Vehicle data monetisation could be worth up to £621 billion by 2030, but market growth is slower than predicted so far, according to a new Capgemini Invent report.
Capgemini has surveyed over 3,000 end customers in the EU and industry expert interviews and said that despite heavy investments in IT platform infrastructure, in-vehicle technology, and service innovation by OEMs, achievements are falling short of projections.
Volumes of connected vehicles started to rise later than expected and data signals are often restricted to a limited set of basics.
In 2017, experts predicted that modern vehicles would be able to provide more than 400 data points, generated from at least 200 different sensors.
Currently, however, on average 100 data points are available, whether via automotive OEMs’ own data platforms or those of service providers.
Moreover, today’s data transmission techniques are unable to send even this volume of vehicle data to OEMs’ servers in real time.
These data points could include areas like driver condition, smartphone pairing and navigation data.
In future, however, Capgemini experts expect that the next generation of vehicles will soon be able to provide up to 10,000 data points.
Capgemini’s new paper, ‘Monetising Vehicle Data: How to fulfill the promise’, highlights how this market uncertainty is inhibiting growth.
It says only around one third of consumers are currently willing to share vehicle data.
End customers are particularly concerned about personalised, as opposed to anonymised data sharing, with only about one-third willing to share this type of data (two-third for anonymised data).
The paper concludes with key recommendations for OEMs on how to overcome the barriers to data monetization.
Capgemini recommends that car manufacturers:
- Build end customers’ willingness to share data by increasing transparency in data use and incentives to increase consumer trust and adoption.
- Establish customer co-creation in a collaborative setting with automotive OEMs and service providers to design service experiences that customers enjoy.
- Enrich vehicle data with other data sources (e.g. customer data, third-party data) to build more valuable data-driven services.
- Develop a universal data collector box in all vehicle models to increase the volume of data signals for greater service innovation.
- Embed service innovation within a new organisational setup and collaborate with partners to speed up prototyping and scaling.
- Prioritise investments carefully, systematically evaluating data monetisation opportunities to form a manageable set of promising services.