How Much Revenue Automotive Data Management Market Will Generate Globally Till 2030? |Grand View Research, Inc.

Posted by Mrudula Anil Karmarkar on March 2nd, 2023

The global automotive data management market size is anticipated to reach USD 8.05 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 20.3% from 2022 to 2030. The market is gaining popularity owing to the increasing technological advancements in vehicles and the rise of autonomous and driverless vehicles.

The COVID-19 pandemic significantly impacted the growth of the market. The supply chain disruption negatively impacted the sale, delivery schedules, and manufacturing, which led to a notable drop in the sales of automobiles in 2020, thereby leading to a reduction in automotive data management demand as it is dependent on the demand and sales of the automotive industry. However, the demand for automotive data management is on the rise since 2021 due to an increase in connected vehicles.

Mergers & acquisitions, partnerships, agreements, and expansions are the key strategies being adopted by the companies. For instance, in April 2021, Amazon Web Services, Inc. (AWS) and Continental AG entered into a strategic collaboration. Through this long-term collaboration, Amazon Web Services, Inc. serves as the preferred cloud provider and it will help Continental AG in developing CAEdge, a modular hardware and software platform.

The market is gaining popularity owing to the increasing demand for connected and autonomous cars worldwide. In addition, technological advancements such as the launch of AI-based applications, machine learning, big data, and the Internet of Things (IoT) are expected to accelerate industry growth. The COVID-19 pandemic affected the industry growth. In 2020, governments were forced to seal international borders and temporarily close markets, industries, and other public places due to the pandemic. The closure of manufacturing plants in the regions resulted in a loss of revenue and business, which financially impacted businesses.

The supply chain disruption negatively impacted the sale, delivery schedules, and manufacturing, which led to a notable drop in sales of automobiles in 2020, thereby leading to a reduction of automotive data management demand as it is dependent on the demand and sales of the automotive industry.  However, the introduction of the 5G, the Internet of Things (IoT), and Artificial Intelligence (AI) technology along with advanced technologies, such as machine learning and big data, is anticipated to provide automakers with tools for accurate automotive data. The market is expected to recover quickly and reach pre-COVID levels over the forecast period.

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The U.S. captured the largest share in North America in 2021 and is expected to retain its position over the forecast period. This is attributed to the presence of major market vendors such as Amazon Web Services Inc.; IBM; Microsoft; Sibros Technologies Inc.; Intellias; and National Instruments Corp. Also, the high adoption of advanced technologies and government schemes in the region is expected to support automotive data management companies.

The software segment accounted for the largest revenue share of over 75.0% in 2021 and is expected to continue to retain its position over the forecast period. This is attributed to the increasing demand and adoption of automotive software among end-users such as fleet owners, transportation and logistics companies, and automotive manufacturers. The information gathered from the automotive data management platform helps to track information such as fuel consumption, fleet visibility with telematics, and maintenance updates from other systems. By using this information, managers can analyze metrics and make decisions based on current figures. Based on component, the market has been segmented into software and services.

Automotive Data Management Market Report Highlights

• Based on components, the software segment held the largest share in 2021 and is anticipated to retain its dominance over the forecast period. This is attributed to consumers' rising demand for customized software solutions for a better driving experience. Moreover, the constant technological advancements in the automotive industry are creating a potential growth opportunity for software
• In terms of data type, the unstructured data segment is expected to expand at a CAGR of 19.3% in the forecast period. A large amount of unstructured data is captured by autonomous and non-autonomous vehicles through cameras, long-range and short-range radar, and LiDAR
• The structured data segment is expected to expand at the fastest CAGR in the forecast period. The growth can be attributed to the increasing demand for structured automotive data from fleet owners and automotive players to enhance the design and performance of driverless cars
• In terms of vehicle type, the non-autonomous segment held the largest revenue share of over 55.0% in 2021. The autonomous segment is expected to register the fastest growth rate over the forecast period. The growth of this autonomous segment can be attributed to the increase in the demand for driverless/autonomous cars and high investment by automotive manufacturers in R&D for driverless vehicles. In July 2020, dSPACE acquired Intempora, a renowned software company. This acquisition will help dSPACE in strengthening its comprehensive product line for autonomous driving
• The cloud deployment segment is anticipated to grow at the fastest rate in the forecast period. The growth of the cloud segment can be attributed to the increasing use of cloud systems in the automotive industry owing to its advantages such as easy and effective management, image data maintenance, flexibility, agility, and scalability
• In terms of application, the driver and user behavior analysis segment accounted for the largest revenue share of over 30.0% in 2021. Through driver and user behavior analysis, companies can discover the driving patterns of automobile operators and spot risky driving behavior to identify policy violations or unsafe practices
• Asia Pacific is expected to grow at the highest rate of 24.0% in the forecast period. The growth can be attributed to the increasing technological advancements in the automotive sector in the region. In addition, China is one of the largest automotive markets in the world. Increasing production and sales of electric vehicles and the adoption of autonomous cars in the region are expected to drive the market in the future

The service segment is expected to grow at a rate of 21.7% over the forecast period. Automotive data management service includes managed services and subscription-based services. The growing demand for customized value-added data management services among end-users such as automotive dealers, automotive manufacturers, and fleet owners is expected to propel the segment growth over the forecast period. Automotive data management services help in improving vehicle performance and provide scalability, insights, and accessibility to enterprises with centralized storage, thus helping them to enhance customer experiences.

The market has a fragmented competitive landscape as it features various global and regional market players. Leading industry players are adopting strategies such as partnerships, acquisitions & mergers, collaborations, and strategic agreements to survive the highly competitive environment and expand their business footprints globally. For instance, in March 2022, ACTIA and Sibros Technologies Inc. entered into a strategic partnership of software and hardware for ACU6 telematics platform. This collaborative solution is expected to enhance connected vehicle design and innovation for OEM automakers across motorcycle vehicles, heavy-duty trucking, and light passenger segments.

 Some prominent players in the global automotive data management market include:

• Sibros Technologies Inc.
• Azuga
• Microsoft
• SAP SE
• IBM
• Amazon Web Services, Inc.
• Otonomo
• AGNIK LLC
• PROCON ANALYTICS
• Xevo