Commentary

'Connected' Cars Coming, Thanks To The Smartphone

Although they will not drive themselves, connected cars are coming.

But it may not turn out the way many think, at least in the short term.

The challenge for automakers has been to get the user experience right in connected cars.

Manufacturers have been challenged with new technology in cars as car owners complain of confusing systems, complex menus, difficulty pairing smartphones to car systems and voice recognition that doesn’t work, according to a new Forrester study on the Future of the Connected Car.

Another major hurdle is that car owners don’t want another monthly billing relationship with more subscription fees.

With the average car in the U.S. on the road being more than 11 years old and taking as long as 20 years before most cars are replaced, industry estimates say it will be 2025 before all new cars come with Internet connectivity. Ouch.

Depending on the region of the world, there’s a demand for connected car features. The highest demand across the board is in China. By connected car feature, here is the overall interest by car owners in China:

  • 74% -- Location info about contacts
  • 73% -- Interactive voice response
  • 65% -- Internet connectivity
  • 64% -- App store for car apps

Not as many consumers in the U.S. are clamoring for such features. Here’s the interest, by feature, for the U.S.

  • 31% -- Interactive voice response
  • 31% -- Internet connectivity
  • 26% -- Location info about contacts
  • 23% -- App store for car apps

Many, but not all, consumers want some connectivity in cars.

Self-driving cars, on the other hand, are at least five years away from proving the technology works, dealing with government regulations and getting costs to a reasonable range, according to Forrester. And then they will only be offering expensive models for fleet or personal use that only will replace the existing mass of cars over the next two decades.

Rather than waiting for new cars with new tech, an emerging set of IoT technologies in retrofit devices is coming in a big way, according to Forrester.

Most of these use smartphone apps for setup and ongoing interaction and they range from $99 to a few hundred dollars. Such devices can provide hands-free calling, dash cams, usage-based insurance fees, driving assistance and navigation.

The key is that IoT-enabled products in cars provide a continuous flow of information between the customer and the brand. “They allow brands to offer regular assistance and benefits to the customer in a service relationship that goes far beyond occasional transactions,” states the report.

The car may become connected. But for now and the foreseeable future, it will be through a mobile phone.

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The MediaPost IoT Marketing Forum is being held Aug. 3 in New York. Check it out here

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