Data and Information Management - Challenges and Opportunities for Automotive Manufacturers (2023)

The automotive industry is undergoing a profound change with the aim to transform the driving experience, fuelled by innovative technologies like IoT and 5G. With the focus on efficiency and business growth, automotive manufacturers are adopting Industry 4.0 techniques in design, manufacturing, and supply chain management. A general shift away from the internal combustion engine (ICE), towards increasing focus on alternative forms of transmission, such as Electric, Hybrid and Hydrogen fuel cells is also being seen.

Manufacturers are keen to unlock the value of vehicle to everything (V2X) connectivity, with ADAS (Advanced driver-assistance systems) technology providing a stepping-stone towards fully autonomous vehicles, as well as addressing current applications including automated toll road payments, predictive maintenance, enhanced roadside assistance and emergency response mechanisms. Changes in regulations governing safety, emissions, and emergency response mechanisms and new approaches to vehicle ownership and access are further enabling this sector to embark on the transformation journey of the complete ecosystem.


Analytics plays a central role in achieving this transformation of the automotive sector. So how do manufacturers make the most of data? Today’s vehicles are data centres on wheels. They can have 100s of built-in sensors, and thousands of lines of software code permanently monitoring multiple factors, such as speed, engine temperature, braking, proximity and many other functions.

The connected vehicle is collecting data from multiple sources- either for use across the vehicle itself, or for external transmission. Modern vehicles generate around 25 gigabytes of data every hour. Autonomous cars will generate even more data, up to 3,600 gigabytes of data per hour, according to expert forecasts.[1]

Accompanying this shifting focus, the value in the vehicle changes from the hardware aspects of the car such as steel, rubber, plastic, and copper wire towards value of the software and content associated with it. Within a decade the value paradigm would have shifted towards a data and content data paradigm.

Data and Information Management - Challenges and Opportunities for Automotive Manufacturers (1)
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Demand for built-in connectivity and telematics in automobiles has resulted in technological improvements, which aim at enhancing the overall in-vehicle experience for the passengers as well as drivers. With the connected vehicle, widespread embedded cellular connections are enabling new ways to inform and entertain drivers, as well as maintain the vehicles over its lifecycle. As vehicle functions become ever more defined by software, the ability to update software OTA (over the air) makes embedded cellular connectivity an essential means of maintaining the security and relevance of cars over the vehicle lifecycle. The next five years will see connectivity transition from being a support for improved user experience to providing core, mission-critical functions for personal mobility.

The data derived from connected vehicles can be used across the entire value chain, from vehicle development and production, through the Dealer/Reseller network, to sales and after-sales service. Data can also be used to monetise services post-sale. For example, with a more software defined vehicle, it is possible to ‘unlock’ new features and services post-sale using SOTA techniques. In support of this idea, according to industry consultancy company McKinsey report, on a per vehicle basis, connectivity could deliver up to $310 in revenue and $180 in cost saving per year on average by 2030[2]. That’s a big opportunity in a relatively stagnant market when measured on volume.

While there are opportunities associated with vehicle data, there are several challenges associated with getting access to accurate data. These challenges include:

• Visibility and Transparency – Is it possible to get access to the same data that the Mobile Network Operator has?

• Control – Who owns the data? What are the local regulations around data privacy, data sovereignty?

• Security – How to ensure secure data transmission between the vehicle, the mobile network, and the OEM data centre?

• Excessive Data Collection – Too much data can lead to consumption of unnecessary resources and not being able to monetise well. You need to know how to use the data, not just collect it!

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As much as data that can be derived from a connected vehicle, there is the issue of the medium through which it is collected, which in most cases is the terrestrial cellular network. The cellular connection not only transports information from the vehicle, but adds additional information, including factors such as location, quality of connection, usage, identity. This combination of vehicle and communications medium represents an interesting opportunity to enrich the services and capabilities associated with connected vehicles.

Data and Information Management - Challenges and Opportunities for Automotive Manufacturers (2)

If we consider all the data that will be generated with vehicle-to-everything (V2X), the combination of vehicle data and the medium used for connectivity is critical. Many V2X use cases can be realised with the advent of 5G technology. At this stage we can introduce Mobile Edge Computing (MEC). With a combination of 5G and Mobile Edge Computing more data can be processed, faster. Operational data and post event analytics become more complex, with the blurring of network functions and data processing functions.

It should also be noted that not all data is equal. Some data needs low latency, real-time transmission, and processing. Other data can tolerate higher latency. It is important to understand how to prioritise what data needs to be processed and in what way. Let us consider a safety scenario, such as collision avoidance, which needs real time analysis and a quick reaction time, usually in tenths of a milli second. Such a service requires low latency and high data payloads while lower latency, lower data payloads such as predictive maintenance, traffic updates, route mapping can be managed using higher latency, slightly lower priority processing.

