Here's an interesting piece on Israeli start-up Otonomo, which has developed a cloud solution for connecting car manufacturers' databases with applications and services that want the data their vehicles generate. Otonomo was only founded in 2015 and has just raised $25m in additional funding, bringing its total funding to date to $40m. It has secured nine manufacturer clients so far, including Daimler.
Connected cars are generating larger and larger amounts of data, and there is huge potential to develop new models for monetising those data in the most effective way. Otonomo's CEO and co-founder, Ben Volkow, has highlighted the potential costs to manufacturers: "It costs a lot of money for the OEs; putting the modem in the car is like $100, then you have to pay AT&T about $5 per month to get the data out, then it’s about $1 to store the data". Otonomo's solution cuts these costs and reportedly enables it to sell on data at around 100 percent margin.
As connected cars become more and more mainstream, new and innovative solutions will emerge for exploiting the data they produce to maximum effect. Issues around data privacy and "ownership" of data present significant challenges to this industry, but the potential value of vehicle-generated data will provide a strong incentive to make these businesses work in a way that complies with developing regulations in this area.
even with tighter controls it seems likely automotive data will remain a boom industry for the foreseeable future