The global automotive data monetization market size was valued at USD 208.5 billion in 2021. It is expected to reach USD 3427.40 billion by 2030, growing at a CAGR of 41.9% during the forecast period (2022–2030). The core idea behind data monetization is to utilize data to acquire quantifiable economic benefits. To capture potential customers or clients entails selling the data gathered from the vehicles directly to a third party in a structured or unstructured form. Internal and external data monetization are the two subcategories of data monetization. The goal of internal data monetization is to improve internal processes such as the maintenance of equipment, the customer experience, and marketing activities.
On the other hand, external data monetization involves using data to extend an organization's product offering by using data-driven business models or services to generate new sources of revenue. In terms of its revenue model and the incorporation of emerging technologies such s connected cars, self-driving cars, Car-as-a-Platform, Mobility-as-a-Service, and many others, the automotive industry is undergoing a massive transformation. It is anticipated that a significant amount of data is produced each day due to the widespread adoption of such technologies and business models. As a result, the automotive industry will soon be one of the largest data generators in years to come.
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Increasing Infrastructural Development and Emerging Automobile Vehicles to Aid Growth
Autonomous vehicles, also called connected vehicles, can interact with intelligent streetlights to help traffic flow more smoothly and reduce the likelihood of congestion. This results in a large amount of data, which, once organized, can be used to generate meaningful insights, and prevent potential traffic congestion. As a result, the development of autonomous vehicles is expected to contribute to the expansion of the connected infrastructure, which is expected to, in turn, support the growth of the automotive data monetization market.
Increasing Transformation towards Mobility to a Positive Impact on Global Market
The shifting away from personal vehicle ownership and toward mobility as a service is a primary factor driving the market expansion. Mobility is becoming increasingly popular in transportation, shifting away from privately owned vehicles. On-demand transportation service providers such as Uber and Lyft, which fall under the umbrella of MaaS, offer customers reasonably priced rides. As a result, more people are using MaaS because it is not prohibitively expensive and it is not difficult to obtain. It is anticipated that the rising demand for MaaS will propel the market for autonomous vehicles in the years to come. It is anticipated that the high cost of autonomous vehicles will deter consumers from buying them right away as a private mode of transportation. On the other hand, it is anticipated that the availability of autonomous vehicles as a service will draw customers because it will save them both money and time. The growth of the automotive data monetization market will be encouraged by the increasing prevalence of MaaS and autonomous vehicles.
Managing Large Amount of Data in a Structured Format to Hinder Market Growth
The massive amounts of data produced every day and age present a significant challenge in their management and storage. Connected vehicles need the proper data storage and processing systems because they interact with other intelligent transportation systems, which produce a lot of data. The problem is not a scarcity of data; instead, it is improperly analyzing and organizing that data to draw meaningful conclusions, effectively prioritize autonomous vehicle data requirements, and ultimately bring about the operationalization of specific autonomous use cases. It is anticipated that the difficulties associated with data management will slow the expansion of the market.
Expansion of the Use of Internet-Connected Devices to Spur Market Opportunities
The rapid implementation of the Internet of Things (IoT) in transportation infrastructure worldwide has ushered in a golden age of opportunity for those involved in the industry and those who provide technology services. Deployment of Internet of Things sensors in public areas can significantly alleviate environmental problems and manage traffic congestion. Car parking, toll booths, and a network of intelligent streets and traffic lights are connected infrastructure enabled by the Internet of Things (IoT). These factors will result in more opportunities becoming available in the market.
The global automotive data monetization market has been divided into application and deployment type.
Based on application, the global market is divided into insurance, Predictive Maintenance, Government, and Mobility as a Service.
The insurance segment is anticipated to grow at the most rapid rate during the forecast period. The widespread adoption of risk-based pricing systems has been made possible by insurance companies' adoption of a system that allows them to effectively set pricing based on the risk they assumed by examining driver behavior and customizing policies. In addition, many insurance companies are leaning toward using vehicle analytics to monitor driver behavior and performance. To monetize their data and open the door for new business models that could primarily aid in effective revenue generation, they do this by adopting the "Pay-as-you-drive" model. As a result, a significant factor likely to push the insurance industry into the global automotive data monetization market is the increased adoption of vehicle analytics across many vehicles worldwide.
Based on the deployment type, the global market can be divided into: Cloud and on-premise.
The cloud deployment segment will lead the global automotive data monetization market during the forecast period. Due to improved scalability and more straightforward integration of new technologies like artificial intelligence, the internet of things, blockchain, etc., applications in the automotive industry are frequently used to process sensitive and confidential data. As a consequence of this, the cloud-based data monetization service has become the most critical solution for the vast majority of automotive OEMs around the world.
The global automotive data monetization market is segmented into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
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North America is expected to lead the global automotive data monetization market during the forecast period. This can be attributed to several factors, including the region's high penetration of autonomous and connected vehicles. This revenue growth is also attributed to increased vehicle safety norms and higher integration of IoT in the automobile industry. It is anticipated that the presence of major key players such as Tesla, Continental AG, and IBM Corporation, amongst others, will boost the market's growth shortly.
Europe will record significant growth in the automotive data monetization market because this region's automotive industry is rushing toward adopting connected vehicles. This region's automotive data monetization market is anticipated to be driven by several factors, including an increase in disposable income, government subsidies designed to encourage the development of electric and connected vehicles, and consumer awareness regarding vehicle safety.