Tuesday, December 29, 2015

64% of U.S. car owners want connected activity built into their next car

Analysts Announce Top Five Connected Car Trends for 2016 before CES

Over 40 million U.S. vehicles will be connected to the Internet by the end of 2015, and that number will steadily increase through 2016, according to Parks Associates.  New research from the firm reports 64% of car owners in U.S. broadband households would like built-in support for at least one connected activity in their next car. That demand is in contrast to current connected activities in the car, the majority of which are done on a smartphone without any connection to the car.

“Automakers are keying into this demand by embedding connectivity in new vehicle models. Many are also supporting Apple CarPlay and Android Auto—they do not want these mobile-centric solutions to be differentiators for their competitors,” said Jennifer Kent, Director, Research Quality & Product Development, Parks Associates. “Many of these solutions will be on display at CES® 2016 in January and Autonomous Car Detroit in March. With the exception of smartphones, no other device touches so many points in a person’s life as the car, from home to work to family and community interaction. Car-generated data will increasingly enrich connected solutions outside the car, while also offering an interaction touch point for those external solutions from within the car.”

Demand for Specific Built-in Capabilities/ Apps in Next Vehicle | Parks Associates

Parks Associates will address developments and technologies affecting the connected consumer at the firm’s CONNECTIONS™ Summit: IoT, Entertainment, and the Connected Consumer at CES from January 6-7, in the Venetian Hotel, Level 4, Room Marcello 4501. Ahead of this event, the firm released its top-five trends for connected cars for 2016:

  1. Automakers embrace Apple and Android.
  2. Connected cars lead the way in crossing boundaries between different Internet of Things (IoT) ecosystems.
  3. Connected technologies enable a shift in vehicle ownership models to one defined more by experience.
  4. Autonomous driving features will come to market system by system, such as emergency braking services.
  5. Privacy concerns will remain in the headlines until connectivity becomes indispensable to driving.

Parks Associates research shows 44% of car owners in U.S. broadband households have some kind of advanced connected car feature and 61% of car owners prefer to bundle vehicle data consumption with smartphone data consumption. Nearly 25% of vehicle drivers in U.S. broadband households find the ability for a connected car to automatically set a home “away mode” very appealing, and more than 50% of U.S. broadband households express privacy and safety concerns regarding connected cars.

“The increase in connected vehicles creates a larger addressable market for hackers, so privacy and security breaches will also increase. Consumers and regulators will continue to focus on the issue until connected car features are ubiquitous and necessary to the driving experience,” Kent said. “Only then will the consumer evaluation of the security/value trade-off relent, as it has with online banking, e-commerce, and other forms of connected living.”

Connected Cars and the Smart Home: Crossover Opportunities assesses smart home-connected car crossover opportunities, profiles early initiatives, and highlights the significant complexities inherent in bridging the ecosystems. The report includes a five-year forecast of connected cars in the U.S. market.

For information on Parks Associates’ research or events, visit www.parksassociates.com, or contact sales@parksassociates.com, 972-490-1113. To schedule an interview with an analyst or to request specific research data, contact Holly Sprague at hsprague@gmail.com. During CES, visit Parks Associates at booth #70,959 in the Sands.

About Parks Associates: Parks Associates, a woman-owned and woman-led internationally recognized market research and consulting company, specializes in emerging technology solutions serving the consumer and small to medium business (SMB) markets. Celebrating its 35th year in 2021, Parks Associates is a partner to companies navigating the changing consumer technology landscapes through data-driven market insights, extensive consumer and industry intelligence, custom marketing services, and executive networking experiences and conferences.

The company's expertise includes home automation, control systems and security, digital media and platforms, entertainment and gaming, home networks, internet and video services, connected health and independent living solutions, mobile applications and services, support services, consumer electronics, and energy management solutions.

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

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