|Fastest Growing Market:||Asia-Pacific|
|Largest Market:||North America|
Need a report that reflects how COVID-19 has impacted this market and its growth?
The Automotive Data Monetization Market to grow at a CAGR of 39.89% over the forecast period 2021-2026.
- In the current technological scenario, independent software vendors have turned to self-service business intelligence to increase application revenue and differentiate their offerings. Similarly, self-service BI can contribute to application ROI for enterprises developing applications by increasing adoption and improving operational efficiencies. Data monetization is gaining interest as companies become more interested in discovering the value in their otherwise underutilized data. Monetizing data requires time, energy, investment, and a combination of business and technical experts with complementary skills.
- Increased and sophisticated analytics and big data in automotive applications to provide extra features and services in cars, lower operating costs and investment, and improve driver and passenger safety are driving the global automotive data monetization market revenue growth. Vehicles are becoming increasingly connected to one another, and advances in road infrastructure and the number of sensors being employed are resulting in massive data quantities being generated. The information gathered can be used and commercialized, but this is still in its early stages.
- Other significant reasons supporting the growth of the automotive data monetization market are the growing number of connected vehicles and the permission and activation rate of these vehicles among consumers. To generate a steady source of cash from automobile data, digital innovation is required. To stay ahead in a highly competitive market, automakers are concentrating on creating new monetization mechanisms and improving software deployment capabilities. Connected automobiles and data monetization is increasingly becoming an element of transportation and automobile systems, and this trend is projected to continue.
- To assess the performance of their products, automotive manufacturers examine massive amounts of data. This will aid in the development of future vehicle models, making them safer, more efficient, and reliable. Original Equipment Manufacturers (OEMs) use data provided by connected cars to build more inventive features that fulfill the functional and emotional needs of vehicle drivers—knowing which vehicles are likely to fail and when can help OEMs a lot. Real-time data from automobile sensors can help detect problems early on, and predictive analytics can help companies recall products that may cause difficulties. However, a low rate of adoption is a key factor hampering the growth of the market.
- The COVID-19 crisis negatively influenced market investments, although it was less severe, and it will reduce the car parc by lowering the sales volume in 2020. Potential defaults on vehicle loans due to job losses and business and market contraction also hurt the market's financial performance.
Scope of the Report
Cars create data about how they're utilized, where they're going, and who's driving. The amount of data generated by vehicles will expand rapidly as shared mobility, powertrain electrification, automotive autonomy, and vehicle networking become more widespread. The prospect for automobile data monetization begins with customers believing that there is something of value in them and that the cost is justified.
The Automotive Data Monetization market is Segmented by Organization Site (Small and Medium-sized Enterprises, Large Enterprises), By End-User Industry (Banking, Financial Services, and Insurance, Telecom and Information Technology, Manufacturing, Healthcare, Retail) and Geography (North America, Europe, Asia Pacific, Latin America, Middle East, and Africa)
Key Market Trends
Insurance and Predictive Maintenance to Drive the market
- Banking, Financial Services, and Insurance (BFSI) companies are some of the major investors and adopters of data monetization techniques. The industry is highly focused on generating revenue by leveraging data.
- Almost 40% of drivers agree that insurance firms should allow safe drivers to pay less for their coverage. Automotive insurance firms can use connectivity services to track driver behavior and performance. Finally, insurance companies will be able to reward safe and responsible drivers by cutting their premiums.
- The PAYD and PYHD are two other usage-based insurance concepts that are gaining traction. Pay-as-you-drive (PAYD) automobile insurance is a cost-effective option for drivers who don't drive frequently. Pay-as-you-drive (PYHD) insurance policies, on the other hand, take driving ability into account when determining premiums. That is, if the user is a cautious driver who uses the brakes gently and follows the speed limit, he or she will be classified as a skilled driver, which implies lower premiums. Insurance firms will be looking for automobile data when the PAYD and PYHD enter the market and acquire user acceptability, boosting the market.
- Predictive maintenance is being used by businesses with high-value assets, such as fleet management companies, to assist in controlling the rising costs of maintaining their equipment. Predictive maintenance software collects data and monitors the condition and performance of in-service equipment, such as a fleet of vehicles, in order to reduce the risk of failure. Fleet managers may readily predict impending breakdowns by analyzing data from various sensors deployed on trucks and other fleet vehicles.
- Car data can reduce breakdown risk/downtime with predictive maintenance, concierge services can make mundane tasks (such as car washing and refueling) a breeze, and networked infotainment can give easy-to-access entertainment. These features can also save consumers a lot of time.
- Finally, clients who agree to receive in-car advertising and exchange information with insurers may be able to save money at the moment of sale and on their insurance rates. Customers who participate in automatic payment schemes may be able to save money on tolls or municipal road-related levies.
To understand key trends, Download Sample Report
Asia Pacific Account for fastest growing Market
- Due to the rising use of complex and smart automobile technologies in Japan and China, the Asia Pacific automotive data monetization market is likely to rise at a rapid rate over the forecast period. In China, 4G connected cars accounted for almost 95% of all connected car sales in 2020. The market in the region is likely to continue to rise due to strong demand from China.
