Thursday, June 04, 2015

61% of car owners prefer to bundle vehicle data consumption with smartphone data consumption

New consumer research reveals challenges and opportunities in the connected car ecosystem

New connected car research from Parks Associates finds 16% of light vehicles in the U.S., or about 41 million vehicles, will have an active Internet connection by year-end 2015. The firm reports that 10% of vehicle owners in U.S. broadband households have access to built-in apps or can remotely control their vehicle using a mobile phone, 12% can connect to a live agent for emergency or roadside assistance, and 17% have mapping and navigation capabilities.

“The demand for connected car features is growing, encouraged by consumer expectations of a smartphone experience in all aspects of their life. Today, the connected car market overlaps with the market for mobile services and smartphones, and 61% of car owners prefer to bundle vehicle data consumption with smartphone data consumption,” said Jennifer Kent, Director, Research Quality & Product Development, Parks Associates. “But this ecosystem must innovate beyond the smartphone experience in order to expand, and connected car players should develop assets or foster partnerships across adjacent connected ecosystems, such as the smart home and smart cities ecosystems.”

Parks Associates’ connected car research includes the industry report Connected Cars and the Smart Home: Crossover Opportunities and the Consumer Analytics-based research Connected Car Services and Apps, which includes a Q1 2015 survey of U.S. broadband households. The research firm reports 44% of car owners in U.S. broadband households have some kind of advanced connected car feature. That figure increases dramatically among owners of vehicles less than three years old, indicating that penetration will continue to increase in the near term. Demand for connected car features among those without access to such features in their current vehicle is strongest among young drivers and smartphone owners.

However, consumer appetite for connected features in their vehicles depends upon continued experiences that are high-quality, safe, and protect driver privacy. “More than 50% of U.S. broadband households express privacy and safety concerns regarding connected cars,” Kent said. “The connected car industry must be up-front about costs, safety, and security efforts. Market players have to be proactive so that connected car features do not develop a bad reputation among parents, politicians, and consumers.”

Connected Car Services and Apps assesses the current adoption of connected car features as well as the consumer demand for such features, including billing preferences and new conceptual features.It also highlights privacy and security concerns with connected cars. More information is available at To schedule an interview with an analyst or to request specific research data, please contact Holly Sprague at

About Parks Associates: Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.

The company's expertise includes the Internet of Things (IoT), digital media and platforms, entertainment and gaming, home networks, Internet and television services, digital health, mobile applications and services, support services, consumer apps, advanced advertising, consumer electronics, energy management, and home control systems and security.

Each year, Parks Associates hosts industry webcasts, the CONNECTIONS™ Conference Series, Smart Energy Summit: Engaging the Consumer, Connected Health Summit: Engaging Consumers, and Future of Video: OTT, Pay TV, and Digital Media.

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