Connected Car Survey: Bill Should Come From Wireless Carrier, Not Car Maker

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More than 6 in 10 U.S. car owners (62%) would like vehicle data charges to be rolled into their wireless bill, according to new market research from Parks Associates released Sept. 15. Just 12% said they would prefer those charges to be billed through their auto manufacturer.

Widespread smartphone use may well limit consumers’ willingness to pay for in-vehicle mobile connections, Parks highlights in a news release. Manufacturers will need to explore new ways of generating revenues to fund the costs of connectivity as a result.

Close to 70% of U.S. auto and smartphone owners use their mobile devices while in their vehicles. Less than 35% link their mobile phones to their vehicles and roughly the same percentage make use of built-in vehicle features or apps, according to Parks’ ¨App Strategies for the Connected Car Industry.¨

Connected Car Survey Findings

According to Parks:

  • 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.
  • Just 39% indicate a desire to continue using their smartphone directly, without any connection to the vehicle, for at least one activity.

Auto OEMs and in-vehicle communications market players stand to realize several substantial benefits as usage grows, Parks’ Director, Research Quality & Product Development Jennifer Kent pointed out.

“Vehicle connectivity offers a variety of benefits for auto OEMs, dealers, and consumers,” she said. “Auto OEMs gain new insight for product development and support, dealers have an opportunity to expand and deepen their relationships with customers, and consumers enjoy new experiences from vehicle ownership and when driving. All of these benefits derive from the services and applications made possible by connectivity.¨

Auto manufacturers are moving beyond luxury models and building in-vehicle connectivity into lower retail value, mass market models in the U.S. and Western Europe, Parks notes.

Mobile network operators, in turn, are adding new devices to their networks. AT&T supported an estimated 9.3 million connected vehicles on its North American network as of end 2Q, the market research company notes.

Vehicles are the next great apps platform, Kent commented. “Nearly 60 million light vehicles in the U.S. had a connectivity solution in 2015. Parks Associates projects the U.S. connected vehicle market growing to 183 million cars, or 61% of the light vehicle fleet, by 2021.”