#536

Global Connected Car Forecast

CONTABLE OF CONTENTS
Introduction

Connected
CarSince the advent of the first in-vehicle telematics systems, the connected car market has seen exponential
year-on-year growth. This growth has been fueled by the increasing accessibility of these systems alongside
the growing number of new solutions offered by start-ups and suppliers offering new solutions - some of whichhave partnered with or received investments from legacy OEMs. At the same time, newer automakers aredeveloping vehicles built around connectivity systems and features - marketing them as USPs.

Bird’s Eye View
Executive Summary

As legacy OEMs continue to explore new connectivity opportunities while new players emerge and innovate,
the connected car market will only grow in complexity. Today, it relies on the correlation between technology
readiness, legal activity, OEM investment policies, and vehicle lifecycle management as well as the expectations
and acceptance of the consumer. For premium and mass-market OEMs wishing to grow their footprint in thisevolving market, maintaining this cohesion is crucial.

Connectivity Trends
Feature Trends
Next StepsIn the Connected Car Forecast report, a ten-year outlook is provided on the penetration of vehicle connectivity
and key connected features as well as the fitment rate of connected systems. Covering more than 90% of the
global connectivity market, it compares how these factors are expected to vary between different regions anddifferent types of connectivity and services.

RELATED SBD REPORTS
526 – Connected Services Guide
Although the opportunities to benefit fromconnectivity are rising, so are the risks associatedwith implementing the wrong strategy or fallingbehind competitors.
It's therefore important to ensure that you always
have the latest, most comprehensive, and mostaccurate information at hand. These reports are thereference guide to OEM connected car servicesofferings.

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#536/Global Connected Car Forecast

Key questions answered> How will major OEM
groups deploy connectivity
in the next 10 years?

This research supports> How will connectivity trends
vary per region?
PRODUCT PLANNERS> What is the expected
evolution of specificconnected services?

Do I have access?

E NGI NE E R S> What connectivity services
are offered in each region?
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Annual Report for 2024

Portal accessGLOBAL CONNECTED CAR FORECAST
GlobalContents
536 Connected Car Forecast 2024
Introduction ≫4Connectivity Bird’s Eye View ≫8Introduction ≫Connectivity Bird’s Eye View ≫▪ In-vehicle social networking▪ Video streaming▪ Social networking▪ App/Service Store▪ Web browser35▪ Payments and Transactions▪ In-vehicle payment▪ Toll payment▪ User review▪ Charging station transaction

40▪ Vehicle and Home Integration▪ Remote Device: Car to Home
▪ Remote Device: Home to Car▪ Remote Climate Conditioning▪ Send destination to car45▪ Remote Diagnostics and call centers▪ bCall▪ Remote Diagnostics – Customer Alert▪ Remote Diagnostics – ServiceCenter/OEM▪ Call Centre concierge/ iCall

50▪ EV Charging and Fueling Services▪ Charging station information▪ Remote charging control▪ Local and POI search▪ Fuel price info55▪ Security and stolen vehicle services▪ Stolen vehicle control▪ Stolen vehicle tracking▪ Security alert▪ Remote vehicle access

60

In-vehicle social networking

Payments and Transactions

Executive Summary ≫16

Connectivity Trends ≫20

Executive Summary ≫Connectivity Trends ≫•Cellular Connectivity•

Local Connectivity•

Smartphone Connectivity•

Screen Duplication

Remote Diagnostics and call centers

Feature Trends ≫25▪ Driver behavior services and alerts▪ Driver behavior coaching▪ Usage Based Insurance▪ Vehicle Locator▪ Proactive Alerts

27▪ Professional Services▪ Conference calls▪ Email integration▪ Calendar integration▪ News/stocks/sports

31

Feature Trends ≫Driver behavior services and alerts

Professional Services

Vehicle and Home Integration

EV Charging and Fueling Services

Security and stolen vehicle services▪ General information services▪ Weather information▪ Parking space information▪ Traffic information▪ Internet radio

