Telefónica Releases 2014 Connected Car Industry Report

BMW Car ConnectedDrive systemTelefónica has released its second annual report into the Connected Car industry, exploring the attitudes of drivers towards the growing trend of car connectivity.

According to the report, consumers around the globe are highly aware of the products and services now available, and car connectivity is beginning to influence purchasing decisions. 80 per cent of consumers surveyed expect the car of the future to provide the same kind of connected experience they are used to at home, at work and on the move via their mobile phones.

70 per cent of drivers were either interested in using connected car services or were already enjoying them, with increased safety, early warning systems, smart navigation and usage-based insurance cited as the most popular benefits that connectivity can bring.

One of the most interesting findings was that 35 per cent of drivers expect not to own their own car by 2034, instead predicting that they will be using one of the growing alternative options such as car sharing services.

“Through looking at the connected car from a drivers perspective, its clear that the demand for connected services in cars in unquestionable,” said Pavan Mathew, global head of connected car at Telefónica. “Even though were just moving off of the starting line, people are ready for it and know what they want. But challenges to widespread roll-out remain.

“Many consumers currently think of connected car services in terms of infotainment and wi-fi, but this changes when they are made aware of the variety of options that the technology can offer. Safety and diagnostics appear to be the most attractive features to drivers, illustrating just how important factors such as road safety and vehicle maintenance are in consumer purchasing decisions.”

Manufacturers and brands are beginning to prepare for the growing demand for connected car services and experiences. “I see a huge expansion beyond legacy telematics such as vehicle health reports, safety and security, crash notifications into active safety and automated driving aspects,” said Henry Bzeih, chief technology strategist for Kia Motors. “I also think vehicle-to-vehicle communication is going to grow very quickly in the next five years. The beauty of the technology is that the communication protocol can be used for a host of other service beyond vehicle communication, so it benefits the wider infrastructure too.”

Array