76% of drivers are skipping connected car subscriptions

When it comes to gauging the consumer appeal of connected car apps, it appears that it might all boil down to two primary factors: cost and connectivity issues.

First things first: A February report by the API platform Smartcar—which surveyed 1,000 drivers across the U.S. and Europe—found that although a large number of drivers are not subscribed to their automaker’s connected services, nearly just as many are eager to use the tech features. 

• According to the survey, 76% of drivers do not subscribe to their brand’s connected services, revealing low market penetration and perceived value.

• Despite the low penetration, 67% of connected service users are eager for more connected features and willing to pay for enhanced offerings.

• Cost remains one of the biggest barriers to the wider adoption of connected offerings, with 65% of respondents citing high prices as a deterrent to using the services.

Between the lines: A separate 2024 December report by J.D. Power reveals that persistent connectivity-related issues is another major hurdle to getting more consumer buy-in on the tech.

• The J.D. Power study—which focused specifically on ICE vehicle owners—found that nearly one-third (32%) of owners experienced app connectivity issues, an increase from 29% in 2023.

• 61% of the survey respondents—drawn from 1,900 participants in the U.S.—stated that the app’s connection to the vehicle is slow, occurring occasionally, frequently, or every time they use it. 

• Among all ICE owners surveyed who discontinued using their car brand’s apps, 25% cited a lack of desired capabilities. 

The J.D. Power study did reveal a high demand for connected tech offerings with security features, with 83% of those surveyed expressing a desire for apps to include a vehicle camera viewing and security warning. 

Bottom line: With the connected car market expected to reach $568 billion by 2035 and a potential revenue stream of $1,600 per vehicle annually for manufacturers, brands will likely start working more aggressively to address cost and functionality issues.

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