Consumers are currently interested and responsive to the upcoming technology in automotive such as connected cars, driverless cars. Consumers those are interested in safety versus those interested in technology are also super excited to experience the connected cars technology to enhance their experience. As the automotive industry readies itself for connected cars that talk to each other and access the Internet, it’s anticipating astonishing on-board features. However, the cyber security threat is one of the major aspects which pose a major challenge in front of connected car manufacturers to ensure the safety from hi-jack and theft of user data. On the contrary, the connected car revolution offers car brands huge opportunities if they can prove to consumers that they can step up and deliver better, quicker and more intuitive service.
Customers opt for bring-your-own devices and big-name brands.
Consumers already have smartphones, and they use them inside their vehicles for infotainment streaming and additional support — such as the traffic congestion feature on Google Maps. Many OEMs will struggle to compete with the likes of Apple or Google, which have already started to build their presence in this space and have more experience of developing and launching software, and operating in an online marketplace. For those OEMs that can create partnerships with these brands (as suggested above), the entrance of these big names in this sector could turn out to be a blessing in disguise if they succeed in securing some form of exclusivity to differentiate their connected features.
The power of Buyers is significantly medium-high
The power of Buyers is significantly medium-high due to the intense competition among the existing competitors in the market and they are able to negotiate for better pricing. However on the supplier side, the power of Suppliers is low-medium as there are multiple supplier for a particular test and these causes, for companies to compete on price when they do not have any point of differentiation.
Effective Demonstration for Greater Impact
Goldstein Research, a leading market intelligence & consulting firm, suggest that effective ‘on-boarding’ during the sales process leads to greater customer adoption of connected features. Almost half (48%) of connected-car owners who were using the features said that the technology was demonstrated to them in the showroom, whilst 40% said that they were given a demonstration during their test drive. When this data is compared with that for non-users, a pattern emerges. Just 18% of non-users were given a demonstration during a test drive, and just 19% were given a demonstration in the showroom.
So dealers should engage and train all connected-car buyers at the point of sale, and persuade them of the benefits of subscription. For this to be successful, OEMs should ensure dealers receive training so that they fully understand the technology and feel comfortable talking it through with customers in depth and answering their queries.
This is an edited extract from “Global Vehicle Connectivity (Connected Car) Services Market Outlook 2024: Growth & Opportunity Analysis” a study undertaken by Goldstein Research. The study was conducted using an objective combination of primary and secondary information including inputs from key participants in the industry. A systematic approach in order to estimate and project the market sizing has been followed keeping in mind all the on-going and upcoming trends of the market. Study is available @ https://bit.ly/2uP8VOr