The evolution of connected car technology is driven by consumer expectations for seamless digital experiences. Drivers are willing to pay for advanced connectivity, though significant gaps remain between consumer demands and current capabilities.
Safety leads demand. Consumers rank advanced security features as their top priority for connected vehicles and are willing to pay for such features over convenience and entertainment features.
EV drivers set the pace. EV owners demonstrate notably higher engagement and interest in connectivity features, according to McKinsey’s Mobility Consumer Pulse survey, suggesting that EV adoption may accelerate broader adoption of connected car features.
Premium features are appealing. A December 2023 Salesforce and YouGov survey shows that when buying their new vehicle, 43% of US drivers are willing to consider paying for driver assistance technologies, 33% for touchscreen interfaces, and 31% for smartphone integration.
Consumer demand for AI features helps Big Tech stay relevant. More than two-thirds (76%) of US motorists are likely to use generative AI (genAI) capabilities in their vehicles if those features are available, according to a September 2024 SoundHound survey. This figure increased by 52% YoY, suggesting that automakers will remain dependent on genAI companies for the latest tech innovations, even as embedded systems grow.
Personalized in-vehicle entertainment provides new ways to reach consumers. Radioplayer’s metadata integration with National Public Radio (NPR) is one example of how enhanced in-car entertainment features can create valuable opportunities for targeted advertising and user behavior insights. By delivering rich metadata like program details and interactive features to car dashboards, broadcasters and automakers can better understand listener engagement while opening new channels for personalized advertising.
Read the full report, US Connected Cars 2024.