The Global Automotive Data Monetization Market is projected to grow at a CAGR of 94% during the forecast period of 2022-27, says MarkNtel Advisors in their recent research report. The rising instances of fatality rates due to road accidents have driven the interest of national regulatory bodies such as the European Commission to mandate the deployment of Advanced Driving Assistance Systems (ADAS) in vehicles to improve driver safety. Consequently, this has led to an increase in the demand for the deployment of ADAS systems, thereby increasing the growth of the Automotive Data Monetization market. According to the American Bar Association (ABA), in 2018, motor vehicle crashes across the US accounted for over 1.8 million injuries & 33,000 fatalities.
Further, to minimize the fatality rates & to protect pedestrians, passengers & cyclists, in 2019, the European government issued a notice to mandate the deployment of ADAS in vehicles from 2022 to reduce 90% of fatalities & road injuries caused by human errors. According to the mandate, the EU requested the deployment of sensors, cameras, and data recorders to provide warnings in case of driver drowsiness, distraction, speed assistance, reversing safety, etc., to minimize accidents. Additionally, the increasing demand for predictive maintenance software in automotive to eliminate the vehicle breakdown cost & rising vehicle efficiency to improve the customer experience is expected to increase the demand for automotive data monetization.
Moreover, a boost in vehicle rental services across the countries of the Americas, Europe, Asia-Pacific, and the Middle East & Africa have proliferated the demand for advanced driving assistance systems to provide enhanced passenger safety & keep track of vehicle performance & route. Hence, this is expected to contribute immensely to the revenue growth of the automotive data monetization market globally.
Insurance to Gain Significant Market Growth in the Forthcoming Years.
Based on application, the market bifurcates into Insurance, Predictive Maintenance, Government, and Mobility as a Service. Among them, Insurance companies attained the largest market share in the Global Data Monetization market during the historical period, owing to the rising adoption of the pay-as-you-drive concept (PAYD) by the insurance firms to provide insurance benefits, such as reduction in premiums, etc.
Further, the insurance companies use driver behavior, speed limit, and frequency of brakes to calculate the vehicles' maintenance charges & future claims to determine prolific monetization strategies & escalate the revenue growth of the firms. As a result, this is expected to contribute immensely to the increased adoption of automotive data monetization software by insurance firms during 2022-2027.
North America to Acquire a Prominent Market Share During the Forecast Period
Geographically, North America has been experiencing significant market growth, owing to the rising adoption of smart automobile technologies such as the use of AI & IoT due to the benefits such as reduction in operational cost & enhanced driver & passenger safety. According to the American Automobile Association (AA), an average American spends nearly 17,600 minutes driving annually & produces over 380TB to 5,100TB of data in a year. This data can be utilized effectively by the automotive manufacturers & insurance providers as a means to enhance the modern automotive technologies & service requirements. Moreover, the government's increasing mandate to equip vehicles with advanced safety systems & to reduce human casualties such as road accidents would enhance the demand for automotive data monetization, reveals MarkNtel Advisors in their research report, "Global Automotive Data Monetization Market Analysis, 2022-2027."
According to MarkNtel Advisors, the leading players in the Global Automotive Data Monetization Market are Amazon Web Services, Microsoft Corporation, Continental AG, IBM Corporation, Herman International, Tesla Inc., Wejo Limited, Oracle Corporation, Xevo Inc., Tech Mahindra Ltd, Vinli Inc., SmartO, The Floow ltd, Otonomo Technologies, Caruso GmbH.
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