The Proliferation of Vehicle Data
The expected growth in the value of vehicle data and shared mobility could reach more than USD 1.5 trillion by 2030. There are several market forces impacting the way automakers deploy connected vehicle solutions. With greater proliferation of shared economy and shared mobility services, progress in connected living, vehicle autonomy, and vehicle connectivity, the amount of data generated by vehicles will grow exponentially. This raises an interesting question:
How might industry players such as automakers turn vehicle-generated data into valuable products and services in such an evolving automotive ecosystem?
Connected Vehicle Data Monetization
Connectivity is enabling vehicles to be connected to multiple ecosystems that enable vehicle status and events to trigger actions within the ecosystems and vice-versa.
Fig 1 – The vehicle communicates with many entities at the same time
A vehicle generates and exchanges multiple types of data, each enabling numerous set of use cases which are sure to grow in the near future. Among the data types, “personal data and preferences” and “direct communications” are perceived as being the most “privacy critical.” Enabling a vehicle to control devices and devices to control a vehicle, requires a trusted relationship that can be managed and controlled with peer-to-peer communication. Key features of such a communication system are as follows:
Ideal Solution framework & Blockchain technology
The ideal solution framework to enable such a communication would use vehicle status and occupant actions to understand the intent. This helps in creating actions with other end points in the connected ecosystem.
Fig 2- An Ideal Communication System framework
Blockchain simplifies and automates data transactions and business processes by creating trusted access for multiple stakeholders. This results in increased transparency, reduced fraud and lower costs. Blockchain creates trusted relationships to enable vehicles to communicate with ecosystem stakeholders through secure peer-to-peer protocols without creating significant overhead.
Key benefits of a trusted relationship:
- Ability to monetize in-vehicle data by efficiently and securely sharing the data with insurers and third parties
- Driver’s data privacy is protected as access can be granted only for permissioned parties
- Less fraud by time-stamping all relevant events
- Easier detection of fraudulent claims by utilizing transparent and immutable data from automakers and other third parties
- Reduced operational costs by automating key processes such as underwriting and claims
- Improved quality of services by checking in-vehicle data without privacy issues
- Enhanced convenience, safety and security for registering/using services and confirming privacy usage for service providers in the automotive ecosystem
- Earlier notification of events such as accidents and more precise communication regarding the location and nature of the event
- Faster processing, settlements, etc., with smart contracts ensuring predefined conditions and preventing mishaps such as double payment
Now that we have established the need to have trusted communication between entities in a connected ecosystem, and also understand how managing the knowledge graph ontology across ecosystems results in significant rewards, we will elaborate on it with the help of a use case in our next blog post which is coming soon.
For more information, review the presentation by HARMAN Automotive Cloud Services Expert, Steve Surhigh on Establishing Communities of Trust in a Connected World.
Also, let us know your opinion on the outlook for trust in a connected world, especially in connected cars. We would love to hear from you!