Connected Vehicle Services: Navigating Relevance and Monetization Among European Car Buyers

There are few success stories where automotive manufacturers have monetized connected vehicle services. Most efforts to date have been identified through a narrow lens where the field of strategic vision has focused largely on digital executions of familiar functionalities such as vehicle status data or navigation. When there have been no-cost or low-cost alternatives that work well, such initiatives generated little to no interest or revenue.

So, it is time for automakers to look through a wider lens to scope more creative solutions that occupy unique and/or differentiated territory—but in what directions should we look?

How European Consumers’ Current Tech Eco-Structure Impacts Connected Vehicle Services

To be relevant and appealing, vehicle connectivity services need to occupy complementary space rather than create offerings that duplicate what’s already on the market.

Let’s start with the smartphone—potentially the threat to connected vehicle services monetization. The presence or absence of Apple CarPlay and Android Auto could have a major impact on monetization. There are massive variations in consumer use of these services across car brands, but Escalent’s Connectivity Forward™ study—which provides key insights into consumers’ attitudes toward connected vehicle services and the ones for which consumers will actually pay—tells us that across the EU5 markets (France, Germany, Italy, Spain and the United Kingdom), more than one-third of car buyers have neither system.

Without their smartphone being the reflex in-car option, wouldn’t connected vehicle services be a seamless and convenient hub for multiple purposes?

To what extent could connected vehicle service functionalities dovetail with consumers’ existing in-home tech?

Once again, Connectivity Forward tells us that among European car buyers, the vast majority have Alexa, but close to half have smart security systems or smart domestic appliances. Imagine how connected vehicle services could prepare the home for scheduled arrival while also monitoring security status.

Ownership of smart devices and other technologies varies by vehicle brand owned, but Connectivity Forward can profile consumers’ likely tech equipment inventories and, therefore, inform the connected vehicle services hookups that would be most relevant to their owners.

Specific Interest in Connected Vehicle Service Themes

As well as these circumstantial considerations, Connectivity Forward also tested consumer interest in and willingness to subscribe to 18 different connected vehicle services content themes that reach far wider than the vehicle status-related services that form the core of most current automotive manufacturers’ offerings. Not only does interest in these themes vary by vehicle brand owned but we also see generational differences. While we might expect Boomers to show less enthusiasm than Gen Zers and Millennials, Connectivity Forward highlights how priorities vary across the groups.

Developing consumer interest in connected services is not a one-size-fits-all strategy—successful monetization will depend on striking up the most resonating dialog with specific consumer sets.

That’s where we can help guide you through the complex connected vehicle services landscape and help you tap into untapped revenue streams. To learn more about Connectivity Forward and how our Automotive & Mobility experts can assist you in shaping a winning connected vehicle strategy, reach out to us using the form below.

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About Connectivity Forward™

Escalent conducted a survey of 9,088 European vehicle owners—with 1,752 in France, 1,904 in Germany, 1,796 in Italy, 1,755 in Spain and 1,881 in the UK—by online data collection from September 13 to November 5, 2022. The sample was drawn from a variety of panel source partners. To qualify, respondents had to be owners and purchase decision-makers of new or used vehicles and own and use a smartphone. The data were weighted by age, gender and vehicle segment ownership and have a margin of error of +/-1.5 percentage points at a confidence level of 95%. Escalent will supply the exact wording of any survey question upon request.