Automotive Data Monetization Market: Data Privacy & Security

Automotive data monetization (ADM) represents a paradigm shift in the vehicular landscape, where data has emerged as a valuable asset. Offering significant benefits to both automobile businesses and consumers alike, it primarily involves the collection, analysis, and commercialization of information generated by vehicles. These include vehicle diagnostics, driver behavior, and location-based insights, among others. According to Inkwood Research, the global automotive data monetization market is set to progress with a CAGR of 34.48% between 2023-2030, capturing a revenue of $552460.21 million by 2030

With ADM gaining significant traction, data privacy & security have emerged as primary concerns. In fact, as per a recent study, most auto-makers admit they may be selling users’ personal information. Besides, 50% also stated that they would share it with the government or law enforcement without a court order, leading to consumers becoming hesitant to share their vehicle data.

Automotive Data Monetization Market - Inkwood Research

In turn, these privacy apprehensions and cybersecurity concerns also have the potential to impede the growth of the global automotive data monetization market. Hence, as the volume of data generated by vehicles continues to increase, ensuring the privacy of sensitive information and safeguarding against potential threats is essential.

In this blog, we’ll focus on the importance of data privacy & security within the global market. Additionally, we’ll also explore the solutions adopted to address this pressing issue –

  • Regulatory Compliance: Data privacy regulations, such as the General Data Protection Regulation (GDPR) in the European Union (EU) and the California Consumer Privacy Act (CCPA), a US state law, require businesses to adhere to strict data protection standards. Non-compliance can lead to hefty fines, legal issues, and reputational damage; for example, the consequences of breaching the GDPR result in a fine, which is over €20 million or 4% of the company’s yearly global revenue. As a result, robust security measures are necessary to avoid data breaches that could lead to identity theft or other malicious activities.
  • Preventing Data Breaches: Automotive data often contains sensitive information, including location data and personal identifiers. Accordingly, in the United States, the Federal Trade Commission (FTC) – a key federal agency tasked with safeguarding consumer privacy – and the National Highway Traffic Safety Administration (NHTSA) maintain regular coordination and communication regarding privacy matters in the field of motor vehicles. This includes issues concerning emerging technologies like connected and automated safety systems. Furthermore, the FTC has the authority to take appropriate action against companies or individuals engaging in unfair or deceptive practices, including vehicle data privacy and security.
  • Intellectual Property Protection: Automotive companies invest heavily in research and development. Protecting their intellectual property through data security is crucial to maintaining a competitive edge. Aligning with this, the Act on the Protection of Personal Information (APPI) serves as Japan’s primary data protection law. It establishes the fundamental principles governing government regulatory policies and authority, as well as outlines the responsibilities of private businesses that manage personal information. Likewise, in January 2023, China introduced the ‘Auto Data Security Compliance and Practice Guidance.’ It provides automakers with directives on safeguarding data collected from increasingly ‘intelligent and smart’ vehicles.
  • Data Monetization Credibility: Major automotive players, such as General Motors, Ford Motor Company, Tesla, etc., are exploring means of revenue generation via automotive data. These include various monetization models, like selling data to third parties, providing data-driven services to customers, and utilizing data for improving product development and marketing. Accordingly, data monetization efforts rely on the willingness of third-party companies to purchase data. Demonstrating a commitment to data privacy and security enhances credibility and facilitates collaboration with data buyers.


OEMs are also implementing strong security measures to safeguard the data they gather and process. This primarily involves efficiently managing data loss, privacy breaches, and fraud attempts. Besides, they are also required to establish crisis management protocols and report incidents to both authorities as well as impacted individuals. 

With the increasing volume of data collection raising significant privacy issues, companies are regulatory authorities are focused on safeguarding data against unauthorized access or unethical use. Hence, this factor plays a vital role in navigating data privacy & security concerns within the global automotive data monetization market.

By Shruti Vanjare


Data is collected from vehicles through various means, including telematics devices, sensors, onboard diagnostics systems, and connected vehicle platforms. These devices and systems capture information and transmit it to data centers for analysis.

Monetized automotive data can be used for various purposes, including predictive maintenance, insurance pricing, traffic management, smart city initiatives, and personalized marketing.