Vehicle Analytics Market Size

Vehicle Analytics Market Analysis

The vehicle analytics market is expected to register a CAGR of 24.3% during the forecast period. With the rise of Big Data and the increasing need to make critical business decisions within a compressed timeframe, business intelligence, and analytics tools have gained a substantial market share in the past years. The growth in this industry is anticipated to be positive during the forecast period.

• 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.