Automakers are in a rush to add internet connectivity to cars. They’re doing this for a number of reasons, including to collect data from the vehicle, push over-the-air updates, and improve car safety.
But one of the biggest ways automakers are leveraging connection in their vehicles is to sell connected car products and service. By 2020, revenues from connected services are expected to top $152 billion.
They’re offering a selection of connected features in cars, with a special focus on entertainment apps and safety-management features.
In a new report from BI Intelligence, we look at revenue from the various connected-car internet services, as well as consumer attitudes to these services and how they want to pay.
The report serves as a companion to our connected-car market forecast report.
Here are some of the key takeaways from the report:
- Connected-safety features bring in the most revenue of all of today’s connected-car services, at $13 billion. These features alert customers of road conditions, such as severe weather or an approaching hazard, as well as collision-avoidance.
- Entertainment is one of the most popular features available for the connected car, but it is not a major revenue driver. The category will account for only $13 billion in revenue in 2020. Entertainment features include integrations with apps such as Pandora, Yelp, and Facebook.
- People who actually use connected car services are satisfied with them. About half of those who have a connected car actually use the car’s connected features, and those who do use many of these features shows high levels of satisfaction with them.
- Consumers are pretty split on how they want to pay for these services. 25% of global consumers would be willing to receive in-car advertising if it meant they got free basic services in exchange. This means marketers are likely to have a big opportunity to tap into the connected-car market.
This article is published in collaboration with Business Insider. Publication does not imply endorsement of views by the World Economic Forum.
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Author: John Greenough is a Research Analyst for Business Insider Intelligence.
Image: Traffic moves through the rain along interstate 5 in Encinitas. REUTERS/Mike Blake.