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Wireless Connectivity Inside Cars - US - November 2010

This report explores the wireless information and entertainment platforms inside vehicles. It provides insight into the external and internal factors affecting their development and what they mean for future sales, promotional campaigns and industry innovations. Specific questions that are answered in this report include, but are not limited to, the following:

  • What are the dashboard systems developed by the leading U.S. and foreign-owned automakers?
  • How do they work, what do they offer and are they available to consumers for free or through subscription?
  • What features are consumers willing to pay more for if they were available through voice command or a touch screen? What features do consumers want as standard? What features are consumers not interested in at all?
  • What type of wireless technology do consumers currently have in their vehicle?
  • How are consumers using that wireless technology and how does that behavior suggest what consumers may need in the future development of that technology?
  • When are consumers expecting to purchase their next vehicle? Will the vehicle purchased be used or new?
  • How are automakers shifting their marketing message of their dashboard systems to appeal to younger car buyers?
  • What media are industry leaders using to deliver effective marketing campaigns, and what actions need to be taken to improve visibility?
  • Why are the advancements in smart phone technology helping automakers in how they are designing their vehicle systems?

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Table of contents

  1. Scope and Themes

    • What you need to know
      • Definition
        • Data sources
          • Sales data
            • Consumer survey data
              • Advertising creative
                • Abbreviations and terms
                  • Abbreviations
                    • Terms
                    • Executive Summary

                      • Automakers turning to technology to sell new cars
                        • Smartphone penetration helping drive in-car integration
                          • OnStar is the leading subscription system; SYNC is the most advanced
                            • Voice-activated or touch-screen features starting to gain acceptance …
                              • … as consumer behavior already suggests technology is needed
                                • Consumers showing signs for demand for wireless hotspots
                                  • Consumers rate navigation as the top feature they’d like via touch, voice
                                    • Technology integration likely to have greatest appeal to younger drivers
                                      • Hispanics active in using mobile technology inside vehicle
                                        • Asian respondents most likely to purchase additional options
                                        • Insights and Opportunities

                                          • Develop technology that both responds to, predicts driver behavior
                                            • Expose young buyers to wireless systems by getting them involved
                                              • Expand navigation systems to allow users to track items stored in vehicle
                                              • Inspire Insights

                                                  • Trend—Instant Gratification
                                                  • Market Drivers

                                                    • Automakers concerned about sharing open platforms to cut costs
                                                      • Smartphone penetration driving their use inside vehicles
                                                          • Figure 1: U.S. supplier sales and forecast for smartphones, at current prices, 2005-15
                                                          • Figure 2: U.S. supplier sales and forecast of smartphones, at inflation-adjusted prices, 2005-15
                                                          • Figure 3: U.S. unit shipments and average wholesale prices of smartphones, at current prices, 2005-11
                                                        • Free navigation apps providing competition to dashboard systems
                                                          • Social networking increasing among older drivers
                                                            • Figure 4: Social media use, 2009-10
                                                          • Automakers under scrutiny from driving safety advocates
                                                            • Figure 5: Top 10 driver distractions, 2010
                                                        • General Motors

                                                          • Key points
                                                            • GM’s OnStar rooted in emergency services, navigation
                                                              • GM overhauling OnStar to compete with Ford’s SYNC
                                                                • OnStar features range from crash response to stolen-vehicle assistance
                                                                  • GM pursuing phone apps to allow consumers to interact with vehicle
                                                                    • Even without OnStar, GM provides Bluetooth for hands-free calling
                                                                    • Ford Motor Co.

                                                                      • Key points
                                                                        • SYNC is Ford’s flagship wireless electronics system
                                                                          • SYNC delivers navigation, entertainment, digital media integration
                                                                            • MyFord Touch replaces traditional dashboard access with touch-screen
                                                                              • System is designed to limit distraction when driving
                                                                                • Ford encouraging third-party designers to develop apps for SYNC
                                                                                • Chrysler Group

                                                                                  • Key points
                                                                                    • Chrysler Uconnect is the company’s voice-activated technology system
                                                                                      • Chrysler debuts inaugural smartphone app for 2011 Jeep Grand Cherokee
                                                                                      • Import Brands

                                                                                        • Audi
                                                                                          • BMW
                                                                                            • Honda
                                                                                              • Hyundai
                                                                                                • Kia
                                                                                                  • Mercedes-Benz
                                                                                                    • Toyota
                                                                                                      • mLot app allows users to retain information about car before purchasing
                                                                                                      • Innovation and Innovators

