#car data monetization

Modern technology is evolving at a rapid pace, & the internet has changed the way individuals communicate & complete their day-to-day tasks. In simple words, the world is “connected”, & you can find almost everything on the internet. When everything is connected to the internet, why won’t your cars do the same? Well, this modern technology is known as ‘Connected Car Technology’. Connected car solutions have become the new norm in today’s automobile world, & we can only expect it to get better & better. Read on this article to know more about the connected vehicle platforms, connected car ecosystem, & the future of connected car technology.

What is a Connected Car Platform?

In layman’s language, the vehicle/car which is connected to the internet is called Connected Car. Usually, all such vehicles connect to the internet via WLAN. The connected car can also share the internet with devices inside & outside the car. And, at the same time, it can also share its data with any external device or service. Connected cars can always access the internet to perform functions or download data when requested by the user. Connected cars provide a unique customer experience while simultaneously delivering cost & revenue benefits to mobility companies, including OEMs, suppliers, insurers, dealers, fleets, tech players, & beyond. To date, though, most players have overlooked opportunities to car data monetization from these connected vehicles — a significant oversight, considering how mobility companies in other industries is violently generating the value from data. In fact, some of the most valuable companies in the world already generate billions in profits from data-based services. All such businesses include both new attackers & tech companies. Super players in the traditional industries are increasingly following the same path & transitioning from hardware to software-as-a-service (SaaS) & subscription businesses.

Delivering Connected Car Value Via Car Data APIs

Meeting Integration Challenges of Connected Car Ecosystem

The density of the connected car ecosystem creates a wide variety of new development, security, and integration challenges. Automotive connectivity needs manufacturers to integrate with IT systems of the broad set of industry, infrastructure, service, regulatory, and technology partners. The application programming interface or car data API management—represents the connectivity point that makes this possible. The car data API exposes application functionality & data in developer-friendly formats that make it possible to accelerate the development of apps that mobile devices, connect vehicles, & online identities. Though, exposing enterprise systems in this way creates its own security & management challenges – efficiently externalizing data & functionality via APIs; securing all such interfaces against attack & hijack; offering seamless access for certified users; optimizing speed & reliability of transactions; and enabling app developers.

Maximizing the Customer Engagement and Backend Management

The convergence of app economy, enhanced connectivity, growth of the Internet of Things (IoT), growth of in-car screen displays & open enterprise data models is giving automotive manufacturers & their partners the wealth of opportunities that improve service delivery & backend supply-chain management. The connected car service enablement ways to deliver a better consumer experience post-purchase & will prove strategic to developing consumer loyalty in long term. Today’s car connectivity solutions empower the automotive sector to deliver enhanced value via a bunch of innovative features that include –

Remotely operate car’s connected features

Real-time diagnostic of information that prevents minor issues to turn major

In-car Wi-Fi and location based connected services

Access the range of connected car ecosystem services such as smart insurance

5G & Connected Cars Solutions

Autonomous cars may be the future of mobility, but for now, it is connected vehicles that are breaking the barrier of the conventional systems. Currently, in India, all the connected cars make use of 4G LTE connectivity that offers faster internet speeds & makes for a smooth user experience. But, the future of IoT is 5G that is the 5th-Gen of LTE. Even though 5G networks are still in the development phase, they will have a huge impact on the automotive industry. 5G connected cars will be the new norm in coming years. With more & more connected vehicles hitting the road, the amount of data to be processed will also be enhanced. That’s when 5G connectivity of car connectivity will shine with even faster internet speeds & better coverage. The 5G connectivity will improve car-to-car communication, & it will help in a better relay of information like traffic/road conditions, road accidents, speed limits, & much more. The upcoming electric vehicles will also utilize the advantages of 5G, & if not self-driving cars, you will be driving the 5G connected vehicles in the future.

