61% of car owners prefer to bundle vehicle data consumption with smartphone data consumption

Thursday, June 04, 2015

New consumer research reveals challenges and opportunities in the connected car ecosystem

New connected car research from Parks Associates finds 16% of light vehicles in the U.S., or about 41 million vehicles, will have an active Internet connection by year-end 2015. The firm reports that 10% of vehicle owners in U.S. broadband households have access to built-in apps or can remotely control their vehicle using a mobile phone, 12% can connect to a live agent for emergency or roadside assistance, and 17% have mapping and navigation capabilities.

“The demand for connected car features is growing, encouraged by consumer expectations of a smartphone experience in all aspects of their life. Today, the connected car market overlaps with the market for mobile services and smartphones, and 61% of car owners prefer to bundle vehicle data consumption with smartphone data consumption,” said Jennifer Kent, Director, Research Quality & Product Development, Parks Associates. “But this ecosystem must innovate beyond the smartphone experience in order to expand, and connected car players should develop assets or foster partnerships across adjacent connected ecosystems, such as the smart home and smart cities ecosystems.”

Parks Associates’ connected car research includes the industry report Connected Cars and the Smart Home: Crossover Opportunities and the Consumer Analytics-based research Connected Car Services and Apps, which includes a Q1 2015 survey of U.S. broadband households. The research firm reports 44% of car owners in U.S. broadband households have some kind of advanced connected car feature. That figure increases dramatically among owners of vehicles less than three years old, indicating that penetration will continue to increase in the near term. Demand for connected car features among those without access to such features in their current vehicle is strongest among young drivers and smartphone owners.

However, consumer appetite for connected features in their vehicles depends upon continued experiences that are high-quality, safe, and protect driver privacy. “More than 50% of U.S. broadband households express privacy and safety concerns regarding connected cars,” Kent said. “The connected car industry must be up-front about costs, safety, and security efforts. Market players have to be proactive so that connected car features do not develop a bad reputation among parents, politicians, and consumers.”

Connected Car Services and Apps assesses the current adoption of connected car features as well as the consumer demand for such features, including billing preferences and new conceptual features.It also highlights privacy and security concerns with connected cars. More information is available at www.parksassociates.com. To schedule an interview with an analyst or to request specific research data, please contact Holly Sprague at [email protected].

About Parks Associates: Parks Associates, a woman-founded and certified business, is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates provides business intelligence and research services through its proprietary methodologies developed over decades, including quarterly surveys of 10,000 internet households.

The company's expertise crosses many industries: home security and smart home, streaming video, broadband and pay-TV services, digital media and platforms, gaming, Wi-Fi and home networks, connected health, support, consumer electronics, home control systems, energy management, and tech solutions for the multi-dwelling (MDU), small-to-medium business (SMB), and commercial building markets.

Each year, Parks Associates brings thousands of leaders together for its webinars and annual events. The firm hosts the annual executive research and strategy conferences CONNECTIONS™, Connected Health Summit, Smart Energy Summit, Smart Spaces, and Future of Video. https://www.parksassociates.com

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