Automotive Analytics Market - Forecast(2024 - 2030)

Overview
The Automotive Data Analytics Market size is forecast to reach USD 11,540.93 Million by 2030, after growing at a CAGR of 21.90% during the forecast period 2024-2030. Demand for data-driven decisions in real-time and the growing demand for connected vehicles are the factors driving the automotive data analytics market growth. The growing demand for predictive maintenance in automotive and the growing uptake of connected services are driving this industry. Additionally anticipated to drive market expansion is the growing need for cloud services and enhanced analytics. More OEMs utilizing this service are anticipated to fuel growth in the global automotive data analytics market. The automotive industry's data analytics revenue is anticipated to grow rapidly in the coming years, mostly as a result of newly developed applications that are broadening the market's application base. For example, data analytics in the connected vehicle space is anticipated to present car manufacturers with enormous prospects in the future. 

Report Coverage
The report “Automotive Data Analytics Market – Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the automotive data analytics market.
By Type: Software and Services
By Analytics Type: Predictive Analytics, Prescriptive Analytics, Descriptive Analytics, Price Elasticity Analytics, Simulation Analytics, and Others
By Deployment Mode: Cloud and On-Premises
By Application: Traffic management, Safety and Security management, Customer Behaviour, Sales and Marketing, Usage-based insurance, Diagnostics and Monitoring, Warranty Analytics, Dealer performance analysis, and Others
By Functional Area: Original Equipment Manufacturers (OEMs), Service Providers, Fleet owners, Regulatory bodies, Insurance, and Aftermarket
By Geography:  North America, South America, Europe, APAC, and RoW

Key Takeaways

• The North American region is anticipated to dominate the automotive data analytics market with a value share of approximately 38.30% in 2023, followed by Europe with a 28.80% value share in the automotive data analytics market.
• In the car sector, fuel management is more difficult. The use of analytics and data will make it possible to access larger amounts of data, which will enable fuel to be used more efficiently and contribute to quantifiable gains in driver productivity.
• According to a National Automobile Board survey, an increasing number of accidents are caused by defects or damage to automobile components. This application of analytics allows for the identification of a vehicle's broken parts before they impede regular operation. This will enable the driver to recognize patterns and take appropriate action before an accident occurs.

By Type - Segment Analysis
The Software segment dominated the automotive data analytics market in 2023. Due to the growing demand for software solutions that streamline real-time data in connected automobiles. Several top software and analytics companies have increased their attention to automotive data analytics. For instance, SAP SE offers products such as Vehicle Insights products, Connected Cars Analytics & Telematics, Real-Time Advanced Analytics, Predictive Analytics & Modeling Software, and others. The usage of open-source platforms, as well as better product offerings focused on user experience, are driving growth in the automotive data analytics software market. One of the key elements driving the growth of the automotive data analytics software market is digitalization. Modern cars, like linked cars, come with a range of digital sensors and systems that can be linked via the cloud, the Internet, and other digital services. Additionally, automotive analytics for connected vehicles enhances urban traffic flow Therefore, it is anticipated that the increased development and acceptance of connected vehicles will increase demand for vehicle analytics over the forecast period.

By Analytics Type - Segment Analysis
The Predictive Analytic segment dominated the automotive data analytics market in 2023. Predictive analytics predicts future events by utilizing historical or present data.  Machine learning, statistical modeling, regression analysis, and classification are among the techniques. Numerous predictive elements are also used by self-driving and autonomous car technology to warn drivers of impending hazards and generate other driving alerts. With several large original OEMs devoting significant resources to the development of autonomous vehicles, it is anticipated that the market for predictive analytics will grow. For example, in July 2022, Hyundai Motor India achieved a major advancement in automotive technology when it unveiled an enhanced version of the Tucson, its top-tier SUV. With its ability to utilize level 2 advanced driving assistance systems (ADAS). Additionally, there is tremendous potential for predictive analytics to transform sales and usage given the growing sophistication and connectedness of automobiles.

By Deployment Mode- Segment Analysis
The Cloud segment dominated the automotive data analytics market in 2023. Cloud technology is growing in popularity in both connected and autonomous automobiles. Cloud technologies are transforming the automobile sector by improving cost efficiency, dependability, time-to-market, and scalability. Several software providers are investing in cloud-based technology for the automotive sector. For instance, on January 4, 2022, Annata, the developer of Annata 365, a global cloud platform built natively with Microsoft Dynamics 365 and Microsoft Azure for the automotive and industrial equipment industries, announced that it is expanding its partnership with Microsoft. For instance, in 2021, Amazon Web Services, Inc. introduced its new cloud-based data solution "AWS FleetWise". It enables car manufacturers to collect and access telemetry and sensor data from their vehicle fleets. Businesses of every type choose cloud-based solutions because they are more versatile, scalable, and cost-effective than on-premises options. Manufacturers may use data to enhance their operations, cut costs, and raise satisfaction among consumers.

