SYS-CON MEDIA Authors: Elizabeth White, Yeshim Deniz, Pat Romanski, Nikita Ivanov, Sean Houghton

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New IDC Manufacturing Insights Connected Vehicle Survey Reveals Safety and Convenience Critical to Consumer Adoption

IDC Manufacturing Insights today announced results from the 2013 Consumer Connected Vehicle Study in a new report, Business Strategy: IDC's Connected Vehicle Study Highlights Value of Safety and Convenience (Doc #MI249559). The new report provides perspectives for automotive original equipment manufacturers (OEMs) and other ecosystem stakeholders on consumer expectations, including questions about affordability, value, safety, and the important relationship between connected vehicles and connected devices. The report also identifies achievements to date from major automotive OEMs associating safety and connected vehicle investments and provide guidance on how OEMs can ensure they are delivering what the market needs and wants in connected vehicles.

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Automobile manufacturers are incorporating connected vehicle technology with capabilities that will support improved vehicle performance, safer driving, and more customer engagement. IDC Manufacturing Insights' Consumer Connected Vehicle Study shows that consumers are looking for safety and convenience but aren't necessarily able to value the improvements connected vehicles can deliver. More than half (53.8%) of consumers don't think they will have connected vehicle capabilities in their next vehicle because they won't be able to afford it, don't want it, or don't think they should pay for it.

Successful OEMs will be those that are able to define value appropriately and entice consumers with connected vehicle technology at the right price point.

Other key findings from the survey and report include:

  • The cost of connected vehicle technology remains a sore point with consumers. Safety may be a powerful benefit of connected vehicles, but that doesn't always translate into consumer value.
  • Safety isn't necessarily a given with all connected vehicle capabilities, and automotive OEMs will need to ensure that new functionalities, including Internet-enabled infotainment systems and navigation systems, allow the driver to operate with minimal distraction.
  • Connected consumers don't plan to adopt connected vehicle technology significantly faster than other consumers. Although 46.2% of consumers expect to have the capabilities in their next vehicle, 35.5% still believe they won't be able to afford these capabilities.
  • Connected vehicles and connected devices must go hand in hand, as consumers continue to expect their digital identity to continue whether or not they are in vehicle. Alliances between OEMs, hardware players, software vendors, and infrastructure providers will be essential to serving customer and consumer expectations.

"Our research shows that consumers are looking for safety and convenience but aren't necessarily able to value the improvements connected vehicles can deliver," explained Kimberly Knickle, Research Director, IDC Manufacturing Insights. "Successful OEMs will be those that are able to define value appropriately and entice consumers with connected vehicle technology at the right price point."

One of the major challenges for OEMs comes down to the capabilities of the connected devices that more and more consumers rely upon. According to IDC Manufacturing Insights research, consumers place high value upon their smartphone as the enabler of their digital identity. In fact, the majority of respondents indicated they would prefer to utilize their existing mobile devices when it comes to accessing digital services such as online radio, Internet, or navigation services. To be successful, connected vehicles must leverage the capabilities that consumers already have on their smartphones and other connected devices today.

To arrange a one-on-one briefing with Kimberly Knickle, please contact Sarah Murray at 781-378-2674 or [email protected]. Reports are available to qualified members of the media. For information on purchasing reports, contact [email protected]; reporters should email [email protected].

About IDC Manufacturing Insights

IDC Manufacturing Insights assists manufacturing businesses and IT leaders, as well as the suppliers who serve them in making more effective technology decisions by providing accurate, timely, and insightful fact-based research and consulting services. Staffed by senior analysts with decades of industry experience, our global research analyzes and advises on business and technology issues facing asset intensive, brand oriented, technology oriented, and engineering oriented manufacturing industries. International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a subsidiary of IDG, the world’s leading technology, media, research, and events company. For more information, please visit www.idc-mi.com, email [email protected], or call 508-988-7900. Visit the IDC Manufacturing Insights Community at http://idc-community.com/manufacturing.

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