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Cubic: connectivity will monetise entire vehicle life cycle

Digital service monetisation has already begun, but more direct OEM-customer relationships could make offerings more valuable for longer. By Will Girling

The OEM-customer dynamic has historically been a ‘one and done’ affair, with neither party interacting much with the other outside of maintenance and upgrade cycles. Vehicle connectivity offers a way to disrupt and prolong this relationship—McKinsey & Co estimates that it could add US$200bn-US$400bn of incremental value by 2030.

Special report: Monetising digital vehicle services

Since electric vehicles rely on connectivity for even the most basic functions, such as the battery monitoring system, the transition from fossil fuels is simultaneously laying the foundation for a future where digital service monetisation applies to the entire product life cycle. While macroeconomic challenges restrict new vehicle sales growth, unlocking new revenue streams may become essential, not optional.

“There is a definite need to explore monetisation, but also opportunity,” states Cian Ó Cuinneagain, Chief Product Officer at auto software-as-a-service unicorn Cubic. “In the early stages, it could offset the cost of integrating immersive new infotainment systems. After that, it can widen OEMs’ primary revenue streams beyond physical products.”

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