Value in vehicles: economic assessment of automotive data
| Published date | 10 September 2018 |
| DOI | https://doi.org/10.1108/DPRG-05-2018-0025 |
| Pages | 513-527 |
| Date | 10 September 2018 |
| Author | Alexander M. Soley,Joshua E. Siegel,Dajiang Suo,Sanjay E. Sarma |
| Subject Matter | Information & knowledge management,Information management & governance,Information policy |
Value in vehicles: economic assessment
of automotive data
Alexander M. Soley, Joshua E. Siegel, Dajiang Suo and Sanjay E. Sarma
Abstract
Purpose –The purposeof this paper is to develop a model to estimate the valueof information generated
by and storedwithin vehicles to help people, businesses and researchers.
Design/methodology/approach –The authors provide a taxonomyfor data within connected vehicles,
as well as for actors that value such data.The authors create a monetary value model for different data
generationscenarios from the perspectiveof multiple actors.
Findings –Actors value data differentlydepending on whether the information is kept within the vehicle
or on peripheral devices.The model shows the US connected vehicle data market is worth betweenUS
$11.6bnand US$92.6bn.
Research limitations/implications –This model estimates the value of vehicle data, but a lack of
academic referencesfor individual inputs makes finding reliableinputs difficult. The model performance
is limited by the accuracyof the authors’ assumptions.
Practical implications –The proposed model demonstrates that connected vehicle data has higher
value than people and companiesare aware of, and therefore we must secure these data and establish
comprehensiverules pertaining to data ownershipand stewardship.
Social implications –Estimating the value of data of vehicle data will helpcompanies understand the
importance of responsible data stewardship, as well as drive individuals to become more responsible
digitalcitizens.
Originality/value –This is the first paper to propose a model for computing the monetary value of
connectedvehicle data, as well as the first paper to provide an estimate of thisvalue.
Keywords Value of data, Connected vehicles, Data sales, Intelligent transportation systems,
Personally identifiable information
Paper type Research paper
1. Why value vehicle data?
In a world with growing intervehicle connectivity, few vehicle owners and operators are
aware of their digital tire tracks. The connected vehicle data market is set to increase
exponentially as people store more information on their vehicles and businesses are
generating more information from the sensors on the vehicles. These trends are creating
whole new business models from all of the data in the vehicle. Our article sheds light on
vehicle data collection. It answers “what kind of data does a vehicle collect, and what is it
worth?” Our primary contribution is a model for data value useful to the original equipment
manufacturers (OEMs), suppliers,developers and vehicle owners and operators.
The value of data is important in a global context, as their worth helps to create, disrupt or
sustain markets, as well as determine policy and regulation. This article examines the US
context to provide a manageablescope for exploration, but the methodology describedcan
be similarly applied to other regions. Extending this concept geographically will be
especially critical, as many players in the automotive and data space are multinational,
operating in widely varied marketsand under complex legislative environments.
Alexander M. Soley is
Consultant at the
Department of Mechanical
Engineering,
Massachusetts Institute of
Technology, Cambridge,
Massachusetts, USA.
Joshua E. Siegel, Dajiang
Suo, Sanjay E. Sarma all
based at the Department of
Mechanical Engineering,
Massachusetts Institute of
Technology, Cambridge,
Massachusetts, USA.
Received 18 May 2018
Revised 28 June 2018
Accepted 7 July 2018
The authors thank Thomas
Schnitzer of Swiss Re for
providing background
information pertaining to the
insurance industry’s view of
connected vehicle data.
DOI 10.1108/DPRG-05-2018-0025 VOL. 20 NO. 6 2018,pp. 513-527, ©Emerald Publishing Limited, ISSN 2398-5038 jDIGITAL POLICY, REGULATION AND GOVERNANCE jPAGE 513
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