As the number of connected vehicles on the road continues to grow, developers are creating tools that serve a variety of use cases for consumers, commercial drivers, and fleet managers alike.
These innovations are driving a global automotive software market that is projected to grow at a compound annual growth rate (CAGR) of 15% through 2030, according to a recent study, as reported in the latest entry in the B2B and Digital Payments Tracker®. Reshaping Global Business With Connected Vehicles series, a collaboration between PYMNTS and American Express.
“Connected cars will drive the transformation of global wireless data networks toward more sophisticated and personalized experiences,” Tatia Adams Fox, vice president and general manager of Travel and Entertainment National Client Group at American Express, told PYMNTS when interviewed for the report.
“They will also drive B2B and B2C companies to invest aggressively in innovative connected vehicle technologies and market and consumer insights that will inevitably create new revenue streams,” Fox said.
Personalization of vehicles for consumers
As detailed in the report, consumers using connected cars are benefiting from features such as text messages on the windshield, news, weather updates and voice-activated commands to unlock doors and check fuel levels.
Consumers using vehicles from mobility services will find that they can order the vehicle they want and then customize its settings to their preferred radio stations and air conditioning settings before even getting into the vehicle.
Alain Nana-Sinkam, TrueCar’s senior vice president of business development, provided an example of this type of personalization when interviewed by PYMNTS for the report.
“Here’s Alain’s media, which he likes to hear, and we’re going to move the seat back because it’s a bit taller and he likes it 71 degrees – the vehicle itself becomes less important because you’re really just adding your experience of vehicle to it vehicle, and the technology is there to support something like that,” said Nana-Sinkam.
Reducing the cost of commercial fleets
Connected vehicles also offer a number of benefits to commercial fleets – inasmuch as a recent report found that about four in ten connected fleet operators said they saw a return on investment (ROI) within six months, and nine in ten said that they had achieved this ROI within 12 months.
Among the top reasons businesses want connected vehicles are the vehicles’ ability to reduce costs, improve driver safety and behavior, and help with vehicle safety and vehicle tracking.
For fleet operations with connected vehicles, a centralized dashboard can report on things like fleet operations and driver performance. Vehicle data can be used to provide insights into fuel economy, vehicle operation and preventive maintenance. Integrated video technology can improve driver training and behavior, reduce accidents and reduce insurance premiums.
Serve a variety of use cases
To provide these and other benefits to commercial fleets and consumers, automakers and other developers are introducing more and more solutions.
For example, General Motors (GM) announced in February that it expects to introduce 50 value-added products and services over the next 36 to 48 months.
Continue reading: Subscriptions to connected services in vehicles can cost up to $135 per month
Additionally, GM research found that consumers are willing to pay $135 a month for connected services over the lifetime of a vehicle.
“You can think of companies like OnStar,” Steve Carlisle, GM’s executive vice president and president, North America, said during a February tech conference, and “we have a variety of other companies like this that we’re bringing to market out of the box.” From a life-cycle purchase perspective, a completely different stream of revenue and growth opens up for us.”
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