The technology is developing at a rapid pace, & IoT connectivity has changed the way individuals communicate & do their day-to-day tasks. In other words, the planet is ‘connected’, & you'll find everything on the web . When everything is connected via the web , why wouldn’t cars do the same? Well, this new technology is understood because the “Connected Vehicle Platform”. Car connectivity has become the new norm in today’s industry , & we will only expect it to urge better. Read on to understand more about connected vehicle applications, car data monetization, and therefore the way forward for connected car solutions. The connected cars will believe the main three pillars – infotainment, infrastructure, and telematics. Infotainment consists of heads-up displays, in-car entertainment including audio, and more. it'll build the bridge between drivers, passengers, & the vehicle, offering real-time insight into the functionality. And, infrastructure bridges the car & environment, allowing the car to perceive the presence of pedestrians, traffic lights, and even communicate with the driver’s smart home. Finally, telematics connects the vehicle to the cloud, letting it gather & share the essential data associated with driver behavior & car function.

Features of Connected Car Service Enablement Connected vehicle applications come equipped with a number of smart & convenient features. The features of car connectivity improve the general driving & ownership experience. It also adds a security net with advanced security measures . Following are some smart features of the connected vehicle platform –

Internet Connectivity in Vehicles – The vehicles are always connected to the web via the embedded chipset or SIM card. It can access the web , provided there's stable wireless network coverage. Connected cars also can offer onboard Wi-Fi connectivity, access other online apps & services, and download over-the-air updates released by the manufacturer.

Edge Computing in Automotive – Connected vehicles will still evolve at the exponential rate with V2X & V2V communication. This generates an outsized volume of knowledge (every connected vehicle will generate data up to 4TB/day). And, this same applies to vehicles. the standard luxury vehicle contains many sensors. Although all the info generated is processed within the car, several in-car applications require transfer of knowledge to the cloud. With Edge computing, data pushed to cloud are often limited more smartly. It can process & analyze most of the info at edge & only select non-sensitive data are often transferred to cloud. This brings data transmission costs down & also protects sensitive data leaving vehicle.

App to Car Connectivity – Nowadays, car manufacturers offer a fanatical smartphone app that connects with the car through a wireless network. The app allows users to remotely operate functions of the car like locking or unlocking the door, engine start/stop, opening sunroof, climate control, honk the horn, and headlight on/off. The app also will help to locate the car via onboard GPS.

A fully connected car – By now, almost 90 percent of the newly manufactured vehicles accompany an online connection & cloud access. because the connected vehicle becomes the mainstream, internet connectivity will start to be processed together of the foremost important modern vehicle systems, equally important as engine & steering mechanism . While self-driving vehicles are still faraway from becoming omnipresent, the connected vehicle is already the new normal.

Automotive evolution in M2M technology offers cellular IoT connectivity & innovative mobile lifestyles to both passengers and drivers providing low latency connectivity, high-speed, & a set of advanced attributes including Internet radio, mobile Wi-Fi hotspot, web-based services, & an improved navigation system. However, the environment automobiles encounter can be violent & wireless technology has to endure excessive vibration, extreme temperatures, and moisture experienced on the road. [AS1] In addition, severe automotive manufacturing specifications add to the challenges of building effective ‘smart cars’. With the embedded cellular LTE-connected car solutions, car manufacturers including Audi [AS2] are capable to offer low latency car connectivity, high-speed, and a suite of numerous advanced services which enhance ‘on road’ experiences.

Users can enjoy synchronized embedded voice & data services. Industrial versions of embedded SIMs, [AS3] or eSIM management, are integrated into cars during manufacturing procedures, to enhance car security & connectivity flexibility. eSIM solutions identify individual vehicles, ensure secure global car connectivity, and encrypt communications for smart vehicle systems. All such attributes include eCall emergency solutions, vehicle navigation, vehicle telematics, and these are optimized to survive extreme environments. eSIM management platforms also enable secure & remote car connectivity provisioning services that simplify the manufacturing process & global connectivity deployment, wherever vehicles will be operating. They provide great flexibility to select or swap mobile network service providers & service plans, during the long life of connected vehicle applications. In the future, the secure cloud-based service enablement & next-generation features like integrated NFC, mobile​ ​wallet applications, & integration in the smart city will further contribute convenience for drivers & passengers alike.​

 Monetize the Future

MNO & Automobile OEM can build a properly connected car IoT marketplace where the third-party vendors integrate with the platform to onboard vertical applications.

