Connected Cars Could Boost Service Revenues

MS analysts argue auto companies could soon own vast data about vehicles, as more cars become  a connected car complex via the Internet, resulting in regularly recurring service revenues OEMs such as General Motors Co and Ford Motor Co could charge an annual/monthly subscription fee from customers who might be interested in accessing real-time, crowd-sourced HD maps maintained by a network of tens of millions of vehicles .

MS says carmakers can be seen as “landlords” of mobile real estate, whose data could also appeal to logistics firms and online retailers interested in exploring shipping/fulfillment opportunities.

Says connected vehicles could act as a large, sensor-encrusted, supercomputing platform for companies such as GM, which could generate $8.2 bln revenue annually if it were to charge an annual fee of $99/vehicle (equal to an AMZN prime annual membership).

Source: Connected cars could boost service revenues