65▪ General safety and connectivity services▪ Location sharing▪ eCall▪ Speed / Red Light Camera▪ Wi-Fi Hotspot

69▪ Navigation, maps and VPA▪ Map Update▪ Last Mile Guidance▪ Route Search and Download
▪ VPA

73

Next Steps ≫78

Contact Us ≫82

General information services

General safety and connectivity services

Navigation, maps

Next Steps ≫Contact Us ≫Data Deep Dive
View and analyze deep
data in your own way
Excel Logo and symbol, meaning, history, PNG, brandTotal number of pages - 82

Introduction

Introduction

Chapter Introduction
SBD Automotive’s Connected Car Forecast report provides an outlook of the penetrationof vehicle connectivity type and key connected features by market up to 2034. This
forecast delivers guidance for industry stakeholders to help understand the level ofinfluence that barriers and enablers to connectivity are having.
The market for connected car features relies on the correlation between technology
readiness, government mandates, regulations, OEMs’ investment policies, vehicle lifecycle
management, and customer expectations and acceptance.

SBD Automotive commits to delivering a realistic forecast up to 2034. The assumptions
made in this forecast are based on influencers such as current and likely OEM vehicle
fitment strategies, technology maturity, and consumer acceptance of a price point. The
likeliness consumers will expect or accept certain connected services as part of a basic oroptional fitment is also considered.

SectionBird’s Eye View

ContentAn overview of the key findings from SBD’s view of what’s
important in Connected and Digital services

Executive
Summary

Introduction to the forecast. Key highlights and conclusions fromthe report.

ConnectivityTrends

Overview and analysis of connectivity types and the penetration
rate trends across the forecasting window.

Feature Trends

Analysis of feature trends identified in the forecast, including
expected trends, consumer expectations, and feature evolutions.

Global markets covered

European markets covered

6Next Steps

Austria

Italy

PolandBelgium

Hungary

Portugal

Bulgaria

IrelandRomania

Czech RepublicLatvia

Slovakia

Denmark

Lithuania

Slovenia

Estonia

Luxembourg

SpainFinland

Netherlands

SwedenFrance

NorwaySwitzerland

GermanyCan SBD help you with any unanswered questions?

Global Data is the premier automotive forecasting company and has an exclusive
focus on the industry and an understanding of the dynamics that drive it. With
offices in Oxford, Detroit, Shanghai, Bangkok and Frankfurt and representation in
Brazil, Japan and Korea, they combine 30 years of experience in macroeconomics
and demand analysis, with a global network of ground-level, intelligence gatheringexpert analysts to create unique perspectives and insights.
Global Data provides the vehicle sales history and forecasts which power SBD’sforecasting services.

United Kingdom6

Introduction

We Listened and Invested In Our Report to Align to Your Goals

You Said...
“I sometimes struggle to relate conclusions from research reports
to the Outcomes and KPIs that we are working towards...”“I would like to see what has recently changed within a forecast or
domain to help decide if any changes to strategy need to be made...”We Did...
Added a connectivity BIRDS-EYE VIEW chapter
with a high-level overview of all our Connectivity
reports.

Enhanced CROSS-REFERENCING with insightsfrom our Connected Services Guide.

“I want to know where we stand ‘head-to-head’ against
the competition on major industry trends….”“I can find it difficult to take actionable next steps on Guides
without assessing the future direction of the industry...”More DATA-DRIVEN ANALYSIS through our
Summary Table, Analysis, and Executive
Summary.

“It would be helpful to identify disruptive companies and startups to keep an eye for partnerships in the future...”“I would like the topics to be more ‘forward looking’ to help with
future planning and take advantage of enabling technologies.”

Pushed boundaries to UPDATE and IMPROVE
the Connected Car Forecast and add new
information to the report.

