Yet, as infotainment frameworks, for example, Apple’s CarPlay and Google’s Android Auto turn out to be more across the board, auto organizations plan to keep tech suppliers from obtaining entrance to an abundance of conceivably profitable data gathered by PC frameworks in autos. They already make plenty of money by providing products and services to their users, including digital music and targeted advertising.
With some of Silicon Valley’s heavyweights, Apple and Google primarily, making inroads in the auto infotainment space, automakers are now taking action, restricting the data they share to the aforementioned giants and defending auto owner rights when it comes to the information they share. Executive director of Connected Vehicles at Ford Mr. Don Butler said: “We need to control access to that data”.
This data holds significance in planning travel services using the information analyzed from it, as the better routes and stops can be suggested. General Motors disclosed earlier this year that the high-speed data connections embedded in their cars would generate an extra $350 million by 2018. “We need to protect our ability to create value (from digital services that collect vehicle data)”.
“The risk is, if you give up control and somebody else figures out that business model, then you lose the future revenue stream”, said Friedmar Rumpel, vice president in AlixPartners’ automotive practice. They could also use this data to monitor drivers’ behavior while driving, and let insurance companies act accordingly while providing insurance coverage.
According to consultant firm, AlixPartners, digitally connected cars would see revenues up to $40 billion per year by 2018, up from $16 billion per year in 2013. Some of them have already developed infotainment systems that can supplement CarPlay and Android Auto such as Ford’s Sync 3 system. This would allow for a “business model that completely belongs to the carmaker”, said Audi senior systems architect for connected vehicle technologies Matthias Halliger.
As for Apple’s and Google’s interest in connecting with drivers, he added, “it’s all about tying you into their ecosystems”.
Apple claims that it is only collecting limited data to “enhance the in-car services…such as Global Positioning System to make Apple Maps as accurate as possible”. Only if these carmakers understand how these data markets work in a connected world, they can improve the driving experience of the customers and make huge profits via e-commerce as well.