The auto industry is always at the forefront of technological trends. This is certainly the case when it comes to big data and some of the applications that stem from it.
Big Data Meets Auto Industry
Wearable devices, smart home appliances, sophisticated algorithms that power advanced B2B software ¦the internet of things (IoT), powered by big data, has many different application points. But when you study some of the more transformational intersections, it’s clear that big data has the power to fundamentally revolutionise the auto industry in unique ways.
In 2018, as things currently stand, we’re in a bit of an in-between phase. Much of the industry is still using the technology of yesterday. However, they are acutely aware of the innovations that are emerging and are strategically preparing to implement changes in the coming months. In other words, the technology is here, but the infrastructure for mass implementation and adoption is still being constructed.
As we stand in this transitional space, there are several exciting things happening. Let’s look at some of the hottest trends and expectations as they pertain to big data’s role in the auto industry.
1. Improved Car Buying
From the consumer side of things, the increased access to data in the car buying process is one of the more noticeable effects. Not only can customers reference Kelley Blue Book to understand the estimated value of a vehicle they’re interested in, but they can also access other reputable resources to find objective insights into the best-used cars, best electric cars, most reliable SUV’s, etc. Whatever a buyer is looking for, there’s data to support an informed shopping process.
2. Connected Cars
As consumers have experienced firsthand over the past few years, devices are becoming more connected. Phones, tablets, computers, and virtual assistants all interact together and share valuable information in real-time. New car models are getting involved in this trend as well “ and there is are multiple applications.
The end game is likely that automobile manufacturers will be able to update software remotely, allowing them to monitor and respond to engine performance, tech journalist Gary Eastwood writes. For example, if the vehicle is due for an oil change or running low on radiator fluid, the manufacturer will be able to inform the driver remotely. Personal errands will also get easier as you will be able to respond to emails, perform internet banking and pay bills on the way home from work.
3. Predictive Maintenance
Typically, most people practice reactionary vehicle maintenance. They notice that something is wrong and take their car in to get the problem fixed. While this is fine in some situations, it often means higher costs and a greater inconvenience.
With big data, predictive analytics will be able to foresee problems long before they happen and encourage the driver to schedule an appointment with their mechanic. Not only does this make repairs more cost effective, but it will also prevent a lot of untimely breakdowns on the side of the road.
4. More Accurate Insurance
The insurance industry is currently in a wait-and-see mode. It’s not yet clear how big data will impact the industry, but it’s certain that things are about to change.
In the future, the expectation is that connected cars will allow insurance companies to monitor driving behaviour and increase or reduce rates accordingly. It’s also possible that insurance companies will be able to review accident data from crashes to assign fault and reduce false claims.
With all of this data, insurance companies may be able to eventually provide one-on-one driving insurance, industry leader Datameer believes. As a result, this could increase incentives for drivers to drive safely. In turn, more drivers practising safe driving practices could make roadways safer for all drivers.
Big Data Means Big Changes
We’ve spent the past few years talking expectantly about how big data could impact the auto industry. And while we’re still waiting on total transformation, we’ve begun to experience some of the first fruits of this shift. From car buying and design to maintenance, insurance, and beyond, big data is leaving an indelible mark.
