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Description

Description

“Although most car manufacturers have invested much in their independent in-car systems, most consumers use mobile-to-car connectivity instead to avoid extra data spending. Low equipped rate of advanced function is another reason that independent in-car systems are easily substituted by mobile phones. However, consumers have high expectations for future in-car functions, including autonomous driving, social functions and infotainment systems, which will open the door to a new world of totally different in-car experiences. Our research shows 5G service pricing is affordable and falls within the range consumers are willing to pay for. We anticipate the penetration of 5G data services will propel car connectivity into a new era.”
– Terence Zhou, Research Analyst

This report looks at the following areas:

  • A perceived holistic in-car solution led by autonomous driving
  • Low tolerance toward unstable connectivity systems and high expectation of consistently extendable and upgradable functions
  • Better affordability of 5G enables more application possibilities

What's included

What's included

Table of contents

Table of contents

  1. Overview

    • What you need to know
      • Covered in this report
        • Definition
        • Executive Summary

            • The consumer
              • One third of car owners don’t use in-car infotainment systems
                • Figure 1: Usage of connectivity systems, by generation, July 2019
              • Android systems like CarLife and Android Auto beat iOS even among high-end car owners
                • Figure 2: Usage of connectivity systems, by car purchasing price, July 2019
              • NEV car owners have higher usage of cars’ independent systems
                • Figure 3: Usage of connectivity systems, by car energy type, July 2019
              • Mobile hotspot usage rate accounts for 70%
                • Figure 4: Choice of data service, July 2019
              • Car owners who use independent systems are more likely to use free data from the car brand and pay extra for data
                • Figure 5: Choice of data service, by usage of connectivity system, July 2019
              • Most free data package users switch to mobile hotspots after free data package expires after the first year
                • Figure 6: Choice of data service, by car ownership situation, July 2019
              • Penetration rates of advanced functions still low for cars bought within the last three years
                • Figure 7: Usage rate and satisfaction level of connectivity functions, July 2019
              • Voice recognition function is more favoured by females but sees lower satisfaction in lower tier cities
                • Figure 8: Usage rate and satisfaction level of connectivity functions – selected item, by selected demographics, July 2019
              • Built-in app stores the future trend for infotainment systems due to higher satisfaction among young car owners
                • Figure 9: Usage rate and satisfaction level of connectivity functions – selected item, by car energy type, July 2019
              • OTA system upgrade’s actual satisfaction is low for both fuel and NEV cars
                • Figure 10: Usage rate and satisfaction level of connectivity functions – selected item, by car energy type, July 2019
              • Holistic in-car experience rather than pure driving experience is expected
                • Figure 11: Expected functions in the future, July 2019
                • Figure 12: Attitudes towards car connectivity – selected item, by city tiers, July 2019
              • Male car owners are expecting easier driving, while females anticipate easier living
                • Figure 13: Expected functions in the future – selected item, by gender, July 2019
              • Young car owners seek more self-indulgence while older car owners want cars to be a social platform
                • Figure 14: Expected functions in the future – selected item, by generation, July 2019
              • Ideal price for car connectivity data service according to consumers
                • Figure 15: Price sensitivity – optimal price, July 2019
                • Figure 16: Price sensitivity – threshold prices, July 2019
              • Household income has little impact on how much car owners are willing to pay for data service
                • Figure 17: Price sensitivity, by monthly household income, July 2019
              • No obvious preference for a particular control method due to lack of killer functions
                • Figure 18: Attitudes towards car connectivity – selected item, by generation, July 2019
              • NEV owners in lower tier cities care more about connectivity systems
                • Figure 19: Attitudes towards car connectivity – selected item, by city tiers, July 2019
              • Car owners in tier two cities are more tolerant of imperfect connectivity systems
                • Figure 20: Attitudes towards car connectivity – selected item, by city tiers, July 2019
              • What we think
              • Issues and Insights

                • A perceived holistic in-car solution led by autonomous driving
                  • The facts
                    • The implications
                      • Figure 21: Bestune T77
                      • Figure 22: WeChat on Changan CS75 Plus
                      • Figure 23: Sitech
                      • Figure 24: Tesla Arcade
                      • Figure 25: Garmin and Mercedes
                    • Low tolerance toward unstable connectivity systems and high expectation of consistently extendable and upgradable functions
                      • The facts
                        • The implications
                          • Better affordability of 5G enables more application possibilities
                            • The facts
                              • The implications
                                • Figure 26: 5G applications
                                • Figure 27: Driverless with 5G
                            • The Consumer – What You Need to Know

                              • Most use infotainment systems through their smartphone, while one third of car owners don’t use them at all
                                • Penetration of advanced functions still low but satisfaction is high, especially among young car owners
                                  • Holistic in-car experience rather than pure driving experience is expected
                                  • Usage of Connectivity System

