The merger of the automotive industry with smart technology has disrupted the automotive sector’s growth over the period time. The technologies are allowing adventurers and technologically challenged divers to navigate their vehicles smoothly.
As of a recent report by IndustryARC, the automotive data analytics market is projected to witness a significant growth of US$ 6.2 billion with the CAGR Compound Annual Growth Rate) of 16.75% during the forecast period of 2021 to 2026.
Over the last decade, the automotive industry has seen rapid development -thanks to big data analytics. Big Data is enabling the automotive industry to pace forward in several ways, such as enhancing the vehicle’s safety, integrating advanced technologies such as IoT, and increasing the runtime with the help of predictive maintenance.
The digital transformation has opened the doors of numerous opportunities for the automotive industry today. Moreover, with the digital revolution, the players of the industry are capitalizing on the latest trends. Following are the few points showcasing the growth of the automotive industry with the help of data analytics.
How Automotive Industry is Leveraging the Power of Data Analytics
1. Altering the Retailing Norms
The digital economy has become a major factor in the growth of the automotive industry. Automakers worldwide provide round-the-clock connectivity, several access channels, and a seamless digital experience across every engagement channel.
For instance, recently, Audi joined hands with Adobe to offer a seamless and smooth user experience. Rather than being a place to communicate, Audi’s website has become a place-to-visit for its long-time fans and new customers.
At present, the website provides 360 degrees of user experience by providing them current news, links to dealers, vehicle guides, and Audi Configurator – an interactive application that enables customers to design their own cars.
With these initiatives’ help, the company collects data on how customers react to their product and what areas they need to improve. As a result, the company can deliver better products and services to customers depending upon their taste. This is why automotive industries are focusing on adopting data analytics and smart technologies to enhance their business.
2. Better Predictive Analysis for Better Customer Satisfaction
A customer is most irate when facing an issue with its vehicle and is unable to receive proper attention. First, the vehicle is having a problem, and the problem is not addressed properly; this leads to negative growth of an automotive business.
With smart technologies, the auto industry can now analyze the data generated from hundreds of sensors installed in the vehicle. The companies can now collect, process, and project the data from each vehicle and present advanced solutions.
One such solution is predictive analysis. The sensors installed in the vehicle collect the data and analyze it based on a predefined pattern stored in its database. Upon any anomaly, the system can alert the customer, indicating a possible breakdown or any other issue that might occur in the vehicle.
With smart technologies such as data analytics solutions, automotive companies can rectify the customers’ problems and provide a satisfactory customer experience. As a result, data analytics shall help the automotive industry to grow exponentially in the coming years.
3. Lucrative Financing
Finance is the most critical factor that drives sales and growth of the automotive industry today. Especially, today when COVID-19 has confined several customers to their homes, the income quotient has fallen significantly. This has led to fewer customers approaching the automobile companies resulting in shorter sales.
Advanced data analytics allows automotive companies to develop unique finance plans for customers depending on their income, locations, preference. By analyzing the data, automotive companies can provide lucrative financing to the customers to attract them to their business.
Anblicks provides best-in-class consulting and integration services. The company focuses on integrating disparate data sources to fuel customers’ analytics & insights. The service matrix includes migration, data loading, monitoring, maintenance, and strategy implementation. With these services’ help, the automotive industry can smoothly integrate data analytics with its business and offer a better experience to its customers.