DUBLIN--(BUSINESS WIRE)--The "Big Data Market in the Automotive Industry - Growth, Trends, Forecasts (2020 - 2025)" report has been added to ResearchAndMarkets.com's offering.
The big data market in the automotive industry was valued at USD 3,289.60 million in 2019, and it is expected to reach USD 7,844.01 million by 2025, registering a CAGR of 16.81% during the period of 2020-2025.
The automobile industry is being transformed by the adoption of technologies, applications, and services ranging from sensors to artificial intelligence to big data analysis; thus, the ecosystem is witnessing a steady influx of new players, resulting in the continuous evolution of the future car. Increasing efforts from various stakeholders in utilizing the vehicle generated data coupled with a growing installed base of connected cars drive the growth of the market.
Big data analytics allows the automobile manufacturing industry to collect data from ERP systems to combine information from multiple functional units of the business and the supply chain members. With the emergence of industry IoT, a networked system, M2M communication, the automotive industry is positioning itself towards industry 4.0 ready. Sensors, RFIDs, barcode readers, robots are now standard on the industry's manufacturing floor. These devices have increased data generation points exponentially.
The broad adoption of big data analytics across numerous manufacturing sectors is expected to impact the market's growth significantly over the forecast period. Many key vendors in the automotive industry are collaborating with the technology provider, which would help them be straight ahead of the competition. For instance, in 2020, Otonomo signed a commercial agreement with Mitsubishi Motors on an initiative to provide Mitsubishi Motors' connected car customers with exciting new services while adhering to international data privacy regulations.
Furthermore, big data analytics have helped automobile manufacturers boost their efficiency in terms of sales and marketing. It has also improved its operations by aiding in the incorporation of utilities like predictive maintenance and service schedule. It has also aided automotive vendors in streamlining the procurement process, making it more cost-efficient by analyzing the data for demand prediction.
With global sales of cars embedded with telematics reaching 28.5 million units in 2019 (according to Bloomberg New Energy Finance; MarkLines), it is no surprise that auto manufacturers are rapidly adopting connected car technology and embedding it within their vehicles. For instance, GM recently announced that it would be selling 4G data packages for connected vehicles that are powered by the AT&T network, including monthly subscriptions, one-time top-ups, daily passes, and even the ability to connect the car to a shared data plan with other devices. With the advent of ADAS systems, the vehicle's data is expected to increase exponentially over the forecast period.
Big data is increasingly playing a vital role in handling the effects of pandemic across industries. Various enterprises are increasingly investing in enhancing their decision-making process more data-driven. The uncertainties induced by COVID-19 have created great havoc across different industries.
Some of the companies are using big data solutions to understand the current requirements of the customer. For instance, AutoHome, an online car marketplace for Chinese automotive consumers, has utilized big data solutions to analyze changing customer behavior during the COVID-19 to understand their requirements in a better way. Also, it created smart showrooms and virtual stores to offer major functions of online car purchasing. This type of significant use case will drive market growth in the coming years.
Key Market Trends
Product Development, Supply Chain and Manufacturing Segment Holds for a Major Share Throughout the Forecast period
- In the current technology-driven business environment, Big Data stands as one of the primary drivers of productivity and efficiency for manufacturers. With the high rate of adoption of sensors and connected devices and the enabling of M2M communication, there has been a massive increase in the automotive industry's data points.
- Data analytics is at a nascent stage in the automotive business. While data analytics has been a component of the mainstream in the manufacturing, marketing, and supply chain sectors of the automotive industry, data generation, and analysis from the product have seen the smallest effort. Nevertheless, with the Internet of Things and computing becoming successful, less costly avenues for gathering data are beginning to appear in the industry.
- Connected vehicles have the potential to bring about a massive change in user experience. According to The Associated Press, the global automotive industry is projected to deliver some 76.3 million connected cars by 2023. Being provided with hardware and software allows them to connect to the cloud, creating data to obtain actionable insight. Data from sensors on the vehicle can change how automotive firms monitor performance and maintain product quality and safety. Access to real-time, on-road data assists in accelerated product development.
- General Motors, the largest American automobile manufacturing company, has been the pioneer of Big Data and analytics in the automotive industry. Cars with sensors and processors are commonplace these days. General Motors has sensors and telematics within the car as its center of interest, as it saves them a lot of revenue and makes their cars more secure and reliable. For instance, according to DataFlair, telematics is like a goldmine as it provides them massive savings of up to USD 800 per car.
- N-iX LTD
- Future Processing Sp.z.o.o.
- Reply SpA (Data Reply)
- Phocas Ltd
- Mayato GmbH
- Qburst Technologies Private Limited
- Traffilog Ltd
- Driver Design Studio Limited
- Sight Machine Inc.
- SAS Institute Inc.
- IBM Corporation
- SAP SE
- Microsoft Corporation
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Laura Wood, Senior Press Manager
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