Beyond the Subscription: Unlocking New Revenue Streams with Connected Car Ecosystems

The automotive industry is in the midst of a profound transformation. As vehicles become increasingly connected, original equipment manufacturers (OEMs) are presented with opportunities that extend far beyond the limitations of traditional subscription-based models. The real value of connected car data lies in its ability to power new, scalable business models through cross-industry partnerships, data marketplaces, and integrated service ecosystems. For OEMs, the path forward is clear: move beyond subscriptions and embrace the full potential of the connected car ecosystem.

The Expanding Value of Connected Car Data

Modern vehicles are sophisticated digital platforms, equipped with sensors, telematics, and software that continuously collect data on driving behavior, vehicle health, location, and usage patterns. While early monetization efforts focused on subscriptions—such as remote start, navigation, and entertainment—the true potential of connected car data is unlocked when OEMs collaborate with partners across insurance, finance, utilities, aftersales, and technology sectors.

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 a diverse array of stakeholders, OEMs can create a connected ecosystem that benefits all participants:

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 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.

Practical Steps for Building a Connected Car Ecosystem

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, aftersales providers, and technology companies 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.

Emerging Business Models: Unlocking New Value

The connected car ecosystem is enabling a range of innovative business models:

Usage-Based Insurance (UBI): OEMs and insurers are leveraging telematics to personalize premiums and coverage, rewarding safe driving and offering flexible, on-demand insurance options. Some OEMs have even launched their own insurance products, bundling coverage with vehicle subscriptions or EV services.
Predictive Maintenance: Real-time sensor data allows OEMs and dealers to anticipate service needs, automatically order parts, and schedule appointments—reducing downtime and enhancing customer loyalty. This approach is especially valuable for fleet operators, where predictive maintenance minimizes costly breakdowns and optimizes vehicle utilization.
In-Car Commerce: The vehicle is becoming a hub for commerce and services. In-car marketplaces allow drivers and passengers to purchase everything from fuel and parking to entertainment and food, all from the vehicle’s interface. These platforms can deliver personalized offers based on location, preferences, and journey context.
Data-Driven Fleet Management: 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.

Overcoming Challenges: Data Standardization, Privacy, and Trust

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.

Best Practices for Ecosystem Orchestration

To orchestrate a successful connected car ecosystem, OEMs should:

Adopt a Customer-Centric Data Strategy: Place customer value at the center of all data initiatives. Use data to personalize experiences, anticipate needs, and deliver tangible benefits throughout the vehicle lifecycle.
Invest in Data Modernization: Break down organizational silos and unify data across platforms to create a 360-degree view of the customer. Leverage advanced analytics, machine learning, and cloud infrastructure to unlock actionable insights.
Foster Ecosystem Partnerships: Collaborate with insurers, mobility providers, technology partners, utilities, and dealers to co-create new services and expand the value proposition for customers.
Prioritize Transparency and Control: Clearly communicate data practices and empower customers to manage their data preferences. Build trust through ethical stewardship and transparent value exchange.
Continuously Innovate and Test: Embrace a test-and-learn mindset, piloting new services and iterating based on customer feedback and data-driven insights.

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. The time to act is now—those who move swiftly will shape the next era of automotive value creation.