Interest in the Connected Car Rises, While Interest in Paying for it Decreases

- Up Hill Battle For Consumer Acceptance of Any Payment Model

BOSTON, June 9, 2015 /PRNewswire/ -- Consumer ability to access the internet and connected services while in the car remains strong, making driving or parking tasks easier.  While interest is especially high for services which provide traffic updates, weather updates, open parking spaces, and navigation instructions, interest in social media functionality remains low.

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A new report from Automotive Consumer Insights group (ACI) at Strategy Analytics (www.strategyanalytics.com), surveyed consumers in the US, Western Europe, and China regarding their interest in and preferred payment models for in-vehicle connectivity and connected services. Consumers remained interested in services which provided drive-relevant information; with access to in-vehicle connectivity playing an increasingly important role in the purchase decision of a vehicle, across all demographics. However, interest in some popular payment models for connectivity has fallen over the past year.

Click here for the report:  http://bit.ly/1KXpuXW

Derek Viita, report author commented, "As we observed last year, a high level of consumer interest does not always translate to a willingness to pay for it. Most consumers remain unwilling to pay for in-vehicle connectivity using the monthly payment models that OEMs have tended to favor. Free models for connectivity remain highly desirable across all regions and age groups. Interest in connectivity supported by in-vehicle advertising rose over the past year."

Continued Viita, "Interest in paying extra at purchase to make the car a WiFi hotspot remains high, especially among 18-24 year olds. Including the car as a device in a shared mobile data plan remains popular as well, though consumer interest in the mobile-share model has fallen in the US and Europe. Most interestingly, consumer preference for the "lump sum" payment model has fallen since 2014 across all regions. This particular finding indicates that among consumers who are open to the idea of paying for connectivity, most are cooling to the idea of paying a large amount up-front for it."

Chris Schreiner, Director, User Experience Innovation Practice added, "OEMs and wireless providers must reconcile the very strong consumer interest in connected services with a payment model that consumers will agree to. While interest is healthy for many connectivity models involving one-time or regular payments, a large portion of consumers still favor free connectivity, and that portion appears to be slowly growing. This can only lead to an uphill battle for consumer acceptance of any payment model."

About Strategy Analytics

Strategy Analytics, Inc. provides the competitive edge with advisory services, consulting and actionable market intelligence for emerging technology, mobile and wireless, digital consumer and automotive electronics companies. With offices in North America, Europe and Asia, Strategy Analytics delivers insights for enterprise success. www.StrategyAnalytics.com 

About Automotive Consumer Insights

The Automotive Consumer Insights group (ACI) forms part of the User Experience Innovation Practice (UXIP) at Strategy Analytics. Focusing on user behaviors, motivations and interests within automotive, wireless devices, connected home and digital media research areas, UXIP helps clients meet consumer needs, develop usable solutions and deliver compelling user experiences. Extensive expertise and highly experienced in large-scale survey work, in-depth interviews, focus groups and observational sessions, UXIP's research methodology allows strategic user-centric analysis on the potential for new technologies that would otherwise be unavailable. Providing actionable insight, go-to-market strategies and business recommendations, UXIP is a leading supplier of consumer knowledge to the technology industry. Click here for more information.

Press Contacts

US Contact: Derek Viita, +1 617 614 0772, dviita@strategyanalytics.com

European Contact: Diane O'Neill, +44(0) 1908 423 669, doneill@strategyanalytics.com

Related Links

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SOURCE Strategy Analytics, Inc.