The car is becoming the next major battleground for digital media companies

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BII_ConnectedCar_Infographic

BII

People spend an average of 6.5 hours per week in their cars, and as dashboards become digital platforms it's creating a massive new market for carmakers, digital-media companies, and even marketers. Revenue from connected services are expected to top $152 billion by 2020.

Carmakers are offering a selection of features in their connected cars, with a special focus on entertainment apps and safety-management features.

In a recent report from BI Intelligence, we look at revenue from connected-car internet services, consumer attitudes to these services and how they will pay for them (including getting ads in return for free content), and the potential for self-driving cars.

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The report serves as a companion to our connected-car market forecast report.

Here are some of the key takeaways from the report:

  • Connected-safety features bring in the most revenue of all of today's connected-car services, at $13 billion. But safety will lose its spot as the top revenue stream to driver-assistance in 2017. Connected-safety features will bring in $44 billion in 2020. These connections include alerting customers of road conditions, such as severe weather or an approaching hazard, as well as collision-avoidance.
  • Entertainment is one of the most popular features available for the connected car, but it is not a major revenue driver. The category will account for only $13 billion in revenue in 2020. Entertainment features include integrations with apps such as Pandora, Yelp, and Facebook.
  • But there's still a ways to go before mainstream consumers really understand how they can benefit from the connected car. About 80% of consumers have either never heard of connected cars or are unsure what the term refers to.
  • People who actually use connected car services are satisfied with them. About half of those who have a connected car actually use the car's connected features, and those who do use many of these features shows high levels of satisfaction with them.
  • Consumers are pretty split on how they want to pay for these services. 25% of global consumers would be willing to receive in-car advertising if it meant they got free basic services in exchange. This means marketers are likely to have a big opportunity to tap into the connected-car market.

To access the full report from BI Intelligence, sign up for a 14-day trial here. Members also gain access to new in-depth reports, hundreds of charts, as well as daily newsletters on the digital industry.

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Connected Car Revenue From Systems

BI Intelligence