Vehicle Analytics Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Offering (Software, Services), By Application (Light Motor Vehicle, Medium And Heavy Motor Vehicle), And By Geography - Forecasts From 2022 To 2027
- Published : Oct 2022
- Report Code : KSI061611812
- Pages : 138
The vehicle analytics market is estimated at US$6.032 billion for the year 2020, growing at a CAGR of 13.60% to reach a market size of US$14.731 billion by 2027. The rapid adoption of technological solutions for fleet management purposes is one of the key factors propelling the growth of the market.
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. For instance, in September 2018, Proterra, one of the leading innovators of heavy-duty electric transport, introduced the latest APEX™, a vehicle intelligence system used in heavy-duty transit fleets for its customers. Similarly, the growing adoption of vehicle analytics solutions by big automakers globally is further expected to anticipate the demand and thus drive the growth of the vehicle analytics market during the forecast period. Further in March 2022, Daimler Truck set up a research and development centre in India in order to aid its intelligent truck operating system.
The growing vehicle leasing business, majorly in the European region, is also considered to positively influence market growth. Furthermore, the high adoption of public transport services in the major developed and developing economies of the world is further leading to the expansion of fleets by the transport service providers, which is thereby expected to add to the demand for vehicle analytics solutions and, thus, add up to the market growth significantly.
The Vehicle Analytics market is segmented based on offerings, applications, and geography. By offering, the market for vehicle analytics is segmented into software and services. By application, the vehicle analytics market is segmented into light motor vehicles and medium and heavy motor vehicles.
Growing demand for usage-based insurance is driving the market’s growth
The rising popularity of usage-based insurance is one of the major prime factors which is driving 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.
This, in turn, would benefit society as well where a 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. Furthermore, the Usage-Based Insurance Market is anticipated to grow remarkably at a CAGR of 34.78% from 2019 to 2024 (Source: Knowledge Sourcing Intelligence). Also, by utilizing auto-telematics, drivers can learn from their previous driving behaviours and can 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.
Software 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 which is further expected to propel the growth of the market for the vehicle analytics software market during the next five years. The services segment is anticipated to grow at a notable CAGR during the next five years as the growing adoption of these solutions is further propelling the demand for various services.
Europe is expected to hold a noteworthy market share
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.
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.
- September 2022: Daimler, an OEM from the Indian automotive industry came into a partnership with IIT Madras in order to set up an incubation cell for technological advancements and future mobility solutions.
- June 2022: BMW invested EUR 300 million to set up a testing plant in Sokolov for its autonomous vehicles and assistance systems.
COVID-19 Impact on Vehicle Analytics Market
The COVID-19 outbreak has impacted the vehicle analytics market negatively due to the decreasing demand from the automotive sector. The reduction in demand for this sector can be attributed to the economic slowdown of several countries across the globe. This economic slowdown especially during the initial phases caused the demand to fall very short for the automotive due to people having low disposable incomes. For instance, in China, sales fell down by 71% in February and by April, the US and Europe experienced a plunge of 47% and 80% respectively. This automatically decreased the demand for this technology, leading to declining in the market.
Vehicle Analytics Market Scope:
|Market Size Value in 2020||US$6.032 billion|
|Market Size Value in 2027||US$14.731 billion|
|Growth Rate||CAGR of 13.60% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments Covered||Offering, Application, And Geography|
|Regions Covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies Covered||SAP, Genetec Inc., Microsoft, IBM, Intelligent Mechatronic Systems, Inc., HARMAN International, Teletrac Navman US Ltd, Inseego Corp., Agnik LLC|
|Customization Scope||Free report customization with purchase|
- By Offering
- By Application
- Light Motor Vehicle
- Medium and Heavy Motor Vehicle
- By Geography
- North America
- South America
- United Kingdom
- Middle East and Africa
- Saudi Arabia
- Asia Pacific
- South Korea
- North America
Frequently Asked Questions (FAQs)
1.1. Market Overview
1.2. COVID-19 Impact
1.3. Market Definition
1.4. Market Segmentation
2. Research Methodology
2.1. Research Data
3. Executive Summary
3.1. Research Highlights
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.4. Industry Value Chain Analysis
5. Vehicle Analytics Market Analysis, By Offering
6. Vehicle Analytics Market Analysis , By Application
6.1. Light Motor Vehicle
6.2. Medium and Heavy Motor Vehicle
7. Vehicle Analytics Market Analysis, By Geography
7.2. North America
7.3. South America
7.4.3. United Kingdom
7.5. Middle East and Africa
7.5.1. Saudi Arabia
7.6. Asia Pacific
7.6.3. South Korea
8. Competitive Environment and Analysis
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrativeness
8.3. Mergers, Acquisitions, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix
9. Company Profiles
9.2. Genetec Inc.
9.5. Intelligent Mechatronic Systems, Inc.
9.6. HARMAN International
9.7. Teletrac Navman US Ltd
9.8. Inseego Corp.
9.9. Agnik LLC
Intelligent Mechatronic Systems, Inc.
|Report Name||Published Month||Get Sample PDF|
|Cloud Analytics Market Size & Share: Industry Report, 2021 - 2026||Aug 2021|
|Vehicle Surveillance System Market Size: Industry Report, 2022-2027||Nov 2022|
|Multichannel Analytics Market Size: Industry Report, 2021-2026||Sep 2021|
|Flight Management System Market Size: Report, 2019 - 2024||Apr 2021|
|Identity Analytics Market Size & Share: Industry Report, 2019-2024||May 2021|