Automotive Data Logger Market Likely to reach $4.4 billion by 2025

Automotive Data Logger Market

The automotive data logger market is projected to grow at a CAGR of 7.0% during the forecast period, from USD 3.1 billion in 2020 to USD 4.4 billion by 2025. The key growth drivers of this market are the higher penetration of advanced electronic components in the modern vehicle architecture and their testing that is performed prior to the vehicle’s commercialization.

Market Dynamics:

Driver: Rising demand for ADAS features:

ADAS technologies consistently monitor a vehicle’s surroundings and driving patterns to detect potential problems at an early stage. This technology improves the driving experience while enhancing vehicle and pedestrian safety. It is becoming an integral part of modern automobiles and is being adopted in passenger cars as well as commercial vehicles. ADAS can be grouped into three major categories: those that aid the driver, those that warn the driver, and those that assist the driver in performing certain basic driving functions. Increasing demand for safe, efficient, and convenient driving, rising disposable income in emerging economies, and increasing stringency of safety regulations across the globe are playing a key role leading to the high demand for ADAS. Thus, ADAS testing is becoming an integral part of vehicle safety testing standards.

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Opportunity: Monetizing vehicle data

With the number of connected and autonomous cars increasing around the globe, the data generated from vehicles is enormous. The industry that is expected to be born as a result of sharing this data with third-party companies is expected to be approximately USD 750 billion. This clearly indicates the significant power and potential that this data possesses. Such data is highly valuable for companies such as automobile insurance, fleet management, repair and maintenance workshops, city planners, and various retailers. However, all this data is not necessarily very useful. Hence, it is important for OEMs to understand how to sort the valuable information from the rest. In line with this, Delphi has acquired Control-Tec, as well as invested in an Israeli startup named Otonomo, to create a connected car marketplace that can sell the data collected by any OEM to the users of that data. Control-Tec is a developer of data acquisition systems that analyze a large amount of data and transfers the most relevant information to the cloud; while Otonomo makes this data anonymous, and prepares it for OEMs to sell it to commercial buyers, thus acting as a data broker. Otonomo is already collaborating with ten major OEMs including Daimler and 75 third-party clients. Such initiatives from suppliers are expected to significantly help OEMs in creating new revenue streams using the significant amount of data collected from their wide vehicle model range through automotive data loggers.

Key Market Players

The global automotive data logger market is dominated by major players such as Aptiv (Ireland), National instruments (US), Racelogic (UK), Vector Infomatik (Germany), and Continental (Germany) These companies offer a wide variety of data logger system fulfilling all major functions and applications for various applications. The key strategies adopted by these companies to sustain their market position are new product developments, expansions, mergers &acquisitions, and partnerships & collaboration.

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