                                                                                                        • Ford designs voice-activation navigation that seeks carpool lanes
                                                                                                          • GM developing software to allow users to update Facebook though voice
                                                                                                            • “Curve control” allows sensors to control driving speed on curves
                                                                                                              • Smartphone apps help drivers to communicate with vehicle
                                                                                                                • Wireless electric charging expected to stimulate electric car market
                                                                                                                • Marketing Strategies

                                                                                                                  • In-car wireless systems promoted as lifestyle brands
                                                                                                                    • GM relaunches OnStar to emphasize connectivity along with safety
                                                                                                                        • Figure 6: GM OnStar print ad, 2010
                                                                                                                        • Figure 7: OnStar ad, 2010
                                                                                                                      • Ford promotes SYNC through campaigns that target young car buyers
                                                                                                                          • Figure 8: Ford SYNC Chris Brown print ad, 2007
                                                                                                                          • Figure 9: Ford Edge ad, 2010
                                                                                                                        • GM tops promotional spending for wireless systems, followed by Ford
                                                                                                                        • When Consumers Plan To Buy a Next Vehicle

                                                                                                                          • Key points
                                                                                                                            • Majority of respondents will purchase vehicle in two and four years
                                                                                                                                • Figure 10: When consumers plan to buy their next vehicle, by gender, July-August 2010
                                                                                                                              • Respondents aged 65+ most likely to put off car buying indefinitely
                                                                                                                                  • Figure 11: When consumers plan to buy their next vehicle, by age, July-August 2010
                                                                                                                                • Majority of respondent households plan to purchase two to four years from today
                                                                                                                                    • Figure 12: When consumers plan to buy their next vehicle, by household income, July-August 2010
                                                                                                                                • Will Consumers Be Purchasing New or Used

                                                                                                                                  • Key points
                                                                                                                                    • One fifth of respondents buying used, more than one fifth uncertain
                                                                                                                                        • Figure 13: Preference toward new or used vehicle purchasing in future, by gender, July-August 2010
                                                                                                                                      • Advanced technology should be marketed to those aged 25-34
                                                                                                                                          • Figure 14: Preference toward new or used vehicle purchasing in future, by age, July-August 2010
                                                                                                                                        • New-car purchasing starts when respondent households earn $75K+
                                                                                                                                            • Figure 15: Preference toward new or used vehicle purchasing in future, by household income, July-August 2010
                                                                                                                                        • Options Consumers Would Pay Extra For

                                                                                                                                          • Key points
                                                                                                                                            • Touch-screen, voice-activated navigation most desired by respondents
                                                                                                                                                • Figure 16: Features consumers would pay more to have in their vehicle, by gender, July-August 2010
                                                                                                                                              • Young respondents up to early middle age are most likely to pay more
                                                                                                                                                  • Figure 17: Features consumers would pay more to have in their vehicle, by age, July-August 2010
                                                                                                                                                • Likelihood for purchasing increases once households earn $50K+
                                                                                                                                                    • Figure 18: Features consumers would pay more to have in their vehicle, by household income, July-August 2010
                                                                                                                                                • Features Consumers Want As Standard

                                                                                                                                                  • Key points
                                                                                                                                                    • Respondents most interested in features that emphasize utility
                                                                                                                                                        • Figure 19: Features consumers would like but only if it is standard in their vehicle, by gender, July-August 2010
                                                                                                                                                    • Types of Wireless Features Installed in Vehicle

                                                                                                                                                      • Key points
                                                                                                                                                        • One fifth of respondent vehicles have a voice-activated, touch-screen GPS
                                                                                                                                                          • Figure 20: Vehicle type installed with GPS/Navigation system, by gender, July-August 2010
                                                                                                                                                        • Respondents aged 18-24, 25-34 most likely to use voice-activated GPS
                                                                                                                                                          • Figure 21: Vehicle type installed with GPS/Navigation system, by age, July-August 2010
                                                                                                                                                        • Households earning $50K and above most likely to afford GPS
                                                                                                                                                          • Figure 22: Vehicle type installed with GPS/Navigation system, by household income, July-August 2010
                                                                                                                                                      • Use of Wireless Technology in Vehicles

                                                                                                                                                        • Key points
                                                                                                                                                          • Respondents already relying on smartphones while in vehicle
                                                                                                                                                              • Figure 23: Attitudes toward touch-screen or wireless technology in vehicles, by gender, July-August 2010
                                                                                                                                                            • Technology integration likely to have greatest appeal to younger drivers
                                                                                                                                                              • Figure 24: Attitudes toward touch-screen or wireless technology in vehicles, by age, July-August 2010
                                                                                                                                                            • Households making $50K-74.9K may be find systems most appealing
                                                                                                                                                              • Figure 25: Attitudes toward touch-screen or wireless technology in vehicles, by household income, July-August 2010
                                                                                                                                                          • Attitudes Toward Car Buying

