Modern mobility

    Access to vehicle-generated data

    Interview with Dr. Marcus Bollig, Managing Director of the Product & Value Creation division and Dr. Julian Weber, Senior Consultant In-car Data and Cybersecurity

    Interview with Dr. Marcus Bollig, Managing Director of the Product & Value Creation division and Dr. Julian Weber, Senior Consultant In-car Data and Cybersecurity

    Interview series of the Institute of Automotive Industry (IfA), published on July 4, 2024 on https://diserhub.de

    The Institute of Automotive Industry (IfA) is part of the nationwide transformation hub "DiSerHub". DiSerHub consists of five research institutions that work together on an improved, more sustainable use of automobiles with the help of digital services and digital business models. In this context, vehicle-generated data is a basic requirement for expanding the portfolio of products to include data-based business models. Various potentials can be identified with which industry players can monetize data within the framework of new business models. With this series of interviews, the responsible persons at the Institute of Automotive Industry (IfA) want to capture the perspective of different industry players on the topic of "access to vehicle-generated data". The interview was conducted by Jan Ole Thomas and David Sosto Archimio from the Institute of Automotive Industry (IfA).

    As the German Association of the Automotive Industry (VDA), you represent the interests of numerous automobile manufacturers and suppliers. Do the companies you represent have access to vehicle-generated data?

    Dr. Marcus Bollig: Basically yes. The manufacturers we represent today almost exclusively bring connected vehicles onto the market. These vehicles are usually connected to a manufacturer's server via an "over-the-air" connection, to which sensor data from the vehicle control units is then transmitted. The suppliers, which the VDA represents as well, also have access to this vehicle data to varying degrees via appropriate interfaces and agreements. Last but not least, vehicle-generated data is of course also required for diagnostics in the context of service and repairs. Workshops today typically access this data via a hardware interface on the vehicle, the so-called OBD connector (on-board diagnostics).

    What vehicle-generated data do these companies have access to, and to what extent and in what quality?

    Dr. Marcus Bollig: On the one hand, this depends on the technical conditions in the vehicles. What data is generated by the vehicle? What transmission options are available? There may also be technical limitations: every access puts a strain on the vehicle's resources, and above a certain level, for example, computing capacity and memory utilization in control units as well as bus loads - i.e. a system that transmits the amount of data per second - on communication lines reach their limits. In addition to this technical availability, the legal availability, which is regulated in the GDPR, comes into play: which data does the user of the vehicle explicitly consent to being shared and reused? Is the necessary purpose binding in place when collecting the data? In general, data may only be transmitted with this consent and for a specific purpose. One thing is clear: sovereignty over the data always lies with the vehicle customer. This is our guiding principle.

    All of these conditions mean that we will ultimately not be able to make all of the data generated in a connected vehicle available, this is neither technically nor legally feasible. And it actually doesn't make sense either. On the question of who is already using which data today: We see manufacturers offering different data-based services that customers can access - often via corresponding apps. Manufacturers also offer third parties the opportunity to use corresponding data for services - of course only with the consent of the users. However, this data economy is currently developing rather slowly, and demand from manufacturers is not particularly high. In the future, the question will be where attractive use cases can be combined into a business case so that both customers and everyone else involved benefit from the use of data by third parties. There is even more potential here to develop successful projects - everyone involved is called upon to find quick and pragmatic solutions that also enable the necessary speed.

    Which concrete application scenarios/business cases are already taking place today?

    Dr. Marcus Bollig: There certainly is a whole range of offers that customers are already actively using today. These typically include apps from manufacturers that show the customer the current status of the vehicle, such as the locking status or the fuel level or battery charge level of the vehicle. Error messages or service requirements are also already shown to customers in the apps, for example the wear and tear of components such as tires or the starter battery. There are also additional functions that are made possible by networking with the backend or by networking across different vehicles, such as a data-based black ice or pothole warning. In principle, this is also the information that manufacturers show the customer in the vehicle, but which is also passed on to third parties - so that they can work with it as well and develop business models.

    What other application scenarios/business cases do you see in the future?

    Dr. Julian Weber: There are of course many ideas for future use cases. The question is quite simple: Which applications are technically feasible and make sense for everyone involved? The optimal use of the charging infrastructure by electric vehicles is certainly a topic in which many new data-based services can be expected.

    Dr. Marcus Bollig: One use case that is already established today is fleet management of multi-make vehicle fleets. With the help of such data offerings across multiple manufacturers, these fleets can then be managed much better. There is a multitude of such user-oriented services that already work today, but we and all other stakeholders would certainly like to see a significant expansion here.

    Dr. Julian Weber: Anyone who looks at the dashboard of a car sharing provider today can also see very clearly which data is already being provided "over the air" by vehicles of different brands. I am thinking here, for example, of the availability of car sharing vehicles displayed for a specific area.

    Dr. Marcus Bollig: It is still unclear what other application scenarios could exist in the future, but the potential is huge. Not just topics that currently only benefit individual users or companies, but especially topics that benefit society and the economy as a whole. We expect significant progress in sustainable mobility in particular with the consistent use of data. When it comes to traffic management, there are opportunities to optimize the flow of traffic overall and thus reduce energy consumption and thus vehicle emissions. In addition to pollutants and greenhouse gases, this also affects emissions such as brake dust or tire wear in electric vehicles. A consistent and uninterrupted flow of traffic in the city, with few accelerations and braking maneuvers, will mean that we make mobility in the city more efficient and cleaner. Safety also plays a major role, for example through active warnings of critical and dangerous situations such as black ice, potholes or the end of a traffic jam, as is already established by individual manufacturers through the networking of vehicles. In addition, there will be customer-specific offers, with individual providers certainly generating added value for the customer and at the same time for the company. We will then see what types of service offers emerge and prevail.