- The region is witnessing the advanced and dynamic adoption of new technologies. Additionally, the commercialization of AI, big data, and IoT technologies and the need for further advancements to leverage such technologies to the best are likely to drive the adoption of data monetization tools and services in the region.
- According to SAS, 60% of Asia Pacific organizations name customer experience as a key reason to invest in big data. 54% of Asia Pacific organizations invest in big data to achieve product/service innovation.
- According to the International Energy Agency, new electric car registrations were lower than the overall car market in the first half of 2020. The pattern shifted in the second half when China managed to contain the pandemic. The outcome was a 5.7 percent sales share, up from 4.8 percent in 2019. In China, BEVs accounted for almost 80% of all new electric vehicles registered.
- Indian-based Infosys, one of the vendors in the market, has been accredited as a partner with the Google Cloud Platform Partner Program in the data analytics specialization space. In January 2021, Infosys announced that it achieved elite status in the Snowflake Partner Network. Along with Snowflake, Infosys would offer transformational solutions for enterprises built on Snowflake's Data Cloud, which include the hyperdata economy for enterprises, proven industry and business solutions, and managed cloud consumption solutions from the Infosys Cobalt portfolio.
- Infosys' POV on hyperdata economy opens new possibilities for businesses to connect unconnected data across industry boundaries while monetizing their own data to draw actionable business insights, build new solutions, explore new business models, and create a connected customer experience. Snowflake enables secure data exchange with strong yet flexible processes for operations ranging from data consumption to monetization.
To understand geography trends, Download Sample Report
The global automotive data monetization market is highly concentrated, with a limited number of small and medium-sized companies accounting for the majority of market shares and revenues. In the automotive data monetization market, established countries are involved in a variety of research and development activities and initiatives in order to create and deploy new and more efficient technologies and solutions. IBM, Oracle, Microsoft, and others are some of the leading competitors in this sector.
- January 2021 - Infosys announced that it achieved elite status in the Snowflake Partner Network. Along with Snowflake, Infosys would offer transformational solutions for enterprises built on Snowflake's Data Cloud, which include the hyperdata economy for enterprises, proven industry and business solutions, and managed cloud consumption solutions from the Infosys Cobalt portfolio.
- December 2020 - Vantiq announced that it had created an innovation accelerator with Infosys, a global leader in next-generation digital services and consulting, to help customers quickly build real-time applications for managing digital supply chains. Using pre-built digital domain and development frameworks, the accelerator will enable existing and new customers to rapidly develop innovative real-time applications in logistics and distribution optimization, connected maintenance, modern workplace transformation, and real-time compliance and safety management.
- April 2021 - Ford Motor Company introduced its "Power-Up" over-the-air update capability to make remote improvements to its trucks and cars, with a goal of rolling out 33 million vehicles by the end of 2028. The new system would collect data on millions of commercial and consumer customers, allowing automakers to generate cash.
- December 2020 - A multi-year deal was announced between Amazon Web Services, Inc. (AWS) and BlackBerry Limited to develop and sell IVY, BlackBerry's intelligent vehicle data platform. Ivy enables automakers to collect automobile sensor data uniformly andsecurelye, normalize it, and generate actionable insights as needed. The data can also be utilized to improve the experience of passengers and drivers.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitutes
4.2.5 Intensity of Competitive Rivalry
4.3 Assessment of the Impact of COVID-19 on the Data Monetization Market
4.4 Technology Snapshot
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rise in vehicle connectivity fueling the demand for monetizing data
5.1.2 Need for creating customer value proposition
5.2 Market restraints analysis
5.2.1 Cybersecurity risk
6. MARKET SEGMENTATION
6.1 By Deployment
6.2 By End-user Industry
6.2.1 Banking, Financial Services, and Insurance
6.3 By Geography
6.3.1 North America
6.3.3 Asia Pacific
6.3.4 Latin America
6.3.5 Middle East and Africa
7. COMPETITIVE LANDSCAPE
*List Not Exhaustive
7.1 Company Profiles
7.1.1 IBM Corporation
7.1.3 Microsoft Corporation
7.1.5 Continental AG
7.1.6 Caruso GmbH
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
You can also purchase parts of this report. Do you want to check out a section wise price list?
Frequently Asked Questions
What is the study period of this market?
The Automotive Data Monetization Market market is studied from 2019 - 2026.
What is the growth rate of Automotive Data Monetization Market?
The Automotive Data Monetization Market is growing at a CAGR of 39.89% over the next 5 years.
Which region has highest growth rate in Automotive Data Monetization Market?
Asia-Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Automotive Data Monetization Market?
North America holds highest share in 2020.
Who are the key players in Automotive Data Monetization Market?
IBM, Caruso Dataplace, Microsoft, Tesla, Oracle are the major companies operating in Automotive Data Monetization Market.