Data and Information Management - Challenges and Opportunities for Automotive Manufacturers (3)

While mobile edge computing can help manage this, there are different definitions of what and where the edge resides. The reality is that there can be multiple ‘edges’ at any one time. Questions such as how to access edge computing assets, how to determine when and where to process data in the mobile network edge and when to send and process data to the cloud need to be responded in near real-time for data management to run efficiently. Remember some data may need to be processed in the mobile network edge and sent for storage and retrieval in the cloud.

Data needs to be transformed into information, along multiple dimensions to provide efficiency and deliver an enhanced driver experience:

  • Commercial use – to monetise the data such as customised infotainment packages, usage-based insurance among others
  • Operational use – to provide optimum efficiency such as predictive maintenance, tracking, monitoring, theft alerts etc.
  • Post event processing for analysis and use in vehicle development and for other critical purposes, such as accident information to make the car safer

If we just focus on one aspect of data management – enhancing the driver experience – it is possible to identify a range of value-added services: V-Commerce and payment services; Congestion charging; Usage Based Insurance; Automated toll road & vehicle tax payments; Entertainment and Infotainment services; Automated parking charges.

As the phenomenon of the connected vehicle develops more broadly, automotive OEMs need to evolve the connectivity management platform into a broader data management and monetisation platform. This would need information about the communications layer and management of the communication interfaces . For this to be efficient it needs to be done not on a country-by-country basis, but preferably on a global basis. With a single point of contact to manage connected vehicle fleets in multiple countries and territories.

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The connectivity management platform must evolve to become both a technology enabler as well as a commercial enabler. This broader approach enables automotive OEMs to realise the full potential and commercial value of the data that connected vehicles are generating.

[1] Source: T-Systems



Data and Information Management - Challenges and Opportunities for Automotive Manufacturers (4)

Avneesh Prakash

Vice President – Mobility

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Tata Communications

Avneesh has 27 years of rich experience in technology and digital businesses. He has established and scaled digital businesses around areas such as digital identity & biometrics, India’s Aadhaar programme, financial inclusion and digital field services, leading the development of digital SaaS platforms in the process.

Published in Telematics Wire


What are the opportunities in the automotive industry? ›

Jobs in the automotive industry span many career segments, including maintenance, repair, design, development, sales and customer service. In this article, we discuss 15 common careers across all sectors of the automotive industry.

What are some of the challenges the car industry is facing? ›

Loss of labor is one of the top challenges that industries have to face due to this pandemic. Many businesses in the automotive industry had to cut down thousands of jobs due to mass layoffs brought about by manufacturing shutdowns and reduced sales.

Why data is important in automotive industry? ›

Big data analytics also allow automotive manufacturers to design future vehicles to meet changing customer preferences and needs. Using data sets ranging from customer interactions to social media chatter, manufacturers can identify in-demand features and assess what price point would make them viable to the customer.

How big data analytics will impact the automobile industry? ›

Furthermore, big data analytics have helped automobile manufacturers boost their efficiency in terms of sales and marketing. It has also improved its operations by aiding in the incorporation of utilities like predictive maintenance and service schedule.

What is the biggest challenge facing the auto industry? ›

Supply chain disruptions

It takes around 15,000 to 25,000 individual parts to create a vehicle. And every single part must come together at the right time. With over 32.7 million cars on UK roads, each one has required meticulous planning, organisation, production engineering, and manufacturing to bring together.

What are top 5 most common automobile problems? ›

Let's take a look at some of the more common issues and see if these are likely to be a quick fix or a costly repair.
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  • The Steering Wheel is Shaking. ...
  • The Brake Pads are Worn. ...
  • The Brakes are Squeaking/Grinding. ...
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What are the key success factors in the automotive industry? ›

The top success factors – quality, innovation, reliability, performance, and cost – are all related to product excellence. But today's dynamic market also demands agility. In fact, OEM's were almost twice as likely as suppliers to report time-to-market as a critical success driver.

What barriers do companies face when entering the automotive market? ›

The existence of economies of scale is perhaps the most significant entry barrier in the auto industry. Also customers have existing brand preferences. For such a high-value purchase, the brand often becomes the decisive factor. There are heavy sunk costs associated with exits.

What is automotive data management? ›

The innovative dynamic system of data management is a software born to coordinate and make available to the Garage, the information of the whole Automotive supply chain.

How do car manufacturers use data? ›

With data analytics, car companies can analyze their existing customers to identify characteristics that predict a purchase.

Why big data is so important to the transportation industry? ›

Transportation data analytics increasingly power mobility information and insights – transforming transportation planning by making it easier, faster, cheaper, and safer to collect and understand critical information.

