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Accenture: Consumers willing to pay extra for in-car technology

Kayode OladeindebyKayode Oladeinde
29/04/2016
in Market Updates, News
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Drivers would opt to pay up to an additional 10 percent of a new car’s price to get the in-car technology that they want, according to a new survey conducted by Accenture.

The survey polled drivers in China, Germany and the United States about their current and future use of in-car technologies, including entertainment, information, remote and driver support services, as well as the features they would consider paying a premium for over the vehicle price.

Accenture believes that by 2025, all new cars sold will be connectivity-enabled. When asked what percentage of a new car’s selling price drivers would be willing to spend on infotainment services relevant to their needs. Seventy one percent say they would pay up to 10 percent of the car price.

2017-mercedes-benz-slc-class-first-drive-review-car-and-driver-photo-666743-s-340x208

The research found that the functionalities consumers would be most willing to spend more on include remote services like eCall, where the vehicle automatically sends a distress message to the nearest emergency centre when a life-threatening situation occurs, and bCall, a system which alerts a vehicle recovery organisation when a vehicle breaks down. Sixty-three percent of respondents are interested in the e-Call feature, and 41 percent is willing to pay for the service.[quote font=”georgia” font_size=”22″ font_style=”italic” align=”right” bgcolor=”#” color=”#” bcolor=”#” arrow=”yes”]Appeal for location-based services is also anticipated to gain popularity, as 78 percent of respondents are interested in having the stolen vehicle recovery and tracking system, 71 percent want features like the remote parked car locator, and just under two-thirds, or 59 percent, would welcome the use of high-quality, in-car navigation systems in the future. [/quote]

The survey reveals consumer interest in key in-car technologies is likely to grow. For example, nearly three-quarters of the respondents say they will very likely start using or consider using the eCall feature in the future. In terms of future use of remote diagnostics, 75 percent and 71 percent respectively expect to use vehicle health and vehicle lifecycle management services.

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Appeal for location-based services is also anticipated to gain popularity, as 78 percent of respondents are interested in having the stolen vehicle recovery and tracking system, 71 percent want features like the remote parked car locator, and just under two-thirds, or 59 percent, would welcome the use of high-quality, in-car navigation systems in the future.

In addition, 35 percent of drivers questioned wanted concierge services, such as voice-activated responses to location-based questions, with 19 percent willing to pay an additional fee for this. Thirty-two percent want smart home integration, which provides the ability to control automated devices within the home from a connected vehicle, and 20 percent would pay more for it. Twenty-eight percent indicated an interest in online service booking, with 13 percent willing to pay a premium for the convenience.

With regard to payments for in-car services, nearly half of respondents (47 percent) are willing to make an upfront payment when buying a new car, or pay for connected services over the lifetime of the services. More than one-third of those polled (34 percent) want free basic services subject to in-car advertising with the option to upgrade to premium versions of services. And 32 percent would consider paying a monthly fee for connected vehicle services using a credit card or PayPal.

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Kayode Oladeinde

Kayode Oladeinde

Technology Journalist at Technology Times. Mobile: +234 (0) 7031526929

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