                                                                                                                                                            • Key points
                                                                                                                                                              • Respondents enjoy thrill of options, but are less inclined to pay extra
                                                                                                                                                                  • Figure 26: Attitudes toward car buying, by gender, July-August 2010
                                                                                                                                                                • Younger respondents most enamored with technology, options
                                                                                                                                                                    • Figure 27: Attitudes toward car buying, by age, July-August 2010
                                                                                                                                                                  • Higher-income households most likely to be “wowed” by technology
                                                                                                                                                                    • Figure 28: Attitudes toward car buying, by household income, July-August 2010
                                                                                                                                                                • Features Consumers Do Not Want in their Vehicles

                                                                                                                                                                  • Key points
                                                                                                                                                                    • Respondents least interested in voice-activated text messaging, internet
                                                                                                                                                                        • Figure 29: Features consumers are not interested in having in their vehicle, by gender, July-August 2010
                                                                                                                                                                      • Respondents become less interested than total starting at age 45
                                                                                                                                                                          • Figure 30: Features consumers are not interested in having in their vehicle, by age, July-August 2010
                                                                                                                                                                        • Households earning the least most disinterested in technology
                                                                                                                                                                            • Figure 31: Features consumers are not interested in having in their vehicle, by household income, July-August 2010
                                                                                                                                                                        • Race and Hispanic Origin

                                                                                                                                                                          • Key points
                                                                                                                                                                            • Hispanic respondents most likely to purchase within two to four years
                                                                                                                                                                              • Figure 32: When consumers plan to buy their next vehicle, by race and Hispanic origin, July-August 2010
                                                                                                                                                                            • Hispanic respondents most interested in purchasing new, opposed to used
                                                                                                                                                                              • Figure 33: Preference toward new or used vehicle purchasing in future, by race and Hispanic origin, July-August 2010
                                                                                                                                                                            • Asian respondents most likely to have paid more for advanced technology
                                                                                                                                                                              • Figure 34: Vehicle type installed with GPS/Navigation system, by race and Hispanic origin, July-August 2010
                                                                                                                                                                            • Hispanics show more acumen for behaviors addressed by dash systems
                                                                                                                                                                              • Figure 35: Attitudes toward touch-screen or wireless technology in vehicles, by race and Hispanic origin, July-August 2010
                                                                                                                                                                            • Asian respondents most likely to purchase additional options
                                                                                                                                                                              • Figure 36: Attitudes toward car buying, by race and Hispanic origin, July-August 2010
                                                                                                                                                                            • Hispanic, Asian respondents most likely to pay more for navigation
                                                                                                                                                                              • Figure 37: Features consumers would pay more to have as an option in their vehicle, by race and Hispanic origin, July-August 2010
                                                                                                                                                                            • White respondents least interested in voice, touch-screen technology
                                                                                                                                                                              • Figure 38: Features consumers are not interested in having in their vehicle, by race and Hispanic origin, July-August 2010
                                                                                                                                                                          • Cluster Analysis

                                                                                                                                                                              • Activators
                                                                                                                                                                                • Demographics
                                                                                                                                                                                  • Characteristics
                                                                                                                                                                                    • Opportunity
                                                                                                                                                                                      • Accessorizers
                                                                                                                                                                                        • Demographics
                                                                                                                                                                                          • Characteristics
                                                                                                                                                                                            • Opportunity
                                                                                                                                                                                              • Disconnecters
                                                                                                                                                                                                • Demographics
                                                                                                                                                                                                  • Characteristics
                                                                                                                                                                                                    • Opportunity
                                                                                                                                                                                                      • Cluster characteristics
                                                                                                                                                                                                        • Figure 39: Wireless connectivity inside cars clusters, August 2010
                                                                                                                                                                                                        • Figure 40: Voice activation and/or touch-screen systems activated in vehicles, by wireless connectivity inside cars clusters, August 2010
                                                                                                                                                                                                        • Figure 41: Attitudes about wireless technology in vehicles, by wireless connectivity inside cars clusters, August 2010
                                                                                                                                                                                                        • Figure 42: Attitudes about car buying, by wireless connectivity inside cars clusters, August 2010
                                                                                                                                                                                                      • Cluster demographics
                                                                                                                                                                                                        • Figure 43: Wireless connectivity inside cars clusters, by gender, August 2010
                                                                                                                                                                                                        • Figure 44: Wireless connectivity inside cars clusters, by age group, August 2010
                                                                                                                                                                                                        • Figure 45: Wireless connectivity inside cars clusters, by household income, August 2010
                                                                                                                                                                                                        • Figure 46: Wireless connectivity inside cars clusters, by race, August 2010
                                                                                                                                                                                                        • Figure 47: Wireless connectivity inside cars clusters, by Hispanic origin, August 2010
                                                                                                                                                                                                      • Cluster methodology
                                                                                                                                                                                                      • Appendix—Other Useful Consumer Tables

