Automotive data could potentially be $100 per car currently, offering original equipment manufacturers (OEMs) in the automotive data monetisation market a $33 billion opportunity by 2025, according to Frost & Sullivan’s analysis Automotive Data Monetisation Pricing and Business Models.
The firm said that over 200 data points exist today that can typically provide more than 140 use cases, with the vehicles generating a value of almost $100 per car. The report also delves into how data monetisation across the automotive ecosystem starts with an overarching digital strategy. To build a recurring service revenue stream or prescribe measurable objectives, digital innovation is mandatory. However, the automotive industry has to master software capabilities and introduce new monetisation models to remain profitable. The total number of connected vehicles, activation rate, and consent rate are some of the key factors that help determine the automotive data monetisation market across various data types, said the report.
“Contextual and vehicle usage data will evolve as the new data currency for value creation amongst B2B/B2C entities involved in the automotive ecosystem as smart mobility, connected cars and autonomous vehicles become the most viable use cases,” said Niranjan Manohar, Intelligent Mobility Program Manager.
According to Frost & Sullivan, OEMs focused on connected cars, autonomous driving, and mobility must realise the disruption from non-automotive companies like Uber, Didi Chuxing, Google, and Apple. OEMs and Tier 1 suppliers need to reshape their business around IoT and Big Data analytics, with a focused approach to security across both horizontal and vertical business layers.
The research reveals two major growth opportunities – OEMs’ partnerships with technology companies to share data (only with the customers’ consent) with recommended third-party service providers, such as insurance companies and smart parking service providers. Also, tier 1 companies investing in startups that are focusing on data-driven platforms, artificial intelligence, and machine learning to leverage Internet of Things applications.
“OEMs are expected to consolidate the car data ecosystem between 2020 and 2025, eventually becoming potential technology integrators and, correspondingly, data gatekeepers,” said Manohar.