Vehicle Analytics refers to a set of solutions implemented on vehicle’s networks to gain vital insights about vehicle performance. Vehicle Analytics uses sensors, big data analytics, and artificial intelligence for delivering better services to the consumers with the data generated by the vehicles in moments. This has opened the opportunity for the companies to deliver exceptional customer experiences and even make their business processes simpler than ever.
Vehicle analytics applications range from the farmers to large scale fleet operators and have several benefits like increased safety, faster threat detection, vehicle tracking, and monitoring the driving behavior among others. The vehicle analytics market size is expected to grow at a significant rate owing to the growing demand for smart vehicles, increasing penetration and development of IoT and smart devices, migration towards the cloud-based storage of data due to its agility and scalability, and the rise in demand for predictive maintenance.
The vehicle analytics market is segmented based on deployment, application, and geography. On the basis of deployment, the market is divided into On-Premise and Cloud, the former holding a major share because of its widespread adoption across industry verticals. The latter has also started picking up the pace owing to the growing awareness and cheap storage cost.
By application, the market is segmented into predictive maintenance, warranty analytics, traffic management, safety and security management, driver and user behavior analysis, dealer performance analysis, infotainment, usage-based insurance and road charging. Predictive maintenance segment is hold a significant portion of vehicle analytics market share because of its ability to minimize equipment downtime by predicting the future failure point, so that it can be replaced, according to plan. For example, Airbus launched its “Skywise” data platform in 2017, a project that enables aircraft engineers to intervene at an early stage to detect errors and replace a component before it fails.
The market is divided into North America, South America, Europe, Middle East and Africa, and Asia Pacific based on geography. The Europe region holds the major share of the market due to the presence of major industry players along with the adoption of car analytics solutions and advanced electric cars across many countries. Also, the presence of necessary internet and communication infrastructure, favorable regulatory environment and government encouragement have led to the developments in the field.
The Asia Pacific region which consists of China, Japan, India, South Korea, among others is expected to register the highest growth which is favorable for the overall vehicle analytics market growth. The drivers to the growth in the region are rapid technology adoption and digital revolution in the region along with the development of communication infrastructure and increasing research & development activities. For example, China’s ambition to have at least 30 million autonomous vehicles within a decade (2018-2028) is expected to drive the demand for automobile analytics. The Chinese government has also been very active in technology adoption to help policy implementation. It is also expected that the country will emerge as the major user of Artificial Intelligence for surveillance over the next decade.
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