{"id":764626,"date":"2026-06-01T03:43:33","date_gmt":"2026-06-01T08:43:33","guid":{"rendered":"https:\/\/www.capgemini.com\/us-en\/?p=764626&#038;preview=true&#038;preview_id=764626"},"modified":"2026-06-01T03:43:36","modified_gmt":"2026-06-01T08:43:36","slug":"its-time-to-rethink-the-software-driven-mobility-value-proposition","status":"publish","type":"post","link":"https:\/\/www.capgemini.com\/us-en\/insights\/expert-perspectives\/its-time-to-rethink-the-software-driven-mobility-value-proposition\/","title":{"rendered":"It\u2019s time to rethink the software-driven mobility value proposition from the customer\u2019s perspective"},"content":{"rendered":"\n<header class=\"wp-block-cg-blocks-hero-blogs header-hero-blogs\"><div class=\"container\"><div class=\"hero-blogs\"><div class=\"hero-blogs-content-wrapper\"><div class=\"row\"><div class=\"col-12\"><div class=\"header-title\"><h1>It\u2019s time to rethink the software-driven mobility value proposition from the customer\u2019s perspective<\/h1><\/div><\/div><\/div><\/div><div class=\"hero-blogs-bottom\"><div class=\"header-author\"><div class=\"author-img\"><img decoding=\"async\" src=\"https:\/\/www.capgemini.com\/us-en\/wp-content\/uploads\/sites\/30\/2024\/08\/Capgemini_Praveeen_Cherian.jpeg?w=200&amp;quality=10\" alt=\"\" loading=\"lazy\"\/><\/div><div class=\"author-name-date\"><h5 class=\"author-name\">Praveen Cherian<\/h5><h5 class=\"blog-date\">Aug 22, 2025<\/h5><\/div><\/div><div class=\"brand-image\"><\/div><\/div><\/div><\/div><\/header>\n\n\n\n<section class=\"wp-block-cg-blocks-group undefined section section--article-content\"><div class=\"article-main-content\"><div class=\"container\"><div class=\"grid-container\"><div class=\"col-12 col-md-2\"><nav class=\"article-social\"><ul class=\"social-nav\"><li class=\"ip-order-fb\"><a href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https:\/\/www.capgemini.com\/insights\/expert-perspectives\/its-time-to-rethink-the-software-driven-mobility-value-proposition\/\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-fb\"><\/i><span class=\"sr-only\">Facebook<\/span><\/a><\/li><li class=\"ip-order-li\"><a href=\"https:\/\/www.linkedin.com\/shareArticle?url=https:\/\/www.capgemini.com\/insights\/expert-perspectives\/its-time-to-rethink-the-software-driven-mobility-value-proposition\/\" target=\"_blank\" rel=\"noopener noreferrer\" title=\"opens in a new window\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><span class=\"sr-only\">Linkedin<\/span><\/a><\/li><\/ul><\/nav><\/div><div><div class=\"article-text article-quote-text\">\n<h3 class=\"wp-block-heading\" id=\"h-automakers-are-relying-on-subscription-services-to-generate-a-large-portion-of-their-future-revenues-but-customers-may-be-reluctant-subscribers-because-they-re-already-struggling-with-the-cost-of-car-ownership-to-succeed-with-services-we-don-t-just-need-more-technology-we-need-better-more-thoughtful-technology-that-s-why-software-driven-mobility-nbsp-sdm-must-be-customer-centric\">Automakers are relying on subscription services to generate a large portion of their future revenues, but customers may be reluctant subscribers because they\u2019re already struggling with the cost of car ownership. To succeed with services, we don\u2019t just need more technology \u2013 we need better, more thoughtful technology. That\u2019s why software-driven mobility&nbsp;(SDM) must be customer-centric.<\/h3>\n\n\n\n<p>As I prepare for IAA Mobility 2025, I\u2019m reflecting on a growing tension in the automotive world: With the move to SDM, OEMs are expecting a big share of their revenues to come from services in the near future \u2013 but realizing their predictions looks challenging right now.<\/p>\n\n\n\n<p>Automakers haven\u2019t been reticent about announcing their multi-billion-dollar revenue ambitions for subscription services. According to one projection, per-vehicle <a href=\"https:\/\/www.forbes.com\/sites\/sarwantsingh\/2024\/04\/24\/car-companies-can-generate-1600-per-car-in-future-from-connected-car-services\/\">revenue could amount to $1,600 annually by 2035<\/a>. Another projection suggests that the global market for connected car solutions will <a href=\"https:\/\/www.businesswire.com\/news\/home\/20250514524630\/en\/Connected-Car-Solutions-Strategic-Business-Report-2025-Global-Market-to-Reach-%24148.6-Billion-by-2030---Evolution-of-V2X-Expands-Opportunities-Growth-of-MaaS-Accelerates-Demand---ResearchAndMarkets.com\">total almost $150bn as soon as 2030<\/a>.