Vehicle Analytics Market Analysis

Vehicle Analytics Market Overview:

Vehicle Analytics Market Size was valued at USD 1 billion in 2022. The Vehicle Analytics industry is projected to grow from USD 1.24 Billion in 2023 to USD 4.51 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 24.00% during the forecast period (2023 - 2030). Increased innovative business models can be generated by combining vehicle telematics data and analytic insights into customer and business data; Digitalization, The predictive analytics applications are the key market drivers enhancing market growth.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Vehicle Analytics Market Trends

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  Predictive Maintenance is boosting the market growth

  
  

As automakers are constantly assessing the performance of the vehicle part in real-time through sensors, it unlocks the opportunity for a predictive maintenance approach. Data can be pulled out from most vehicles of a given year and model, and that information can be compared with warranty repair trends using predictive Maintenance. These trending issues are carefully observed and addressed, limiting the fallout from large-scale recalls, minimizing unnecessary wrench time, and potentially saving lives. Moreover, vehicle breakdowns are one of the significant causes of road accidents. These breakdowns often occur due to human negligence in the timely service and Maintenance of vehicles. Predictive analytics solutions inform the owner about the potential maintenance requirement before a study can occur. Data collected from the various sensors fitted in a car assists in carrying out predictive maintenance tasks. Cognitive predictive Maintenance makes holistic, real-time, and deep insights possible. Also, every aspect of a manufacturer's processes can be connected through IoT, leading to smart and efficient decision-making. According to Appinventiv, the global 5G Internet of Things (IoT) endpoint Market CAGR is forecast to grow significantly in the connected car segment, from 0.4 million in 2020 to 19.1 million units in the current year. The 5G IoT installed base is forecast to grow to around 49 million this year.

Additionally, Digitization is pivotal in the automotive industry as it delivers detailed information about speed, distance, emissions, resource usage, driving behavior, and fuel consumption. This, coupled with the rising sales of vehicles worldwide, represents one of the key factors stimulating the Market's growth. The increasing congestion on city streets and sidewalks has resulted in numerous safety challenges, such as distracted pedestrians and rising bicyclists. Besides this, the vehicle analytics market revenue is also compelled by the increasing utilization of these solutions to keep naval, aircraft, and ground vehicles online and avoid costly last-minute repairs.

Vehicle Analytics Market Segment Insights:

Vehicle Analytics Component Insights

Based on Components, the Vehicle Analytics Market segmentation includes software services, professional services, deployment & integration, support & maintenance, and consulting services. The software services segment dominated the market because automobile manufacturers and transportation service providers increasingly use vehicle analytics software platforms to improve their product and service offerings. The vehicle analytics software platforms segment is expected to account for more than 74 percent of the Market by 2030.

May 2022: Automotive services business Holman and FTEC group, the largest independent fleet management company in France, have entered a new partnership to support fleet operators globally. The two firms can offer multinational fleet operators a global fleet leasing and management solution, providing “the consistency and transparency organizations need to control operating costs better.”

May 2022: Samsung Electronics, the world leader in advanced memory technology, and Red Ht, Inc., the world’s leading provider of open source solutions, today announced a broad collaboration on software technologies for next-generation memory solution. The partnership will focus on the development and validation of open source software for existing and emerging memory and storage products, including NVMe SSDs; CXL memory; computational memory/storage (HBM-PIM, Smart SSDs) and fabrics – in building an expansive ecosystem for closely integrated memory hardware and software.

Vehicle Analytics Deployment Insights

The Vehicle Analytics Market segmentation is based on deployment includes on-demand, on Premise. The on-demand category dominated the Market. On-demand services are less expensive than on–premises as they require a data center to store the data. Moreover, the cloud provides access to data from anywhere, unlike on-premises. Rapid growth in the adoption of cloud deployment is expected to propel the on-demand segment growth.

October 2022: IBM announced the software's new version, 4.0. IoT connected vehicle insights private is connected vehicle software that aims to improve the in-car experience by extending cognitive computing capabilities to connected automobiles. Modern vehicles are mobile data centers with onboard sensors and computers that can collect and retrieve vehicle data in near-real time. IoT-connected vehicle insights private allow the company to access, manage, and analyze large amounts of data from connected vehicles.

Figure 1: Vehicle Analytics Market, by Deployment, 2024 & 2030 (USD billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Vehicle Analytics Application Insights

Based on the application, the Vehicle Analytics Market data includes predictive maintenance, traffic management, warranty analytics, infotainment, usage-based insurance, road charging, dealer performance analysis, safety & security management, and driver & user behavior analysis. The predictive maintenance segment dominated the market. Predictive maintenance uses advanced analytics to identify and address possible vehicle faults and breakdowns before they occur. It also optimizes end-to-end servicing operations resulting in an overall improvement in vehicle reliability and performance. The safety and security management segment is used in today's vehicles are reliably delivers consistent performance over time without any system failures. Increased traffic accidents and worries about distracted driving are presenting possibilities for the growing use of car analytics in driver behavior analysis. By the end of 2030, the driver behavior analysis application segment is expected to occupy one-fourth of the global Market in revenue. The driver and user behavior analysis segment of IoT-connected vehicle insights provides microservices that users can use to gain valuable insights into driving behavior and vehicle usage patterns. The driver behavior component retrieves driver-related data from connected car devices recorded by the vehicle data hub (VDH).

