Driver demand for connected cars is intensifying as consumers call for better safety, smarter navigation and lower-cost insurance, according to Telefónica's second Connected Car Industry report.
The study found that consumer awareness of Connected Car products and services around the globe is high and is now influencing purchasing decisions; 80% of consumers expect the Connected Car of the future to provide the same connected experience they are used to at home, at work and on the move via their mobile phone; while increased safety, early warning systems, smarter navigation and usage-based insurance are cited as the most popular benefits of connectivity in cars.
Pavan Mathew, Global Head of Connected Car at Telefónica, commented: "Through looking at the connected car from a driver's perspective, it's clear that the demand for connected services in cars is unquestionable. Even though we're 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 infotainment and WiFi, 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.
"We can expect to see a gradual creep of connectivity into vehicles over the next few years but there won't be an explosion over the next 12 months," said Mathew. "The reason for this lies in the complexity of the challenges that connectivity is trying to address.
"While OEMs still have a way to go before they break out of their traditional role as a manufacturer and become a full, connected service provider, they certainly have a strong, trusted base to build from."