<\/p>\n\n\n\n<p>Some of the individual company estimates that go to make up these projections look a tad optimistic to me. Don\u2019t get me wrong \u2013 I agree that software-enabled subscription services are going to represent a major slice of OEMs\u2019 future business. But I also believe that the industry urgently needs to adjust its approach if it is to realize the full potential here.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-the-mounting-cost-of-vehicle-ownership\">The mounting cost of vehicle ownership<\/h3>\n\n\n\n<p>The fact is that the cost of car ownership has become a nightmare for many drivers, who face monthly payments, EV charging surcharges, subscription-based features, maintenance costs, and more.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-the-rise-of-subscription-fatigue\">The rise of \u201csubscription fatigue\u201d<\/h3>\n\n\n\n<p>With all these costs stacking up, the vehicle that was once a symbol of freedom can now feel more like a bundle of recurring fees. As a result, customers are likely to be very selective about the in-car services they will pay for. A recent <a href=\"https:\/\/www.spglobal.com\/automotive-insights\/en\/blogs\/2025\/07\/connected-car-study-consumer-priorities-on-connected-services\">S&amp;P study<\/a> suggests that willingness to pay for connected car services has declined from 86% to 68% since 2024. Here\u2019s some anecdotal evidence of this trend from me. I\u2019ve recently unsubscribed from a self-driving service for one of my cars. The cost of the subscription just doesn\u2019t seem worthwhile for the amount I use the service. On the other hand, I might have been willing to buy this service for individual journeys, or to subscribe if I could take it with me from one vehicle to another \u2013 but the vendor just doesn\u2019t offer that flexibility.<\/p>\n\n\n\n<p>So \u201csubscription fatigue\u201d is a thing \u2013 and not only in the context of driving, incidentally. Someone has even come up with a <a href=\"https:\/\/www.rocketmoney.com\/\">service<\/a> for getting rid of unneeded (and, in my experience, often forgotten) subscription services.<\/p>\n\n\n\n<p>What this means is that revenues from in-vehicle services can\u2019t be taken for granted. True, some digital natives are already making money in this area, but probably not as much as they expected. That\u2019s true even of those companies that prohibit the use of third-party apps in their cars, something which most OEMs don\u2019t intend to do.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Let\u2019s rethink the proposition from the customer\u2019s perspective<\/h3>\n\n\n\n<p>For OEMs hoping to make money from subscription services, the message here is that customers are only likely to be willing to pay for services that they think are going to save them money, or that they will value for some other reason.<\/p>\n\n\n\n<p>So what do OEMs need to do to unlock the service revenues they are relying on? In my view, SDM&nbsp;has to be approached from a customer-centric perspective, not a vehicle- or product-centric one.<\/p>\n\n\n\n<p>Specifically, carmakers need to offer services that genuinely alleviate customer pain points, coupled with service delivery models that are flexible enough to suit every customer. Fortunately, software-defined vehicle (SDV) architecture is ideal for providing that type of flexibility.<\/p>\n\n\n\n<p>OEMs just need to have the will to do it, which means taking on board that services must be delivered to benefit the customer as well as to generate revenue. Who knows \u2013 OEMs could even help customers with their subscription fatigue, instead of contributing to it.