Voice of Customer: In-Car Services and Features, Passenger Vehicles, United States, 2024

Project Approach

Software is Integral to Delivering the Future of Mobility

CASE is Dead, Long Live the SDV!

We are Right at the Start of the SDV Journey

Learning What Consumers Want in an SDV World

OEM-Operated Digital Ecosystems Will Support FoD

Frost & Sullivan Observes 3 Distinct OEM Approaches to Offering FoD Today

Research Methodology

US Sample

Data Weighting US Sample

Respondent Profile | Demographics

Respondent Profile | Household Characteristics

Respondent Profile | Vehicle Ownership and Driving

Vehicle Characteristics: Engine and Vehicle Segment

Interest in Innovative Technologies in Cars is High

A Clear Majority of Customers (61%) See a Digital and Connected Car as the Strongest Vision of the Future

Vast Regional Differences for the Vision of the Vehicle do not Exist

Consumers with Large Segment Vehicles have the Most Futuristic Visions of the Car of the Future

Mercedes-Benz Owners Lead in the Vision That the Future Car Should be Digital and Connected to the Outside World

Advanced Applications are Desired by More than 50% of Consumers

Customers with Larger Vehicles Show Higher Preference for Advanced Applications

Ford and Mercedes-Benz Owners Have the Highest Expectations for their Vehicles to Have Advanced Applications

Nearly 75% of Consumers Express Significant Interest in Connected Services

One-Third of all Customers are Extremely Interested to Have In-Vehicle Connected Services

Interest in In-vehicle Connected Services is Strongest Among Premium Vehicle Owners

All Age Groups up to 61 Years are Almost Equally Interested in Connected Car Services

Only 14% Would not Share any Driving-Related Data With Third Parties

Basic and Sub-Compact Owners Show the Least Hesitancy to Share Vehicle Data

A Significant Difference Exists Between Willingness to Share In-Vehicle-Related Data by Attitude to Technology

The Most Popular In-Car Activity is Listening to Music and Making Calls

After Music Streaming, Remotely Checking/Controlling the Vehicle is the Most Popular Function

Tesla Owners Show Much Higher Usage of Music Streaming, Smartphone Apps, and Voice Assistants than Other Vehicle Owners

Close to a Quarter of Drivers Use In-Car Monitoring Features Today

Voice Assistants in the Car are Used Most to Search for Routes or for Calling/Texting

53% of Respondents Use Regular OTA Updates

Consumers in the South Have Used OTA Updates the Most

Nearly 70% of Large SUV Drivers Use OTA Updates Frequently

Large Gaps in OTA Update Usage Exist between Consumers with Different Attitudes to Technology

BMW Owners Lead in Usage of OTA Updates

Large, Luxury, and Sports Owners: The Largest Consumer Segment that Pays to Unlock FoD

The Percent of Consumers who Have Paid for On-Demand Features Goes Some Way to Explain the Current Rollout of OEMs’ Strategies

Nearly 80% of Consumers are Very Comfortable or Comfortable with Making Online Payments

There is Little Variance in Comfort in Making Online Payments in Terms of Vehicle Segments

Comfort Levels do not Vary Significantly Across Groups with Different Attitudes Toward Technology

BMW Owners Show the Highest Level of Comfort in Making Online Payments via Smart Devices

Interest in Paying for Services On-the-Go is High

Minivan and Pickup Truck Owners Show the Highest Interest in Paying for Services On-the-Go

In-Car Payment is Preferred for Vehicle Driving-Related Services

Ford and Chevrolet Users Show the Highest Interest in Paying through In-Car Payment Functionality

Fear of Distracted Driving is the Primary Reason for not Making Purchases via an In-Car Marketplace

Weather Updates and Social Media Access are the Most Desired Services for Consumers to Install via an In-Car App Store

Interest in Installing Services via Car Manufacturers’ App Stores Varies Widely by OEM Brand

Almost Two-Thirds of Those Surveyed Have not Heard of SDVs

PHEV Owners Show the Highest Awareness of SDVs

Awareness of SDVs is Strongest Among Drivers of Large, Luxury, and Sports Vehicles

