Consumers willing to swap data for free in-car services

Seventy-four percent of consumers are open to sharing data in exchange for free access to connected car services like enhanced navigation tools and advanced driver-assistance systems.

This insight emerged from an international survey by S&P Global Mobility, a unit of the financial intelligence provider, that also found the willingness to provide information in exchange for free in-car services hit 80% among Millennials and members of Gen Z.

Why it matters

Many cars are now digitally-connected hubs which provide consumers with a range of services, from entertainment and information content to services that detect pedestrians and, where necessary, implement emergency braking. This offers prospective new revenue streams for automakers and their partners, but only if users are convinced about the value of these tools.

The data-sharing debate

S&P Global Mobility surveyed 8,000 consumers in Brazil, China, Germany, India, Japan, South Korea, the UK and US. It found:

• Some 4,500 respondents had participated in a free trial, or held an existing subscription to, a connected car service in a vehicle model dated from 2016 or later.
• Local differences existed in the willingness to swap data for the gratis use of services, with 58% of Japanese consumers interested in doing so, versus 90% in India.
• Thirty-seven percent of interviewees were concerned about security issues if they shared data, and 32% did not see the value that would emerge from doing so.
• Auto manufacturers were the most trusted to protect this information, on 31%, compared with the total of 23% registered by tech companies.

Roadblocks to adoption

• Similar applications on their smartphone (38%), prices being too high (36%), and worries around not getting enough usage from a service (28%) were all potential obstacles to using in-car services among consumers.
• A further 23% did not “understand the value” that in-car services would deliver, posing a challenge to brands operating in this space.
• Yanina Mills, a senior technical research analyst at S&P Global Mobility, said that a blend of compelling messages and seamless experiences would be needed here. “Marketing is everything. Implementation is everything,” said Mills.

Sourced from S&P Global Mobility