The Navigator

The phrase “data is the new gold” has become something of a mantra in many industries in recent years, but especially in automotive. Earlier this year, Ford laid out its plan for Ford+, much of which is built on new revenue streams enabled by connected vehicles. Similarly, during General Motors' recent Investor Day, CEO Mary Barra described a course for doubling the company's annual revenue to $280 billion by the end of the decade. While such pronouncements often cause Wall Street analysts to get starry-eyed (as is their intent), they may not be entirely realistic.

Guidehouse Insights projects that by mid-decade, nearly all new vehicles will include embedded data connectivity. As recently as five years ago, Ford was still touting the bring-your-own-device approach for its Sync platform, but it has shifted its strategy and now builds 100% of its new vehicles in North America with a 4G LTE modem. Most OEMs also are bundling several years of basic connectivity services into the price of the vehicle to ensure that customers get used to the idea of having that capability.