Vehicle Analytics Market - Forecasts from 2024 to 2029

Vehicle Analytics Market - Forecasts from 2024 to 2029

The vehicle analytics market is evaluated at US$7.902 billion for the year 2022 and is projected to grow at a CAGR of 13.45% to reach a market size of US$19.116 billion by the year 2029.

Vehicle analytics is the methodical examination of data collected by automobiles to extract insightful information and enhance many facets of their functioning. Vehicle analytics helps stakeholders increase performance, simplify maintenance, and boost overall efficiency by using data from sensors, onboard computers, and outside sources like traffic conditions.

Numerous fields, including supply chain optimisation, linked automobile services, insurance telematics, fleet management, predictive maintenance, driver behaviour monitoring, and usage-based charging, use this discipline. Vehicle analytics uses a mix of hardware and advanced software platforms to understand large datasets using machine learning and other approaches. This helps decision-makers make well-informed decisions and promotes ongoing advances in the automotive industry.

MARKET TRENDS:

The vehicle analytics solutions allow the drivers and the fleet/vehicle owners to gather data regarding the current situation of the vehicle, along with knowing the behaviour of the vehicle’s driver throughout the journey. These solutions provide a detailed analysis of the performance of the driver and the vehicle throughout the journey.

Furthermore, the rising competition among the fleet owners is further anticipated to drive the demand for these advanced solutions by the fleet owners, to have clearer insights about the journey and take further steps to maximize the revenue. Moreover, the rising adoption of usage-based insurance is also one of the prime factors that are expected to positively impact the market’s growth during the next five years.

Furthermore, key players in the fleet management industry are investing heavily in R&D to develop the latest and most advanced solutions due to the growing requirements from their end-users, which is also anticipated to augment the market for vehicle analytics solutions during the coming years. The growing adoption of vehicle analytics solutions by big automakers globally is further expected to increase the demand and thus drive the growth of the vehicle analytics market during the forecast period. For instance, in March 2022, Daimler Truck set up a research and development centre in India to aid its intelligent truck operating system.

MARKET DRIVERS:

Growing demand for usage-based insurance is anticipated to drive the market’s growth.

The rising popularity of usage-based insurance is one of the prime factors which is anticipated to drive the adoption of advanced analytics in vehicles. This is because these provide real-time in-depth analysis of driver behaviour, making it easier for auto insurers to more accurately price premiums. Also, usage-based insurance provides consumers with the ability to control their premium costs by providing them with incentives in the event of reduced miles driven, and the adoption of safer driving habits.

Also, by utilizing auto-telematics, drivers can learn from their previous driving behaviours and be well aware of their driving patterns. Also, it will be easier for insurers to develop accurate insights regarding driving data in the event of an accident. This will further help in protection against false claims by the driver or the owner of the vehicle and would clarify what happened actually.
Increasing connectivity might impact vehicle analytics market growth.

The vehicle analytics market is being greatly impacted by the growing connection of automobiles, which is generating an abundance of real-time data that can be examined to enhance many facets of vehicle efficiency, safety, and performance. Vehicles are producing enormous volumes of data on location, speed, engine health, fuel consumption, and driver behaviour as a result of increased vehicle connectivity brought about by technology like telematics systems, onboard sensors, and Internet of Things devices. Vehicle analytics systems may use this data to offer insights into driver safety, fleet management, predictive maintenance, and operational optimisation.
The software segment is expected to grow at a decent CAGR throughout the forecast period.

Based on offerings, the global vehicle analytics market is segmented as software and services. The software segment is anticipated to hold a decent share of the market due to the increasing adoption of vehicle analytics solutions globally. Software components are necessary for organizations to monitor and manage their vehicle fleets and other real-time data that is collected for the preparation of reports.

The software consists of systems that convert the collected information into meaningful data, for instance, software for generating reports. However, the improvement in technology and growing requirements are further leading to investments by big market players in R&D for the development of the latest systems and software. This is further expected to propel the growth of the vehicle analytics software market during the forecast period.

Europe is anticipated to be the major regional market.

Geographically, the vehicle analytics market is segmented into North America, South America, Europe, the Middle East, Africa, and the Asia Pacific. The European region is anticipated to hold a noteworthy share of the market on account of the presence of key luxury automotive manufacturers in the region. Furthermore, European companies are spending heavily on autonomous and connected vehicles. Thus, the rapid spending on the Offering of autonomous technology is considered one of the prime factors for the growth of the market in the European region.

Furthermore, North America is projected to show good growth opportunities on account of the early adoption of technology and the presence of well-established infrastructure. The Asia Pacific region is projected to grow at a decent rate on account of rapid growth in the e-commerce industry coupled with a rising trend of ride-hailing services, which is significantly driving the demand for these solutions in countries like China and India.

Key Developments:

In December 2023, using virtualized and in-car demonstrations with various ecosystem partners, BlackBerry Limited will highlight the capabilities and scope of its BlackBerry IVY® connected vehicle data platform at CES 2024. By using in-vehicle AI-enabled processing and a developer-friendly platform, the BlackBerry IVY platform helps developers from a variety of sectors create and implement insights-enabled automotive services faster.
In February 2023, a global leader in digital business and IT services, NTT DATA, announced the creation of the Connected Car Data Initiative, which aims to lower CO2 emissions and traffic congestion.

Segmentation:

By Offering
Software
Services
By Application
Light Motor Vehicle
Medium and Heavy Motor Vehicle
By Geography
North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
United Kingdom
Germany
France
Spain
Others
Middle East and Africa
Saudi Arabia
UAE
Israel
Others
Asia Pacific
China
Japan
India
South Korea
Taiwan
Thailand
Indonesia
Others