In 2016, McKinsey predicted an immense $750 billion market potential for the connected car industry, only to revise their predictions in 2021 warning the entire OEM industry that they have only scratched the surface in connected car data monetization.
Moreover, McKinsey pointed out that the most valuable companies like Alphabet and Meta are already generating record-high revenues from big data.
So what is fundamentally wrong with connected car data monetization?
As it turns out, two of the three main reasons rely on the data itself. McKinsey identified three main reasons for the slow progress of data monetization:
The sheer nature of connected car data - the temporal and geographical interdependence - makes it technology-wise extremely challenging to handle, exploit, and generate value.
The present analytical tools don't allow rapid and effortless development of services on top of large-scale connected car data. The existing tools are complex and require long training and skilled professionals from various IT branches, making the entire process lengthy and expensive.
On top of this, OEMs can expect even lower margins due to the necessary investments in mastering EV technology and its peculiarities.
The industry needs to build new services quickly and at a reasonable cost.
The only way to solve this is by leveraging tools that are free of GPS peculiarities, further enrich the data, have a flat learning curve, and most importantly; are fast. The main objective is to have as few data analysts as possible that can test as many hypotheses as possible in as little time as possible. That's the way to reach the currently unattainable six weeks idea-to-integration time frame.
For this particular reason, Mireo built SpaceTime. A technology that allows rapid and practically effortless development of services on top of large-scale connected car data. SpaceTime is Mireo's proprietary technology for processing, analyzing, and ultimately monetizing connected car data on a worldwide scale.
If all that sounds interesting, make sure to visit the Interactive Demo of Mireo's SpaceTime Connected Car Data Platform. The interactive demo presents the real-time processing and analyzing terabytes of data received from 200,000 vehicles. SpaceTime Connected Car Data platform offers all the necessary components to store and analyze real-time and historical data from millions of connected cars using an absurdly fast and completely customizable set of advanced analyses accessed by a standard SQL interface.
The current cost structure of insurance companies is simply not sustainable anymore.
With Tesla offering usage-based insurance, can we expect a major shift in the car insurance industry?