                                    • One third car owners don’t use in-car infotainment systems
                                      • Figure 28: Usage of connectivity systems, by generation, July 2019
                                    • Android systems like CarLife and Android Auto beat iOS even among high-end car owners
                                      • Figure 29: Usage of connectivity systems, by car purchasing price, July 2019
                                    • iOS and independent systems more used in replacement cars
                                      • Figure 30: Market share of mobile brands in China
                                      • Figure 31: Usage of connectivity systems, by car ownership condition, July 2019
                                    • NEV car owners have higher usage of cars’ independent systems
                                      • Figure 32: Usage of connectivity systems, by car energy type, July 2019
                                      • Figure 33: Infotainment system introductions from new energy brands
                                  • Choice of Data Service

                                    • Mobile hotspot usage rate accounts for 70%
                                      • Figure 34: Choice of data service, July 2019
                                    • Car owners who use independent systems are more likely to use free data from car brands and pay extra for data
                                        • Figure 35: Choice of data service, by usage of connectivity system, July 2019
                                        • Figure 36: Cadillac’s infotainment interface
                                      • Most free data package users switch to mobile hotspots after free data package expires after a year
                                        • Figure 37: Choice of data service, by car ownership situation, July 2019
                                        • Figure 38: Roewe’s data service
                                    • Usage and Satisfaction of Connectivity Functions

                                      • Penetration of advanced functions still low for cars bought within the last three years
                                          • Figure 39: Usage rate and satisfaction level of connectivity functions, July 2019
                                        • Screen projection suffers from low satisfaction due to high expectations
                                          • Figure 40: Attitudes towards car connectivity – selected item, by usage of connectivity system, July 2019
                                          • Figure 41: Baidu CarLife
                                        • Voice recognition function is more favoured by females but sees less satisfaction in lower tier cities
                                          • Figure 42: Usage rate and satisfaction level of connectivity functions – selected item, by selected demographics, July 2019
                                          • Figure 43: iFlytek
                                        • Built-in app stores the future trend for infotainment systems due to higher satisfaction among young car owners
                                          • Figure 44: Usage rate and satisfaction level of connectivity functions – selected item, by car energy type, July 2019
                                        • OTA system upgrade’s actual satisfaction is low for both fuel and NEV cars
                                          • Figure 45: Usage rate and satisfaction level of connectivity functions – selected item, by car energy type, July 2019
                                      • Expected Functions in the Future

                                        • Holistic in-car experience rather than pure driving experience is expected
                                          • Figure 46: Expected functions in the future, July 2019
                                          • Figure 47: Attitudes towards car connectivity – selected item, by city tiers, July 2019
                                        • Fully autonomous driving and voice assistant are more likely to attract infotainment system non-users
                                          • Figure 48: Expected functions in the future, by usage of connectivity system, July 2019
                                        • Male car owners are expecting easier driving, while females anticipate easier living
                                          • Figure 49: Expected functions in the future – selected item, by gender, July 2019
                                        • Young car owners seek more self-indulgence while older car owners want cars to be a social platform
                                          • Figure 50: Expected functions in the future – selected item, by generation, July 2019
                                      • Optimal Pricing for Car Connectivity Data Services

                                        • Methodology
                                          • Ideal price for car connectivity data service according to consumers
                                            • Figure 51: Price sensitivity – optimal price, July 2019
                                            • Figure 52: Price sensitivity – threshold prices, July 2019
                                          • Household income has little impact on how much car owners are willing to pay for data services
                                            • Figure 53: Price sensitivity, by monthly household income, July 2019
                                        • Attitudes towards Car Connectivity

                                          • No obvious preference for a particular control method due to lack of killer functions
                                            • Figure 54: Attitudes towards car connectivity – selected item, by generation, July 2019
                                          • NEV owners in lower tier cities care more about connectivity systems
                                            • Figure 55: Attitudes towards car connectivity – selected item, by city tiers, July 2019
                                          • Car owners in tier two cities are more tolerant of imperfect connectivity systems
                                            • Figure 56: Attitudes towards car connectivity – selected item, by city tiers, July 2019
                                        • Meet the Mintropolitans

                                          • Non-MinTs have higher usage of Android connectivity, while MinTs have higher usage of iOS and independent systems
                                            • Figure 57: Usage of connectivity systems, by consumer classification, July 2019
                                          • An easy-to-use system is more important than brands to MinTs, but neither MinTs or non-MinTs would compromise on stability
                                            • Figure 58: Attitudes towards car connectivity – selected item, by consumer classification, July 2019
                                        • Appendix – Methodology and Abbreviations

                                          • Methodology
                                            • Abbreviations

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