How the Automotive Industry (and Society) Can Reap $800 in Benefit per Vehicle from Big Data
Stratecast assessed the global market for Big Data and analytics at $ billion in 2014; and forecast it to grow to $ billion by 2019—representing a five-year cumulative average growth rate (CAGR) of %.2 Big Data—or, more to the point, the ability to leverage Big Data to enhance business operations—is having a major impact on every vertical in both the public and private sectors. One industry where Big Data appears poised to have a profound effect is the automotive industry.
By the year 2020, tens of millions of vehicles, across all world regions, will make relevant data sets available for OEMs—automakers, and other automotive manufacturers—to assimilate and convert into actionable insights. Big Data will bring about differentiation based on metrics such as brand awareness, level of digital engagement of customers, response times for various automotive processes, and vehicle configurability preferences. Frost & Sullivan asserts that automotive industry strategies driven (or at least informed) by Big Data and analytics will deliver approximate annual financial benefit—combining cost-savings and incremental revenue—of up to $ per vehicle.3 A bit further into our discussion, we will describe in detail where those savings will emanate from; but a good starting point is an overview of how things are changing in the automotive industry, and areas where Big Data can help support those positive changes.
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