Emerging digital technologies enable capturing of a product’s digital footprint through continuous monitoring of its performance, usage, and working environment while using data acquired by its embedded sensors. However, it seems that product development (PD) teams, within engineering companies, have not yet embraced the usage of sensor data acquired by smart products (SPs) when conducting PD activities. This study discusses several challenges that hinder a broader utilization of SP's sensor data, within PD. In addition to the literature review, the discussion is supported with empirical data gathered through a qualitative exploratory case study conducted in a large engineering and manufacturing company. As a result, three challenges are outlined. First, it is challenging for the company's management and PD team to gain transparency over the benefits of sensor data utilization for PD. Second, solutions providing accessibility and visualization of gathered data should be tailored to the PD activities and teams, which requires a holistic understanding. Finally, it is suggested that new skills, roles and processes should be introduced, in order to enable SP's sensor data utilization, within PD activities.