How business analytics is used in automobile industry? ›

For example, car manufacturers use data analytics tools to test a combination of components to determine the most fuel-efficient and best-performing car models. This helps the design process, as the manufacturer can select the most aerodynamic models designed to be cost and fuel-efficient for the customer.

What are the future technologies in automotive industry? ›

Artificial intelligence technologies such as machine learning, deep learning, and computer vision find applications in robotic automation within the automotive industry. These guide self-driving cars, manage fleets, assist drivers to improve safety, and improve services such as vehicle inspection or insurance.

How Digitalization changed the automotive industry? ›

Digitalization will have a profound imprint in the future of the automotive industry too: from autonomous driving to new shared-mobility models, customized insurance contracts, remote diagnostics and repair, and predictive maintenance services, digitalization will allow new use cases and business models to develop.

What are the biggest challenges faced by various industries? ›

10 common manufacturing challenges businesses have to face
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  • Consumerism trends. ...
  • Selling direct to consumer. ...
  • Scaling your business. ...
  • Globalization. ...
  • Attracting qualified leads. ...
  • Increasing revenue and sales.
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What environmental problems are there related to the car industry? ›

Vehicles are America's biggest air quality compromisers, producing about one-third of all U.S. air pollution. The smog, carbon monoxide, and other toxins emitted by vehicles are especially troubling because they leave tailpipes at street level, where humans breathe the polluted air directly into their lungs.

Why is automotive industry struggling? ›

Ongoing product shortages

As Covid-19 struck, automakers slashed production and parts orders. But when sales started to rebound, they discovered they couldn't get all the semiconductors they needed, leading to major production cuts.

What is the SWOT analysis of the car? ›

A car dealership SWOT analysis is a self-examination of store operations to help dealers determine what they do well, where they need to improve, and what strategies they need for dealing with external factors that can impact the business.

What are the external factors that affect automobile industry? ›

In addition to increased fuel prices, there has been an upward trend in interest rates and inflation. The numerical increase of these two factors, without corresponding wage growth, has negatively impacted the automotive market.

Why cybersecurity is important in automotive? ›

The cybersecurity vulnerabilities specific to the auto industry are numerous. Hackers could compromise the safety and advanced driver assistance systems (ADAS) of a vehicle in use or, worse, manipulate any autonomous functionality to directly cause a crash.

What is the most significant trend affecting the automotive industry at the moment? ›

1. Electric vehicle adoption increases worldwide. Probably the most important trend in the automotive industry is the worldwide shift to electric vehicles (EVs).

What car manufacturer has the most issues? ›

EVs reported more problems
RankingBrandProblems per 100 vehicles
29 more rows
5 Jul 2022

What car manufacturers are struggling? ›

Automakers struggle with shortages

In addition to Honda, Mercedes, Daimler, and Hyundai have announced production cuts in the last year due to a chip shortage that doesn't seem to be going anywhere, despite automakers' best efforts.

What are the 7 major components of an automobile? ›

(i) A steel frame, which is a major part. body and other accessories, which are not involved in the movement of the vehicle. (iii) Other major components include engine, transmission system, front and rear axle, steering system, suspension system, wheels, tyres and brakes.

Which 4 innovation fields are defining the future of the car industry? ›

These forces are giving rise to four disruptive technology-driven trends in the automotive sector: diverse mobility, autonomous driving, electrification, and connectivity.

What are the key challenges being faced by automobile manufacturers in India? ›

A host of factors are challenging the growth rate of the Indian automotive sector, like the new environmental safety regulations, fuel price hikes, liquidity crunch, amongst others. Some of the most crucial issues that all automobile manufacturers are currently facing include: Global Shortage Of Semiconductors.

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MDM helps ensure businesses don't use multiple, potentially inconsistent versions of data in different parts of business, including processes, operations, and analytics and reporting. The three key pillars to effective MDM include: data consolidation, data governance, and data quality management.

What is the purpose of data management? ›

Data Management, Defined

The goal of data management is to help people, organizations, and connected things optimize the use of data within the bounds of policy and regulation so that they can make decisions and take actions that maximize the benefit to the organization.

What data is collected by cars? ›

Vehicle telemetry data can be divided into non-personal data collected by sensors, such as weather and roadside conditions, or repair and maintenance information, and personal data that can be traced back to or associated with the vehicle driver, such as journey details, driving style, and data from the vehicle ...

How artificial intelligence is affecting the automotive industry? ›

AI is being effectively implemented in the automotive value chain, including manufacturing, design, supply chain, production, post-production, 'driver assistance' and 'driver risk assessment' systems. On top of that, AI has been proactively transforming aftermarket services like predictive maintenance and insurance.

How does the automotive industry use Internet of things to increase productivity? ›

When cars are manufactured with IoT capabilities, the embedded sensors collect performance data on specific parts and transfer this information to the cloud. There, predictive analytics process this data, evaluate the condition of individual components and assess the risks of malfunction.

