Global Vehicle Analytics Market Report 2023: Growing Adoption of Vehicle Telematics Drives Growth

DUBLIN, June 8, 2023 /PRNewswire/ -- The "Vehicle Analytics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)" report has been added to  ResearchAndMarkets.com's offering.

The vehicle analytics market is expected to register a CAGR of 24.3% during the forecast period. 

Companies Mentioned 

• SAP SE
• CloudMade
• Genetec Inc.
• HARMAN International Industries Inc. (Samsung Electronics Co. Ltd)
• IBM Corporation
• Inquiron Ltd
• Intelligent Mechatronic Systems Inc.
• Microsoft Corporation
• Teletrac Navman US Ltd

Key Highlights

• Digitalization has become an essential driver of innovation in the vehicle industry. Cars account for at least 50 sensors designed to collect more detailed information, such as speed, emissions, distance, resource usage, driving behavior, and fuel consumption. The generated data gives the automotive industry stakeholders the required technological advancement to use for further analysis, create relation analysis, and enable better utilization of the metrics.
• The predictive analytics applications enable the end users to evaluate prior patterns and driving behavior, deciding the likelihood of future possibilities. Apart from this, growth in the connected car industry is expected to provide significant challenges and opportunities to the automotive sector, including analytics. It has been a massive impetus for innovations.
• Innovative business models can be generated by combining vehicle telematics data and analytic insights into customer and business data. As new and faster wireless network connectivity technology is evolving, such as Li-Fi and 5G, a rising opportunity lies in the advanced data-driven services, which is also appealing. The awareness of an intelligent solution for sustainable traffic and transport management has prompted the governments to provide the new technology enablers the financial benefits to fast pace the adoption and meet their strategic targets sooner.
• Migration to the cloud is also expected to increase industry growth and provide new opportunities for innovation. However, concerns about online coverage and interoperability are expected to hamper industry expansion. Furthermore, the market is expected to be constrained due to the high initial cost of the technology and the high price of solutions limiting adoption in high-end cars.
• Due to the COVID-19 pandemic, the past two years have been challenging for the industry. The market is expected to observe an increased owned car usage surpassing carpooling trends globally due to changes in user behavior and maintaining social distancing as an evolved habit. This would further increase the amount of data generated for vehicle analytics. However, installing vehicle analytics solutions in new cars might not witness significant growth. Due to the economic slowdown and ongoing energy crisis in various regions, the sales of automobile vehicles have suffered, and they are likely to experience undulations.
• The impact of the pandemic is reflected in various regions throughout the globe, the automobile sales affecting the demand for vehicle analytics during the COVID-19 pandemic. According to ACEA, due to the component shortage after the pandemic restricting production volumes, the overall volumes reduced by about 12% in the first eight months of the last year, reaching nearly 6 million cars sold. This is expected to affect the books further, owing to the inflation and anticipated recession in the European region.

Vehicle Analytics Market Trends

Predictive Maintenance is Expected to Hold Significant Market Share

• As automakers are constantly assessing the performance of the vehicle part in real-time through sensors, it unlocks the opportunity for a predictive maintenance approach. Data can be pulled out from most vehicles of a given year and model, and that information can be compared with warranty repair trends using predictive maintenance. These trending issues are carefully observed and addressed, limiting the fallout from large-scale recalls, minimizing unnecessary wrench time, and potentially saving lives.
• Moreover, vehicle breakdowns are one of the significant causes of road accidents. These breakdowns often occur due to human negligence in the timely service and maintenance of vehicles. Predictive analytics solutions inform the owner about the potential maintenance requirement before a study can occur. Data collected from the various sensors fitted in a car assists in carrying out predictive maintenance tasks.
• Cognitive predictive maintenance makes holistic, real-time, and deep insights possible. Also, every aspect of a manufacturer's processes can be connected through IoT, leading to smart and efficient decision-making. According to Appinventiv, the global 5G Internet of Things (IoT) endpoint market is forecast to grow significantly in the connected car segment, from 0.4 million in 2020 to 19.1 million units in the current year. The 5G IoT installed base is forecast to grow to around 49 million this year.
• The market is still an open place for any advanced predictive solutions. It is dominated by simplistic predictive maintenance solutions, which monitor the wear and usage of clutches and brake pads. A similar wear-out apparatus is monitored, and projections are made about the future.
• Also, fleet managers are increasingly incorporating these solutions to stay on top of maintenance and mitigate equipment failure in advance. The adoption has been easier with the technological advancement in communications with capabilities, such as GPS tracking, emerging as a cost-efficient solution.
• The market has growth potential as the demand for electric vehicles increases. In EV(s), voltage variations during charging can damage the battery. Predictive analytics integrated with artificial intelligence (AI) facilitates the feedback and monitoring system for batteries to avoid unnecessary damage that assists in extending the lifespan of batteries.

