Big Data Means Big Money in the Automotive Industry

Big Data Means Big Money in the Automotive Industry

Intel CEO, Brian Krzanich made headlines by declaring “Data is the New Oil in the future of the Automotive World.”  He is correct.  Data is big business and automobiles have the ability to create a lot of data.

Data has the potential to radically change the way we think about the driving experience.  In fact, one of the trends I see as the most disruptive to almost every industry is the enormous flood of data driven by the proliferation of smart, connected devices.

In a recent article titled “Data-sharing will drive the advances in transport”, Emma Woollacott provides some interesting insights including:

  • In just three years’ time, according to Accenture, 98 percent of new cars will be connected through the internet of things, and five years later, it will be 100 percent.
  • A car manufacturer will have a wealth of data from millions of vehicles.  Currently, the basic assumption is that they remain the owner of the data.
  • Data is collected by the car manufacturer and this can be sold to public authorities, but also to big restaurant chains for example, so people will automatically be invited if they’re close.
  • According to Accenture, the data from connected cars will be worth £4,000 per car in extra revenues for the manufacturer, with selling it on to third parties accounting for a fifth of that sum.
  • One is the insurance area, where we will have more and more of what we call pay-as-you-drive or pay-how-you-drive.  Your insurance premium will be based on your driving frequency and your driving style, so that a person who drives in a diligent manner for only three days per month will pay less than someone driving 30 days a month and in a dangerous manner.
  • “Autonomous vehicles and platooning are cornerstones of future sustainable transport systems,” says Claes Erixon, head of research and development at Scania.  “We are pioneering in this field, which has the potential not only to save lives in traffic, but also to significantly decrease the environmental impact of transport.”

Data is truly the new currency of the automotive world.

Please find a link to Emma’s well written article:

Data-sharing will drive advances in transport



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