he COVID-19 pandemic has caused significant upheaval in the world of mobility with the widespread uptick of working from home, fears over the potential spread of the coronavirus on public transport, and a sharp decrease in traffic volumes. These experiences are re-shaping how we look at our long-term mobility needs. In the pre-pandemic world, consumers expect mobility services to become more effective, greener, and cheaper. The COVID-19 outbreak has accelerated this demand along with calls for enhanced cleanliness. Adapting to the ‘new normal’ will require us to think differently about mobility. The real fuel for the future of mobility is data and, as with any high-value fuel, the critical question is: how can it be reliably accessed?
In many ways this future is already a reality. While many consumers may not be aware of it, almost all vehicles generate data on a daily basis. This unique resource has enormous potential: from tailoring mobility services to specific user needs to improving the management of a fleet by optimizing its fuel consumption or locating vehicles where most needed, and from rewarding good drivers with cheaper insurance premiums to preemptively diagnosing repairs on your car. However, this is only the first step. With the deployment of 5G networks and self-driving vehicles, data will make mobility easier and more affordable. One much-discussed example of data impacting mobility is the reduced need for vehicle ownership as consumers are able to share cars seamlessly, depending on their specific needs. A shared self-driving car could pick you up at home, take you to your office, and then move on to pick up someone else.
These are concrete business cases which have the potential to transform the value chain in the automotive industry. In a 2016 report, McKinsey estimates that car-generated data could become a $450 -750 billion market by 2030. This is substantial change and the market is unsurprisingly already attracting new players and from neighboring markets to take advantage of these new data-driven mobility opportunities. While car manufacturers together with tier-1 suppliers are at the forefront of this (r)evolution, this market involves a wide range of stakeholders including insurance companies, fleet managers, car rental operators, the automotive aftermarket as a whole, and many others. They want to provide more innovative, tailored services to their customers.
But what about consumers? A recent study indicates that 90% of survey respondents in Europe believe that vehicle data belongs to the vehicle owner or driver. This is critical as much like recent discussions regarding the wealth of data on social media, consumers want control of who can access and use their data. Given these concerns, companies will develop technical options that take this critical aspect into account, whether it is to comply with existing legislation such as Europe’s General Data Protection Regulation (GDPR) or simply to address consumers’ concerns regarding their privacy and ability to choose their preferred service provider.
So, what should be done in practice? Several industry stakeholders, including some car manufacturers, have put forward technical concepts that enable them to control access and monetize vehicle generated data. However, vehicle owners, including individual consumers and large fleet operators, as well as key third-party service providers are reluctant to let any interested party assume the role of gatekeeper. They want to independently access the data and offer competitive services to their customers, while guaranteeing the highest levels of privacy and cybersecurity.
A legislative approach is underway in Europe regarding access to vehicle-generated data. The goal is to guarantee transparent and fair access by enabling vehicle owners to select third-party service providers of their choosing. The U.S. Congress is also initiating discussions on this topic. We can expect many other regions to follow a similar path in the coming years in order to ensure a competitive and fair data ecosystem for all market players, while ensuring consumer confidence that their data is safe and secure.
In order to seize the full potential of innovative services fueled by vehicle-generated data and make our daily mobility more resilient and innovative in a post-pandemic world, there is a need to accelerate this discussion across all regions and mobility stakeholders.
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Mobility Data Is Fuel for Recovery
Photo by Laurie Decroux via Unsplash.
November 19, 2020
COVID-19's disruption to the world of mobility has reshaped how we look at our long-term mobility needs, and mobility data will be the driver for future mobility growth.
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he COVID-19 pandemic has caused significant upheaval in the world of mobility with the widespread uptick of working from home, fears over the potential spread of the coronavirus on public transport, and a sharp decrease in traffic volumes. These experiences are re-shaping how we look at our long-term mobility needs. In the pre-pandemic world, consumers expect mobility services to become more effective, greener, and cheaper. The COVID-19 outbreak has accelerated this demand along with calls for enhanced cleanliness. Adapting to the ‘new normal’ will require us to think differently about mobility. The real fuel for the future of mobility is data and, as with any high-value fuel, the critical question is: how can it be reliably accessed?
In many ways this future is already a reality. While many consumers may not be aware of it, almost all vehicles generate data on a daily basis. This unique resource has enormous potential: from tailoring mobility services to specific user needs to improving the management of a fleet by optimizing its fuel consumption or locating vehicles where most needed, and from rewarding good drivers with cheaper insurance premiums to preemptively diagnosing repairs on your car. However, this is only the first step. With the deployment of 5G networks and self-driving vehicles, data will make mobility easier and more affordable. One much-discussed example of data impacting mobility is the reduced need for vehicle ownership as consumers are able to share cars seamlessly, depending on their specific needs. A shared self-driving car could pick you up at home, take you to your office, and then move on to pick up someone else.
These are concrete business cases which have the potential to transform the value chain in the automotive industry. In a 2016 report, McKinsey estimates that car-generated data could become a $450 -750 billion market by 2030. This is substantial change and the market is unsurprisingly already attracting new players and from neighboring markets to take advantage of these new data-driven mobility opportunities. While car manufacturers together with tier-1 suppliers are at the forefront of this (r)evolution, this market involves a wide range of stakeholders including insurance companies, fleet managers, car rental operators, the automotive aftermarket as a whole, and many others. They want to provide more innovative, tailored services to their customers.
But what about consumers? A recent study indicates that 90% of survey respondents in Europe believe that vehicle data belongs to the vehicle owner or driver. This is critical as much like recent discussions regarding the wealth of data on social media, consumers want control of who can access and use their data. Given these concerns, companies will develop technical options that take this critical aspect into account, whether it is to comply with existing legislation such as Europe’s General Data Protection Regulation (GDPR) or simply to address consumers’ concerns regarding their privacy and ability to choose their preferred service provider.
So, what should be done in practice? Several industry stakeholders, including some car manufacturers, have put forward technical concepts that enable them to control access and monetize vehicle generated data. However, vehicle owners, including individual consumers and large fleet operators, as well as key third-party service providers are reluctant to let any interested party assume the role of gatekeeper. They want to independently access the data and offer competitive services to their customers, while guaranteeing the highest levels of privacy and cybersecurity.
A legislative approach is underway in Europe regarding access to vehicle-generated data. The goal is to guarantee transparent and fair access by enabling vehicle owners to select third-party service providers of their choosing. The U.S. Congress is also initiating discussions on this topic. We can expect many other regions to follow a similar path in the coming years in order to ensure a competitive and fair data ecosystem for all market players, while ensuring consumer confidence that their data is safe and secure.
In order to seize the full potential of innovative services fueled by vehicle-generated data and make our daily mobility more resilient and innovative in a post-pandemic world, there is a need to accelerate this discussion across all regions and mobility stakeholders.
