How vehicle telematics is changing the auto industry

Global Automotive Analytics Leader, IBM

A tremendous amount of vehicle data is generated every second. From recording in-vehicle infotainment preferences to storing favorite navigation routes, cars have become mobile data centers on wheels. Vehicle telematics collect a wealth of data in motion such as sensors for assisted driving, vehicle speed, braking, transmission control systems, air bags, tire pressure and wiper speed, as well as geospatial and environmental conditions. Last year, an estimated 26 million connected cars collected more than 480 Terabytes of data. That number is expected to increase to 11.1 petabytes by 2020. Some plug-in hybrid vehicles are capable of generating up to 25 Gigabytes of data in just one hour.

While gathering vehicle information is not new, harnessing it at today’s volumes and velocities and integrating it with information about a car’s operating environment at any given moment is revolutionary. For the first time ever, data from a car, its surrounding vehicles and other external information can be pooled and analyzed to give drivers real-time insights that provide the safest, most informed mobile experience possible. This same information will deliver a new level of value to automakers, partners and suppliers and to cities looking to operate increasingly efficient transportation systems.

Connected vehicles present a tremendous opportunity for automakers to differentiate their products and services. They provide a platform for automakers to deliver a personalized mobile experience each time the car is driven. Bringing together data such as driver profile and preferences, journey information, vehicle information and all types of external information, automakers can extend beyond the car to build a knowledge base for personalized apps and services that will drive differentiation, brand loyalty and, ultimately, brand advocacy.

Connected vehicles are changing the relationship that automakers have with their customers by enabling new ownership models with different customer segments beyond the traditional vehicle ownership. An emerging customer segment will be focused only on transportation and mobility, looking for a safe, convenient, reliable and efficient way to get from one location to another. Automakers and non-traditional automotive companies are piloting new business models and services that focus on mobility and the changing role that vehicles will play in the ecosystem.

This kind of connection is exemplified by a revolutionary new car-sharing app from IBM and Daimler Moovel:

Streaming data from connected vehicles, synthesized and acted upon in real-time, will drive significant investment from automakers. The result will be an emerging marketplace with new services and applications that drive evolving customer relationships and new revenue streams.

To learn more about connected vehicles and how IBM is taking safety, quality and personalized driving experiences to the next level, read Telematics, big data and analytics: Driving the automotive industry forward.