How Valuable Is Your Connected Car Data?

This month is all about data privacy as we celebrate Data Privacy Day. It’s no question that we are currently living in the IoT (Internet of Things) age, where connected and smart devices have made everyday life much more manageable and efficient. One of the biggest IoT trends is the connected car. Be it connecting to other smart devices or driving autonomously, the connected car seems like it’s here to stay. So what does this have to do with data privacy?

As more cars become connected with other devices and infrastructure, the amount of data that is collected online also dramatically increases. This includes data that pertains to the car’s whereabouts as well as personal particulars of who’s behind the driver’s seat. Because the connected car is collecting data driven by drivers’ behaviors and preferences, rich user profiles are being created that can potentially become valuable assets to automakers and other third parties interested in using the data to drive improvements on other products and services.

In fact, because businesses see tremendous value in investing and extracting data insights to new consumer segments, connected car data is even being perceived as a new form of currency. Experts guess that in three years, automakers will actually profit more from connected vehicle data than actual car sales. According to McKinsey & Co., car data monetization will be worth $750 billion by 2030.

Luckily, consumers are starting to demand more ownership over how their data is being shared and managed, not just with the company but with the company’s partners as well to prevent their data from ending up in the wrong hands. In another survey by McKinsey & Co., American consumers were found to be more guarded about personal data than those surveyed in China and Germany.

Managing your data and privacy starts with you, and this applies to connected car data as well. Make sure you are applying these tips if you haven’t already:

• Read the company’s privacy policy before agreeing to share your data with an automaker, or third-party service. As mentioned, data is becoming more and more valuable, so like like all financial assets, it must be valued and protected.
• Some privacy/security settings are set by default, so review them carefully and set them to your level of comfort.
• Enable 2FA or MFA for your apps on mobile devices that are tied to third-party services like online banking.
• Consider implementing encryption for connected car services data, or only utilize services that adequately protect their backend systems as a measure for safeguarding your data.

With Data Privacy Day around the corner, we are reminded that our data is valuable and thus should be protected. Connected car data, in particular, will only continue to rise in value. So, as consumers, be alert to all these considerations when looking over the terms and conditions when purchasing a connected vehicle. Users should also be extra cautious when agreeing to share their personal data. For more tips, make sure to visit the official homepage of Data Privacy Day, and be on the look out for more content and tips on our blog as well!