Vehicle analytics market worth $3,637.4m by 2022
According to the new research report 'Vehicle Analytics Market by Application (Safety and Security Management, Traffic Management, Usage-Based Insurance), Component, and End-User (OEMs, Service Providers, Automotive Dealers, Fleet Owners, Regulatory Bodies, and Insurers) - Global Forecast to 2022', published by MarketsandMarkets, the vehicle analytics market is expected to grow from $1124.1m in 2017 to $3637.4m by 2022, at a Compound Annual Growth Rate (CAGR) of 26.5%.
Some of the prominent key players in the vehicle analytics market are:
- Intelligent Mechatronic Systems
- Harman International
- Teletrac Navman
- Agnik LLC
- Automotive Rentals (ARI)
The major driving factor for this market remains advancements in technologies, such as machine learning, Artificial Intelligence (AI), and predictive maintenance to enhance fleet management and increasing use of real time data collected from sensors, and Global Positioning System (GPS) tracking devices. Automotive players leveraging vehicle analytics to enhance customer experience and unprecedented advancements towards autonomous vehicles are the key opportunities that would fuel the growth of vehicle analytics market.
The traffic management application is expected to grow at the highest CAGR during the forecast period
With the connected traffic management systems offering digital road map of the city, this application is expected to be adopted significantly. Robust navigation systems would not only be helpful to the drivers in identifying the fastest route but would also help them to distinguish the most fuel-efficient route. Cab aggregators such as Uber and Ola are expected to leverage more of this application.
Moreover, with the increasing adoption of smart cities, real time mobility is expected to gain a substantial adoption. Real time analytics of data captured from sensors of other cars would be used in smart parking and other similar areas.
The on-demand deployment model is expected to grow at the highest CAGR during the forecast period
The on-demand deployment model makes use of the cloud to deliver solutions to the clients. Scalability and agility of cloud-based technologies are increasing the adoption of cloud-based vehicle analytics solutions. In the cloud deployment model, organisations do not have to deal with the complexities involved in integration, installation, configuration, optimisation, maintenance, and support, as these are in most cases managed or hosted by a third-party service provider.
North America is expected to dominate the vehicle analytics market during the forecast period
The vehicle analytics market is segmented based on regions including North America, Asia Pacific (APAC), Europe, Middle East and Africa (MEA), and Latin America. North America has always been a frontrunner in adopting new paradigms related to innovative technologies and disruptive practices.
The reason behind the early adopters is due to well-established and financially intensive economies and moreover the chief presence of mostly all the biggest conglomerates of the world such as IBM, Microsoft, SAP, and SAS Institute. Technology companies such as Google, Apple, and AT&T have all contributed to the growing US market. AT&T, the telecommunications giant, has contributed a fair share in the connected car ecosystem in the region.
The company added a whopping 2.7 million connected cars in the first three-quarters of 2015. The region propelled by the Electronic Logging Device (ELD) mandate, CSA Compliance, Safety, and Accountability (CSA), and Hours of Service Solution (HOS) revisions would be the key drivers for the massive adoption of vehicle analytics software and services in the region.