TRAVERSE CITY, Mich. -- Big data is the latest buzz phrase within infotainment circles, and a Cisco executive now has estimated its value: $1,400 per vehicle.
Andreas Mai, director of product management at Cisco Systems Inc., on Monday said the big data generated by a connected car is worth a cumulative $1,400 a year to the motorist, automaker, society and service providers.
"We see this as an opportunity for a new breed of companies," said Mai. "The question is, how do you slice this cake?"
Here's how Mai estimates the value of a connected car's Big Data:
- The motorist can save $550 by enjoying better fuel economy, less time stuck in traffic, lower insurance rates, etc.
- Society can save $420 by employing car platoons to speed up traffic and increase a road's capacity.
- Service providers can earn $150 by providing traffic guidance, navigation, parking, emergency services, etc.
- Automakers can save $300 in lower warranty costs, profitable apps, etc.
There are privacy issues, Mai acknowledged. The big question is whether motorists will allow automakers to use their vehicle data. However, Mai believes motorists will agree to share their data if they get a concrete benefit from it, such as lower insurance rates if they share data with their insurer.
According to a survey commissioned by Cisco, 74 percent of motorists were willing to share vehicle information, Mai said. But access to that information has yet to be sorted out – a potentially sticky issue, since the automaker would share that data with other companies.
"There have to be rules about who owns the data," Mai said. "Most likely it's the consumer, since he bought the car. A balance needs to be struck."