DATA PRIVACY AND CONNECTED CARSWHAT CONSUMERS NEED TO KNOW

2025AD.COM

The mountains of vehicle-generated data that will be available to share in the age of connected cars raises

obvious questions about data privacy.

The question then becomes: which of your data should be shared?

Consumers may be willing to share some data – providing there is a benefit in return.

Adhering to the data protection principles of TRANSPARENCY, SELF-DETERMINATION AND

DATA SECURITY is fundamental to creating consumer trust in the connected car age.5b

TRANSPARENCY will be key when it comes to deciding what data must be shared (e.g. safety and traffic-related) and what

data is optional to be shared (e.g. preferences).

However, consumers are already willingly giving up their privacy to use many of the convenience apps on their

smartphones and social media profiles. Why are cars different?

BUT STILL…

68% OF RESPONDENTS

51% OF RESPONDENTS

WOULD SHARE THEIR PERSONAL INFORMATION WITH THE AUTOMOTIVE

MANUFACTURER OR DEALER…

WOULD SHARE THEIR PERSONAL INFORMATION WITH COMMERCIAL

THIRD PARTIES…

. . .AS LONG AS THEY GET SIGNIFICANT BENEFIT FROM IT.

Onboard sensors and computers will capture and generate a wealth of data of various types, each with a different level of perceived privacy sensitivity by consumers.

is the projected global revenue pool from car data monetization.

To create value. The access to car data brings many new players into the game, each hoping to capture the opportunity in one (or a combination)

of three main ways:4

There is some current evidence to indicate that consumers are willing to accept the risks associated with data sharing.

A Deloitte5a survey from the UK shows:

Usage-based insurance (Pay-as-you-drive)

And many parties want in on it3:

LOW HIGH

In 2017, for the first time, there were MORE CARS added to cellular networks in the US

THAN PHONES.1a

of US consumers are UNAWARE that connected cars could store

their personal data – such as home address and social

security number.1b

48%

MechanicsInsurance companies

OEMs

WeatherStations

Road Authorities

City Planners

Emergency Services

LawEnforcement

Retailers

InternetCompanies

Gas Stations

Food Outlets

Online behavior, viewed contents,items bought, ...

Personal dataand preferences

External road and environmental

conditions Black ice, accident

notifications, ...

Private sphereIndividuals could lose

control over theirpublic persona

Location trackingPersonal habits and schedules could be taken advantage of

by unwanted 3rd parties

ProfilingData could be mined on a

grand scale for social engineering

Enhanced safetyImproved road safety;

enhanced security through criminal tracking

PersonalizationEntertainment, content and

settings all aligned to individual user-preferences

Cost reductionLower insurance premiums

based on real, individual driving patterns

Email,health status, ...

Direct communicationsfrom the vehicle

Real-time location (incl. parking), routes driven, ...

Vehicle usage

Malfunction reports, predictive maintenance, ...

Technical statusof the vehicle

$ 450-750

BY 2030BILLION

REDUCING COSTS

Road law monitoring and enforcement

INCREASING SAFETY AND SECURITY

EXAMPLES OF EXAMPLES OF

RISK REWARD

Tailored advertising and infotainment content

GENERATING REVENUE

SOURCES (EFFECTIVE OCT. 2017):

1. a) http://www.chetansharma.com/publications/us-mobile-market-update-2017/ b) https://solace.com/research/connected-car-drivers#Connected-Car-Slides 2. https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/monetizing-car-data 3. https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/monetizing-car-data4. https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/monetizing-car-data5. a) https://www2.deloitte.com/content/dam/Deloitte/uk/Documents/manufacturing/deloitte-uk-driving-connectivity.pdf b) https://www.vda.de/en/topics/innovation-and-technology/network/data-protection-principles-for-connected-vehicles.html

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