industry, with elements that have been dubbed "Industry 4.0." Integration of advanced analytics, artificial intelligence, sensor technologies, the internet of things, cloud computing, blockchain, cyber-physical systems, machine learning, robotics, and 3D printing are among these technologies. Analytics assists in converting consumer data into a corporate asset in order to understand preferences and automobile usage data in order to increase customer acquisition and retention. It can assist the industry in increasing design efficiencies, procurement and smarter supply chain management, fine-tuning production lines for continuous improvement, distribution and marketing, and all aspects of automobile servicing. For example, each component of an automobile can be designed to improve both its appearance and its performance. Actual data collected on driving and passenger comfort, safety, engine performance, servicing history, and mileage – for every aspect of an automobile, its small and large components, and their individual performance across all parameters – can be used to gauge model-specific performance over its lifetime. This, in turn, provides car manufacturers with real-world data for designing and improving newer models.
COVID-19 impact on global vehicle analytics market
According to the IEA report, the Covid-19 pandemic will have a smaller impact on global electric vehicle markets than it will on the overall passenger car market. Based on car sales data from January to April 2020, we currently estimate that the passenger car market will contract by 15% year on year compared to 2019, while electric sales for passenger and commercial light-duty vehicles will remain broadly at 2019 levels. Second waves of the pandemic, as well as a slower-than-expected economic recovery, could result in different outcomes, as well as strategies for automakers to meet regulatory standards. In total, we estimate that electric car sales will account for approximately 3% of global car sales in 2020. Finally, there are indications that recovery efforts to address the Covid-19 crisis will continue to emphasize vehicle efficiency in general, and electrification in particular.
Factors such as an increase in the trend of connectivity solutions in automotive, an increase in the use of cloud-based technology for smart fleet management solutions, and an increase in concern for vehicle safety and security are expected to drive market growth. However, the high installation costs and security concerns associated with data communication are impeding market growth. Market participants entering into strategic partnerships with OEMs, insurers, and fleet operators to gain a competitive advantage, growing development in semi-autonomous & autonomous vehicles, and increased demand from developing countries are some of the factors expected to drive market growth. Furthermore, the market is expected to expand as a result of the increasing adoption of predictive analytics, which has been a logical upgrade for end-users who have implemented some form of automation and data collection solutions.
Apart from that, network coverage limitations and high initial setup costs are main hindrance to the growth of the vehicle analytics market. Data security concerns, as well as difficulties in integrating data with existing software systems, are stifling the adoption of vehicle analytics software and services.
The global vehicle analytics market is segmented based on application, component, deployment, and end-user. By application, the market is segmented as predictive maintenance, warranty analytics, traffic management, safety and security management, driver and user behaviour analysis, dealer performance analysis infotainment, usage-based insurance, and road charging. Component is classified into software and services. Further, deployment model is bifurcated into on-premises and on-demand. By end-user, the market is segregated as original equipment manufacturers (OEMs), service providers, automotive dealers, fleet owners, regulatory bodies, and insurers.
According to application, the safety and security management segment dominates the global vehicle analytics market. According to the deployment model, the on-demand deployment model is expected to dominate the global vehicle analytics market.
North America holds the dominant market share; Asia Pacific to provide lucrative opportunities for the vehicle analytics market to grow
North America has dominated the vehicle analytics market in the past, accounting for the largest share, and is expected to do so again during the forecast period. The growth in the North America region is primarily attributed to the increasing implementation of advanced technologies such as artificial intelligence, machine learning, and predictive maintenance in order to implement real-time data analysis in the region. It makes use of information gathered by sensors and GPS tracking devices. The region also has a well-established infrastructure, which makes advanced technologies easy to implement
Asia Pacific, on the other hand, is expected to have the fastest growing CAGR in the coming years. The Asia Pacific region's growth is primarily dominated by China due to the presence of a large manufacturing base, and China is also keeping pace with the North American region in terms of car manufacturing annually. This is one of the most important factors promoting global vehicle analytic growth.
Most of the vendors in the vehicle analytics market have adopted various growth strategies, such as acquisitions, agreements, collaborations and partnerships, new product launches, product up gradations, and expansions, to expand their client base and enhance the customer experience. The prominent players of the global vehicle analytics market involve Acerta Analytics Solutions, Inc., AGNIK LLC., AMODO, ARI® Fleet Management Company, Azuga, CloudMade, C-4 Analytics, LLC, and among others
Market By Application
Safety and Security Management
Driver and User Behaviour Analysis
Dealer Performance Analysis
Market By Component
Market By Deployment Model
Market By End-User
Original Equipment Manufacturers (OEMs)
Vehicle analytics market is expected to reach a market value of around US$ 7,300.2 Mn by 2027.
The vehicle analytics market is expected to grow at a CAGR of around 24.5% from 2020 to 2027.
Based on application, safety and security management segment is the leading segment in the overall market.
Rising adoption of digitization is one of the prominent factors that drive the demand for vehicle analytics market.
Acerta Analytics Solutions, Inc., AGNIK LLC., AMODO, ARI® Fleet Management Company, Azuga, CloudMade, C-4 Analytics, LLC, and among others.
North America is anticipated to grab the highest market share in the regional market
Asia Pacific is expected to be the fastest growing market in the forthcoming years