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June 24, 2016
Connected Cars
By: Luca Mentuccia

Connected technologies in vehicles have progressed far beyond the point of being considered novelty or luxury. Automotive customers have already embraced GPS navigation devices that help improve their driving experience, as well as taking advantage of smartphone apps and services that offer relevant and timely information about traffic and weather on the road.

A recent global survey of over 14,000 consumers across five continents indicates that car owners are now looking for new models with these technologies integrated as standard. Almost 40% of those questioned said that in-car technology is their first and foremost consideration when purchasing a new car, above the driving performance of the vehicle.

Car buyers now have a plethora of vehicle additions available to them, such as web-connected in-car entertainment and information, and real-time digital diagnostics. What’s more, consumers are expressing a desire for such innovations. 61% of UK respondents answering questions from the global survey said they would like to have a vehicle black box that collects data about their driving, which could bring down their insurance premiums. However, currently only 5% use such a device. Similarly, two-thirds suggested they’d like to use full automatic parking assistance systems but only 10% currently do.

These survey findings demonstrate the opportunities that exist for both third-party original equipment manufacturers (OEMs) and vehicle manufacturers, who could take advantage of the after-sales market. While consumers will benefit from devices that will deliver more information about the roads, their cars’ health, and their driving history, OEMs and automotive firms can also use this data to learn how their customers use their vehicles and improve their engineering methods. OEMs could also deliver subscription B2C services through their products, with consumers paying a monthly fee – preferred by 28% of survey respondents – or receiving in-car advertising in return for streamed information, entertainment and technical help on demand, as 25% said they would prefer.

Technology has become the most significant criteria in vehicle buying decisions for the majority of global consumers and such innovations are readily available in cars today. The graphic below shows which in-car technology and driving support systems drivers would like to use.

Connected Cars Infographic

Smart devices and integrated connected services provide a wide range of services for vehicle owners – in terms of entertainment, safety, extending car life cycles and cutting costs of repair, maintenance and insurance.

Adoption of these innovations will increasingly give consumers a more personalised driving experience that is closely tailored to their individual needs. This will in turn help automotive businesses learn more about their customers and inform their long-term strategies.

For further insights from our global survey, visit our interactive Connected Vehicle website.

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