"Traditionally Big Data has focused on the ‘4 V’s’ – volume, velocity, variety and veracity"
SOUTHFIELD, Mich.--(BUSINESS WIRE)--Growth in the automotive industry’s highly integrated and highly
saturated connected car systems will yield approximately $14.5 billion
in revenue from automotive data assets by 2020, according to a connected
car study from IHS Automotive, driven by Polk.
In the study, Emerging Technologies: Big Data in the Connected Car,
IHS Automotive forecasts there will be 152 million actively connected
cars on global roads by 2020, a fraction of the estimated 18 billion
Internet of Things (IoT) devices on the planet. The study estimates
$14.5 billion of value from the OEM connected car landscape from a
variety of Big Data assets found in the connected car – diagnostics,
location, user experience (UX) /feature tracking, and adaptive driver
assistance systems (ADAS)/autonomy. Significantly, the technology growth
will drive sales, value-added services and customer experience in the
sector for years to come.
“Traditionally Big Data has focused on the ‘4 V’s’ – volume, velocity,
variety and veracity,” says Mark Boyadjis, senior analyst of
infotainment and Human-Machine Interface (HMI) at IHS Automotive. “But
without understanding the fifth ’V,’ value and the value proposition,
the collection of data from the connected car is literally a waste of
time. It is important to understand how data from intelligently designed
systems will drive billions of dollars of annual revenue between data
assets, analytics, and end-user services.”
IHS Automotive estimates conservatively that more than 480 terabytes of
data will be collected from the OEM connected car landscape in 2013
through millions of small data transmissions sent through more than 26
million connected cars. A combination of increased connected car sales
and a growing scale of information coming from connected cars will
result in the collection of some 11.1 petabytes of connected car data by
The rate at which the data are flowing from the connected car landscape
is also growing dramatically. The study says that about 30 terabytes of
data would be collected each day from the 152 million connected cars on
the road in 2020, or about 350 megabytes per second, compared to about
15 megabytes per second in 2013.
At present, the majority of connected car data that is collected is used
internally for diagnostics, location, speed, and vehicle status. By
2020, the IHS Automotive study expects four core categories of data to
be most important to automakers, suppliers, third parties and end-users
-- diagnostics, location, user experience/features, and adaptive driver
assistance systems/autonomy data. Because they will require so much more
volume and variety, ADAS/Autonomy is expected to be the largest and most
expensive data category in the future.
“The most important challenge this industry has in front of it is
organizing systems and defining roles in Big Data from the connected
car. Who owns the data, the pipe, and the analytics is still yet to be
determined, and will have to be before connected car data can be put to
work efficiently,” said Boyadjis.
To request a copy of Emerging Technologies: Big Data in the Connected
Car e-mail firstname.lastname@example.org.
IHS (NYSE: IHS) is the leading source of information, insight and
analytics in critical areas that shape today’s business landscape.
Businesses and governments in more than 165 countries around the globe
rely on the comprehensive content, expert independent analysis and
flexible delivery methods of IHS to make high-impact decisions and
develop strategies with speed and confidence. IHS has been in business
since 1959 and became a publicly traded company on the New York Stock
Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is
committed to sustainable, profitable growth and employs approximately
8,000 people in 31 countries around the world.