By Application- Segment Analysis
The Safety and Security management segment dominated the automotive data analytics market in 2023. Automotive data analytics enables predictive maintenance in self-driving cars by analyzing data from various sensors. This trend helps prevent breakdowns, reduces repair costs, and enhances overall safety in autonomous vehicles. This dramatically lowers the chance of accidents and improves overall road safety.  Automakers are rushing to prevent security breaches and data intrusions in new vehicles, while also introducing new and increasingly autonomous systems that may expose new vulnerabilities. Automotive data analytics in security management is witnessing a transformative surge, enhancing vehicle safety and cyber threats. Advanced analytics, powered by machine learning, analyzes vast datasets to detect potential breaches and predict cyber risks. The industry trend leans towards real-time monitoring, proactive threat mitigation, and the integration of artificial intelligence for adaptive security measures. As vehicles become more connected and autonomous, the demand for robust data-driven security solutions continues to grow, ensuring the resilience of automotive systems against evolving cyber threats.

By Functional Area- Segment Analysis
The Original Equipment Manufacturers (OEMs) segment dominated the automotive data analytics market in 2023. Automobile OEMs anticipate the need to automate vehicle analytics to stay up with operating costs and scalability issues as the number of commercial vehicles grows, as well as to detect possible problems before they disrupt the end user. On September 12, 2023, J.D. Power, an international data analytics company, announced that it had reached a formal deal to acquire Autovista Group, a major provider of automotive data, analytics, and industry insights across Europe and Australia. The purchase strengthens J.D. Power's position in car value and comprehensive vehicle specification data and analytics, while also expanding its reach into the European and Australian automotive sectors. These very complementary services will provide original equipment manufacturers (OEMs) with a truly global analysis of crucial industry trends, as well as the tools necessary to effectively anticipate risk, capitalize on emerging trends, and align sales strategy with real-time market dynamics.

By Geography - Segment Analysis
The North American region dominated the automotive data analytics market in 2023. The use of connected cars with telematics and embedded sensors has significantly increased in North America. The demand for data analytics solutions to glean insights from the massive amounts of data generated by these vehicles on vehicle performance, driver behavior, and environmental factors is being driven by these vehicles. Research and development for autonomous driving systems is concentrated in North America. For instance, With a total value of nearly $52 billion, the United States shipped 1.4 million new light automobiles and 108,754 medium and heavy trucks to more than 200 destinations worldwide in 2020. An additional $66.7 billion was exported as automotive parts. The United States is anticipated to maintain its position as a top market for the automotive sector in the twenty-first century thanks to its open investment policy, sizable customer base, highly skilled labor force, robust R&D capabilities, readily available infrastructure, and incentives from municipal and state governments. Automakers, internet behemoths, and startups are all making significant investments in the development of advanced driver-assistance systems (ADAS) and self-driving cars. To train and optimize autonomous driving algorithms utilizing real-world data gathered from vehicles on North American roadways, data analytics is essential.

Drivers – Automotive Data Analytics Market
Growing Installed Base of Connected Cars is Driving Market Growth
The growing installed base of connected cars is driving growth in the automotive data analytics industry for several reasons, owing to the connected cars enable remote monitoring of vehicle health and performance by various stakeholders, including fleet operators, dealerships, and automakers. The number of connected cars being shipped and driven is rising rapidly, as is the consumer preference for connected cars. With the burgeoning market for connected automobiles, automakers are coming up with more and more solutions and services. In 2019, Ford, for instance, stated that its automobiles have cellular vehicle-to-everything connectivity from 2022. The corresponding car space is being further enhanced by these initiatives. The Indian market is anticipated to experience growth in connected car technologies. Few connected cars are available for purchase in the nation right now. The rising investments, developments, and product launches are anticipated to drive market growth. 

Growing Installed Base of Connected Cars is Driving Market Growth
The growing customer demand for more personalized and intuitive driving experiences is driving up demand for connected automobiles. Drivers can change settings and features from their smartphones and receive real-time data and information from connected vehicles. Because of this, there is a greater need than ever for data solutions like AI and predictive analytics that let drivers have individualized driving experiences. Prominent suppliers in the industry already are providing a range of connected features, including infotainment systems and connected platforms in cars. For instance, Hyundai Motor Group stated in November 2020 that all of its upcoming Hyundai, Kia, and Genesis cars will have the NVIDIA DRIVE-connected car infotainment and AI platform. The automotive data analytics market is expanding due to the growing installed base of connected cars, which gives stakeholders access to advanced connectivity, safety and security features, rich data sources, remote monitoring capabilities, improved customer experiences, and monetization opportunities. The need for data analytics solutions that make use of automotive data is anticipated to increase in tandem with the growing popularity of connected cars.

