Voice of Customer: In-Car Services and Features, Passenger Vehicles, United States, 2024
Description
The United States' rapidly evolving connected car market consistently adapts to shifting consumer preferences, driven by the adoption of emerging use cases that shape the new normal across diverse customer segments. Frost & Sullivan’s Voice of Customer: In-Car Services and Features, Passenger Vehicles, United States, 2024 survey reveals how car owners and buyers in the United States utilize in-car connectivity solutions, on-demand features, over-the-air software updates, integrated payment options, and other connected services. Based on its findings, the analysis also examines consumer payment behaviors and their willingness to pay for different services. The study segments respondents by vehicle type, including passenger cars, premium models, and new energy vehicles, to provide a detailed view of feature popularity, interest levels, and priority needs within each category. The findings are based on an online panel survey of 1,606 key decision-makers and influencers involved in connected car purchases and usage in the United States, providing actionable insights for OEMs and service providers seeking to capitalize on emerging opportunities.
Table of Contents
143 Pages
- Project Approach
- Project Approach
- Key Findings
- Industry Overview
- Software is Integral to Delivering the Future of Mobility
- CASE is Dead, Long Live the SDV!
- We are Right at the Start of the SDV Journey
- Learning What Consumers Want in an SDV World
- OEM-Operated Digital Ecosystems Will Support FoD
- Frost & Sullivan Observes 3 Distinct OEM Approaches to Offering FoD Today
- Research Objectives and Methodology
- Research Methodology
- US Sample
- Data Weighting US Sample
- Respondent Profile | Demographics
- Respondent Profile | Household Characteristics
- Respondent Profile | Vehicle Ownership and Driving
- Vehicle Characteristics: Engine and Vehicle Segment
- Interest in Innovative Technologies in Cars is High
- A Clear Majority of Customers (61%) See a Digital and Connected Car as the Strongest Vision of the Future
- Vast Regional Differences for the Vision of the Vehicle do not Exist
- Consumers with Large Segment Vehicles have the Most Futuristic Visions of the Car of the Future
- Mercedes-Benz Owners Lead in the Vision That the Future Car Should be Digital and Connected to the Outside World
- Advanced Applications are Desired by More than 50% of Consumers
- Customers with Larger Vehicles Show Higher Preference for Advanced Applications
- Ford and Mercedes-Benz Owners Have the Highest Expectations for their Vehicles to Have Advanced Applications
- Nearly 75% of Consumers Express Significant Interest in Connected Services
- One-Third of all Customers are Extremely Interested to Have In-Vehicle Connected Services
- Interest in In-vehicle Connected Services is Strongest Among Premium Vehicle Owners
- All Age Groups up to 61 Years are Almost Equally Interested in Connected Car Services
- Only 14% Would not Share any Driving-Related Data With Third Parties
- Basic and Sub-Compact Owners Show the Least Hesitancy to Share Vehicle Data
- A Significant Difference Exists Between Willingness to Share In-Vehicle-Related Data by Attitude to Technology
- The Most Popular In-Car Activity is Listening to Music and Making Calls
- After Music Streaming, Remotely Checking/Controlling the Vehicle is the Most Popular Function
- Tesla Owners Show Much Higher Usage of Music Streaming, Smartphone Apps, and Voice Assistants than Other Vehicle Owners
- Close to a Quarter of Drivers Use In-Car Monitoring Features Today
- Voice Assistants in the Car are Used Most to Search for Routes or for Calling/Texting
- 53% of Respondents Use Regular OTA Updates
- Consumers in the South Have Used OTA Updates the Most
- Nearly 70% of Large SUV Drivers Use OTA Updates Frequently
- Large Gaps in OTA Update Usage Exist between Consumers with Different Attitudes to Technology
- BMW Owners Lead in Usage of OTA Updates
- Large, Luxury, and Sports Owners: The Largest Consumer Segment that Pays to Unlock FoD
- The Percent of Consumers who Have Paid for On-Demand Features Goes Some Way to Explain the Current Rollout of OEMs’ Strategies
- In-Car Marketplace
- Nearly 80% of Consumers are Very Comfortable or Comfortable with Making Online Payments
- There is Little Variance in Comfort in Making Online Payments in Terms of Vehicle Segments
- Comfort Levels do not Vary Significantly Across Groups with Different Attitudes Toward Technology
- BMW Owners Show the Highest Level of Comfort in Making Online Payments via Smart Devices
- Interest in Paying for Services On-the-Go is High
