In the rapidly evolving landscape of software-defined vehicles, the monetization of driver data has been a promising avenue for automakers to diversify their revenue streams. However, recent trends and regulatory changes are casting doubt on the viability of this business model.

The Decline of Data Monetization

According to a recent report by Omdia, sponsored by Sonatus, the priority of monetizing vehicle data has significantly decreased. In 2025, it was the top goal for automakers’ data segments, but by 2026, its importance has dropped by 7 percentage points, now ranking second behind the optimization of advanced driver-assistance systems (ADAS).

This shift is driven by several factors, including stringent global regulations, consumer resistance, and minimal commercial returns. The report, which surveyed 559 industry professionals across seven major countries, including the US, Canada, UK, Germany, France, Japan, and China, provides a comprehensive view of the industry’s changing priorities.

Regulatory Challenges

Globally, data security laws are becoming more stringent, making it increasingly difficult for automakers to collect, process, and sell driver data. For instance, the European Union’s General Data Protection Regulation (GDPR) restricts the types of data that can be collected and mandates that any data collection must have a legal basis. The upcoming EU Data Act, set to take effect in September 2025, will further limit the ability of automakers to share data with third parties without explicit user consent.

In the United States, the Federal Trade Commission (FTC) has taken a hard stance against unauthorized data sharing. Earlier this year, the FTC issued a five-year ban on General Motors and its subsidiary OnStar from selling driver data to third parties after a series of complaints from users about increased insurance premiums.

Consumer Resistance and Minimal Returns

Consumers are also becoming more wary of how their data is being used. Privacy concerns and a lack of trust in data handling practices are leading to increased resistance. Moreover, the financial returns from selling driver data have been lower than expected, making it less attractive as a revenue stream.

Shifting Focus to Internal Use

As a result, automakers are shifting their focus from external monetization to internal use of data. This includes using data to improve vehicle performance, enhance ADAS, and develop new technologies. This approach not only aligns with regulatory requirements but also provides more tangible benefits to the automaker and the end-user.

For Western OEMs and tech investors, this shift underscores the importance of adapting to the new regulatory environment and focusing on data-driven innovation that enhances the overall driving experience.

See our analysis on the strategic pivot in ADAS technology for more insights into how automakers are leveraging data for internal improvements.