Data Monetization is a technique of utilizing data to obtain quantifiable business gains. This technique generally deploys internal or indirect methods to make informed decisions, measure overall business performance, and strategize future growth roadmap. With the rising launch of autonomous vehicles, and soaring sales of Electric Vehicles (EV), the demand for data monetization in the automotive sector is growing significantly worldwide.
The Global Automotive Data Monetization Market is projected to grow at a CAGR of 94% during the forecast period, 2022-27. The increasing use of data monetization tools such as Inzata, etc., by automotive manufacturers & service providers to effectively determine the performance of their products & services, which could aid in corrective maintenance, has made a significant contribution to the global demand for automotive data monetization. Other factors contributing to the growth of the Global Automotive Data Monetization Market include the rising mandates by the European Union & the US government to implement Advanced Driving Assistance Systems (ADAS) such as sensors, cameras, data recorders, etc., to eliminate the overburden of mortality caused by road accidents. According to the American Bar Association (ABA), the total number of motor vehicle crashes as a result of poor driving behaviors in the US accounted for about 1.8 million injuries & 33,000 fatalities in 2018.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Regions Covered||North America: US, Canada, Mexico|
|Europe: Germany, The UK, France, Italy, Spain, Rest of Europe|
|Asia-Pacific: China, Japan, South Korea, India, Australia & New Zealand Thailand|
|South America: Brazil, Rest of South America|
|Middle East & Africa: UAE, Saudi Arabia, Turkey, Rest of Middle East & Africa|
|Key Companies Profiled||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|
|Unit Denominations||USD Million/Billion|
Additionally, the European Union 2019 reported around 22,800 fatalities caused by motor vehicle accidents in Europe. Therefore, to reduce mortality rates & protect pedestrians, passengers, cyclists, drivers, etc., the European Union has issued a mandate for the deployment of ADAS in vehicles beginning in June 2022, intending to reduce 90% of fatalities & road injuries resulting because of human error. Further, with the deployment of the Advanced Driving Assistance System (ADAS) to monitor on-road driver & vehicle behavior & monetize the data to promote industry benefits such as insurance premiums, predictive maintenance, automotive performance enhancement, and so on, the demand for automotive data monetization is expected to grow in the coming years.
Moreover, the increasing penetration of mobility-as-a-service providers such as Uber, Ola, and others to cater to the emerging demand for transportation has facilitated the need for Advanced Driving Assistance Systems to provide enhanced passenger safety & keep track of vehicle performance & route. These factors are expected to lead to the growth of the Global Automotive Data Monetization Market during 2022-2027.
Impact of Covid-19 on the Automotive Data Monetization Market
The COVID-19 pandemic in 2020 impacted almost every industry globally, and the centralized global automotive supply chain also got severely disrupted by the sudden lockdown & shutdown of production plants. Moreover, the lockdown imposed by the government resulted in a temporary shutdown of manufacturing units, reduced import & export orders, non-availability of skilled workers, and delay in production.
Furthermore, the relaxation in trade restrictions & re-initiation of automotive manufacturing activities across North America, Asia-Pacific, and Europe resulted in a significant increase in the demand for semiconductors, hence leading to a global chip shortage in the automotive industry. This prompted delays in automotive production activities & extended the launch of next-generation, high-end passenger vehicles. For instance:
However, with the rising initiatives of the government of the US, India, etc., to promote research and production of chip technology to meet the needs of domestic & international automakers, the automotive monetization market is expected to grow at a lucrative scale in the next few years.
Based on the Application:
Of them all, the Insurance application captured a major market share with around 59% CAGR in the Global Automotive Data Monetization market during 2017-21. The market growth imputes to the wider adoption of a risk-based pricing system by the insurance firms that allow the firms to set effective pricing based on the risk they assumed by analyzing the driver behavior & customizing policies. Moreover, the rising inclination of the insurance firms toward using vehicle analytics to track driver behavior & performance by adopting a ‘Pay-as-you-drive’ concept to monetize their data & pave the way toward new business models that could primarily help in effective revenue generation.
Hence, the extensive use of vehicle analytics by the growing number of vehicles across the globe is a dominant factor that would derive a positive trend in the Global Automotive Data Monetization market from insurance during 2022-2027.
