2025 Connected Car Study: Inside consumer priorities

The connected car services market is maturing, but consumer reactions remain complex. Attitudes vary by region, age group, and digital comfort level, with high satisfaction among those who subscribe, but also concerns about data privacy and the value proposition of certain features. While many consumers are willing to pay for connected services, they also desire flexibility in subscription models and are wary of being locked into long-term contracts.

Consumer exposure to connected car technology and brands significantly solidifies a positive perception. Original equipment manufacturers (OEMs) usually offer three years of free connected services, after which clients can subscribe through the store. A common strategy for OEMs is to activate services at the dealership via a free trial.

OEM strategies tend to vary both for addressing consumer concerns and raising consumer interest or adoption. Simple activation processes, more value-added services, ease of use, and advertising of connected services throughout the vehicle supply chain are just some of the ways. Therefore, more investment is expected in service development and promotion.

Once consumers experience connected car services, they are generally satisfied and likely to recommend them to others. That said, consumers have shown declining satisfaction levels in nearly all connected car services categories over the past two to three years. The top three services with the highest satisfaction levels are Navigation, Personalization and Infotainment while the Safety & Security category consistently shows the lowest satisfaction levels.

From a global perspective, Safety & Security and EV Services had the highest average prices that respondents were willing to pay. This might confirm that consumers understand the value added for those features, the importance of safety, and the growing demand for electric vehicles. Navigation and Personalization services had the lowest average prices in terms of willingness to pay. This could be attributed to the fact that many consumers are used to these features, as some automakers include them as standard equipment. As a result, consumers may not see the need to pay a significant premium for these services.

Data privacy has been the biggest industry concern as automakers seek recurring revenue and monetization opportunities. Consumers are wary of how their driving data (location, habits, etc.) is being collected, stored, and used, especially given the potential for misuse or unauthorized access. Lack of transparency in data policies has been proven to reduce consumer trust, especially among privacy-conscious users.

Additionally, connected car security concerns have been difficult to overcome. Connected cars are vulnerable to hacking, data breaches, and malicious attacks, raising more concerns about the safety and security of personal information and vehicle control systems. Evolving data privacy laws and regulations, such as those in Europe and North America, require automakers to prioritize data transparency and implement robust security measures for vehicle data.

The cost of hardware and software for connected car features can be substantial, making it difficult to integrate these features into mass-market and budget-friendly vehicles. Subscription-based services (navigation, Wi-Fi, etc.) are increasingly being met with resistance from price-sensitive consumers who may not see the value in paying recurring fees for features they do not frequently use. Users are frustrated when hardware (e.g., cameras, sensors) is present but features are paywalled. Consumers are also pushing back against “feature fragmentation” where basic functions are split into multiple paid tiers.

Many consumers are unaware of the full range of connected car features and their potential benefits. This invariably leads to skepticism and a lack of trust. Concerns about the reliability and safety of connected car technologies, particularly those that work in tandem with highly automated driving features, can lead to reluctance in adopting these technologies.

Additionally, managing multiple subscriptions for various connected car services can be cumbersome and confusing for consumers. To add to this complexity, multi-modal in-car interfaces and integrating connected car services with other devices and platforms can impact user experience. Sometimes, the limited availability of apps and the lack of seamless integration with existing digital ecosystems have also proven to be a barrier to adoption.