The car is becoming the next major battleground for digital media companies
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.
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.
- Facebook and Microsoft aren’t the only ones creating a metaverse — here are five popular coins looking to create digital worlds
- Qatar Airways says it is not accepting passengers on its flights from 2 African nations immediately due to the new Omicron variant
- Gautam Adani, the man who may soon be Asia's richest person, is a college dropout who survived the 2008 Mumbai terrorist attacks and says he was once kidnapped for ransom
- Paytm Q2 result — Operational revenue crosses ₹1000 crore, loss widens by ₹37 crore
- These Indian states have the highest number of international airports; UP tops the list
- Centre raises Bengal labour budget for creation of 27 cr man-days
- Over a million Ethereum tokens have been burned since the big upgrade, but transaction costs are still a pain point for the network
- Loaded Lion NFT sells for $1 million — three days after launching at $200