Market Trends of Automotive Data Monetization Industry
Favorable Advancements in the Field of Digital Transformation to Drive the Market
- The rise of advanced technologies and connected vehicles has led to a surge in vehicle data. Recognizing its potential, industry players are actively developing mechanisms and infrastructure for automotive data monetization. Their goal is to enhance their offerings and acquire a competitive advantage in the market.
- According to the International Energy Agency, the electric car market witnessed remarkable growth, with sales surpassing 10 million in 2022. Notably, the share of electric cars in total sales grew significantly in recent years, from 4% in 2020 to 14% in 2022. This trend continued in 2023 as over 2.3 million electric cars were sold in the first quarter alone, marking a 25% increase from last year. Forecasts suggested that sales would reach 14 million by the end of 2023, indicating a 35% year-on-year growth. Overall, electric cars were projected to make up 18% of total car sales for the year, further fueling the market's expansion.
- Companies are embracing data monetization for several reasons, including heightened compliance, increased profitability, and the ability to offer more valuable products and services. This move is exemplified by Salesforce, which, in November 2023, unveiled its Automotive Cloud innovations. These innovations aim to empower automotive companies with data and AI capabilities, enabling them to deliver personalized in-car experiences, streamline fleet management, and simplify lending and leasing processes. Salesforce's Automotive Cloud integrates various data sources, from telematics to customer records, to offer drivers real-time insights and personalized experiences. With a focus on real-time data, AI, and automation, Salesforce is paving the way for a future where software-defined vehicles become the norm.
- In a similar vein, CerebrumX Labs Inc., an AI-driven automotive data platform, joined forces with Guidepoint Systems in November 2023. Guidepoint Systems, a leader in telematics and SaaS solutions for the automotive industry, collaborated with CerebrumX to cater to the growing demand for data solutions in fleet management and dealership operations. This collaboration aims to optimize operations, enhance customer experiences, and ultimately boost profitability for these businesses.
- Overall, the automotive sector's digital transformation is revolutionizing data monetization. Advancements in IoT connectivity, AI analytics, and cloud computing are enabling automakers to extract valuable insights from vehicle data. This, in turn, opens up new revenue streams through services like predictive maintenance, personalized insurance, and targeted advertising.
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Asia-Pacific Expected to Register Major Growth
- With the surge in connected cars and advanced data analytics, the Asia-Pacific region has emerged as a key player in the global automotive data monetization market. Its robust automotive sector and rapidly expanding digital infrastructure make it a fertile ground for data monetization initiatives.
- Asia-Pacific is a hub for data monetization, housing both startups and major players like Tencent, Toyota, Hyundai, and Honda. These companies are investing heavily in data-driven solutions to enhance consumer experiences, streamline operations, and diversify revenue streams.
- In September 2023, Volvo Cars unveiled a tech hub in Singapore, a prominent global technology and advanced manufacturing center. This move aligns with Volvo Cars' ambition to lead in new technologies and produce solely electric vehicles by 2030. The tech hub, pivotal for data analytics, software, and advanced manufacturing, underscores Volvo Cars' strategic focus on these sectors.
- Leading the global connected car market are countries like Japan, China, and South Korea in the Asia-Pacific region. Toyota, for instance, has introduced the mobility services platform (MSPF), which integrates car data with mobility services, enabling targeted advertising, predictive maintenance, and enhanced navigation.
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