- Minivan and Pickup Truck Owners Show the Highest Interest in Paying for Services On-the-Go
- In-Car Payment is Preferred for Vehicle Driving-Related Services
- Ford and Chevrolet Users Show the Highest Interest in Paying through In-Car Payment Functionality
- Fear of Distracted Driving is the Primary Reason for not Making Purchases via an In-Car Marketplace
- Weather Updates and Social Media Access are the Most Desired Services for Consumers to Install via an In-Car App Store
- Interest in Installing Services via Car Manufacturers’ App Stores Varies Widely by OEM Brand
- SDVs— Awareness and Interest
- Almost Two-Thirds of Those Surveyed Have not Heard of SDVs
- PHEV Owners Show the Highest Awareness of SDVs
- Awareness of SDVs is Strongest Among Drivers of Large, Luxury, and Sports Vehicles
- There is a Large Gap in Awareness of SDVs Between Tech-Savvy and Laggard Consumers
- Tesla and Audi Owners Show the Highest Awareness of SDVs
- Attitude Toward the SDV Concept is Very Positive
- Large SUV and Large, Luxury, and Sports Owners Like the Idea of SDV the Most
- 80% of Tech-Savvy Consumers View the SDV as an Exciting Concept
- BMW Owners Have the Most Positive Outlook Toward Using the SDV
- Improved Safety Features are Viewed as the Most Desired SDV Benefit
- OEMs Need to Balance Users’ Desire for Flexibility Throughout the Vehicle Life Cycle with Pre-Existing Functions at Point of Purchase
- FoD Consumer Perspectives
- FoD Introduction in Survey
- 26 FoD Have Been Tested
- The Vast Majority are Willing to Pay for Additional Features
- Willingness to Post-Purchase On-Demand Vehicle Features is Highest Among Large SUV Owners
- Tesla Owners Show the Highest Willingness to Pay Post-Purchase for On-Demand Vehicle Feature Upgrades
- Consumers are Most Likely to Pay Additional Fees for Features in the Safety and Security and Vehicle Performance Categories
- Those that Drive with Kids Under the Age of 6 are Most Likely to Pay an Additional Price for Services to Improve In-Vehicle Experiences
- Tesla Owners Lead the Likelihood of Paying an Additional Price for Services in all but one Category
- Driver and Interior Monitoring Systems, Premium Audio, and High-Precision GPS Hold the Highest Interest for Consumers
- Large, Luxury, and Sports Owners are Most Likely to Purchase FoD
- More Than 8 in 10 Consumers are Seen as Prospects for FoD
- Regional Variances are Low for Interest in FoD
- Premium Large, Luxury, and Sport Vehicles’ Prospects Show the Highest Interest in FoD
- Those with BEVs Show Higher Interest than ICE Owners
- Singles and DINKs are the Best Prospects
- Those that Frequently Drive with Kids Show the Highest Interest in FoD
- Premium Vehicle Owners Show the Highest Interest in FoD
- Willingness to Pay and Price Elasticity of Demand
- Price Points Tested
- Willingness to Pay and Price Elasticity of Demand
- FoD Price Elasticity of Demand
- Interest in Purchasing: Adaptive Driving Sounds and Lighting
- Interest in Purchasing: Cinema Sound Experience
- Interest in Purchasing: Personalized Sound Zones
- Interest in Purchasing: Premium Audio
- Interest in Purchasing: User Profiles
- Interest in Purchasing: Driver and Interior Monitoring Systems
- Interest in Purchasing: AR-HUD
- Interest in Purchasing: Car2Home and Home2Car Functionality
- Interest in Purchasing: In-Car Karaoke
- Interest in Purchasing: 2D, 3D, and AR Navigation
- Interest in Purchasing: Powertrain Upgrades
- Interest in Purchasing: Sentry Mode
- Reasons for Not Paying for FoD for Future Vehicles
- FoD User Experience
- FoD Categories Purchased in the Past
- The Most Popular Way of Finding out About FoD is Through OEMs
- Satisfaction with Purchased FoD is Very High
- FoD Meet Consumer Expectations
- The Largest Group of FoD Users is Within the Large Car Segment
- The Ability to Improve Vehicle Safety is the Most Appreciated
- Next Car Purchase
- PHEVs are Set for the Biggest Rise Between Current and Future Vehicles
- In the United States, More than 40% of Consumers Still Intend to Buy an ICE Vehicle as their Next Vehicle Purchase
- Compact Vehicle Owners Lead the Way in Intending to Buy ICE Vehicles
- As Expected, Tesla Owners are Most Likely to Buy an EV in the Future
- 25% of Respondents Say They are Most Likely to Purchase a Mid-Size SUV Next
- Price Expected to Pay When Purchasing Next Vehicle
- The Sample Average Duration of Car Ownership in the United States is About 4 Years
- Appendix
- Growth Opportunities Fuel the Growth Pipeline Engine™
- Why is it Increasingly Difficult to Grow?
- The Strategic Imperative 8™
- Next Steps
- Benefits and Impacts of Growth Opportunities
- Next Steps
- Legal Disclaimer
Pricing
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