Unlocking New Revenue Streams: How Connected Car Data is Transforming Aftersales, Insurance, and Ecosystem Partnerships

The automotive industry is in the midst of a profound transformation. As vehicles become increasingly connected, the data they generate is emerging as a powerful asset—one that extends far beyond the car itself. For original equipment manufacturers (OEMs), this shift represents a unique opportunity to unlock new revenue streams, forge innovative partnerships, and deliver richer experiences to customers. The true value of connected car data lies not just in subscriptions or digital features, but in the collaborative ecosystems it enables across aftersales, insurance, utilities, 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. This data, when harnessed effectively, can drive significant value for OEMs, customers, and a broad ecosystem of partners. While early efforts focused on subscription-based services—such as remote start, navigation, and entertainment—the real potential lies in leveraging connected car data to create scalable, cross-industry business models.

Usage-Based Insurance: Personalization and Partnership

One of the most promising applications of connected car data is usage-based insurance (UBI). By analyzing real-time driving behavior—such as speed, braking, and mileage—OEMs and insurance partners can offer personalized insurance packages that reward safe driving and align premiums with actual risk. This approach is rapidly becoming standard, with many OEMs partnering with insurers to deliver UBI products directly through vehicles or mobile apps. Some, like Tesla and Volvo, have even launched their own insurance offerings, bundling coverage with other services in a single monthly subscription. As car ownership declines and usership models rise, UBI becomes a compelling value proposition for both individual drivers and fleet operators.

Aftersales: Predictive Maintenance and In-Car Marketplaces

Connected vehicles are revolutionizing the aftersales landscape. Real-time sensor data enables predictive maintenance, allowing 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 are emerging, offering tailored recommendations for services, upgrades, or promotions based on usage patterns, trip context, or even upcoming events. Luxury brands and innovators are leading the way, unlocking software features on demand—such as faster charging, enhanced performance, or advanced driver assistance—through over-the-air updates.

Utilities and the EV Ecosystem: Powering New Partnerships

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 are collaborating with utilities to offer bundled energy and mobility services, and with third parties to provide seamless charging experiences and loyalty rewards. Initiatives like peer-to-peer charging networks and integrated fast-charging infrastructure are addressing range anxiety and expanding the value proposition for EV drivers.

Data Marketplaces: Monetizing Data at Scale

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. Success in this area depends on the ability to clean, standardize, and package data in ways that external partners can use effectively.

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 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.

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.