Vehicle Analytics The Future of Connected Automobiles

Growing Demand For Usage-Based Insurance:

The growing popularity of usage-based insurance is driving the adoption of advanced analytics in vehicles. This is due to the fact that these provide a real-time in-depth analysis of driver behaviour making it easier for the auto insurers to more accurately price premiums. Also, usage-based insurance provides consumers an ability to control their premium costs by providing them with incentives in case of reduced miles driven, and the adoption of safer driving habits. This, in turn, would benefit the society as well where lesser number of miles travelled and safe driving habits will help in the reduction of the number of accidents and congestion, hence, reducing carbon emissions.

In addition, it will be easier for insurers to develop accurate insights regarding driving data in case of an accident. This will further help in providing protection against false claims by the driver or the owner of the vehicle and would clarify what really happened.

The Growing Competition Among Fleet Owners:

With the growing number of fleet owners globally, there is a rise in competition among them as well. This has further led to a decrease in their profit margins. Therefore, fleet owners are moving towards the adoption of advanced technologies like data analytics for cost reduction in maintenance and repair of their fleet. The adoption of vehicle analytics by the fleet owners has further improved their profit margins with the improvement in the fleet efficiency, reduction in idling time, leading to an overall improvement of their fleet output. By the use of performance data analytics, fleet owners find it easier to understand how to maintain their vehicles, which is leading to a boost in their vehicle performance, and thus has improved mileage as well, further helped in improving the efficiency and the maintenance costs are also reduced. Adoption of advanced technologies is providing an excellent opportunity to these fleet owners to stand out from the crowd impacting the market growth significantly during the forecast period.

Technological Advancements:

Technological advancements like AI, machine learning, and big data analytics are being developed for the comprehensive assessment of vehicle health and driver behaviour. This is providing an opportunity for the market to thrive at a fast pace during the coming years. For example, the use of predictive analytics is helping in knowing about the failures in a vehicle much earlier before it really happened. This provides the user with an option to replace the faulty parts of the vehicle and thus provides prevention from sudden breakdown.

The prediction is done on the basis of a vehicle's previous data. With the growing trend of connected cars, autonomous vehicles, and digitization, the automotive industry is also continuously evolving paving the way for the development of next-generation technologies in the upcoming years. However, the adoption of advanced technologies like AI and big data analytics is currently being practiced among the developed nations of the world only, this includes North America, Europe, and some parts of Asia, China, Japan, and South Korea. With time, demand and growing awareness regarding advanced IT technologies this will move to other regions of the world as well.

The vehicle analytics market is expected to reach a total valuation of US$46.102 billion by 2024. It offers a great opportunity for the solutions providers to improve their profits by investing in the latest equipment and systems. Vehicle analytics allows the driver or the vehicle/fleet owner to know what is going on with the vehicle and how the driver is behaving while his/her journey. The adoption of vehicle analytics solutions is expected to increase owing to increasing investments in the R&D by automakers to develop autonomous vehicles which are considered as the future of connected cars.

Knowledge Sourcing Intelligence is a market research and consulting firm based out of India. Steered by some of the industry experts, the company provides syndicated reports, custom research, and consulting services.