77

Introduction

What’s new? Adding Industry Signals to interpret data
The Feature trend Section is now divided into 11 sections reflecting the connected features categories. New slides focusing on historical trends and industry signals
will introduce each section

Industry data highlights
For each connected service category, we picked the 3 features that
presented significant differences in terms of regional trends orpremium and volume segments penetration rate.
Along with a look at the data we also give an outlook of where and howeach feature highlighted is expected to develop in the coming years overthe forecasted period. The outlook is based on a combination of data analysis
and industry signals reviewed in the second slide.

Industry Signals
The final slides of some chapters show industry signals identifying 3
different ‘routes’, or approaches applied by OEMs (sometimes also Tier 1or tech giants) in the development strategy of the feature highlighted already.
These complemented SBD’s data to provide our outlook and offer an
additional perspective on the data in-depth that follows in every section
with charts forecasting each feature one by one.

88

Example slides
from the reportBird’s Eye View

Connected services are scaling
Connected Services

OEMs on the scale currently?
0100

Safety

90%
89%

64%

Security
Maintenance

Legend

84%

54%
52%

USA
81%

74%

OTA

Europe

90%

China
88%
86%

92%

94%
99%
99%

Navigation
Infotainment

92%
99%
99%

Convenience &Remote Services

93%
99%
99%

UBI

0%

Connected Services Guide

15%
13%

77%

EV-Specific*
Driver behavior coaching10* EV- Specific Services strategy is only analysed for EV models

USA is leading in scaling
the Connected services intheir model variant lineup.

79%
23%
22%
26%

97%

This guide takes a deep dive into thecomprehensive landscape of connected
services, examining the strategies
adopted by OEMs to enable them.
Detailed insights and comparisons of key
players, business models, and service
availability, are shown.

10Connectivity Trend

Local connectivity

Local connectivityVolume brands and regional differences
Some OEMs provide services that rely on local connectivity, but the overall usage of local
connectivity is declining. Regional variations significantly impact the overall usage rate. SBD
forecasts a decrease in the adoption of local connectivity as cellular connectivity becomes
more prevalent.

90%
80%
70%

Local connectivity is a cost-effective choice for mass-market brands that want to provide
high-bandwidth services and over-the-air (OTA) updates for maps and software. It still
supports real-time updates.

60%

Consumers expect seamless digital experiences, which local connectivity cannot always
provide. Local connectivity cannot be depended upon for critical services or safety-related
software updates.

30%

SBD Outlook

0%

SBD expects the trend of decreasing penetration to continue over the forecast period. The
percentage of local connectivity applications will decrease in favor of cellular equivalents.

Drivers•••

The key driver for local connectivity is lower costcompared to a cellular equivalent, particularly forvolume brands.
The option is cost-effective for the user. It provides
lower data download costs compared with cellularsolutions.
Local connectivity is suited to infrequent use cases suchas over the air updates for maps and software. Local
connectivity is maintained in China by some OEMs.

Local Connectivity Penetration(%)

100%

50%
40%
20%
10%
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034
ChinaEU
USA

Barriers•

Cannot be relied upon as a means of connectivity due toconsumer setup challenges.

•Not suitable for mission-critical or safety related
software updates.

•Not a reliable way to harvest status or sensor data fromthe vehicle.

•Falling data costs makes the cost effectivenessargument weaker when compared with the lack ofconnectivity certainty.

Local Connectivity
When the OEMs provide thesoftware, hardware andfirmware from the factory
however, the connectivity isprovided by the user.

1111

Professional Services

Feature trends

Professional Services
Historical penetration of connected features

100%

Historical penetration of connected features

100%
80%

80%

60%

60%

60%

40%

40%

40%

20%

20%

20%

0%

0%

2023

2024

2023

2023

2024

2024

Conference calls

email integration

Conference calls

email integration

Conference callsemail integration

Calendar Integration

News/stocks/sports

Calendar Integration

News/stocks/sports

Calendar Integration

News/stocks/sports

Historical availability of connected features

40020002022

2023

2024

Number of models

600

Historical availability of connected features

Historical availability of connected features

Number of models

Number of models

Historical penetration of connected features

100%80%0%12

Historical trends in China

Historical trends in Europe

Historical trends in USA

600
40020002022

2023

2024

600
40020002022

2023

2024

Conference calls

email integration

Conference calls

email integration

Conference calls

email integration

Calendar Integration

News/stocks/sports

Calendar Integration

News/stocks/sports

Calendar Integration

News/stocks/sports
12Feature trends

Payments and Transactions

Approaches to payments and transactions•Premium OEMs (and volume ones to a lesserextent) increasingly continue the adoption of invehicle charge transaction reaching a significant
penetration over the next 10 years.
•••