Vehicle Analytics End User Insights

Based on end users, the global vehicle analytics industry includes travel & hospitality, service providers, automotive dealers, fleet owners, insurers, etc. Travel & hospitality has emerged as the leading segment efficiency, making them more relevant to current demand. The insurer is fastest – growing segment with a CAGR of 29.0% during the forecast period. The growing adoption of usage–based insurance UBI in developed countries is expected to fuel the segment growth. Moreover, increasing penetration of connected vehicles in underdeveloped and developing countries is expected to provide insurers with revenue and expansion opportunities. The service providers segment is also expected to hold the second–largest market share. An increasing number of service providers and expanding service portfolios drive segment growth.

Vehicle Analytics Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American vehicle analytics market area will dominate this Market due to the strong acceptance rate of connected cars, and e-mobility is propelling the market growth will boost the market growth in this Region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Vehicle Analytics Market Share by Region 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe's vehicle analytics market accounts for the second-largest market share due to the rapidly increased innovative business models that can be generated by combining vehicle telematics data and analytic insights into customer and business data. Further, the German vehicle analytics market held the largest market share, and the UK vehicle analytics market was the fastest-growing Market in the European Region.

The Asia-Pacific vehicle analytics market is expected to grow at the fastest CAGR from 2023 to 2030. This is due to the development in the aviation and defense industry. Moreover, China’s vehicle analytics market held the largest market share, and the Indian vehicle analytics market was the fastest-growing in Asia-Pacific.

Vehicle Analytics Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the vehicle analytics market, grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The vehicle analytics industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global vehicle analytics industry to benefit clients and increase the market sector. In recent years, the vehicle analytics industry has offered defense some of the most significant advantages. Major players in the vehicle analytics market, including SAP SE (Germany), Genetec (Canada), Microsoft Corporation (U.S.), IBM Corporation (U.S.), CloudMade (Ukraine), Intelligent Mechatronic Systems (Canada), Harman International Industries Inc. (U.S.), Teletrac Navman (U.S.), Inseego (U.S.), Agnik LLC (U.S.), Inquiry (U.S.), Automotive Rentals (ARI) (U.S.) and others are attempting to increase market demand by investing in research and development operations.

The International Business Machines Corporation, nicknamed Big Blue, is an American multinational technology corporation headquartered in Armonk, New York, and is present in over 175 countries. IBM services include Cloud, Mobile, Cognitive, Security, Research, Watson, Analytics, Consulting, Commerce, Experience Design, Internet of Things, Technology support, Industry solutions, Systems services, Resiliency services, Financing, and IT infrastructure. IBM announced the software's new version, 4.0. IoT connected vehicle insights private is connected vehicle software that aims to improve the in-car experience by extending cognitive computing capabilities to connected automobiles. Modern vehicles are mobile data centers with onboard sensors and computers that can collect and retrieve vehicle data in near-real time. IoT-connected vehicle insights private allow the company to access, manage, and analyze large amounts of data from connected vehicles.

Bayerische Motoren Werke AG, abbreviated as BMW, is a German multinational manufacturer of luxury vehicles and motorcycles headquartered in Munich, Bavaria. The corporation was founded in 1916 as a manufacturer of aircraft engines, which it produced from 1917 until 1918 and from 1933 to 1945. In 2022, the BMW Group sold nearly 2.4 million passenger vehicles and more than 202,000 motorcycles worldwide. The profit before tax in the financial year 2022 was € 23.5 billion on revenues amounting to € 142.6 billion. As of 31 December 2022, the BMW Group had 149,475 employees. BMW partnered with Amazon Web Services (AWS) to develop software to collect and analyze data generated by connected vehicles. The data collection would expedite the development of features to enhance software life cycle management.

Key Companies in the vehicle analytics market include

• SAP SE (Germany)


• Genetec (Canada)


• Microsoft Corporation (U.S.)


• IBM Corporation (U.S.)


• CloudMade (Ukraine)


• Intelligent Mechatronic Systems (Canada)


• Harman International Industries Inc. (U.S.)


• Teletrac Navman (U.S.)


• Inseego (U.S.)


• Agnik LLC (U.S.)


• Inquiron (U.S.)


• Automotive Rentals (ARI) (U.S.)

Vehicle Analytics Industry Developments

October 2022: BMW partnered with Amazon Web Services (AWS) to develop software to collect and analyze data generated by connected vehicles. The data collection would expedite the development of features to enhance software life cycle management.

May 2022: Red Hat, Inc., one of the global providers of open-source solutions, and General Motors announced a partnership to accelerate the development of software-defined cars at the edge. The businesses plan to build an innovation ecosystem around the Red Hat In-Vehicle Operating System, which provides a functional-safety certified Linux operating system basis for GM's Ultifi software platform's continued evolution.

Vehicle Analytics Market Segmentation:

Vehicle Analytics By Component Outlook

• Software Services


• Professional Services


• Deployment & Integration


• Support & Maintenance


• Consulting Services

Vehicle Analytics By Deployment Outlook

• On-Demand


• On-Premise

Vehicle Analytics By Application Outlook

• Predictive Maintenance


• Traffic Management


• Warranty Analytics


• Infotainment


• Usage Based Insurance


• Road Charging


• Dealer Performance Analysis


• Safety & Security Management


• Driver & User Behavior Analysis


• UAV based

Vehicle Analytics By End User Outlook

• Travel & Hospitality


• Service Providers


• Automotive Dealers


• Fleet Owners


• Insurers


• Others


• Commercial

Vehicle Analytics Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America