The research firm Markets and Markets predicts that the global market value of connected cars will reach US$166.0 billion by 2025. As technology advances and collaboration between carmakers and other entities grows, an industrial takeover by connected cars is now imminent. Vehicle and connected car data is no longer a myth; mobility data is a reality!
Mobility companies have a wonderful chance to monetize connected car data. Tech companies are already earning billions from data, and so it is time to get more value from mobility data. This article explores the potential of this industry.
Impact of Connected Car Data
The automotive ecosystem is wide as it includes road and traffic systems, the car itself, and also insurance. As connectivity starts to enter the automotive industry, several mobility components have felt the impact as listed below.
|Improved insurance||Usage-based insuranceCustomized serviceMore reliable statistical decisions|
|Improved urban parking||Easier space identificationLess overcrowding Easier parking payments|
|Reduced traffic congestion||Avoiding slower trafficBetter traffic planning|
|Enhanced road safety||Quicker emergency response Hazard and bad weather detection|
In combination with machine learning and artificial intelligence, connected car data is changing the way that motor insurance works, as well as influencing fleet management, location intelligence, and utilities. Other areas feeling the impact are mapping & planning and insurance.
Interestingly, we are yet to maximize the value of mobility data from connected cars.
Monetization Potential from the Mobility Data
Connected cars are equipped with sensors, microphones, and cameras. These devices detect a lot of the driver’s preferences and behaviors, but they also collect data from the car or even the surroundings.
The big question is whether the mobility sector can make any money from connected car data. Yes it can, and there is a massive potential for that. According to a recent study by Capgemini “Monetizing vehicle data”, the global revenue for vehicle data monetization by 2030 range between $80 to $800 billion.
However, the center of any monetization efforts must be the customer. This demands information sharing, a topic that always brings controversy. Customers will only share personal information when they are sure about data protection and the benefits of the partnership.
Reasons for Slow Uptake
Given that trust between the company and the driver is critical, some challenges still impede the application of mobility data. Several technical, legal, and social obstacles are making OEMs (Original Equipment Manufacturer) plan their strategies day and night.
The legal requirements of handling personal data significantly inhibit the exciting potential of mobility data from connected cars. The existing privacy rights have too many limits over what data one can collect and how to use it. The connected car technology can identify drivers\’ homes, establish geozones by work or family, as well as driving habits such as detecting if the speed limit is exceeded. Being aware of the sensitivity of this data, users demand to know what data they provide through the connected car and who stores it and how it is used.
The CCPA and GDPR laws give individuals the right to choose which data can be revealed, processed, or sold. For companies wanting to benefit from mobility data, getting the approval of their clients is a necessary step under these laws.
To guarantee the complement of the regulations, in Net4things we have incorporated the Consent Management module to protect users’ privacy while offering transparency on how they can make the most out of the data they generate within a digital ecosystem of data -driven services.
Technologically speaking, the mobility data industry still has limited capacity to monetize connected car data. Superior data protection levels and business processes are necessary to release the full potential of mobility data. Processing, analysis, and visualization of big volumes of data come before any monetization efforts. However, no single company seems to have that kind of capability.
Steps for Accelerated Growth
Taking the message of the advantages of data collection to the customers is the first step for companies hoping to gain from mobility data. Customers should be made to understand how their lives are better with data-driven solutions. Most importantly, they must be convinced that their data is safe. The OEMs may need to offer advanced features in exchange for the data.
Collaboration among partners is essential if the creation of solutions based on data is to succeed. Companies, enterprises, and vendors must come together to liberate the full potential of mobility data from connected cars.
Perhaps it is time that OEMs became a little bit more relaxed with data. The fact is that OEMs may be unable to take part in every area of the connected car value chain. Some OEMs don’t want to share mobility data with anyone else, but they may not have the capacity to improve certain parts of the chain.
Connected cars bring new opportunities to obtain value from personal data. However, OEMs must first form relevant collaborations and be more flexible to find a way to solve technological, regulatory, and social obstacles. Most importantly, the companies should take the initiative and start campaigns to enlighten customers on the benefits of sharing personal data. ¡Visit our site and learn more about the opportunities available from connected cars!