Vehicle Connectivity is Surging, but Consumer Paid Subscription Share is in Sharp Decline
NEW YORK, April 13, 2022 /PRNewswire/ -- According to global technology intelligence firm ABI Research, connectivity will be available in over half of new vehicles sold in 2022 and over 70% in 2028. Carmakers are committed to connectivity because of its various benefits, including fleet management, reduction of warrant costs, convenient Electric Vehicle (EV) ownership, and Over the Air (OTA) updates. However, they still have not found an effective strategy to recoup the connectivity and airtime costs. Connected services adoption is low, especially among lower-tier vehicles, and the increase in free trial periods means that the ratio of paid subscriptions will contract by 20% between 2021 and 2028.
- Carmakers are committed to connectivity because of its various benefits, including fleet management, reduction of warrant costs, convenient Electric Vehicle (EV) ownership, and Over the Air (OTA) updates.
- However, they still have not found an effective strategy to recoup the connectivity and airtime costs.
- Despite moving to become ubiquitous, vehicle connectivity is still not a significant revenue source.
- Nevertheless, all carmakers in all regions aim to provide embedded connectivity in future vehicle platform generations.