Today’s new cars are much more than just simple modes of transportation. They are now full-fledged entertainment, communications and productivity hubs. With hundreds of sensors and systems that connect them to the internet, the cloud and their surroundings, connected cars also present new opportunities for marketers to learn about their customers and generate new revenue streams.
What types of companies are in the connected-car ecosystem?
Players from inside and outside the traditional auto industry are staking claims in this market. These include automakers (OEMs) and suppliers, big tech, hardware and software firms, mobile carriers, startups, systems integrators and service providers. In many cases, innovation is coming through intra-industry partnerships and collaborations among companies with different expertise.
When will self-driving vehicles be widely available?
Fully autonomous vehicles for the mass market are still a decade or more away. However, an increasing number of new vehicles contain partially autonomous, advanced driving assistance systems (ADAS), such as parking assistance and crash avoidance that improve safety.
Why should marketers be excited about connected cars?
Connected cars generate massive amounts of usage and user data and can provide automakers and partner companies with information about their location, how they’re being driven and what content is playing on the infotainment system. Brands with access to this data can use it to create personalized content, experiences and services.
What challenges will marketers face as they dive into this market?
The connected car market is complex and fragmented because OEMs have taken different paths toward connectivity and autonomy. Efforts are coalescing around voice assistants, cloud platforms and next-generation connectivity, though it will take time. Marketers are also figuring out how to best use connected-car data in privacy-compliant ways.
WHAT’S IN THIS REPORT? This report provides an overview of the connected vehicle landscape. It also explains five forces driving the market and what they mean for marketers.
KEY STAT: Usage data from connected vehicles will provide automakers and their partner companies worldwide with new opportunities to personalize products and services, generate new revenues and deliver incremental value to vehicle users, according to the IBM Institute for Business Value.