Europe is Expected Holds Significant Market Share

• European countries leverage advanced technology to enhance road safety. According to ITU, 38% of traffic fatalities in Europe occur inside urban areas, emphasizing the need for stringent road safety implementations in Europe. The increasing adoption of self-driving cars and newer technologies on the road highlight the growing scope of vehicle analytics implementations. In July last year, according to an EU official involved in making the laws for fully self-driving cars in Europe, the EU's executive planned to propose the world's first technical legislation by the end of September, allowing member countries to approve the sales and registration of around 1,500 vehicles for every carmaker model for every year installed, with advanced self-driving technology.
• The development of big data concepts has made it possible for automakers to store structured and semi-structured data in vehicles that can gather, store, analyze and compare the data on their own. This, thereby, helps to produce useful results and make decisions that drive the demand for vehicle analytics in this region.
• Cloud deployment of vehicle analytics has been one of the key drivers of the market. Vehicle analytics has become immensely efficient in Europe, leveraging advanced computing features online and remotely accessing cloud software solutions. Automakers can now leverage these remotely accessible systems to analyze vehicle metrics, determine the vehicle's health, and contribute to road safety and advanced transportation technology development.
• The companies collaborate to provide improved systems through cloud technologies, allowing automotive businesses to leverage the cloud in Europe, which is crucial for new businesses to try solutions like vehicle analytics. In November last year, NavInfo Europe, a prominent software service provider for the automotive industry, and Tencent Cloud jointly announced their partnership, meeting all the European regulatory requirements and standards, including GDPR.
• Furthermore, in February last year, OCTO Telematics announced signing a new agreement with Ford Motor Company to extend its data streaming collaboration into Europe. This would build on the initial agreement signed in the North American market in July of the previous year. By leveraging Ford's connected vehicle data, OCTO would improve its market-proven telematics services in insurance and analytical services in the United Kingdom, Germany, Italy, France, and Spain.

Key Topics Covered:

1 INTRODUCTION

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Force Analysis
4.3 Impact of COVID-19 on the Market

5 MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing Adoption Of Vehicle Telematics
5.1.2 Advancements in Technology, Such as Artificial Intelligence and Predictive Analytics Leading to Applications in Vehicle Management
5.2 Market Restraints
5.2.1 High Cost of Solutions Limiting Adoption in High End Cars

6 MARKET SEGMENTATION
6.1 By Deployment
6.1.1 On-premise
6.1.2 Cloud
6.2 By Application
6.2.1 Predictive Maintenance
6.2.2 Safety and Security Management
6.2.3 Driver Performance Analysis
6.2.4 Other Applications
6.3 By End-user Industry
6.3.1 Fleet Owners
6.3.2 Insurers
6.3.3 OEMs and Service Providers
6.3.4 Other End-user Industries
6.4 Geography

7 COMPETITIVE LANDSCAPE
7.1 Company Profiles

8 INVESTMENT ANALYSIS

9 FUTURE OF THE MARKET

For more information about this report visit https://www.researchandmarkets.com/r/cuuoci

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