Increased Utilization of Vehicle-Generated Data by Multiple Stakeholders
Automotive data analytics facilitates the examination of data about driving habits, vehicle performance, and environmental factors by various stakeholders, including fleet operators, manufacturers, and service providers.  Vehicle-generated data is also being looked at by governments all over the world for a variety of uses. Aside from this, car telematics is being used more and more for data analysis by different transportation and other suppliers in the industry. For instance, according to a survey conducted by Otonomo, the leading platform for automotive data services, up to 77% of consumers are open to trying out different new services that utilize data from connected cars. These services include receiving alerts about potentially hazardous road conditions, navigation based on the flow of traffic, early maintenance, and repair identification, recommendations for nearby parking that is available, and driving-related insurance discounts. In-car data is also utilized for fleet management, tracking, predictive maintenance, vehicle usage, and other applications where driver behavior, vehicle condition, and other factors may be monitored and evaluated. Stakeholders are increasing their efforts to provide consumers with personalized solutions and services as a result of these changes.

Challenges – Automotive Data Analytics Market
•    Data Protection Laws and Privacy Concerns
To determine their strategic (legal) stance about accessing and exchanging in-vehicle data, parties interested in such data have access to an impartial, structured source. The automobile sector may leverage in-vehicle data gathered by connected vehicles to create smart cities and self-driving cars, enhance traffic control, and ensure road safety. Additionally, several stakeholders are interested in using in-vehicle data to negotiate the intricate and dynamic legal and regulatory environment. OEMs are finding data to be more and more important. Thus, to abide by the General Data Protection Regulation (GDPR), they need to create a strong privacy policy. It is crucial to show that you have a thorough understanding of data protection, especially the GDPR since many people in the industry are still ignorant of the laws and corporate policies that are in place. The automotive data analytics market is constrained by privacy concerns and legislation about vehicle data protection. These laws and regulations impose compliance obligations, data security standards, and difficulties with data ownership, consent, anonymization, and cross-border data transfers. To overcome these obstacles, stakeholders must work together, invest in privacy-enhancing technology, and follow best practices for data governance and privacy management.

•    Concerns about Regulatory Compliance and High Initial Investment Costs
In terms of data privacy, cybersecurity, emissions, safety, and consumer protection, the automotive sector is bound by strict rules and regulations. Compliance with legal obligations like the General Data Protection Regulation (GDPR), California Consumer Privacy Act (CCPA), and automobile safety standards (such as ISO 26262) increases complexity and expenses for market stakeholders in automotive data analytics. A dynamic regulatory landscape makes it difficult to stay on top of changing regulatory requirements and guarantee continuous compliance. Companies find it challenging to enter or grow in the automotive industry due to the high initial investment expenses associated with data analytics. This is because hiring qualified personnel and making infrastructure expenditures in hardware and software are necessary for Data analytics. Additionally, data storage and analysis might be costly, raising the project's overall cost.
Market Landscape

Partnership and Collaboration are key strategies adopted by players in the Automotive Data Analytics market. In 2023, the Automotive Data Analytics Market share has been consolidated by the top ten players accounting for 77% of the share. Major players in the automotive data analytics market are SAP SE, Oracle, IBM Corporation, Microsoft Corporation, Reply SpA (Data Reply), Bosch Software Innovations, SAS Institute Inc., Qburst Technologies Private Limited, Positive Thinking Company, N-iX LTD, and others.

Developments:

• In 2023, Google Cloud and technology company Continental established a strategic alliance to offer cutting-edge, adaptable, and forward-thinking digital solutions to the automobile sector.
• In 2023, SAP SE and Google Cloud unveiled a strengthened relationship to support businesses in leveraging data and generative AI. The firms will deliver fresh capabilities to assist consumers enhance environmental sustainability and develop new innovative AI-powered industry solutions, starting with automotive, by combining the integrated open data cloud leveraging SAP Datasphere with Vertex AI.
• In 2023, Mercedes-Benz and Google established a long-term strategic alliance aimed at boosting vehicle development and developing the next-generation smart automotive user experience for the market. Mercedes-Benz will be the first carmaker to develop a branded navigation system using new in-car data and navigatio
   

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