<\/p>\n\n\n\n<p>Let\u2019s look at what\u2019s involved in practice. It\u2019s helpful to think about this in terms of three strategic initiatives: Reimagine the value proposition around the customer, work with the delivery ecosystem, and optimize the quality of software and the human-machine interface (HMI).<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">1.&nbsp;&nbsp;&nbsp; Reimagine the value proposition around the customer<\/h4>\n\n\n\n<p>Too often, SDV initiatives focus narrowly on pushing over-the-air (OTA) updates to cars. While OTA is a powerful enabler, it\u2019s not the purpose of SDVs \u2013 it\u2019s a tool, and we need to think carefully about the real reasons for using it.<\/p>\n\n\n\n<p>In my opinion, SDVs should:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Serve the customer\u2019s immediate needs with flexible, personalized experiences<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Future-proof the vehicle, enabling it to evolve in line with technology and lifestyle<\/li>\n\n\n\n<li>Reduce total cost of ownership, not inflate it through endless monetization<\/li>\n<\/ul>\n\n\n\n<p>The current model \u2013 hefty upfront cost plus recurring subscriptions \u2013 should be replaced by new models. For example, customers could pay a lower base price and a subscription&nbsp;for premium features. Or, even better, there could be a standard base price and then pay-as-you-use&nbsp;microservices.<\/p>\n\n\n\n<p>With those models, customers could pay for vehicle features only when they\u2019re being used, rather than for having them available all the time.<\/p>\n\n\n\n<p>This approach shifts the focus from monetization to value creation, making mobility more customer-centric and affordable.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">2.&nbsp;&nbsp;&nbsp; Work with the delivery ecosystem<\/h4>\n\n\n\n<p>OEMs can\u2019t achieve this shift of perspective on their own. They\u2019ll need to share the task of delivering customer-centric and affordable services with their ecosystem of suppliers and other partners.<\/p>\n\n\n\n<p>That could happen through smarter partnerships&nbsp;across tech, insurance, and infrastructure, balanced risk-sharing models, and the use of open platforms and APIs&nbsp;to enable innovation at scale.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">3.&nbsp;&nbsp;&nbsp; Optimize software and HMI quality<\/h4>\n\n\n\n<p>Trust is essential to securing customer buy-in for SDM, and that kind of trust is heavily dependent on the quality of software and of the HMI. People may forgive a glitchy mobile phone app, but they\u2019re not going to accept glitchy in-vehicle software.<\/p>\n\n\n\n<p>So the quality of software and SMI is now a customer experience imperative. It demands:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Intuitive, responsive HMIs&nbsp;that adapt to user preferences<\/li>\n\n\n\n<li>Consistent performance across updates and environments<\/li>\n\n\n\n<li>Rigorous testing and validation&nbsp;to ensure reliability and safety<\/li>\n\n\n\n<li>Security and privacy&nbsp;baked into every layer of the software stack<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Summing up<\/h3>\n\n\n\n<p>I hope I\u2019ve convinced you that SDM needs to be reframed in terms of serving customers, not just increasing company revenues. Services need to be so valuable to customers that they\u2019re seen as a welcome necessity, rather than a luxury. And the delivery model needs a rethink so that customers feel they\u2019re getting value for money.<\/p>\n\n\n\n<p>For those that get this trick right, the rewards will be substantial. The connected car market is <a href=\"https:\/\/www.globenewswire.com\/news-release\/2025\/01\/28\/3016146\/0\/en\/Connected-Car-Market-to-Reach-501-8-Billion-Globally-by-2033-at-16-5-CAGR-Allied-Market-Research.html\">predicted<\/a> to be worth more than $500bn by 2033. If it reaches even a fraction of that, OEMs will be pleased they made the effort to serve, not just monetize, customers.