The vehicle analytics market is estimated at US$24.214 billion for the year 2019 growing at a CAGR of 14.31% to reach the market size of US$54.019 billion by 2025. 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 the data regarding the current situation of the vehicle along with knowing the behavior 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 propel the demand for these advanced solutions by the fleet owners, in order to have clearer insights about the journey and take further steps to maximise the revenue. Moreover, the rising adoption of usage-based insurance is also one of the prime factors which is expected to positively impact the market growth during the next five years. Furthermore, key players in the fleet management industry are investing heavily in the R&D to develop the latest and advanced solutions due to the growing requirements from their end-users 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 the 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 vehicle analytics market during the forecast period.
The growing vehicle leasing business majorly in the European region is also considered to positively influence the 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 fleet by the transport service providers which is thereby expected to add up to the demand for the vehicle analytics solutions and thus, add up to the market growth significantly.
The Vehicle Analytics market is segmented on the basis of offering, application 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 vehicle and medium and heavy motor vehicle.
Growing demand for usage-based insurance is driving the market growth
The rising popularity of usage-based insurance is one of the major prim factor which 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 behavior 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 a lesser number of miles traveled 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 remarkable 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 behaviors and can be well-aware of their driving patterns. Also, it will be easier for insurers to develop accurate insights regarding driving data in case 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 offering, the global vehicle analytics market is segmented as software and services. The software segment is anticipated to hold a decent share in the market due to the increasing adoption of vehicle analytics solutions globally. Software components are necessary for the organizations to monitor and manage the vehicle fleets and other real-time data which 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 is further leading to investments by big market players in the R&D for development of latest systems and software which is further expected to propel the growth of the market for the vehicle analytics software marker 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 expected to hold a noteworthy market share
Geographically, the vehicle analytics market is segmented as North America, South America, Europe, Middle East and Africa, and Asia Pacific. The European region is anticipated to hold a noteworthy share in 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 in the Offering of autonomous technology is considered as 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 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.
Prominent key market players in the vehicle analytics market include Microsoft, SAP, and IBM Corporation among others. These companies hold a noteworthy share in the market on account of their good brand image and product offerings. Major players in the vehicle analytics market have been covered along with their relative competitive position and strategies. The report also mentions recent deals and investments of different market players over the last two years.