Data Monetization is Expected to Unravel $33 Billion in Opportunity for OEMs by 2025
LONDON, March 14, 2018 /PRNewswire/ -- Frost & Sullivan, the growth partnership company, announced today that it will host a live, complimentary Growth Innovation Leadership (GIL) briefing titled, "5 Ways To Monetize Data in the Auto Industry," on Wednesday, 21st March 2018 at 1:00PM EDT. The webinar will offer Frost & Sullivan's expert insight from Archana Vidyasekar, Global Research Manager, and Niranjan Manohar, Program Manager, Global Automotive & Transportation Research Team at Frost & Sullivan.
The connected car of today generates data from at least 200 different sensors within the vehicle and can profile everything from your location to driving habits. It can also monitor the use of vehicle features such as the temperature in your car and the weather in your surroundings. These data points can typically provide more than 140 viable use cases, but only 15% of these use cases are monetized. If all the connected vehicles with the ability to capture certain data types were monetized, the overall opportunity would amount to $33 billion by 2025. Though use cases can be grouped under usage-based insurance (UBI), autonomous vehicles (AVs), crash reconstruction, and location and mapping services, there are several untapped dark horses.
"Data monetization business models are still in the nascent stage," said Niranjan Manohar, Program Manager at Frost & Sullivan. "Willingness to pay will become the key variable that will determine pricing benchmarks for data products as data-led transformations are inevitable considering the increasing number of digital touchpoints and evolving use cases."
Join us to gain a more comprehensive understanding of the different data monetization business models being discussed in the automotive industry and the different pricing models being evaluated in order to tap into growth opportunities.
Expert Insight You Don't Want to Miss:
- UBI hold the highest potential with an opportunity of $25-$40 per car per year. This could range from pay as you drive (PAYD) to pay how you drive (PHYD) business models, which are the most preferred types of metrics to calculate insurance premiums. The idea here is to provide real-time data services to support a full digital transformation of the policyholder experience.
- The most popular model today is data bartering as most car companies and suppliers don't know what to do with the data they have. This model typically involves information-based exchanges—data exchanges between Waze and city municipalities for example. However, some car companies are ahead of the curve. For example, BMW launched its own data brokering marketplace model in Germany as a pilot called BMW CarData. In partnership with IBM, BMW follows a white-label service business model where 8.5 million BMW vehicles have built-in telematics systems that operate using the open-source CarData Platform.
- Car data customers can range from energy companies and fleet operators to retailers like Starbucks and McDonald's that want to know when you are likely to purchase your next coffee or burger. Frost & Sullivan identified over 50 different organizational types that want to profit from your vehicle, driving behavior and location data.
For more information and to register for the webinar, please click here.
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SOURCE Frost & Sullivan