Today’s cars are equipped with apps that collect vast amounts of data, including personal information, without drivers fully understanding who has access to it. The growing connected vehicle data industry, worth billions of dollars, is composed of various companies that monetize this data. These companies, known as vehicle data hubs, aggregate and normalize data from multiple sources, including car manufacturers, and offer it to customers for various applications. While many companies claim to anonymize or aggregate the data to protect privacy, the unique nature of location and movement data increases privacy risks. The lack of regulations governing the sale and use of this data further exacerbates privacy concerns. Drivers should have clearer consent controls and privacy settings to protect their data, similar to the controls found on smartphones. Efforts are being made to strengthen privacy controls in the automotive industry, but more regulation is needed to ensure the responsible use of vehicle data.
| Signal | Change | 10y horizon | Driving force |
|---|---|---|---|
| Connected vehicle data industry | Rapid growth and monetization of vehicle data | Increased regulations and privacy protections | Profit generation and investor satisfaction |
| Lack of understanding about vehicle data | Lack of awareness about data collection and sharing | Increased awareness and transparency about data usage | Privacy concerns and consumer demand for transparency |
| Early days of connected vehicle data market | Nascent industry with potential for significant growth | Market worth $300 billion to $800 billion | Profit generation and market demand |
| Data collection from vehicles | Collection of various data points from vehicles | Advanced data collection and analysis capabilities | Market demand for data-driven insights and services |
| Role of vehicle data hubs | Consolidation and normalization of vehicle data | Standardized data analysis and insights | Profit generation and market demand |
| Concerns about user privacy | Risks of violating user privacy with sensitive data | Increased privacy protections and regulations | Lack of regulations and privacy concerns |
| Importance of aggregated and anonymized data | Emphasis on protecting driver privacy | Adoption of privacy safeguards and consent controls | Privacy concerns and market demand for privacy protection |
| Lagging privacy controls in cars | Lack of fine-grained privacy controls in vehicles | Implementation of user-friendly privacy controls in cars | Consumer demand and industry trends |
| Increasing focus on privacy by car manufacturers | Adoption of privacy controls and transparency measures by car manufacturers | Strengthened privacy controls in vehicles | Consumer demand and industry trends |