Global Vehicle Analytics Market to Grow at a CAGR of 24.5% by 2027

Introduction

Vehicle analytics is a technology that tracks real-time data from the vehicle. It provides real-time insights to end-users such as the OEM, fleet owner, and insurer on the present state of the vehicle and related operating activities. Furthermore, data insights created by vehicle analytics systems serve as the foundation for autonomous mobility and vehicle-to-everything (V2X) since they provide integrated inputs for vehicle activities. Because of the increased penetration of V2X technology and the expansion of the tech-savvy population, connected mobility technology has gained significant traction in recent years, enabling the growth of the vehicle analytics industry. The market is predicted to develop due to factors such as the rising trend of connection solutions in automotive, the increased use of cloud-based technology for smart fleet management systems, and an increased concern for vehicle safety and security.

Market Dynamics

 Rise in Trend of Connectivity Solution in Automotive to Drive the Global Vehicle Analytics Market

Connected vehicles allow cars to communicate with other vehicles, road infrastructure, and the cloud via an advanced digital platform. This interaction with devices generates a set of data points, which are collected and combined using software solutions to conduct the needed activities. Such information is mined and put to good use to achieve the highest level of operational efficiency possible. Automotive dealers, fleet operators, and drivers can use this software and related services to optimize resource utilization, increase safety, and automate certain driving functions while collecting vital data such as vehicle performance, weather, and road conditions.

Connected vehicles collect data from their surroundings and communicate and process it to exchange data points and generate required actions, as well as intelligent transportation infrastructure that provides real-time traffic data to transportation authorities for better road management and infrastructure planning. The demand for fundamental vehicle connectivity applications such as real-time updates, performance analysis, navigation, and in-car infotainment is driving the need for connected technologies in the automotive sector.

Growing Developments in Semi-Autonomous and Autonomous Vehicles to Provide Opportunities for the Global Vehicle Analytics Market

The increasing effort to deploy autonomous driving features positively impacts the vehicle analytics market growth. Semi-autonomous and autonomous vehicles rely heavily on software. Several automakers, including BMW, Volvo, Ford, and others, are integrating Level 1 and Level 2 autonomous technology into their vehicles; several Level 3 autonomous models were also released in 2019. These launches come with various automotive software and high-tech systems that allow for real-time data collecting and analysis of vehicle operations.

Furthermore, many major car OEMs are conducting research and development and testing for Level 4 and Level 5 autonomous vehicles in various cities worldwide. As a result of these evolving breakthroughs in semi-autonomous and autonomous vehicles, the vehicle analytics industry is predicted to increase.

Regional Insights

Region-wise, the global vehicle analytics market is studied across North America, Europe, Asia-Pacific, and LAMEA.

The Europe vehicle analytics market is projected to 

grow at a CAGR of 23.8% during the forecast period. The Europe vehicle analytics market dominated the market during the forecast period, owing to the growing penetration of autonomous mobility and adoption of high-end technologies by most manufacturers to attain the changing consumer sentiments toward vehicle safety in the era of digitalization. 

The Asia-Pacific vehicle analytics market is the fastest growing and second-largest region. It is projected to reach USD 4615 million by 2030 growing at a CAGR of 27% during the forecast period. The vehicle analytics market is anticipated to experience exponential growth, owing to the collaboration of leading connected car companies and the adoption of the 5G network for connected cars. These technologies need data-driven technologies to perform the operations. In addition, wireless service providers are working to provide advanced wireless platforms for connected cars, which are expected to supplement the growth of the Asia-Pacific vehicle analytics market. 

North America is the third largest region. The North American vehicle analytics market is anticipated to experience significant growth due to the expansion of connected cars network and the growing penetration of data-driven technologies. In addition, leading telecommunication companies are investing in building the capabilities of connected cars. The North American vehicle analytics market is expected to grow considerably during the forecast period, owing to the need for gathering and processing data mainly for managing the fleet more efficiently, technological advancements, and increasing concerns over the safety of vehicles & drivers. 

Key Highlights

• The global vehicle analytics market was valued at USD 3200 Million in 2021 and is projected to reach USD 22995 million by 2027, registering a CAGR of 24.5% during the forecast period (2022-2030). 
• Depending on the application, the global vehicle analytics market is classified into dealer performance analysis, driver and user behavior analysis, predictive maintenance, safety and security management, traffic management, and usage-based insurance. The safety and security management segment was the highest contributor to the market and is estimated to grow at a CAGR of 24.8% during the forecast period. Big Data IoT technologies are equipped with technology systems that gather real-time data and suggest preventive action to avoid upcoming predictive issues on the road. For instance, connected IoT sensors collect real-time vehicle data, including crash insights and real-time traffic, alerting drivers about traffic conditions and road hazards and suggesting alternative routes. Increasing concern for safety and security for automobiles in the era of connected vehicles is expected to support the growth of the safety and security management segment.
• By deployment, the global vehicle analytics market is divided into on-premise and cloud. The on-premise segment was the highest contributor to the market and is estimated to grow at a CAGR of 22.8% during the forecast period. In the era of digitalization, the on-premises segment is expected to witness considerable growth in the vehicle analytics market by the end of the forecast period. Vehicle analytics for on-premise is associated with a vehicle analytics program operated and maintained through the end-users at their premises or area of operation. Changing consumer sentiment and continuous requirements for product development are the crucial driving factors supporting the growth of the on-premise segment in the near future.
• Based on end-user, the global vehicle analytics market is categorized into original equipment manufacturers (OEMs), insurers, automotive dealers, regulatory bodies, and fleet owners. The original equipment manufacturers (OEMs) segment was the highest contributor to the market and is estimated to grow at a CAGR of 26.4% during the forecast period. Vehicle analytics is utilized for quality improvement, logistics, and customer services, which enable the collection of crucial data points important for future pathways. Original equipment manufacturer deals with various vehicle analytics systems for the application of dealer performance analysis, driver and user behavior analysis, predictive maintenance, safety and security management, and usage-based insurance. Such factors drive market growth. 

Competitive Players

Market News

• May 2022 - Automotive services business Holman (formerly ARI Fleet UK) and FATEC Group, the largest independent fleet management company in France, have entered a new partnership to support fleet operators globally. The two firms can offer multi-national fleet operators a global fleet leasing and management solution, providing “the consistency and transparency organizations need to control operating costs better.”

Recent Developments

Global Vehicle Analytics Market: Segmentation

By Application

• Dealer Performance Analysis
• Driver and User Behavior Analysis
• Predictive Maintenance
• Safety and Security Management
• Traffic Management
• Usage-based Insurance

By Deployment

• On-premise
• Cloud

By End-User

• Original Equipment Manufacturers (OEMs)
• Insurers
• Automotive Dealers
• Regulatory Bodies
• Fleet Owners

By Region

• North America
• Europe
• Asia-Pacific
• LAMEA.

Segmentation