PUBLISHER: IMARC | PRODUCT CODE: 1560977
PUBLISHER: IMARC | PRODUCT CODE: 1560977
The global vehicle analytics market size reached US$ 2.9 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 17.5 Billion by 2032, exhibiting a growth rate (CAGR) of 21.1% during 2024-2032. The market expansion is driven by the growing need to reduce congestion, optimize traffic signals, and improve overall transportation efficiency, increasing number of heavy-duty vehicles (HDVs), and rising demand for personalized driving tips and insights among vehicle owners.
Rising Demand for Electric Vehicles (EVs)
According to an article published on the website of the International Energy Agency (IEA), there were 14 million new electric cars registrations globally in 2023. To gather data on battery temperature, charge cycles, and overall health of EVs, vehicle analytics is highly preferrable. Reliance of EVs on battery performance is catalyzing the demand for vehicle analytics as there is a need for constant monitoring for efficiency and longevity of the battery. The prediction of battery failures or degradation enables timely maintenance needs and the optimization of battery usage. It is important for manufacturers and users to have insights into energy consumption patterns, as it helps them to extend the range and efficiency of EVs. During braking events vehicle analytics can optimize the amount of energy recaptured, which can help in enhancing the efficiency of regenerative braking. People are also preferring analytics as it can provide EV owners with personalized driving tips and insights to improve their driving efficiency. The real-time information provided by analytics about the availability of charging stations make is highly valuable among EV owners.
Growing Number of Heavy-Duty Vehicles
An article published in 2024 on the website of the United Nations shows that heavy-duty vehicle (HDV) exports represent a modest 3.6% of the global automotive trade's total value. The main focus of fleet operators is to maximize efficiency and productivity. For managing large fleets of HDVs, fleet operators rely on vehicle analytics to gather the insight on fuel consumption, route optimization, and maintenance schedules. Vehicle analytics is also capable of tracking and managing the utilization of HDVs, ensuring that assets are used optimally and reducing downtime. Due to the extensive usage of HDVs, they are subject to high wear and tear. It is very important to prevent breakdowns and reduce repair costs and vehicle analytics can predict maintenance needs based on data trends. Unplanned downtime is a serious problem for HDVs, as it can be costly for logistics and transportation. Vehicle analytics play a major role in minimizing these downtimes, which is responsible for the market expansion of vehicle analytics.
Development of Smart Cities
Smart cities are highly reliable on vehicle analytics as it can help in managing traffic flow more effectively by providing real-time data on traffic conditions. Besides this, reducing congestion, optimizing traffic signals, and improving overall transportation efficiency. To avoid traffic, analytics can also suggest alternative routes based on real-time traffic data. Tracking and managing vehicle emissions can be done by vehicle analytics, which is also crucial in supporting initiatives to reduce air pollution. To fulfill the aim of smart cities of reducing their carbon footprint, vehicle analytics is highly important. As per the IMARC Group's report, the global smart cities market is expected to reach US$ 4,633.9 Billion by 2032.
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on the component, deployment mode, application, and end user.
The report has provided a detailed breakup and analysis of the market based on the component. This includes software and services.
Due to its capacity for processing and analyzing vast amounts of data gathered from automobiles, software is an essential component of vehicle analytics. It serves as the foundation for complex algorithms that analyze this data and reveal information about driver behavior, vehicle performance, and operational effectiveness.
Services are an essential part of vehicle analytics because they help manufacturers, fleet managers, and car owners connect data insights to practical solutions. Large volumes of data are produced by sensors, telematics, and other sources in vehicle analytics, which offer insightful information about driver behavior, vehicle performance, and operational effectiveness.
On-premises hold the largest share of the industry
A detailed breakup and analysis of the market based on the deployment mode have also been provided in the report. This includes on-premises and cloud-based. According to the report, on-premises account for the largest market share.
Data security and adherence to industry rules are significant priorities for numerous firms, particularly those in the automotive, manufacturing, and fleet management industries. In businesses where legacy systems and specific operational needs must be addressed, this flexibility is especially prized. For performance-related reasons, some businesses favor on-premises installations since they can manage and optimize computer resources locally, guaranteeing steady and dependable analytics program performance.
Safety and security management represents the leading market segment
The report has provided a detailed breakup and analysis of the market based on the application. This includes dealer performance analysis, driver and user behavior analysis, predictive maintenance, safety and security management, traffic management, and usage-based insurance. According to the report, safety and security management represent the largest segment.
Due to its crucial role in guaranteeing the safety of drivers and passengers as well as the protection of priceless assets, safety and security management is the most popular application in the automotive analytics market. By means of functions like vehicle monitoring and automated crash alerts, these analytics not only improve preventive safety measures but also provide prompt emergency responses.
Original equipment manufacturers (OEMs) exhibit a clear dominance in the market
A detailed breakup and analysis of the market based on the end user have also been provided in the report. This includes original equipment manufacturers (OEMs), insurers, automotive dealers, regulatory bodies, and fleet owners. According to the report, original equipment manufacturers (OEMs) account for the largest market share.
Because of their crucial position in the automotive ecosystem, original equipment manufacturers (OEMs) make up the largest end user sector in the vehicle analytics industry. Ranging from design and manufacture to after-sales service and support, OEMs use vehicle analytics extensively throughout the vehicle lifecycle. Original equipment manufacturers (OEMs) can improve product design, streamline manufacturing procedures, and guarantee adherence to industry standards and regulations by using analytics to gain critical insights regarding vehicle performance, quality control, and customer usage patterns.
Europe leads the market, accounting for the largest vehicle analytics market share
The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Europe represents the largest regional market for vehicle analytics.
Automakers in Europe want to follow stringent regulations, and for this, they use advanced analytics to meet emissions regulations, which also make their vehicle safer while boosting productivity. Moreover, the acceptance of vehicle analytics for improving production procedures, vehicle performance, and customer experience is being driven by Europe's well-established automotive sector, which places a heavy emphasis on innovation and technology integration. As per an article published in 2024 on the website of the Association of European Automobile Manufacturers (ACEA), EU new car sales surged by almost 14%, accounting for 10.5 million units in 2023.
(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)