Impact of Big Data in Automobile Industry

Let’s imagine you have decided to purchase a Car. What features will you exactly desire in your brand new Car? Maybe you want Wi-Fi connectivity, onboard computing tools, sensors, the best music system, advanced processors, safety alerts, etc. Isn’t it ?. In short, your dream car will have all the cool modern features.

Today, all the features which you desired for your car can be accommodated. But, a few years back, this was not the Scenario. There were no Wi-Fi, GPS, or other automatic features available in automobiles. We all are lucky to live in this modern age where we can experiment with new technologies and can use them as a daily part of our life.

Now, the question is what exactly is the technology which helps us in showing so many innovations with automobiles?

Absolutely, it is none other than Big data !!!

You will be surprised to know that “ About 90% of the new cars will have connectivity setups that will increase the importance of Big data analytics even more in automobile enterprises ”.

Automobile Industry is one of the top Industries that enjoy the benefits of Big data to the fullest. Big data analytics have helped the automobile industries to boost their efficiency in terms of sales and marketing.

Today, automotive innovation with electric and self-driving vehicles has completely changed the world. The automobile industry uses Big data analytics for everything from optimizing manufacturing to improving customer satisfaction.

Now, let’s explore the Big Data Applications in Automobile Industry.

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Big Data Applications in Automobile Industry

1. Supply Chain Management
2. Connected Cars
3. Automobile Financing
4. Predictive Analysis
5. Design and Production

1. Supply Chain Management

Generally, Automobile companies have to deal with massive amounts of components regularly. A large amount of revenue needs to be sanctioned for these departments. Therefore, a powerful company is the one that has the ability to manage its supply chain efficiently.

A robust supply chain management system is needed to obtain the overall efficiency of their organization. And the factors which decide the stability of any supply chain management are:

  • taking care of operations to make innovative strategies,
  • making optimized manufacturing processes,
  • dealing with market competition, healthy conversations, etc.

By integrating Big data and analytics in the supply chain, organizations can compare the products they require to the products available in the market. Comparing is based on different factors like costs, reliability, and quality of the components. Thus, organizations can choose between the best components in the market and the ones that would increase the organization’s profitability.

2. Connected Cars

Big Data analytics is now an essential part of the automobile industry. And undoubtedly, apart from mobile phones, cars are the second most embraced technological devices used today. The world is heading towards the era of smart vehicles. Users can experience more supportive or autonomous driving, fuel efficiency, safety alerts, and record the vehicle’s condition in real-time.

Connected cars can communicate bidirectionally with other systems that are outside the car LAN (Local Area Network). This feature allows the car to share internet access with devices both inside and outside the vehicle.

“ General Motors was the first automaker to bring the first connected car features to market with OnStar in 1996 in Cadillac DeVille, Seville, and Eldorado ”

3. Automobile Financing

Auto-Finance companies need to gather a massive amount of customer data. This data helps them to understand their customers in a better way. Auto-finance companies are analyzing this data to gain insights into customer’s financial history. This helps the company to judge the preferences of customers.

Companies are now able to provide more personalized financial schemes to customers according to their requirements. This will also help them to lead in business as now they would be able to offer differential services. It also helps them to keep away from fraud and defaulters.

Undoubtedly, Big data analysis gives auto-financing companies an upper hand over the other competitors in the market.

4. Predictive Analysis

One of the most important factors for a successful company is to predict customer problems in advance.

Predictive analysis can help the automobile industry to take the necessary actions and to ensure the better health of vehicles. It also increases customer satisfaction and costs control measures.

Companies can predict the defects that might occur in products that are under the warranty period and can replace them. This also ensures the efficiency of auto parts, which are vital for the particular vehicle. Thus, it helps to maintain the reputation of the company or organization in the market.

5. Design and Production

Data related to the real-world driving experience helps to improve basic parameters like safety, engine efficiency, fuel economy, and battery power in automobiles. These data include user preferences, repair analysis, and customer segments.

With the cohesion of predictive analysis, big data, and manufacturing simulations, enterprises can initiate improvement cycles to enhance the overall efficiency of their operations.

Thus, Big data turns the designing and manufacturing processes more efficient, informed, and aids in the delivery of a better transportation system.

Now, let us discuss two interesting Big Data Case Studies in Automobile Industry.

Big Data Case Studies in Automobile Industry

1. Maruti Suzuki

For the past 14 years, Maruti Suzuki has ranked number 1 on J.D.Power’s customer satisfaction list. It is considered as the epitome of how a company should treat its customers. The main reason for its customer retention policy is the “ Market to One” approach. This approach is all about providing a personalized experience to each of its customers.

Using this approach, Maruti Suzuki has seen an overall growth of 3% in the first seven months of adopting this approach. The backbone of “Market to One” is SAS, which is a software suite for advanced data analytics. SAS has enhanced the Maruti Suzuki to create a 360-degree view of more than 10 million of its customers.

2. General Motors

General Motors is the largest American automobile company. It has been the pioneer of Big Data and analytics in the automotive industry. General Motors cars have sensors, telematics as a center of attraction, which helps to generate huge revenue. Their cars are more secure and reliable as compared to other competitors.

Telematics is like a goldmine for General Motors as it provides them a huge saving of up to $800 per car. With the help of Big data, the concept of connected cars becomes possible. This concept saves a lot of dollars for General Motors.

Did you know, Big data could help to help to prevent accidents?

According to a study in 2018, In the United States, there were an estimated 718 accidents per hour. But by building a platform for onboard computing, accidents can be minimized. Through onboard computing, vehicles could learn to process and react to real-time changes on the road. For example, edge processing is used to collect and analyze sensor data for warnings used in lane departures.

It is used to give real-time alerts to drivers and passengers. Big data is also making safety features for vehicles, such as :

  • Automatic brakes
  • Collision warning
  • Backup cameras
  • Automatic distance control
  • Parking assist
  • Lane departure warning

A few years ago, only 5% of cars had advanced driver-assistance systems. The main reason for this is the higher costs of developing and installing computing resources onto vehicles. Another potential challenge for the same is the process of over-the-air software updates. These updates need to be downloaded, backed up, and checked for integrity.


“ Every company has big data in its future, and every company will eventually be in the data business.”
– Thomas H. Davenport

Technologically, the World is changing at a great pace. And Big data has played a vital role in changing the world. A lot has changed in the automobile industry. Changes can be seen in the design of automobiles, auto-parts designs, features, etc.

Nowadays, it is possible to assemble an automobile according to the specific demand of customers. Big data provides a new sight to the automobile industry, which helps it to show innovation to the world. In the coming future, Big data has a lot to serve in the automobile industries.

In the future, there will be more focus on improving the on-road performance of vehicle and driver experience.

Big data will surely bring more unexpected and amazing features in automobiles. Just wait and watch.

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