What is the function of data in transportation? ›

The logistics of transporting goods also benefits from big data. Data analysis can help a company optimize delivery routes and update them in real-time to avoid traffic, accidents, or roadwork. This can improve delivery speed, helping save organizations money on fuel and vehicle wear and tear.

How can you reduce risk in transport big data? ›

5 Ways to Reduce Risk in Transport Management
  1. Be realistic about the service level you need. Expectations are critical here. ...
  2. Make use of a well-known transport management software system. ...
  3. Map out shipping criteria with your carriers. ...
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What are the 4 benefits of transportation management? ›

Benefits of a Transportation Management System (TMS)
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How is data analytics used in industry? ›

Implementing it into the business model means companies can help reduce costs by identifying more efficient ways of doing business. A company can also use data analytics to make better business decisions and help analyze customer trends and satisfaction, which can lead to new—and better—products and services.

How predictive analytics is used in automotive industry? ›

The automotive industry is rapidly transforming with new technology, and predictive analytics is being utilized to find trends and make predictions about future events using techniques like data mining, data modeling, machine learning and artificial intelligence (AI).

What are the top 5 technology trends in the automotive industry? ›

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What trends are impacting the automotive industry? ›

Trends Shaping The Auto Industry In 2023
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Why digital transformation is important in automotive industry? ›

As these new offerings are introduced to the marketplace, the development of new services models and internal operational transformation will be just as important as technology investment to the success and profitability of these solutions. Connected vehicles are a leading area of investment for the auto industry.

What are some impacts of IoT in the automotive industry? ›

Many of the innovations introduced in the automotive industry are based on IoT (Internet of Things) technology. With its help car manufacturers improve safety and navigation for their vehicles, install automotive maintenance systems for quick car diagnostics on the spot, and much more.

What is the digital transformation of automotive? ›

Digital transformation is a means for OEMs and tier suppliers to evaluate their processes to determine how they need to change to get these new products to customers.

Are there opportunities for advancement in automotive engineering? ›

Career Advancement Opportunities

Over time, automotive engineers can enter senior-level management positions within their companies. Some gain the experience and expertise to open their own consulting engineering firms.

What are the opportunities of being a mechanic? ›

Pros of being an auto mechanic
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What is the future of the automotive industry? ›

With the demand for greater connectivity set to soar, 5G-enabled connected cars are earmarked to become the future of the automotive industry. Benefits of connected cars include: Access to a variety of entertainment services on the go. High-tech navigation systems through third-party apps.

What is the future trends in automotive industry? ›

Electric vehicles are on the rise

It's obvious that cars produced in 2022 and further down the line will be fully equipped with the best digital technology which also includes creating vehicles that are electric or hybrid.

What are the opportunities for advancement for an engineer? ›

Engineers usually advance to become technical specialists or supervisors, while others branch off into management or sales positions.

What are the effects of technological advancement in automotive industry? ›

Technologies such as artificial intelligence, big data, 5G, and the internet of things are revolutionizing the driving experience, optimizing our roads, and bringing safety, comfort, and lower fuel emissions, while at the same time, getting us closer to the concept of smart city.

What is the purpose of automotive technology? ›

Automotive Technology: The Basics

Simply put, automotive technology refers to the study of self-propelled vehicles or machines. That applies to standard automobiles, sports cars, tractor-trailers, marine vehicles and more.

What are the benefits and traits of the automotive industry? ›

Awesome Benefits to Pursue a Career in Automotive Technology
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  • Exploring advanced technology. ...
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  • Ample training centers across the U.S. ...
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29 Sept 2020

How is the automotive industry getting better and faster? ›

Digitization, increasing automation, and new business models have revolutionized other industries, and automotive will be no exception. These forces are giving rise to four disruptive technology-driven trends in the automotive sector: diverse mobility, autonomous driving, electrification, and connectivity.

How can the automotive industry be improved? ›

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  1. Product Consistency. ...
  2. Compliance With Standards. ...
  3. Process Efficiency. ...
  4. Maximum Resource Utilization. ...
  5. Adopt a Team Mindset. ...
  6. Define Value from the Customer's Point of View. ...
  7. Develop a Common Understanding of the Cost of Quality. ...
  8. Solve Problems Completely.
28 Dec 2020

How is the automotive industry doing in 2022? ›

Most analysts predicted vehicle sales would continue to improve in 2022 due to pent-up demand from vehicle deficits caused by production shortfalls in the last two years.

What will the automotive industry look like in 2025? ›

By 2025, 25% of cars sold will have electric engines, up from 5% today. But most of those will be hybrids, and 95% of cars will still rely on fossil fuels for at least part of their power. That means automakers will need to make internal combustion engines more efficient to comply with new standards.


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