Unlocking New Revenue Streams: How Connected Car Data is Powering Cross-Industry Partnerships

The automotive industry is experiencing a seismic shift. No longer defined solely by the vehicles they manufacture, leading automakers are rapidly evolving into orchestrators of digital mobility ecosystems. At the heart of this transformation is the explosion of connected car data—a resource that, when harnessed effectively, is unlocking new revenue streams and redefining the boundaries of automotive business models. The future belongs to those who can leverage this data to forge powerful cross-industry partnerships, delivering value not just to drivers, but to a broad ecosystem of partners across insurance, finance, utilities, aftersales, and beyond.

The Expanding Value of Connected Car Data

Modern vehicles are equipped with a sophisticated array of sensors, telematics, and software that continuously collect data on driving behavior, vehicle health, location, and usage patterns. While early monetization efforts focused on subscription-based services—such as remote start, navigation, and entertainment—the true potential of connected car data lies in its ability to power new, scalable business models through collaboration with partners across industries.

Beyond Subscriptions: Monetizing Data Across the Ecosystem

OEMs are increasingly recognizing that the value of connected car data extends well beyond the driver. By building partnerships with finance, insurance, utilities, and aftersales providers, OEMs can create a connected ecosystem that benefits all stakeholders:

Insurance and Finance: Usage-based insurance (UBI) is a prime example of data-driven innovation. By analyzing telematics data, insurers can offer personalized premiums based on actual driving behavior—rewarding safe drivers and providing flexible, on-demand coverage. OEMs can partner with insurers to offer these products directly through the vehicle or mobile app, or even develop their own insurance offerings. Finance companies can also leverage vehicle location data for asset recovery and use predictive maintenance data to inform warranty and service contract offerings.
Aftersales and Service: Predictive maintenance, powered by real-time sensor data, enables OEMs and dealers to anticipate service needs before breakdowns occur. This not only enhances safety and customer satisfaction but also drives aftersales revenue by routing customers to authorized service centers and enabling proactive parts ordering. In-car service marketplaces can recommend tailored services, upgrades, or promotions based on usage patterns, trip context, or even upcoming events.
Utilities and EV Ecosystems: As electric vehicles (EVs) become mainstream, partnerships with utilities and charging networks are essential. Connected car data can optimize charging schedules, enable dynamic pricing, and facilitate peer-to-peer charging solutions. OEMs can collaborate with utilities to offer bundled energy and mobility services, or with third parties to provide seamless charging experiences and loyalty rewards.
Data Marketplaces: Some OEMs are exploring the creation of data marketplaces, licensing anonymized, aggregated vehicle data to third parties such as city planners, fleet operators, or research institutions. While this model presents challenges around data standardization and privacy, it offers a pathway to monetize data at scale and support broader societal goals, such as traffic optimization and urban planning.

Building the Connected Ecosystem: Practical Steps for OEMs

To realize the full potential of connected car data, OEMs must move from isolated technology initiatives to building integrated, cross-industry ecosystems. Key steps include:

Invest in Telematics and Data Infrastructure: Robust telematics platforms are the foundation for collecting, processing, and securing vehicle data. Over-the-air (OTA) updates, advanced analytics, and machine learning capabilities enable OEMs to deliver new features, predictive maintenance, and personalized experiences at scale.
Develop Contextual and Predictive Services: By analyzing real-time and historical data, OEMs can offer contextual services—such as location-based offers, dynamic insurance, or tailored content—that enhance the driver experience and open new revenue streams.
Forge Strategic Partnerships: Collaboration is essential. OEMs should seek partnerships with insurers, finance companies, utilities, and aftersales providers to co-create value-added services. These partnerships can be structured around data sharing, joint product development, or integrated customer journeys.
Create Data Marketplaces with Standardization: For data marketplaces to succeed, OEMs must address challenges around data quality, standardization, and interoperability. Establishing common data formats and APIs, and working with industry consortia, will be critical to enabling external parties to derive value from connected vehicle data.
Prioritize Consumer Privacy and Trust: As vehicles become data-rich platforms, consumer trust is paramount. OEMs must implement transparent data governance, obtain clear consent, and provide customers with control over their data. Privacy-by-design principles and compliance with evolving regulations are non-negotiable.

Overcoming Challenges: Privacy, Standardization, and Collaboration

While the opportunities are vast, OEMs face several challenges in monetizing connected car data:

Consumer Privacy: Customers are increasingly aware of how their data is used. OEMs must be transparent, offer opt-in mechanisms, and ensure robust data protection to build and maintain trust.
Data Standardization: The lack of standardized data formats and interfaces can hinder ecosystem development. Industry-wide collaboration on standards is essential to unlock the full value of data sharing and marketplace models.
Cross-Industry Collaboration: Building a connected ecosystem requires new operating models, shared incentives, and a willingness to collaborate across traditional industry boundaries. OEMs must adopt a platform mindset, enabling partners to innovate on top of their data and services.

Real-World Impact: Examples of Cross-Industry Innovation

Usage-Based Insurance: Leading OEMs have partnered with insurance providers to offer UBI, leveraging telematics to personalize premiums and coverage. Some, like Tesla, have developed their own insurance products, while others bundle insurance with vehicle subscriptions or EV services.
Predictive Maintenance: OEMs are using sensor data to predict service needs, automatically ordering parts and scheduling appointments, reducing downtime and enhancing customer loyalty. This approach is being extended to fleet operators, where predictive maintenance minimizes costly breakdowns and optimizes vehicle utilization.
EV Charging Collaborations: Automakers are partnering with utilities and third-party charging networks to create seamless charging experiences, dynamic pricing, and even peer-to-peer charging solutions. These collaborations are essential to overcoming range anxiety and accelerating EV adoption.

The Road Ahead: From Technology to Tangible Business Outcomes

The next decade will be pivotal for OEMs seeking to transition from product-centric to data-driven, service-oriented businesses. Those who act now—by investing in telematics, forging ecosystem partnerships, and prioritizing data governance—will be best positioned to unlock new revenue streams, enhance customer loyalty, and shape the future of mobility.

Connected car data is not just a technological asset; it is the foundation for a new era of automotive value creation. By moving beyond subscriptions and embracing ecosystem thinking, OEMs can realize the full potential of connected services—for themselves, their partners, and their customers.