Car connectivity over the past few years has evolved from theoretical concept to reality. As a value pool, connectivity may reach $450 billion to $750 billion worldwide by 2030. But doing so will depend on the ability of market players to use the data generated by cars, drivers, and mobility systems to develop products that create revenue, reduce costs, and enhance safety and security.
While the potential is significant, monetising this car data at scale remains a major challenge. To take stock of complex developments in this arena, McKinsey conducted a year-long research effort that involved both end users and industry insiders from around the world.
The research highlighted how industry executive identify specific challenges that cause the "car data monetisation gap"the space between car data value potential identification and revenue or savings actually generated from it or losses eliminated.
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No matter which features car data can make possible, capturing value from them is not feasible if consumers do not see the benefit. Of the executives surveyed, 77 percent agreed that managing a diverse set and vast amount of data will require companies to take a different organisational approach.
All car market players target value creation through car data monetisation, but the exact path and measures they take depend on where they sit in the value chain. These could be suppliers, technology designers, dealers, service providers. After assessing their starting points, companies may take appropriate actions on the highway to data monetisation.
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