A “connected car,” or vehicle that is able to communicate data to the automaker (or another third party), is able to generate around 25GB of data every hour and collect information from over 100 different data points, highlights The Autopian. Data collected may include personally identifiable information to geolocation and navigation information, on-board diagnostics, and more — in short, there’s no question that vehicles today are more connected than ever before. When it comes to the security of this data, there are significant concerns that blockchain technology has great potential to address.
Data collection sparks concern
Due to the vast amounts of data generated and collected in the automotive industry, security has become more of a concern than ever before. One CNBC article notes the prediction that by 2030, over 90% of passenger cars sold are “likely to have embedded internet connectivity.” In regard to security, it’s noted that such cars are ‘the worst’ products when it comes to the protection of consumer data. A Financier Worldwide article explores the evolution of data privacy and cybersecurity within the auto industry via a 2022 interview with Miriam Ballhausen and Ntallia Karniyevich at Bird & Bird. “In our experience, automotive companies are generally very keen to ensure data security,” Ballhausen explains, as requirements about data security “are often seen as an additional set of security requirements which must be met.” However, this doesn’t mean that the unthinkable can’t happen, as Ballhausen notes that auto companies have faced data breaches in the past.
A CBT News article by Steve Mitchell notes that the collection of data from connected vehicles has the potential to serve a variety of purposes. However, it also “opens up a Pandora’s box of privacy concerns.” Data misuse by insurance companies is just one notable example highlighted by Mitchell, who explains that the secret use of consumer data (such as driving speed and style) could be used to adjust premiums. Data can also be sold to advertisers, and could then be used for the sake of targeted, personalized ads. Another major concern that Mitchell touches on is the fact that a data breach could prove to be detrimental, as such a security issue poses even more opportunities for misuse and security risks.
The potential (and challenges) of blockchain technology
The automotive blockchain market is projected to grow from $468 million in 2023 to $672 million in 2024 — this amounts to a surge to over $7.3 billion by 2032, Forbes cites. Blockchain technology has a variety of uses in the automotive industry, particularly in data security. Accurate and complete vehicle histories, for example, are incredibly valuable to those who are in the market for a used car — this includes aspects such as the number of previous owners, maintenance records, and accidents. This data can become vulnerable as it’s typically available through services (like CarFax), which relies on input from third-party systems or humans. “Blockchains can prevent this information from being altered, giving prospective owners confidence that the reports they’ve received are accurate,” Investopedia highlights. As a result, such technology can prevent consumers from an encounter with unethical dealer practices or problematic vehicles. The secure nature of blockchain technology underlines its value in the automotive industry, particularly when it comes to the security of the data that is collected. The fact that blockchain is a “decentralized peer-to-peer data structure” provides reassurance that records are stored in a ledger and are unable to be changed.
The adoption of blockchain technology in the auto industry isn’t without its challenges. One review published by the Journal of Cybersecurity and Privacy points out the fact that the tech “offers an immutable and secure solution to support data collection in the automotive industry,” though it’s important to note that there are still difficulties regarding adaptation for the sake of data collection in the auto industry. The review organized challenges into seven different categories, including scalability, performance, costs, monetization, connectivity, privacy, and security attacks. A 2020 IBM article unveils a vision of blockchain and how it can be beneficial in the case of autonomous vehicles. For instance, it’s explained that the technology is being considered “to manage, store and transfer digital records like vehicle identification, possession, warranties, wear and tear, mileage, leases, loans, parts and service info for automobiles.” However, the application of blockchain technology in the industry is noted to be hindered by a number of external challenges, such as a lack of knowledge or scalability.
The power of an informed decision
It’s important to note that consumers do have the option to opt out of data collection, though many may enjoy the convenience of the features available. With that in mind, consumers must make an informed decision when it comes to the purchase of a new, high-tech vehicle.
This is especially true of today’s most popular vehicle models — even horsepower pickup trucks, which come with a variety of features that enhance the overall experience out on the road. For example, optional equipment for the 2025 Toyota Tundra includes a WiFi hotspot as well as stability control, while the 2024 Ram 2500’s optional equipment includes a blind spot monitor, brake assist, and traction control. In addition to the electrification of pickup trucks regarding horsepower abilities, technology has evolved even further, as some modern vehicles feature advanced driver assistance systems like SAE level II autonomous driving modes. The number of modern and high-tech features that are often found on today’s trucks can make it difficult to determine which is best for an individual consumer’s needs. As such, evaluations, comments, and reviews of popular models are crucial as they illuminate the opinions and first-hand insight of those who have experience with a high-tech vehicle.
Connected vehicles have become the standard of today’s automotive market. With an exorbitant amount of data collected, consumers must be aware of the concerns and solutions out there, as well as the value of an informed decision.