Capgemini Invent has released a new report “Connected Vehicle Trend Radar 2”. According to the research, OEMs have yet to tap into the full potential of the connected vehicles. The use of the connected services offered by OEM is generally low, 44% of customers don’t have any connected services in their cars, and only about half of those who do have them are regular customers.
This manifested that plenty of OEMs have yet to effectively enter the connected vehicle service market. Unlike traditional OEM, Tesla has powerful brand recognition in connected car services. It ranked No.1 in the EU, the United States, and China, and continues to strengthen its leading position in this segment.
With the widespread use of smartphones in automobiles, tech companies such as Google Inc (GOOG) and Apple Inc. may gain control over the user interface. Hence, OEMs are losing their leading edge in the connected service, what worse is that they are starting to lose customer loyalty as well. They may miss out on income, in the worst scenario, ending up as the supplier to tech companies.
Any OEM who wants to regain the leadership position in the Connected Car Service area must resolve three revenue streams:
- To be an inherently valuable service provider.
- Integrate necessary third-party services.
- Monetizing the collected data.
Though the data monetization has the greatest long-term potential, the other two issues must be addressed first, in order to attract the user number and frequent use required by the data monetization.
To this end, OEMs must ensure that customers provide the services they find relevant. The research shows that of the 23 user categories surveyed, safety and security related services were most valued, while in-vehicle delivery and commercial services were the least valued. In addition to providing the right service, OEMs can also increase demand by pricing, sales strategies as well as investment portfolio strategies.
Download Report: Connected Vehicle Trend Radar 2 Report