Autonomous vehicles will represent the ultimate manifestation of advanced driver assistance systems, marking a shift from driver-assisted functionality to fully autonomous vehicle operations.

An autonomous car can generate approx. 5-gigabyte data per second and 1 gigabyte per second in the connected car, near-future technologies can’t transfer thousands of gigabytes of data wirelessly in a second for the massive volume, need advance in-car edge computer to regulate real-time incoming data from car sensors to make the intelligent decision & act in real-time

MNO & OEM can harness customer data they already have and with the help of machine learning/AI algorithm company can deep dive into customer needs, behavior, spending pattern, fine-tune offers & incentives, & dynamically adjust pricing to build loyalty.

Connected vehicle & autonomous car data usage have strong potential for cost reduction, revenue generation, safety, innovative ways to use the limited resources & security     enhancement.

Data algorithm use for huge autonomous car data coming from Radar, Sonar, cameras, GPS, sensors are utilized for safety, V2I, insurance, driving pattern, driver behavior is available for the business opportunities.

Car ecosystem players will rely on the data for future research,     improvement, warranty, engineering innovation, insurance, machine     learning, AI, customer loyalty, upsell advanced driver assistance system     value-added services data to determine future growth.

Back in 2018, the industry of automotive vehicles found itself alienated over the prospective tactics to standardize the connected vehicle platform. There were some plans proposed by European Commission for the Wi-Fi-based standard that was backed by some automotive manufacturers. Some telecoms players favored the adoption of 5G to support the modern connected car ecosystem.

Connected Car Data

By definition, the connected car is the connectivity-enabled vehicle that can communicate with Automotive OEM, Fleet owner and other stakeholders via cloud infrastructure. There is a report published by McKinsey that says the whole revenue generated by the car data monetization at a global scale might add up to $450 – $750 Billion by the end of 2030. Monetization of connected car data is possible by securely exposing the data to the ecosystem of the third parties to create a personalized user experience for drivers. From predictive maintenance to insurance to road & infrastructure planning and so on, connected car data is reshaping today’s businesses where business models and revenue foresee a major change towards the customer-centric prospect. Car data monetization needs a particular set of enablers across these broad categories – in-car technology enablers such as sensors, in-car HMI, high-performance computing, car OS, data storage, connectivity, and location/navigation hardware.

There are infrastructural technologies outside the vehicle to enable car data monetization such as 4G/5G networks, cloud computing, big data analytics, software platforms, smart-road infrastructure, high-definition maps or high-resolution positioning, and V2X communications. Various back-end procedures facilitate analysis & sharing of car data API & ensure the functioning & security of the whole ecosystem.

 Management of Connected Vehicle Applications will Drive Profit

Connected cars & their associated services offer huge monetization opportunities for manufacturers, operators, end-users, & vertical sectors including insurance – but only if the connectivity platform is well-managed. Vehicles can use 4,000GB approx. data each day, according to the estimate. To extract value from the data, operators have to optimize their network for M2M connectivity & obtain required licenses & roaming agreements to endorse uninterrupted connectivity, wherever the car is traveling. Manufacturers need a means of embedding car connectivity solutions, & an easy-to-implement platform to manage their fleet. Insurers need access to the usage reports & other data associated with vehicles, to develop the insurance plans & assess risk.

 Developing Compelling Value Proposition for Consumers

The exchange of data for benefits lies in the value creation procedure related to the car data. Benefits for customers typically fall into four broad categories – safety, time savings, convenience, & cost reduction. In the safety category, car data enable real-time emergency calls and immediate information which facilitates rescue services & road hazard warnings which allow drivers to be informed & respond quickly. When it comes to convenience, car data API management can reduce breakdown risk or downtime with predictive maintenance, concierge services can make light work of routine tasks (such as car refueling), & connected infotainment can offer easy-to-access entertainment. Its features can also be a big time-saver for users. Optimized routing & navigation can reduce delivery or travel time, & systems of networked parking can mean never having to search for the parking space. Finally, customers who are willing to receive the in-car advertising & share information with insurers can save money at the retail point of sale & on their insurance premiums, correspondingly. Participation in the automated payment schemes can also present customers with the opportunity to save on tolls or municipal road-related taxes.

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