5 min read

Impact of Big Data on the Automotive Industry

With the increase in technology, the role of internet is increasing in our day to day lives. Now a great number of devices are connected to the internet. If we look back to past, there have been biometric wearables, home appliances, and audio-visual equipment. However, Automobile manufacturers are making a play to corner this market for their own needs.


An entirely new avenue of pursuit is opened by entrenching Wi-Fi into automobiles that involve vehicles communicating directly with the internet for GPS navigation, email, and music streaming.


For instance, by 2020, the connected car market report explains that connected car services will report for approximately $40 billion annually. These services consist of infotainment, navigation, fleet management, remote diagnostics, automatic collision notification, enhanced safety, usage-based insurance, traffic management and, lastly, autonomous driving. Big data is the root of this application as it increases the amounts of data which are collected from remote sensors. This information is being interpreted and leveraged to change the automotive industry into one of automation and self-sufficiency. So let us dig into the impact of Big Data on the automotive industry.


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1. Big Data and The Connected Car


It is not actually a big thing to incorporate big data into the automotive industry, as most modern cars already consist of the advanced technology with several sensors, on-board computing tools, and processors. The difference is that most of this information is produced and stored locally, with connected cars, the link to the internet will make sure that all applications and information is up to date and shared to the right track.


The end game is that probably the automobile manufacturers will be able to inform software remotely which allows them to check and react to engine performance. For example, if the vehicle has to go for an oil change or running low on radiator fluid, the manufacturer will be able to notify the driver remotely. There will be easier personal errands as you will be able to reply to emails, carry out internet banking and pay bills on the way home from work.


The gathering of Big Data is done from the multitude of sensors so the conclusion can be drawn regarding consumer behavior, for example, maintaining if there is a connection between the music people listen to and drive-through restaurants they frequent. These kinds of connections can leave an impact on advertising resource allocations and budgets, and thus the information collected from connected cars is invaluable on the business note.



Win concern with the fleet management, by using big data and connected cars, it will allow the management of vast numbers of vehicles by way of study of aggregated data. Sensors will notify management of speed, braking techniques, and route selection and thus they buy this the decision which is made can be passed on to the drivers. Better yet, having the application of smart sensor algorithms, the car itself will be able to propose suitable responses for actions calculated.


The maintenance of vehicles will become more pre-emptive than hasty, as controlling across all systems will clarify problems before they result in a collapse. All of this connives to keep vehicles in peak routine shape, increase performance and lower the costs.


From the interconnected motorways in the United States, and in other countries the considerate amount of information is raised from there. By making use of this data, particularly the information regarding construction, accidents, and intersections, the connected car can navigate more efficiently and engineers can plan road flows relating to real traffic patterns. The result is more well-organized and safer roads.


Insurance companies are prepared to swoop on this surfeit of big data. The industry can benefit from compiling custom insurance plans, monitoring driver behavior, performance, and safety by using the information gleaned from smart sensors, In some instances, these schedules are already in place with insurance companies offering discounts hinging on driving performance. Piecing together the events of an accident is more precise and less slanted than indication when completed through big data reconstruction. This will actually make customers drive more carefully and inevitably make the roadways a better place.


2. Big Data and Autonomous Driving


For autonomous driving to keep our roads safer there is undeniable potential, as 90 percent of the death toll on our roads is due to human mistakes. These vehicles to become an authenticity, they need data. Big data in fact. The vehicles are fully geared with sensors which measure everything from position, speed, direction, and braking; to traffic signals, pedestrian proximity and hazards. By making use of this data, the vehicle is able to come to a conclusion and carry out suitable responses devoid of human error.   The groundwork has already been set up for the autonomous vehicle with crash warnings and camera controlled reversing applications, as well as navigation governance, braking assistance and speed control already accessible in some higher-end models.



By leveraging this actual information, the way people drive is actually changing. Not only scheming the act of driving itself, but untimely warnings relating to imminent mechanical issues can stop failures and anticipate maintenance, saving both time and money.  To the more, the cars will be automatically synced to environmental conditions and surroundings if they are getting changed.


In the scene as more autonomous vehicles are entering, the Big Data will only get bigger and as a result, the potential for autonomous technology will rise which will actually lead to a vastly more data-centric automotive industry.


Fascinating Use Cases of Big Data for Automobiles


1. The Connected Car


If you own a vehicle which has internet and Wi-Fi, it will be a great help as the user can stay connected on the go and becomes a smart vehicle that offers supportive/autonomous driving, safety alerts, notifications about its surroundings and the record of vehicle health is also there. There is a number of technologies such as Android Auto, Car Play by Apple and Windows Embedded Automotive 7 that help keep cars connected are generating a lot of interest. It is estimated that 90% of new cars will have connectivity setup by 2020 which will result in making Big Data and Analytics an important part of the technology that auto OEMs cannot afford to miss. The features which are offered by OEMs for connected cars give a proof that it is, in fact, Big Data and Analytics that is all set to spearhead a technology revolution in the Automobile Industry.



2. Automated Insights for Design & Production


Data related to real-world driving experiences across their customer segments, the user preferences and repair analysis to understand the gaps in basic parameters like safety, fuel efficiency, battery life and other factors governing the overall performance is used by auto manufacturers. The statements collected are being used to design automobiles that are safe and modified according to customer preferences. Manufacturing simulations are giving an aid with repeated improvement cycles, with the cohesion of Predictive Analytics and Big Data. Assembly line observations can help make better the workforce and operational competence. Big Data is a great aid which turns Design and Manufacturing process more informed and helps deliver better transportation systems.


3. Predictive Maintenance, Automated Service Scheduling & Aftermarket


Using Predictive Analytics to foresee problems in vehicle parts could be the most intelligent use case of Big Data for the automotive industry to prompt timely actions and make sure better vehicle health. A logical prognosis also pre-empts any problem with the automobile and service schedules are opportune and automated. Most Auto OEM’s are giving a start to provide SaaS models where better solutions they are charging consumers with data collected


4. Automobile Financing


With Big Data, companies specialize in auto finance are studying data relating to the customer financial history and preferences. By clubbing this analysis with demographics and geography, organizations have begun with ideal financing schemes which are most suitable to customer requirements  which will lead to rising in business and ensuring safety from likely defaulters.


5. Supply Chain Improvements


Auto Manufacturers are making a comparison of costs, reliability and quality of different components within their supply chain to decide the best choice for their automobiles using Big Data and Analytics. In predicting demand even the big data is used thereby helping streamline the procurement process and making it effectual and cost-efficient.


6. Vehicle Sales & Marketing


When data collected is used for sentiment analysis and market segmentation, vehicle marketing becomes more meaningful. It is a great help in campaign management and other tactics for vehicle marketing Facts and figures which come out using Big Data gives insights to dealers and other partners allowing them to plan and increase sales.


Thus big data is playing a full role in an automated industry which is actually for its benefits.


Got a Big Data project in head? Then reach out to us for a consultation.


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