Connected Cars: How Is Data Strategy Important for the Growth of Your Automotive Business?


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What does a new age car look like? Well, if you just visualized a luxurious car with a fantastic music system, you did it all wrong! When I say new age cars, I refer to the cars that cars contain thousands of sensors for monitoring and controlling internal machines. Moreover, digital transformation in automotive have brought new wave of generating data in context with location, performance, driving behavior and health records. Sounds fascinating. Doesn’t it?

The rise of connected data has created opportunities for automakers to collaborate with multiple entities like advertisers, infotainment, health services, insurance services and many more. This expands the work scope and delivers the best ever experience for their customers.

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Now, let’s see some significant forecasts about connected cars that will amaze you. IHS Automotive forecasts that there will be 152 million connected cars on global roads by the year 2020. Moreover, the combination of new car features and aftermarket devices could mean 2 billion connected cars! Furthermore, the forecast says, that an average car will produce up to 30 terabytes of data each day. These data records can be converted into meaningful insights like performance patterns, buying behavior, route map/parking history, servicing pattern and many more. It also helps in keeping a regular health check of the vehicle and creates better driving experiences.

In today’s article we will be addressing how connected cars are producing significant data, and how can this data help you drive your business’ growth. Also, we will explore the opportunities that can come up while analysing data from a connected car and enable you to achieve new levels of business sustainability.

Location-based Data

The traditional method of data analysis contained insights in the form of graphs and charts. It gave information about what has happened. However, it did not display insights as to why a particular problem stemmed up. If there is no way to find why it has happened, there will be no way to predict the future.

Analytics from location-based data helps to draw conclusions as to why it has happened. They let you visualize the data based on location. This will provide insights that can improve your business. Through these benefits, many automotive companies are enhancing their customer experiences and thinking beyond the vehicle and towards location-based services. The range of improvements include providing data on current traffic situation, notifications on weather, nearby parking spaces, fuel stations etc.


With the growing demand for safe and smart vehicles, automotive manufacturers are increasingly developing vehicles integrated with infotainment systems. This infotainment system allows you to connect with any digital devices that are capable to work as an inbuilt mobile.

In-car infotainment also holds opportunities to understand and predict customer needs from the consumption of content. When the data from infotainment and vehicle is paired, there is a great possibility to cater the listeners with personalised content.

Customer Experience

A good automotive business majorly depends on the experiences you render to your customers. Automakers started believing this fact and began offering personalised experiences through chat and support centre. This enables customers to interact with the automakers and makes them happy.

The increasing use of connected cars has motivated the automakers to invest in more compelling strategies. The analytics from the connected car data offer accurate proposals, which help in building personalized experiences throughout the customer life cycle.


Okay, consider this:

A huge value chain transition is underway. New business models will evolve.
The combined application of connectivity, big data, and analytics will move the industry towards personalization, autonomy, and safety.
The next generation of connected cars is there to lay the ultimate convenience of feeling home on road.
Early adopters of connected car technology are already experiencing the reward.

The ‘data storm’ from connected cars when managed carefully can bring unexpected growth to the business of vehicles in the automotive industry. Where do you stand? Think about it…

Lucy Kaith
Lucy Kaith is a marketing specialist, writer working for Gateway Digital. She authors in-depth content on the topics of digital transformation help businesses choose the right innovative technologies to smoothly transform from legacy to digital. To know more about our services and solutions, visit


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