Connected cars are in demand

New insights from IDC indicate that consumers are ready to take their digital lives out of their offices and homes, and into their cars.

Through a new survey report, titled Methods and Practices: Connected Vehicles and Consumer Connectivity Preferences, the IDC sought to assess the current state and future challenges of connected vehicle technology.

According to the research firm, of all the consumers surveyed over a 6-month period, about half consider having access to their phones while in a vehicle to be vital – while a smaller percent (40%) placed the same level of value on having access to applications.

The IDC’s findings provide further insight into what consumers would expect from the world of connected cars, including:

  • Three-quarters of respondents prefer to access in-vehicle services through their existing mobile device, maintaining their “digital identity”.
  • The majority of consumers (two-thirds) would prefer their existing mobile service provider for emergency and other in-vehicle services, if given a choice.
  • Thirty-five percent of consumers believe connected and emergency services should be included free with the vehicle.

“According to our study, most consumers find it vital to access the phone in the vehicle but also want to maintain their “digital identity” by connecting their current device to the vehicle,” said Sheila Brennan, program manager for IDC Manufacturing Insights.

“Therefore, automakers that have a strategy to provide consumers the ability to access their current device’s service through the vehicle, but also gain access to any OEM unique embedded services that come with the vehicle, will gain an advantage in the connected vehicle market.”

A world of connected cars

According to research compiled by the GSMA, embedded mobile technology in the automobile industry, will help to create a connected car market worth almost €40 billion (R586 billion), globally, in 2018.

According to research firm SBD, 83% of total the connected car market revenue in 2018 will be driven by the growth of embedding SIM technology into new vehicles to enable mobile connectivity.

This will encourage a range of mobile-based services around safety, security, infotainment, traffic information, navigation and vehicle diagnostics.

SBD predicts that most, if not all, new cars will have some form of connectivity by 2025, due largely to the rapid growth of embedded mobile technology.

“Not only will mobile operators play a major role in connecting all new cars by 2025, they are also well positioned to move further up the value chain and provide innovative value added services to their customers,” the firm said.

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Connected cars are in demand