Based on the Deployment Type:
Among the two, the Cloud deployment captured a considerable share in the Automotive Data Monetization market during 2017-21 and is expecting around 66% CAGR during 2022-27. The cloud-based data monetization services are adopted mostly for automotive applications that involve sensitive & confidential data processing. Furthermore, these services held the largest market share in 2021 due to better scalability & smoother integration of new technologies like AI, IoT, Blockchain, etc. As a result, the cloud-based data monetization service is the key solution for most automotive OEMs worldwide. For instance:
In addition, during 2020, the Covid-19 pandemic fueled the need for cloud-based services across various industries, and the automotive industry was no exception. Moreover, the rising number of connected cars & growing sales of autonomous vehicles have resulted in a swift adoption of the cloud in the automotive industry.
Geographically, the Global Automotive Data Monetization Market expands across:
Of all the regions globally, North America has been portraying a noticeable market growth since 2017 due to the rising use of complex & smart automobile technologies in the US & Canada. The United States completely dominated the regional market, with the market share exceeding 74% in 2021. Besides, North America held the largest market share in 2021, owing to the increasing demand for connected cars, the adoption of IoT in the automotive sector, and various government initiatives for vehicle safety norms.
In addition, the mounting deployment of the Advanced Driver Assistant System (ADAS) in vehicles across the US as a means to minimize human causalities & offer passenger & drivers safety with the deployment of advanced sensors, cameras, and voice recorders is anticipated to boost the growth of North America Automotive Data Monetization market in the forthcoming years.
Recent Development by Leading Companies
Key Driver: Booming Worldwide Popularity of Connected Cars
The growing demand for the Advanced Driving Assistance System (ADAS) to assist drivers with safe functionality & reduce car accidents has been registering an exponential growth over the past couple of years. Government regulations in various European & North American countries regarding the adoption of ADAS in cars are driving the Global Automotive Data Monetization market. For instance, an Anti-Locking Braking System (ABS) has been made mandatory for all commercial vehicles in Europe & the US. Furthermore, the rollout of the 5G network is likely to flourish the procurement of autonomous vehicles, which, in turn, would also contribute to the overall market growth.
Moreover, leading automakers have started focusing on data monetization throughout the connected vehicle life cycle. Therefore, this frontier has opened new revenue streams in the form of monthly subscriptions for premium connectivity services, paid over-the-air (OTA) upgrades, etc. Hence, all these aspects would play a crucial role in driving the Global Automotive Data Monetization market during 2022-2027.
Possible Restraint: Rising Concerns over Increasing Cases of Cybersecurity
One of the most significant risks in the digital automotive industry is a lack of cybersecurity expertise, which is required for car data monetization. The purposeful cyber-attack on cars & buses that compromises sensitive information or risks the safe operation of vehicles could negatively impact the growth of the Global Automotive Data Monetization Market during 2022-27. Additionally, the concerns regarding the mounting usage of sensors & other IoT-based solutions that require periodic upgrades are always on the radar of cyber miscreants.
Hence, securing these platforms & solutions requires consistent expenditure, which is another crucial aspect that could restrain the Global Automotive Data Monetization market from expanding in the coming years.
Market Opportunity: Growing Integration of Blockchain technology in Automotive Units
The rising inclination of automotive manufacturers such as Bayerische Motoren Werke AG, and General Motors, among others, to integrate blockchain technology in vehicles for the manufacturing of advanced autonomous vehicles has increased the demand for automotive data monetization solutions. Furthermore, the increasing demand for connected vehicles, as well as enhanced data security & reliability, coupled with advanced telematics capabilities, are predicted to increase the demand for automotive data monetization to track & process vehicle data for further automotive technology enhancements.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Global Automotive Data Monetization Market is projected to grow at a CAGR of around 94% during 2022-27.
A. The Insurance sector is anticipated to emerge as an area of remunerative opportunities for the leading players in the Global Automotive Data Monetization Market during 2022-2027.
A. The rising demand for autonomous vehicles, coupled with the integration of IoT solutions like automotive cockpits, augmented reality solutions, etc., into vehicles, are expected to create new business horizons for the Global Automotive Data Monetization Market in the coming years.