58% of U.S. car owners are very concerned about hidden fees associated with connected car features and services finds a new report by Parks Associates.
“The level of concern for these connected car issues exceeds that expressed for connected home devices,” said Jennifer Kent, Director, Research Quality & Product Development, Parks Associates.
“All players in this space will benefit from pricing transparency to avoid aggravating customers, while the incorporation of Apple CarPlay and Android Auto may also help mitigate some of these concerns, as consumers typically associate these brands with free services.”
The report, App Strategies for the Connected Car Industry, shows nearly 50% of all car owners in U.S. broadband households are very concerned about the security of their location data in a connected car, while 43% share the same level of concern about the security of their personal driving data, such as speed, mileage, and hours driven.
Additional Parks Associates connected car research shows:
- The U.S. connected vehicle market will grow to 183 million cars, or 61% of the light vehicle fleet, by 2021.
- 62% of U.S. car owners would prefer to bundle vehicle data charges with their mobile data bill, while only 12% prefer a direct billing relationship with the auto OEM.
- 64% of car owners in U.S. broadband households who own a smartphone want embedded access to connected car features in their next vehicle. 45% want to access these features through a tethered/mirrored smartphone experience.
- AT&T supported an estimated 9.3 million connected vehicles on its North American network as of Q2 2016.
- Nearly 60 million light vehicles in the U.S. had a connectivity solution in 2015.
“The connected car market is one of several consumer IoT markets,” Kent said. “Connected car players need assets, partnerships, or both across adjacent connected ecosystems, such as the smart home and smart cities. Consumers will gravitate towards connected solutions that ultimately enhance their lifestyles wherever they are.”
Kent will discuss the firm’s connected car research at TU-Automotive West Coast this week in San Diego, California.
Kent will moderate the session “Putting the Consumer at the Center of the IoT” at 3 p.m. on Friday, October 14. This panel will identify partnerships, products, and technologies to deliver an IoT that offers value to the consumer. It will also examine the best approach for implementing features, apps, and services that incorporate the larger consumer ecosystem. Joining Kent on the panel are the following speakers:
- Hakan Kostepen, Executive Director – Product Planning Strategy & Innovation, Panasonic Automotive Systems Company of America – Silicon Valley Center
- Joel Hoffmann, Automotive Business Development Consultant, Open Mobile Alliance
- Stefan Gudmundsson, Principal, Automotive Market Development, u-blox.
There is still time to register for TU-Automotive West Coast. Experts from Ford, Renault, Hyundai, GM Ventures, Denso, Autotech Council and others will cover the key topics affecting the industry, including mobility, new revenue streams and business models, working with start-ups, and the IoT.
Event organizers say that you cannot afford to miss the networking opportunity here with more input from both legacy companies and leading start-ups who are driving the industry forward. This is the place to meet your key partners and strike those important deals for 2016.
Use Coupon Code 4531AUTOC for $150 off.
App Strategies for the Connected Car Industry, now available for purchase, addresses key issues facing the connected car app ecosystem, provides insight on consumer perspectives on connected car apps, and assesses four connected vehicle app strategies. The report also provides a sizing of the current U.S. connected car market and a forecast through 2021