•

•

Audi enabled the Audi charge card via
myAudi app to allow standardized andseamless charging through several
countries in Europe.

A few premium OEMs are following Tesla’s example
and developing an entire ecosystem including
proprietary charging network which will allow aneasier payment and overall experience.

In-vehicle payment adoption gradually increases but
while lagging behind China, it remains mostly apremium optional features in both North Americaand Europe developed on proprietary platforms.
•••

Hyundai Motor America has partnered with
Parkopedia upon introducing is Hyundai Pay
service to provide in-vehicle payment forparking.

The feature initially is mostly adopted by premium
brands and remains in the US, and as it has been
so far is offered only as an optional feature onselected models.
••Starting from selected markets throughout
Europe Skoda has introduced a service thatallows owners to pay for parking either
from the MySkoda App on the phone or via
infotainment system.

Other volume OEMs enter partnerships withdedicated 3rd party providers.
••Starting from Germany and Austria, BMW
has integrated an in-vehicle payment
function for Parking. The feature is being
gradually extended at other markets.

Volume brands gradually introduce in-vehicle
payment features starting from a more limited
range of use cases.
•Mercedes-Benz is creating its own networkwith over 10,000 chargers globally bringing
the entire experience in-house and making
charging and paying more seamless.

Other volume OEMs not having developed aproprietary in-vehicle payment solution rely onscreen duplication and 3rd party apps.

Toll-Payment

In-Vehicle Payments

Charging Station Transaction

In the medium-term, for volume OEMs and brands
it becomes more common as an additional features
following more popular in-car payment capabilities
and gradually overcoming also regional barriers.
••

Audi has been the first to introduce an ITM(integrated toll module) in specific models
sold only in North America.

Hyundai is introducing in-car payment in
the US for different use cases, but initial
focus is on parking fees.

In more fragmented markets, this might be seen
as an unnecessary solution where customers are
already used to 3rd party solutions that alreadyoffer a seamless experience.

1313

Feature trends

EV Charging and FuelingServices

Charging Station Information and Remote Charging Control
Charging station information

Remote charging control

This is a hygiene feature for EVs (and PHEVs), with consumers
expecting it as a critical service to arrange and plan charging whentraveling. The feature has a high penetration rate for volume andpremium vehicles in all three regions.

Remote Charging control is a hygiene feature for EVs and has a highpenetration rate in all three regions. China leads ahead of Europe andthe US, but the EU region is set to overtake the US and China
eventually.

Charging station information is tailored to make the user experience
predictable and remove range anxiety.

Future development for the feature will see more in-depth control
over charging schedules and proactive alerts as users become familiar
with the ecosystem and charging processes. Also, battery
management apps will increasingly focus on preserving the battery
performance most effectively and minimizing warranty claims.

Further development, some of which are starting to appear, will
involve predictive occupancy of EV stations and additional filtering
options complementing location, brand, compatibility and others
already available via infotainment or companion app.
This feature is mainly supported through cellular connectivity, despite
alternatives through screen duplication.

Forecasted Feature Penetration

100%

Forecasted Feature Penetration

100%

80%

80%
PenetrationPenetration

This feature is only supported through cellular connectivity, and it isexpected to remain consistent despite some being supported by localconnectivity.

60%
40%
20%
0%

60%
40%
20%
0%

2024

2026

2028

USAEU

2030

China

2032

2034

2024

2026

2028

USA

EU

2030

2032

2034

China

14
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