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Big Data Market in the Automotive Industry

Big Data Market in the Automotive Industry: Information by Application (Product Development, Supply Chain & Manufacturing, Sales, Marketing), and Region — Forecast till 2030

Published At : 26 Aug, 2022
Updated At : 26 Aug, 2022
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Market Snapshot
Base Year:
2021
Study Period:
2020-2030
CAGR:
17 %
Fastest Growing Market:
Asia Pacific
Largest Market:
Europe

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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Market Dynamics

Global Big Data Market in the Automotive Industry Drivers

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.

Global Big Data Market in the Automotive Industry Restraint

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.

Data is becoming more and more valuable to OEMs. Therefore, they must comply with the General Data Protection Regulation (GDPR) by developing a solid privacy policy. Given that many people in the sector are still unfamiliar with current laws and internal procedures, it is essential to demonstrate a clear understanding of data protection, particularly the GDPR. Public misunderstandings may result from this. Therefore, these obstacles prevent the industry from growing.

Global Big Data Market in the Automotive Industry Opportunities

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. 

Segmental Analysis

The global big data market in the automotive industry is segmented by application and region. 

By Application Analysis

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.

Regional Analysis

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.

Big Data Market in the Automotive Industry Regional Analysis

Regional Growth Insights Request Sample Pages

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.

Competitive Landscape

List of global big data market in the automotive industry suppliers profiled

  • N-iX LTD
  • Reply SpA (Data Reply)
  • Phocas Ltd
  • iSoftStone
  • QBurst Technologies Private Limited
  • Monixo
  • Traffilog Ltd
  • Driver Design Studio Limited
  • Mayato GmbH
  • Sight Machine Inc.
  • SAS Institute Inc.
  • IBM Corporation
  • SAP SE
  • Microsoft Corporation

Recent Developments by Key Players

  • July 2022 - N-iX, a leading European software development company, received Amazon RDS Service Delivery Designation, the company's signature within its partnership with AWS. This recognition confirms that N-iX demonstrates proven customer success and follows best practices with Amazon RDS.
  • June 2022 - The Hellios Financial Services Qualification System certification for N-iX was successfully renewed (FSQS). The accreditation guarantees that N-iX conforms with the rules governing the financial industry, making it a reliable and secure supplier to financial institutions. The FSQS requirements for cybersecurity, ethical business, health & safety, and other areas were used to evaluate compliance.
  • May 2022- N-iX was included in the CRN®, a brand of The Channel Company, Solution Provider 500 list for 2022. Each year, CRN recognizes the top 500 solution providers with this list, which ranks the leading IT channel partner companies in North America by sales.
  • February 2022 - The PCI DSS compliance of N-iX was successfully renewed. The business has demonstrated its effectiveness as a Level 2 Service Provider for IT Support and Software Development. The Payment Card Industry Data Security Standard (PCI DSS) is a set of guidelines to guarantee a secure working environment for businesses that handle credit card data. N-iX was evaluated by IT Specialist LLC and found to comply with PCI DSS Version 3.2.1.
  • February 2022 - In their recently released study, "Now Tech: Modern Application Services, Q1 2022," Forrester, a leading worldwide research and advisory firm, included N-iX as one of the providers of modern application development services. Forrester presents an overview of 42 MAD service providers in the study based on their size and functionality.
  • February 2022 - According to the International Association of Outsourcing Professionals, N-iX is one of the world's top 100 consultants and service providers for outsourcing (IAOP). This is the sixth year that the IAOP has recognized N-iX as a dependable partner committed to offering complete customer service and upholding high industry standards. The business formerly belonged to the Rising Star category but was moved to the Leader category this year.

Global Big Data Market in the Automotive Industry: Segmentation

By Application

  • Product Development, Supply Chain, & Manufacturing
  • OEM Warranty & Aftersales/Dealers
  • Connected Vehicle & Intelligent Transportation
  • Sales, Marketing, & Others

By Regions

  • North America
  • Europe
  • Asia-Pacific
  • Rest of the World
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