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Join me at IAA Mobility to explore in-vehicle service quality optimization<\/h3>\n\n\n\n<p>Are you headed for IAA Mobility 2025? Along with our collaborator Profilence, I\u2019ll be hosting a lunchtime session that\u2019s very relevant to the quality angle on customer-centric SDM. We\u2019ll be demonstrating how AI-powered data analysis can add stability and responsiveness to in-car services \u2013 an approach we\u2019ve implemented across 17 infotainment programs.<\/p>\n<\/div><\/div><\/div><\/div><\/div><\/section>\n\n\n\n<section class=\" section section--expert-slider wrapper-people-slider wp-block-cg-blocks-wrapper-people-slider undefined\"><div class=\"container\"><div class=\"row\"><div class=\"content-title col-12 col-md-8\"><h2 data-maxlength=\"34\" class=\"people-heading-title\">Author<\/h2><\/div><\/div><\/div><div class=\"slider slider-boxed\"><div class=\"container\"><div class=\"slider-window\"><div class=\"slider-list\">\t\t<div class=\"slide\">\n\t\t\t<div class=\"box\">\n\t\t\t\t<div class=\"row\">\n\t\t\t\t\t<div class=\"col-md-6 col-lg-4 box-img-wrapper\">\n\t\t\t\t\t\t<img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.capgemini.com\/us-en\/wp-content\/uploads\/sites\/30\/2024\/08\/Capgemini_Praveeen_Cherian.jpeg\" alt=\"Praveen Cherian\"\/>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<div class=\"col-md-6 col-lg-8 box-inner\">\n\t\t\t\t\t\t<div class=\"row title-social-media-header\">\n\t\t\t\t\t\t\t<div class=\"col-md-12 col-lg-6 mbl-social-icon\">\n\t\t\t\t\t\t\t\t<ul class=\"social-nav\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li><a aria-label=\"Linkedin\" target=\"_blank\" title=\"Opens in a new window\" href=\"https:\/\/www.linkedin.com\/in\/pcherianusa\/\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><\/a><\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"col-md-12 col-lg-6 box-container\">\n\t\t\t\t\t\t\t\t<div class=\"box-title\">\n\t\t\t\t\t\t\t\t\t<h3 class=\"people-profile-title\">Praveen Cherian<\/h3>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span>EVP &#8211; Group Automotive, Capgemini<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"col-md-12 col-lg-6 social-box-container dkt-social-icon\">\n\t\t\t\t\t\t\t\t<ul class=\"social-nav\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li><a aria-label=\"Linkedin\" target=\"_blank\" title=\"Opens in a new window\" href=\"https:\/\/www.linkedin.com\/in\/pcherianusa\/\"><i aria-hidden=\"true\" class=\"icon-li\"><\/i><\/a><\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"people-info\">As an Executive Vice-President within Capgemini Group Automotive, Praveen Cherian connects the technical dots to find the best and simplest solutions to complex business challenges facing automotive industry clients. Along with a strong track record in automotive engineering, he brings global leadership experience in operations, supply chain, and logistics. 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Find more<\/p>\n","protected":false},"author":371,"featured_media":764627,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"cg_dt_proposed_to":[],"cg_seo_hreflang_relations":"[]","cg_seo_canonical_relation":"","cg_seo_hreflang_x_default_relation":"","cg_dt_approved_content":true,"cg_dt_mandatory_content":false,"cg_dt_notes":"","cg_dg_source_changed":false,"cg_dt_link_disabled":false,"_yoast_wpseo_primary_brand":"506","_jetpack_memberships_contains_paid_content":false,"footnotes":"","featured_focal_points":""},"categories":[1],"tags":[],"brand":[506],"service":[45],"industry":[25],"partners":[],"blog-topic":[405],"content-group":[],"class_list":["post-764626","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","brand-capgemini","service-customer-experience","industry-automotive","blog-topic-mobility"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.8 (Yoast SEO v22.8) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>It\u2019s time to rethink the software-driven mobility value proposition from the customer\u2019s perspective - Capgemini USA<\/title>\n<meta name=\"description\" content=\"To succeed with subscription services, we don\u2019t just need more technology \u2013 we need better, more thoughtful technology. 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