There is a Large Gap in Awareness of SDVs Between Tech-Savvy and Laggard Consumers

Tesla and Audi Owners Show the Highest Awareness of SDVs

Attitude Toward the SDV Concept is Very Positive

Large SUV and Large, Luxury, and Sports Owners Like the Idea of SDV the Most

80% of Tech-Savvy Consumers View the SDV as an Exciting Concept

BMW Owners Have the Most Positive Outlook Toward Using the SDV

Improved Safety Features are Viewed as the Most Desired SDV Benefit

OEMs Need to Balance Users’ Desire for Flexibility Throughout the Vehicle Life Cycle with Pre-Existing Functions at Point of Purchase

FoD Introduction in Survey

26 FoD Have Been Tested

The Vast Majority are Willing to Pay for Additional Features

Willingness to Post-Purchase On-Demand Vehicle Features is Highest Among Large SUV Owners

Tesla Owners Show the Highest Willingness to Pay Post-Purchase for On-Demand Vehicle Feature Upgrades

Consumers are Most Likely to Pay Additional Fees for Features in the Safety and Security and Vehicle Performance Categories

Those that Drive with Kids Under the Age of 6 are Most Likely to Pay an Additional Price for Services to Improve In-Vehicle Experiences

Tesla Owners Lead the Likelihood of Paying an Additional Price for Services in all but one Category

Driver and Interior Monitoring Systems, Premium Audio, and High-Precision GPS Hold the Highest Interest for Consumers

Large, Luxury, and Sports Owners are Most Likely to Purchase FoD

More Than 8 in 10 Consumers are Seen as Prospects for FoD

Regional Variances are Low for Interest in FoD

Premium Large, Luxury, and Sport Vehicles’ Prospects Show the Highest Interest in FoD

Those with BEVs Show Higher Interest than ICE Owners

Singles and DINKs are the Best Prospects

Those that Frequently Drive with Kids Show the Highest Interest in FoD

Premium Vehicle Owners Show the Highest Interest in FoD

Price Points Tested

Willingness to Pay and Price Elasticity of Demand

FoD Price Elasticity of Demand

Interest in Purchasing: Adaptive Driving Sounds and Lighting

Interest in Purchasing: Cinema Sound Experience

Interest in Purchasing: Personalized Sound Zones

Interest in Purchasing: Premium Audio

Interest in Purchasing: User Profiles

Interest in Purchasing: Driver and Interior Monitoring Systems

Interest in Purchasing: AR-HUD

Interest in Purchasing: Car2Home and Home2Car Functionality

Interest in Purchasing: In-Car Karaoke

Interest in Purchasing: 2D, 3D, and AR Navigation

Interest in Purchasing: Powertrain Upgrades

Interest in Purchasing: Sentry Mode

Reasons for Not Paying for FoD for Future Vehicles

FoD Categories Purchased in the Past

The Most Popular Way of Finding out About FoD is Through OEMs

Satisfaction with Purchased FoD is Very High

FoD Meet Consumer Expectations

The Largest Group of FoD Users is Within the Large Car Segment

The Ability to Improve Vehicle Safety is the Most Appreciated

PHEVs are Set for the Biggest Rise Between Current and Future Vehicles

In the United States, More than 40% of Consumers Still Intend to Buy an ICE Vehicle as their Next Vehicle Purchase

Compact Vehicle Owners Lead the Way in Intending to Buy ICE Vehicles

As Expected, Tesla Owners are Most Likely to Buy an EV in the Future

25% of Respondents Say They are Most Likely to Purchase a Mid-Size SUV Next

Price Expected to Pay When Purchasing Next Vehicle

The Sample Average Duration of Car Ownership in the United States is About 4 Years

Growth Opportunities Fuel the Growth Pipeline Engine™

Why is it Increasingly Difficult to Grow?

The Strategic Imperative 8™

Benefits and Impacts of Growth Opportunities

Next Steps

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