The automotive sector continues to face a growing amount of dynamic challenges and pressures ranging from costs, competition, market volatility, innovation and globalization, as well as, an increasingly informed and demanding consumer. Nevertheless, continuous technologies development is inevitably causing transformations within the automotive ecosystem and is undoubtedly one of the most important elements in boosting optimal productivity.
In addition to the increasing exponential in data derived from several sources, we also have connected vehicles, as well as autonomous, which currently contributes directly to this increase. According to Automotive World, it is estimated that connected vehicles can emit about 5TB of data in one hour.
Some connected vehicles already have advanced technology with hundreds of integrated sensors and processors that allow you to inform your customer immediately and remotely if is necessary change the oil or if a sensor fail. Increased connectivity will bring enhanced security features and analytical and diagnostic tools. According to McKinsey, by 2020, 98% of new vehicles will be connected.
Pursuant an SNS Telecom report, it is estimated that by 2020, connected cars services will be responsible for approximately US $40 billion annually. These services include navigation, fleet, management, remote diagnostics, automatic collision notification, enhanced security, usage-based insurance, traffic management and autonomous driving.
Autonomous vehicles use a wide range of data, using sensors to monitor the speed, direction, traffic signals, pedestrian proximity and dangers. Using generated insights, vehicles can give a proper response without human error. The automotive industry has also been working with Big Data and other technology combinations to make autonomous vehicles more popular.
A research conducted by Gartner in 2017 found that 55% of people who were interviewed (Americans and Germans), said they would not ride in a fully autonomous car. The sectors bet is that this consumer behaviour will change soon. The challenge, according to the biggest manufactures, mentioned by Gartner, is to demonstrate the advantages of car autonomy features: reduce accident rates, health care cost cuts, insurance and damage.
Also, autonomous vehicles will make cities smarter as they can reduce traffic congestion and increase fuel efficiency, for example.
It is expected then by 2030, up to 70% of new cars sold, may have automatic driving capabilities, with 15% being fully autonomous.
How to have a high performance in the Automotive industry with Analytics and Big Data?
In such a competitive market, where innovation is determinant to an organization’s success, it is time to think about the advantages of implementing a data-driven strategy in your organization, because through the right technology, all available data is grouped and worked to provide reliable real-time insights that will help you make assertive decisions and detected faults while the vehicle is still in the design stage.
Effective data analysis also allows organizations to meet challenges strategically, increasing the competitiveness and performance of your business.
Intelligent car production, value chain, marketing, quality and development are some of the most challenging areas for the automotive industry and benefit directly from the information gathered from several data sources.
But the industry´s adoption of Analytics and Big Data Solutions is not merely just data generated by vehicles and consumers, it also applies to superior machine control when it comes to designing, manufacturing and reviewing automobiles, being therefore crucial for the manufactures. By implementing these technology solutions, it is possible to keep tracking the design, work quality, production process and safety level, which allow to detect failures and reduce costs significantly. IoT technology facilitates product lifecycle management by accelerating engineering and production schedules. Vehicles connectivity aims to detect product defects, increasing their capacity and minimizing the risk of failure.
Also, at Marketing and Sales level, implementing Analytics and Big Data solutions offers tremendous value. Knowing better our customers, trends and buying habits, can add massive value to our strategy and drive sales by creating more target and impactful marketing campaigns according to the customer’s profile, thus responding to customers and potential costumers needs.
For effective fleet management, the major advantages focus on data extraction from on-road vehicles (location, car circumstances, fuel consumption costs, driver habits) as it allows to optimize routes, status monitor, reduce maintenance costs and improve vehicle performance.
Today, undoubtedly, technology is hand-in-hand together with the automotive sector, developing faster and smarter cars with less polluting engines. However, Data Analysis can also be crucial in customers relationships and on process optimization, making the organization more dynamic and profitable.
By adopting Data Analytics solutions to your organization, it is possible to stay one step ahead from the competition, predict more accurately customer behaviour, improving customer service and investing more precisely in new products or services. Thereby, the industry can follow what the competition is doing, understand what the consumer is looking for, the consumer feeling regarding the brand, and what are the most decisive factors in closing business hour.
What is certain is that automotive industry is changing and the future promises to be challenging. Are you ready for the new reality?