An Overview of Connected Car's Data

OEMs and data marketplaces discover few B2B customers willing to purchase data, limiting their revenue.

FREMONT, CA: Connected cars provide a one-of-a-kind consumer experience while delivering better cost and revenue benefits to mobility companies, including fleets, OEMs, dealers, suppliers, insurers, and others. Most players must pay more attention to opportunities to monetize data from these vehicles. Considering how aggressively companies in other industries generate value from data, it is a significant oversight. Valuable companies already create billions of dollars in revenue from data-based services. These organizations include both new adversaries and tech firms. Traditional industry participants are progressively transitioning from hardware to software-as-a-service (SaaS) and subscription-based businesses.

The automotive industry may now be more receptive to data from connected vehicles. To assist mobility companies that wish to pursue opportunities for the potential market value of data-based services, investigated prospective use cases and identified success-enhances levers. Given the increasing importance of connectivity, OEMs that do not satisfy the standard risk losing customers. Several stakeholders have already recognized the significance of data and initiated action. Certain insurers have adjusted premiums based on driving behaviors, and certain cities use sensor data to identify potholes.

Media agencies have expanded their advertising reach by incorporating new touchpoints inside and outside vehicles. For these actors and others, car data provides valuable insights unavailable from other sources, often obtained from driver interactions with vehicle systems. Numerous OEMs have labored with connectivity or related software development, resulting in negative customer feedback and production delays. Only some succeed with the software-defined car, and fewer monetize vehicle data. They provide end-to-end access to 1 to 2 terabytes of raw data per car daily to enable continuous production.

Service improvements with a focus on monetization throughout the vehicle life cycle via recurring revenues from monthly subscriptions. Premium connectivity services and paid over-the-air (OTA) upgrades may eventually include those related to fully autonomous driving capabilities. New OEMs specializing in electric vehicles (EVs) achieve record-high valuations, despite their sales being a fraction of their much larger peers. Most businesses are far less successful than the leaders in profiting from connected vehicles and monetizing data. Few consumers purchase OEM-connected services or enroll in insurance-player-connected offerings, such as usage-based insurance.