A recent study by Frost & Sullivan highlights the potential to monetize $100 per car currently. The study also delves into how data monetization across the automotive ecosystem starts with an overarching digital strategy. Results of the research are presented in the analysis report, “Automotive Data Monetization Pricing and Business Models.” One key finding is that 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 monetization models to remain profitable. The total number of connected vehicles, activation rate, and consent rate are critical factors that help determine the automotive data monetization market across various data types.
The total revenue opportunity for an original equipment manufacturer (OEM) in the automotive data monetization market is expected to remain on a strong growth trajectory during the next seven years, growing from $2 billion in 2017 to $33 billion in 2025.
“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 for Frost & Sullivan.
According to the report, OEMs focused on connected cars, autonomous driving, and mobility must realize the disruption from non-automotive companies such as 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 the major growth opportunities, including:
- 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
- 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.
For further information on the analysis, visit: http://frost.ly/28h.