                                                                                                                                                                                                        • Features consumers would want standard in their vehicle and age
                                                                                                                                                                                                          • Figure 48: Features consumers would like but only if it is standard in their vehicle, by age, July-August 2010
                                                                                                                                                                                                        • Features consumers would want standard in their vehicle and household income
                                                                                                                                                                                                          • Figure 49: Features consumers would like but only if it is standard in their vehicle, by household income, July-August 2010
                                                                                                                                                                                                      • Appendix—Trade Associations

                                                                                                                                                                                                        Companies Covered

                                                                                                                                                                                                        • Alliance Of Automobile Manufacturers, Inc.
                                                                                                                                                                                                        • American Honda Motor Co., Inc.
                                                                                                                                                                                                        • Apple, Inc
                                                                                                                                                                                                        • Audi of America Inc
                                                                                                                                                                                                        • Automotive Aftermarket Industry Association
                                                                                                                                                                                                        • Automotive Industry Action Group (AIAG)
                                                                                                                                                                                                        • Automotive Oil Change Association (AOCA)
                                                                                                                                                                                                        • Automotive Trade Association Executives (ATAE)
                                                                                                                                                                                                        • Best Buy stores (USA)
                                                                                                                                                                                                        • BMW of North America, LLC
                                                                                                                                                                                                        • Chrysler LLC
                                                                                                                                                                                                        • Connected Vehicle Trade Association (CVA)
                                                                                                                                                                                                        • Consumer Electronics Association
                                                                                                                                                                                                        • Continental AG
                                                                                                                                                                                                        • Delphi Corporation
                                                                                                                                                                                                        • Facebook, Inc.
                                                                                                                                                                                                        • Fiat Auto
                                                                                                                                                                                                        • Ford Motor Company (USA)
                                                                                                                                                                                                        • General Motors Corporation
                                                                                                                                                                                                        • Google, Inc.
                                                                                                                                                                                                        • Hyundai Motor America
                                                                                                                                                                                                        • Jaguar Cars North America
                                                                                                                                                                                                        • Kia Motors America, Inc.
                                                                                                                                                                                                        • LG Electronics Inc (USA)
                                                                                                                                                                                                        • Magna Holdings
                                                                                                                                                                                                        • Mazda North American Operations
                                                                                                                                                                                                        • Mercedes-Benz USA
                                                                                                                                                                                                        • Microsoft USA
                                                                                                                                                                                                        • Mitsubishi Motors North America, Inc.
                                                                                                                                                                                                        • Motorola Mobility Holdings
                                                                                                                                                                                                        • National Alliance for Advanced Transportation Batteries (NAATBatt)
                                                                                                                                                                                                        • National Automobile Dealers Association (NADA)
                                                                                                                                                                                                        • National Independent Automobile Dealership Association (NIADA)
                                                                                                                                                                                                        • Nickelodeon Networks
                                                                                                                                                                                                        • Nissan North America, Inc.
                                                                                                                                                                                                        • Nokia Corporation (US)
                                                                                                                                                                                                        • OnStar Corporation
                                                                                                                                                                                                        • Pandora Media, Inc.
                                                                                                                                                                                                        • Porsche Cars North America, Inc.
                                                                                                                                                                                                        • Renault S.A.
                                                                                                                                                                                                        • Research In Motion (USA)
                                                                                                                                                                                                        • Rubber Manufacturers Association (RMA)
                                                                                                                                                                                                        • Shanghai Automotive Industry Corporation [SAIC]
                                                                                                                                                                                                        • Sirius Satellite Radio Inc.
                                                                                                                                                                                                        • Sirius XM Radio Inc.
                                                                                                                                                                                                        • Sony Ericsson (USA)
                                                                                                                                                                                                        • The Cartoon Network
                                                                                                                                                                                                        • Tire Industry Association
                                                                                                                                                                                                        • TomTom International B.V.
                                                                                                                                                                                                        • Toyota Motor Sales, U.S.A., Inc.
                                                                                                                                                                                                        • U.S. Bureau of Labor Statistics
                                                                                                                                                                                                        • U.S. Department of Transportation
                                                                                                                                                                                                        • University of Michigan, The
                                                                                                                                                                                                        • Volkswagen of America, Inc.
                                                                                                                                                                                                        • Walt Disney Company, The

                                                                                                                                                                                                        Wireless Connectivity Inside Cars - US - November 2010

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