The automotive industry is undergoing a profound transformation, driven by the proliferation of connected vehicles and the vast streams of data they generate. For original equipment manufacturers (OEMs), this data represents a powerful asset—one that, if harnessed strategically, can unlock new business models, enhance customer experiences, and drive operational efficiencies. Yet, realizing this potential requires a nuanced approach that balances innovation, customer trust, and organizational agility.
Connected vehicles are no longer a futuristic concept—they are a reality on roads worldwide, equipped with sensors, telematics, and software that capture everything from driving behavior and vehicle health to location and environmental conditions. This data is foundational to the shift from traditional car ownership to a broader mobility ecosystem, where vehicles serve as platforms for digital services and personalized experiences.
OEMs are moving beyond simply selling vehicles. They are transforming into providers of digital and mobility services, leveraging connected vehicle data to deliver value-added offerings such as predictive maintenance, usage-based insurance, fleet management, and Mobility as a Service (MaaS). These services not only create new revenue streams but also foster deeper, more enduring relationships with customers.
One of the most promising applications of connected vehicle data is usage-based insurance. By analyzing real-time driving behavior—such as speed, braking patterns, and mileage—OEMs and insurance partners can offer personalized insurance packages. This approach rewards safe driving, reduces costs for low-mileage users, and aligns premiums with actual risk. As car ownership declines and usership models rise, UBI becomes a compelling value proposition for both individual drivers and fleet operators.
For commercial operators, connected vehicle data enables sophisticated fleet management solutions. Real-time insights into vehicle location, usage, and health allow for optimized routing, proactive maintenance, and improved asset utilization. Predictive analytics can identify potential issues before they lead to costly breakdowns, reducing downtime and enhancing safety. These capabilities are especially valuable as businesses seek to maximize efficiency and sustainability in their transportation operations.
MaaS platforms integrate various transportation modes—cars, bikes, scooters, public transit—into a seamless, user-centric experience. Connected vehicle data is the backbone of MaaS, enabling dynamic pricing, real-time availability, and personalized travel recommendations. OEMs that participate in MaaS ecosystems can extend their reach beyond vehicle sales, positioning themselves as orchestrators of mobility solutions that meet evolving consumer preferences for flexibility and convenience.
Connected vehicles continuously monitor their own health, generating data that can be used to predict maintenance needs and automate service scheduling. This not only enhances safety and reliability for drivers but also creates new touchpoints for OEMs to engage customers post-sale. By offering proactive service reminders, digital manuals, and over-the-air updates, OEMs can strengthen brand loyalty and capture a greater share of the lucrative aftersales market.
While the opportunities are significant, the journey to data-driven value creation is not without obstacles. Early efforts to monetize connected vehicle data—particularly through selling data to third parties—often fell short of expectations. Many OEMs discovered that external demand for raw vehicle data was limited, and the anticipated revenue streams failed to materialize. This has prompted a strategic shift: rather than focusing on external data sales, OEMs are now prioritizing internal value creation and customer-centric services.
Customers are increasingly aware of the value and sensitivity of their personal data. They expect transparency about what data is collected, how it is used, and who it is shared with. Proactively communicating data practices and giving customers control over their information are essential to building trust. OEMs must ensure that the value customers receive—whether in the form of cost savings, convenience, or enhanced safety—clearly outweighs any perceived risks of data sharing.
As vehicles become more connected, the volume and complexity of data increase exponentially. OEMs must invest in robust data governance frameworks to ensure data quality, privacy, and security. This includes complying with evolving regulations, implementing consent management, and safeguarding against cyber threats. High-performance computing and cloud technologies are critical enablers, allowing OEMs to process and analyze data at scale while maintaining compliance and resilience.
The next decade will be pivotal for OEMs as they navigate the transition from product-centric to service-centric business models. Those who act swiftly to harness the value of connected vehicle data—while maintaining a relentless focus on customer trust and experience—will shape the future of mobility. By leveraging data not just as a revenue source, but as a catalyst for innovation and customer engagement, OEMs can unlock sustainable growth and enduring competitive advantage.
The time to act is now. OEMs that embrace the opportunities and address the challenges of connected vehicle data will not only meet the demands of today’s digital-savvy consumers but will also define the next era of automotive excellence.