How is Big Data Revolutionizing the Automobile Industry?

Jul 30,2021 by Admin

Change is the law of nature, and so is technology. We all see how technology affects our lives on a daily basis. Whatever was popular a decade ago is no longer relevant. For example, when we used to go out of town for vacation, we relied entirely on roadside vendors and Auto Drivers to guide us to our destination. Today, however, we have an automated system called GPS in cars that allows us to locate our destination without relying on outsiders. And with that, our fear of being misled by our destination has nearly vanished.

Do you ever wonder about the technology that powers a GPS?

Yes, you got it right… It is Big Data! 

The automotive industry is being revitalized by Big Data. The use of Big Data is no longer limited to the IT industry. Today, the automobile industry is one of the industries that has benefited the most from Big Data and analytics, among other sectors. 

Here in this post, we’ll discuss how Big Data and Analytics are reshaping the automotive industry. 

What is Big Data? 

Big Data is a term that refers to the large volume of data – both structured and unstructured – that a business faces on a daily basis. However, it is not the quantity of data that is important. What organizations do with that data matters! Big Data can be mined for insights that eventually lead to better decisions and strategic business moves.

However, it is difficult or almost impossible to process large amounts of data using traditional methods. And that’s when Big Data consulting services come into the picture. Big Data analytics companies assist you in collecting and analyzing data from various sources, including business transactions, smart (IoT) devices, industrial equipment, social media, and more.

The method of acquiring and storing large amounts of data for analytics has been around for a long time. Only a year after coining the term Web 2.0, Roger Mougalas of O’Reilly Media coined the term Big Data for the first time in 2005. It refers to a large volume of data that is nearly impossible to manage and process with traditional methods. 

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Now it’s time to dive into the topic – Big Data in the Automobile Industry.

Big Data in Automobile Industry

We live in a dog-eat-dog world, whether you like it or not, and the automobile industry is no exception. To thrive in today’s competitive world, staying up-to-date is indispensable. Automobile companies, like other industries, must upgrade on a regular basis to have a competitive edge.  And Big Data analytics give them the ability to stay ahead of the competition.

Applications of Big Data in the Automobile Industry

Big Data is helping automobile companies advance in myriads of the ways, here are some of them:

  1. Supply Chain Management
  2. Automobile Financing
  3. Connected Cars
  4. Predictive Analysis

1. Supply Chain Management

Supply chain management is an integral part of the automotive industry. Automobile companies deal with a vast number of components on a regular basis. And to have a robust supply chain management system is imperative for automobile manufacturers.  

By incorporating Big Data and analytics into their supply chain, automakers can compare the products they need to various other products on the market based on various parameters such as cost, component quality, and durability. As a result, they would choose between the best components on the market and those that will increase the organization’s profitability.

2. Auto-Financing

Auto-Financing is one of the largest industries in the world. Auto finance companies amass vast amounts of customer information. This data can help them better understand their customers, but the sheer volume prevents them from analyzing it and acting on it.

However, incorporating Big Data into their systems allows businesses to gain insights about their clients and provide them with more personalized financial plans that are tailored to their specific needs. Not only that, but Big Data analytics assist auto-finance companies in generating more leads, having an edge in the industry, and avoiding frauds and defaulters. As a result, auto finance companies must hire professional Big Data analytics services.

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3. Connected Vehicles

Another important application of Big Data analytics is connected vehicles. A connected car is one that can communicate with other systems outside of the vehicle in both directions. This enables the vehicle to share internet access and thus data with other devices both inside and outside the vehicle.

Believe it or not, our automobiles are the second most technologically advanced devices we own, only trailing smartphones. Cars today are fully equipped with technologies, ranging from the internet and WiFi to sensors and advanced processors, thoroughly stirring the user’s driving experience. Users can now endure autonomous driving, fuel efficiency, safety alerts, traffic notifications, etc., in real-time, which ultimately enhance the users’ experience. 

4. Predictive Analysis

Retaining customers is a difficult task, especially when the market is swamped with limitless options. Customers today are money-rich but not time-rich and patient. Therefore, predictive analysis is an essential component for the success of automobile companies. Customer retention is only possible when an automotive company is a game ahead of its customers.

One of the most amazing utilizations of Big Data in the automobile industry is the ability to predict problems that a customer may face in the near future. Incorporating Big Data can assist automobile companies to provide preventive measures to their customers’ upcoming problems. This, in turn, will improve the customer satisfaction experience and allow the company to retain loyal customers.

Examples of Big Data in The Automotive Industry

A. General Motors

General Motors, one of the largest American automakers, had been a forerunner in the use of Big Data and analytics in the automobile industry. Sensors and processors in automobiles are now ubiquitous. General Motors uses sensors and telematics within the car, which make their vehicles more secure and reliable. Telematics is a treasure trove for them, as it helps General Motors save up to $800 per car, and all this because of Big Data and analytics.

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B. Maruti Suzuki

Maruti Suzuki, the Indian-Japanese conglomerate that has ranked first for the past 14 years, is the model of how a company should treat its customers. Their “Market to One” strategy sets them apart from other automotive companies and helps them retain customers. The company strives to provide a personalized experience to each of its customers; that helped Maruti Suzuki tremendously – as the company witnessed an overall growth of 3% in the first seven months after adopting this approach. SAS, a statistical software suite for advanced data analytics, served as the foundation of this approach, allowing them to create a seamless experience for more than 10 million of their customers.


The German giant has made lekker use of Big Data and analytics. Every year, it produces 2.5 million vehicles and sells them across the world. BMW’s business model is based on Big Data, which drives everything from soup to nuts the company does, including design, engineering, manufacturing, sales, and customer support. Big Data Analytics has established high standards for its production system.  

Read More: Delectable Data: 7 Ways Big Data is Boosting the Food Industry in 2021

Putting it all together…

Big Data analytics is now an integral part of the automotive industry as it serves as the foundation for all technologies and is poised to transform users’ driving experience. Hence, it becomes crucial to look for professional Big Data consulting services. Professional Big Data companies like Cyfuture can help you organize your data and utilize it to your advantage. To know more about our Big Data consulting services and to connect with our experts and professionals at Cyfuture, drop an email at [email protected].

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