Industria
Omdia: Connected car on the road to grow 18% in 2023 opening potential lucrative new revenue streams
As seen with their approach across other product categories, platform owners Google and Apple are looking to become key gatekeepers within the car environment with their respective in-car software solutions. Amazon is bringing its immensely popular Fire TV entertainment solution in-vehicles for media consumption too. In response to this attempt, car OEMs are developing their own software solutions to keep drivers within their own ecosystems, allowing them to retain control of the whole consumer experience across both the vehicle and the software.
Over the next few years all new car sales will include connectivity as a standard feature enabling services and subscriptions in the car cabin as the industry pivots its focus to repeated revenues in a new business model. Monetization strategies are already being put in place through add-on subscriptions ranging from cloud gaming services to heated seats and even the cars themselves.
Discussing the market outlook, Omdia Principal Analyst David Tett commented: "There is ongoing uncertainty as to consumers' willingness to pay extra for in-car services particularly as they correlate it with value for money given average journeys range between 15-30 minutes. Although it has been difficult to monetize, native car-based services are expected to provide such opportunities over the coming years. This potential has meant many stakeholders consider automotive as a key area for future growth."
Omdia, part of Informa Tech, is a technology research and advisory group. Our deep knowledge of tech markets combined with our actionable insights empower organizations to make smart growth decisions.
Fasiha Khan fasiha.khan@omdia.com
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