The global big data market in the automotive industry size was valued at USD 4,500 million in 2021. It is estimated to reach USD 15,800 million by 2030, growing at a CAGR of 17% during the forecast period (2022–2030). Adopting technology, applications, and services ranging from sensors to artificial intelligence to big data analysis is transforming the automotive industry. Consequently, the ecosystem is seeing a steady influx of new participants, leading to the continuous evolution of automobiles. Big data analytics enables the automotive manufacturing sector to gather data from ERP systems and combine data from various corporate functional units and supply chain participants.
The automobile industry is preparing for industry 4.0 with the emergence of IoT, a networked system, and M2M communication. Robots, RFIDs, barcode readers, and sensors are now commonplace on this industry's factory floor. Data generation points have drastically risen as a result of these gadgets. Moreover, the market is anticipated to be significantly impacted by the widespread adoption of big data analytics across several manufacturing industries.
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Increased Efforts from Multiple Stakeholders in Utilizing the Vehicle Generated Data
The global automotive industry is expected to observe a turnaround after a slump in sales during 2019, with a positive growth trend over the forecast period. The consumer propensity towards adopting connected vehicles is expected to influence the demand for technological instrumentations. The growing adoption of ADAS and connected cars, which incorporate sensors that generate a vast amount of data per vehicle, pushes the need for using this data for analytical purposes.
Governments worldwide are also looking to utilize vehicle-generated data for various purposes. For instance, by facilitating government access to vehicle-generated data for network operations, investment, maintenance, planning, and road safety, the National Transport Commission (NTC) is proposing regulatory solutions. Apart from this, various transportation and other vendors operating in the space are increasingly using vehicle telematics for data analysis. For instance, a study by Otonomo, the top platform for automotive data services, found that up to 77% of consumers are interested in a variety of new services based on connected car data.
These services include being warned of hazardous road conditions, navigation based on current traffic, early detection of necessary maintenance and repairs, suggestions for nearby available parking, and discounted insurance based on driving. Furthermore, in-vehicle-generated data is used for predictive maintenance, fleet management, tracking, vehicle usage, and other things that can be tracked and analyzed for driver behavior, vehicle condition, etc. Such developments are helping stakeholders increase their efforts in offering customized solutions and services for consumers.
Growing Installed-base of Connected Cars
The consumer propensity toward connected cars is increasing exponentially, and the number of connected car shipments and vehicles in use is also growing. Automotive manufacturers are increasingly offering solutions and developing services to cater to the growing connected cars market. For instance, in 2019, Ford introduced cellular vehicle-to-everything technology to its cars in 2022. Such developments are further enhancing the corresponding car space.
Apart from this, prominent vendors in the market are already offering various connected features, such as infotainment systems and connected platforms within the vehicle. For instance, in November 2020, Hyundai Motor Group announced the launch of NVIDIA DRIVE connected car infotainment and AI platform across all of its future Hyundai, Kia, and Genesis models. Such developments are expected to increase over the forecast period.
Privacy Issues and Laws on Vehicle Data Protection
There is a structured and neutral source for parties interested in in-vehicle data to determine their strategic (legal) position regarding access to and exchanging in-vehicle data. For the automotive industry, in-vehicle data collected by connected vehicles can be used to develop self-driving vehicles and smart cities, improve traffic management, and secure road safety. Also, there is an interest by various parties in in-vehicle data to navigate the complex and constantly evolving legal and regulatory landscape.
Emerging Applications in the Automotive Sector
The big data market in the automotive industry share is expected to grow exponentially in the future, mainly due to the emerging new applications in the automotive industry that are expanding the scope of the market. For instance, big data in the connected vehicle sector is expected to offer massive opportunities for automotive manufacturers in the future. The growing cloud adoption and innovation of new cloud services are also likely to fuel the adoption of big data in the automotive industry. According to Forbes, by 2020, the accumulated volume of big data increased from 4.4 zettabytes to roughly 44 zettabytes or 44 trillion GB. New generations of data-processing architectures will take on the big data challenge by enhancing storage methods.
Trends like Industry 4.0 and growing industrial automation adoption are expected to increase the involvement of the big data market among automotive vendors. For instance, industrial automation firms, like Rockwell Automation, can cut costs up to 90% with big data solutions. The big data services market will witness a rise in demand as autonomous/driverless technology gains momentum. Big data and analytics will play a vital role in the efficient functioning of this technology. Such factors contribute to market growth.
The global big data market in the automotive industry is segmented by application and region.
By application, the global big data market in the automotive industry is segmented into Product Development, Supply Chain & Manufacturing, Connected Vehicle & Intelligent Transportation, OEM Warranty & Aftersales/Dealers, and Sales, Marketing, & Others.
Product Development, Supply Chain, & Manufacturing accounts for the largest market share and is estimated to grow at a CAGR of 15.1% during the forecast period. Big Data is one of the manufacturers' main engines of productivity and efficiency in the contemporary technology-driven corporate climate. There has been a significant increase in the number of data points generated within the automobile industry as a result of the high rate of adoption of sensors and connected devices and the facilitation of M2M communication. To ensure the finished products' quality, manufacturers must monitor various factors. Big Data analytics has emerged as a powerful alternative to conventional approaches. These advantages fuel market expansion.
Connected Vehicle & Intelligent Transportation is the fastest-growing segment. Due to big data in the connected car business, automakers and application developers can create valuable information-driven goods for automobiles. The extensive range of functions and services connected car systems and third-party service providers can offer auto owners are made possible by accessing various sources and analyzing pertinent portions. Big data analytics has completely changed how drivers interact with their automobiles to enhance driver safety, car services, and the driving experience. Such characteristics aid in the segment's growth.
Is europe dominating the global big data market in the automotive industry?
By region, the global big data market in the automotive industry is segmented into North America, Europe, Asia-Pacific, and the Rest of the World.
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Europe accounts for the largest market share and is estimated to grow at a CAGR of 16.4% over the forecast period. Europe is the largest producer of motor vehicles in the world. It is home to the most famous automotive vendors, such as Mercedes, BMW, Volkswagen, Peugeot, Renault, and Audi. It attracts the most significant foreign investment in R&D, which drives innovation in the sector. Additionally, the French government supports the development of self-driving cars, intending to deploy "highly an "automated" vehicle" on public roads by 2022. The government also aims to establish a legislative regulation allowing autonomous public transport and the circulation of 3rd level autonomous cars. Such developments in the automotive industry in the region are significantly contributing to the growth of the market studied.
Asia-Pacific is estimated to reach USD 4,565 million by 2030, growing at a CAGR of 18%. This is attributed to the growing urban population and improved purchasing power. China has the largest population of car owners worldwide. In 2019, the Chinese Association of Automotive Manufacturers reported that Chinese automakers sold more than 25.76 million vehicles. Similarly, Nuance Communications Inc. announced that its GKUI smart ecosystem powered by ECARX, a technology business within the Geely Group, offers AI-enabled voice recognition for specific automobile models from Geely. The regional market is also driven by consumer demand for connected cars. Big data utilization in the region is rising due to rising uptake, increasing accuracy, and falling prices for sensors, cameras, and software.
North America occupies the third-largest market share. The primary factor contributing to the growth of big data in this region is the significant presence of technology providers. Automation empowers small American businesses to compete with deep-rooted rivals worldwide. The United States has one of the most influential automobile marketplaces in the world, and over 13 big automakers call it home. Automotive production has been one of the most significant revenue sources in the region, contributing to market expansion.
List of global big data market in the automotive industry suppliers profiled