In the automotive industry, data collection can have a huge impact on the product and the business model of a company. Hence, the companies that are best able to capture, analyze and act on the data collected have a chance to be Leaders in this highly competitive sector.
Our research suggests that an average $93.5 million will be spent by each automotive company on IoT projects in 2015, and this spend is expected to rise by 9% to $102 million in 2018. This year, a large chunk of IoT investments will go toward product monitoring (30.6%) and supply chain monitoring (28%), followed by customer monitoring (24.2%) and premises monitoring (17.3%.)
Around 18.2% of the auto companies who adopted IoT technologies are using digital sensors in products to gather data, 27.3% monitor customers via mobile apps, 21.2% monitor locations and 60.6% monitor their supply chain. As supply chain efficiency has been a major issue in this industry for years, the current percentage of 60.6 stands out among the 13 industry segments surveyed.
It is early days for automakers in the IoT journey. Today, auto companies mention precise customer segmentation as the top business process improvement related to IoT. Proactive service and identifying problems before customers do was cited as the second improvement.
Auto companies rated identifying and pursuing new business and revenue opportunities as the most important success factor followed closely by the importance of integrating IoT data into existing enterprise systems. It is also worth noting that automakers are able to determine what technologies to develop internally or externally with IoT initiatives.