CONNECTED CAR SERVICES: NOT A DEAL MAKER OR BREAKER

While consumers say they want connected car services, most are not willing to pay extra for them.

Connected car services (dynamic navigation systems, remote vehicle diagnostics, automatic notification of emergency resources, an apps store, and on-demand, real-time access to music and news) are no longer considered a “value added” feature that consumers are willing to pay extra to get. In fact, most say they’d prefer a “pay per use” model or services that are “included in the vehicle price.”

Getting “connected” isn’t that big a deal anymore.

While the desire for connected car services is strongest in emerging markets (41% of consumers say that they’d like them in their next car), interest overall has declined since 2015 when “connected” was seen as a potential value differentiator. In fact, only 24% of consumers now have connected car services and actually use them. Quite a few—15%—don’t use the services they have.

That said, are drivers willing to share the data generated in a connected car? The answer is “yes”—but only under specific conditions. For example, one-third say “yes” if they receive an incentive or an extra service; another one-third say “yes” but only anonymously for research purposes.

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