Why now is the time for an aftersales telematics car data marketplace
The unique experiences and solutions which connected vehicles can offer has led to both short and long term revenue benefits for numerous stakeholders. From third party mobility services, to OEMs, dealerships, and other mobility companies, such has been the success of the industry to date that the overall revenue pool from car data monetization on a global scale is expected to exceed upwards of USD 450–750 billion by 2030.
However, although the increased demand for connected car and aftersales services will directly inform the overall success of manufacturers’ long-term financial performances, in the short term a car data marketplace is needed which is focused firmly on the aftersales telematics market. Why? Because such a marketplace would enable potential data monetization opportunities from aftersales services to be fully explored and exploited.
In this post we’ll be taking a detailed look at the opportunities such a marketplace would provide. Starting with an overview of the current status of the car data marketplace, we will then demonstrate why a car data marketplace is needed now which invests in the integration of aftersales telematics services. Finally, we’ll outline the steps we at Concar are taking to make this happen.
Current status of the connected car marketplace
The role of the car data marketplace is to provide a space that facilitates the integration of third party mobility services with personalized car data. These third party services vary widely in terms of problems solved, but some of the most common apps and services seek to improve parking, fleet management, electric vehicle charging, and vehicle repair and maintenance services.
Irrespective of the solution offered, the goal of these services is to improve and enhance the driving, car-owning, and vehicle management experience for consumers and other businesses through the use of personalized car data. A car data marketplace which enables the integration of these services with car data can then promote these products to users whose driving and car-owning experiences will be improved by them.
Why is now the time for a car data marketplace for aftersales telematics services?
Rather than a single industry or user group calling for the facilitation of car data for aftersales telematics services, the current demand for this infrastructure hails from a number of different stakeholders.
From consumers demanding new car and car ownership services, aftersales telematics companies seeking car data integration to support new revenue streams, and carmakers hoping to make a positive impact on future vehicle sales, there is an urgency from numerous sides. Whether consumer, third party service, or OEM, evidence is building which supports the argument that aftersales telematics data support is urgently needed now to secure both the future of the industry.
However, despite the benefits a focus on aftersales telematics in the short term would bring, today’s connected car marketplaces have placed much of their focus on OEM connections. With this being the case, significant revenue streams from independent aftersales service providers are not being taken advantage of, and product development is being stifled. At Concar, we have created a solution that puts aftersales telematics service providers first, enabling new product development and revenue generation for these third party companies.
Let’s take a look in a bit more detail at why a car data marketplace focused on aftersales telematics is urgently needed.
Aftersales telematics services are looking for new revenue streams
Aftersales telematics companies and services, ranging from repair and maintenance services through to fleet management software, are actively searching for new revenue streams centered around their connected car fleets. In order to pursue these new ventures and meet an increasingly wide range of customer needs, these services need reliable access to car data.
In the past, significant barriers like the cost of infrastructure and insufficient consumer interest in telematics-enabled services prevented some of these new revenue streams from being viable. However, in recent years these challenges have been substantially reduced: the cost of telematics infrastructure is lower, and with increasing numbers of connected vehicles on the road consumer demand for connected services has soared.
With these challenges overcome, aftersales telematics companies in the fields of leasing, rental, fleet management, parking, tolling, insurance, EV charging, and others, have freedom to explore new revenue streams and reach new customers. With access to car data from a car data marketplace like Concar, these services can grow at scale with the supporting infrastructure they need to succeed.
Third party services need car data
With more third party mobility services being launched than ever before, the need for an aftersales telematics car data marketplace has also rocketed. As a platform that specializes in aftersales telematics, such a marketplace is in prime position to guide aftersales telematics companies and promote their services to the specific user groups whose car-using experiences will be directly enhanced by them.
While larger carmakers are also investing in the creation of applications to improve the driving experience, these services are limited to their own vehicles and customers. In contrast, third party services work as independent operators which are unaffiliated with car makers and which have their own customer bases. Over the last five to seven years there has been stark growth in the number of smaller, external operators which are looking to source car data via a reliable data partnership with an aftersales telematics car data marketplace solution.
Increased customer demand for aftersales services
Sales of connected vehicles are igniting demand from drivers for aftersales services. In the US alone last year, around 91% of all passenger cars sold were connected, while worldwide a total of 30 million connected cars were sold, equating to 41% of all new car sales. In Europe, the connected car market was valued at USD 9.1 billion in 2020. This is expected to reach USD 23.2 billion by 2026, registering a CAGR of 16.9% during that timeframe.
With car makers continuing to ramp up the production of connected models, it is expected that by 2025 sales of connected vehicles will reach 115 million worldwide. In the next two years alone, analysts predict that worldwide sales of connected vehicles will reach 76.3 million units. On a global scale this means that almost 70% of new, light-duty cars and trucks will ship with embedded connectivity.
This boost in connected car ownership has seen customer demand for connectivity features and enhanced driving experiences escalate, with European manufacturers reporting a growing demand from drivers for connected car devices and services. Studies have found that many car owners are even willing to change car brands for better connectivity features. What we have learned from consumer behaviour is that drivers want to have access to personal service ecosystems inside their cars as well as outside of them. It seems therefore likely that going forward vehicle platforms will offer a range of different services to users that will go well beyond the car itself.
Reports show that consumers are also increasingly willing to pay for the additional features connected vehicles can provide. McKinsey reported back in 2015 that over the course of a single year approval rates from customers for subscription-based payment models for connected services increased from 21 to 32 percent. This demonstrates the increased importance to consumers of connectivity features in their vehicles and personalized driving experiences. We can only expect these numbers to multiply as the number of connected vehicles on the road increases, and the range of on-demand mobility services continues to grow.
How can we make this happen?
At Concar we have created a car data marketplace with a clear focus on aftersales telematics services to enable opportunities for the development of new services in the sector.
We are doing this by offering a single, standardized API via our car data marketplace to aftersales telematics services which enables up to six million vehicles to be connected from day one. This single API integration allows for multiple contracts, integrations, and monitoring simultaneously.
In addition, our API facilitates third party mobility companies in offering financial services such as parking, tolling, insurance, EV charging, and more to their customers. This is possible thanks to unique mapping layers, improved accuracy of GPS coordinates from car data and the intensive monitoring of data. This API integration enables third parties to not only implement new user solutions immediately, but also earn significant revenue on them.
Concar believes the time for OEM connections is soon, but not right now. As we look to the near future, Concar will have its first OEM connection completed by 2022, as we seek to build strong and lasting relationships with both OEMs and third party services. In the meantime we are working closely with aftersales telematics service providers to enable the optimization of revenue streams, and meet consumer demand, now.
We hope you’ve enjoyed our overview of why now is the time for Concar’s aftersales telematics car data marketplace, and the rundown of benefits to both third parties and consumers of this approach. If you’d like to find out more, check out some of the resources below or get in touch! We’d be happy to answer your questions.
- Connected car services with great potential
- Unlocking the full life-cycle value from connected-car data
- The Connected Car Platform of the Future
- Mobility 2030: Transforming the mobility landscape
- Competing for the connected customer — perspectives on the opportunities created by car connectivity and automation
- Meeting The Growing Demand For Connected Car Data
- Profiling tomorrow’s trendsetting car buyers
- Connected Cars and Aftersales Profits
- Untapped Potential in Automotive Aftersales
- Connected aftersales: towards a new customer journey
- EUROPE CONNECTED CARS MARKET — GROWTH, TRENDS, COVID-19 IMPACT, AND FORECASTS (2021–2026)