    Dr. Julian Weber: A use case that I think is a great example here and has already been piloted several times is the delivery of online orders to the trunk of a car (“trunk delivery”). Basically, every manufacturer wants to offer their customers such a service and naturally hopes to be able to differentiate themselves from competitors. In the end, the customer may decide to buy vehicle A precisely because it offers this service and vehicle B does not. At the same time, this example also highlights certain difficulties: I not only have to give the online supplier the current geoposition, but also grant them access to the trunk lock. And someone should then guarantee, ensure and take responsibility for the fact that the trunk is not opened at 150 km/h on the motorway, that it is closed again after delivery, that not every delivery person can open it at any time from that point on, and so on. This makes clear which exciting value-added services are possible for manufacturers, service providers and customers alike with vehicle data - but also which questions need to be clarified. One thing is certain: in the end, the manufacturer will always be responsible for the safety and type approval conformity of the vehicle.

    Are there any perspectives that may cause your scepticism a bit when we look into the future beyond these application scenarios that you just mentioned?

    Dr. Marcus Bollig: It is important that this data is widely available and very accessible so that business models can develop. Data protection for customers is and remains central. The legal requirements for cyber security and functional reliability of vehicles and thus for their road safety are rightly very high. Access to the data via a single interface between the vehicle and the manufacturer's server is a safe and proven solution here. It is now a matter of working with all those involved to develop regulations in which this data economy creates added value for everyone: for those who provide the data, those who want to process the data further, and for the customer. Because if there is added value for everyone involved in this system, then a certain momentum will develop. If we do not manage to enable this for one of the parties involved, then there is a high risk that motivation will remain low at this point and we will not see the dynamic that we all want.

    Dr. Julian Weber: And there is a risk that any regulation will be too biased and therefore counterproductive. A data ecosystem ultimately consists of manufacturers, service providers and customers who together see added value for themselves.

    To put it very concretely, if you say that you consider this momentum to be a key to a construct that generates added value, what would be a conceivable model? For example, there is the data trustee that is being discussed, would something like that be a possibility for implementation, or how could one imagine it?

    Dr. Marcus Bollig: Our job as an industry is to support the data transfer between those who offer data and those who use it. In use cases with very specific requirements for confidentiality and anonymization, the use of a data trustee can make sense. The use of the trustee must then have a clear added value for the data transfer. But if we let every single data transfer go through a trustee, in my opinion we would not become more efficient, faster or more cost-effective in the system - quite the opposite. So we have to avoid this.

    Gibt es konkrete Forderungen, welche Sie platzieren möchten, also beispielsweise in Richtung Politik? Hier steht jetzt Hersteller mit dabei, oder Datentreuhänder oder Fahrzeughalter, also gibt es solche zentralen Forderungen eben mit Blick auf die Nutzung von Fahrzeugdaten, die hier zur Sprache kommen sollen? Gibt es zentrale Forderungen von Ihnen in der Verbandsrolle mit Blick auf die Nutzung von Fahrzeugdaten in Hinsicht auf die Politik?

    Dr. Marcus Bollig: Our impression is that everyone involved, customers, manufacturers and suppliers, have an interest in this data economy functioning, developing and constantly growing. The decisive factors are always the safety of the vehicles and the privacy of the customers. These are strict boundary conditions. Of course, there is always the risk of over-regulation, which hinders us rather than helps us. Therefore, my first and most important request would be to further intensify cooperation in the development of these regulations and requirements. The closer the dialogue and the more exchange between stakeholders, the better the end result. These stakeholders include manufacturers, suppliers, but also customer representatives such as the ADAC, consumer advocates and politicians, especially of course the legislative bodies. We are in intensive exchange with everyone to find this optimal point. And in my view, that is crucial to success.

    The key criterion for success, so to speak. What challenges do you face in developing data-based business models (currently and in the future)?

    Dr. Julian Weber: The availability of data is certainly a challenge. Of course, I can basically take data from any control unit and transfer it from the vehicle. But as already mentioned, the possibility of providing it depends on many factors. Even if this idea is often promoted: There is no so-called "digital twin" on an external server that contains all the data generated in the vehicle in real time. This is neither technically possible nor sensible, and is also not legally feasible due to GDPR principles, purpose limitation and data minimization.

    Dr. Marcus Bollig: In our view, an expansion and harmonization of the offering is definitely desirable. It is important that the vehicle user has sovereignty over data usage and that this data is not processed without their consent.

    Finally, please complete the following sentence: Access to vehicle-generated data is particularly important …

    Dr. Marcus Bollig: … for our members, as we expect that this will enable future-oriented business models that offer opportunities for value creation and further development for customers, manufacturers and suppliers. At the same time, they will ensure greater road safety and more sustainable mobility.

    Products & Value Creation

    Dr. Marcus Bollig

    Managing Director

    Coordination Unit for Security & Data

    Dr. Julian Weber

    Advisor