Automotive Data Monetization to Reach $33B in Opportunities for OEMs by 2025
February 23, 2018 | Frost & SullivanEstimated reading time: 1 minute
Frost & Sullivan’s analysis, Automotive Data Monetization Pricing and Business Models, highlights the potential to monetize $100 per car currently and delves into how data monetization across the automotive ecosystem starts with an overarching digital strategy. For instance, 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 some of the key 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 very strong growth trajectory over 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.
According to Frost & Sullivan, OEMs focused on connected cars, autonomous driving, and mobility must realize 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 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; and
- 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.
Automotive Data Monetization Pricing and Business Models is part of Frost & Sullivan’s Mobility Growth Partnership Services program.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community.
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