UK In Car Technology Market Report 2024
Safety features and cost concerns dominate consumer preferences, with a focus on value and reliability in new vehicle technologies.
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Executive Summary
- Opportunities for the In Car Technology Market
- Leverage safety features
- Tap into personalisation to drive engagement
- Expand in-car entertainment
- Prioritise automated diagnostics
- Market dynamics and outlook
- A fall in inflation eases the financial strain on households
- Consumer confidence outlook
- Graph 1: the financial confidence index, 2016-24
- What consumers want and why
- A significant majority of consumers own a vehicle
- Safety and navigation: the most desired tech features
- Graph 2: most desired technology feature in the next vehicle, 2024
- High cost and risk of technical failure: primary concerns in new tech
- Graph 3: concerns about new technology in vehicles, 2024
- Balancing consumer expectations with technological advancements
- Graph 4: attitudes toward in car technology, 2024
- Smartphone leads in tech usage in vehicles
- Graph 5: technology utilized by drivers and passengers in vehicles over the past three months, 2024
- Future development and opportunities
- Automated diagnostics attract significant appeal
- Graph 6: interest in the enhanced vehicle features, 2024
- Innovation and Marketing
- The new Honda Brio equipped with advanced safety features
- Volkswagen integrates ChatGPT into its vehicles
- The 2025 Tesla Model 3 seeks to redefine electric driving with its advanced tech
- AirConsole collaboration brings casual gaming to BMW
- Mercedes uses storytelling to showcase autonomous driving features
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Market Dynamics: Macro-economic factors
- Falling inflation has reduced pressure on household finances
- Graph 7: CPI* inflation rate, 2021-24
- Almost a fifth expect to drive less due to increasing prices
- Graph 8: “Are you expecting to do any of the following as a result of rising prices? Please select all that apply.”, 2024
- Consumers will demand greater value from in car technology
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What Consumers Want and Why
- Current Vehicle Ownership and Buying Intentions
- A significant majority of consumers own a vehicle
- The increasing accessibility of technology
- Half plan to buy/lease a vehicle in the next three years
- Graph 9: intention to purchase or lease a vehicle in the next three years, 2024
- Balance is crucial
- Desired Tech in the Next Vehicle
- Safety and navigation are paramount
- Graph 10: most desired technology feature in the next vehicle, 2024
- Safety first
- Emphasise safety tech
- Graph 11: most desired technology feature in the next vehicle – Safety, by age, 2024
- Tap into consumers’ interest in solutions they deem vital
- Temperature control: highly sought-after feature
- Leverage in-car entertainment to engage young consumers and families
- Graph 12: most desired technology feature in the next vehicle – Entertainment (eg built-in screen, consoles), by age, 2024
- Kids impact parents’ tech decisions when buying a new car
- Graph 13: most desired technology features in the next vehicle, parents vs overall, 2024
- Target parents with in-car entertainment
- Graph 14: most desired technology feature in the next vehicle – Entertainment (eg built-in screen, consoles), mums vs dads, 2024
- Concerns About New Tech in Vehicles
- High cost and risk of technical failure are key barriers
- Graph 15: concerns about new technology in vehicles, 2024
- Driving value: overcoming cost concerns in in car technology
- One in two concerned about the risk of technical failure
- Boosting reliability: how automated diagnostics/safety innovations can win over car owners
- Graph 16: concerned about the risk of technical failure around new technology in vehicles, by area, 2024
- Ensure tech is intuitive and user-friendly
- Address data security concerns with proactive measures
- Attitudes Towards In Car Technology
- Address cost concerns
- Balancing consumer expectations with technological advancements
- Graph 17: attitudes toward in car technology, 2024
- Most consumers think vehicle tech leads to higher prices
- Empower consumers by harnessing technological advancements
- In-vehicle technology important for purchase decision
- Tech availability influences brand choice for the young cohort
- Graph 18: consumers who own a motorised vehicle say the availability of a specific tech they wanted would make them buy from the vehicle brand/make that offered it, by age, 2024
- Embrace emerging tech as a key differentiator
- In-car payments: wallet on wheels revolution integrates all into car software
- Tech Usage in Vehicles
- Smartphone leads in tech usage in vehicles
- Graph 19: technology utilised by drivers and passengers in vehicles over the past three months, 2024
- A match made in heaven: car tech and smartphones
- Smartphones are increasingly integrated with in-car systems
- Additional portable tech usage in vehicles declines with age
- Graph 20: technology utilised by drivers and passengers in vehicles over the past three months, by age, 2024
- Interest in Enhanced Vehicle Features
- Harness the potential of automated diagnostics
- Driving into the future: automated diagnostics most appealing
- Graph 21: interest in the enhanced vehicle features, 2024
- Make automated diagnostics a top priority
- Unlocking value: the power of automated diagnostics in reducing costs and enhancing service
- Over half embrace gesture and voice control in vehicles
- Revving up voice control: ChatGPT can take in car tech to new heights
- Rising interest in emerging tech requires affordable solutions
- Graph 22: any uninterest in a self-driving vehicle system and in-vehicle interactions using gesture recognition and/or speech, by household income, 2024
- Half of consumers are eager for mixed-reality heads up display
- Revolutionising the road: enhancing driving with MR Technology
- The older cohort more sceptical about autonomous driving
- Graph 23: any uninterest in self-driving vehicle system (eg active Autonomous Driver Assistance Systems, fully autonomous driving), by age, 2024
- Urban consumers show greater interest in facial recognition/biometrics
- Graph 24: interest in facial recognition and/or biometrics that recognise the driver (eg to unlock or start vehicle), by area, 2024
- Automated Vehicles Act becomes law, but…
- …full integration of self-driving vehicles into daily life remains distant
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Innovation And Marketing Trends
- Launch activity and innovation
- In-car entertainment takes off
- AirConsole collaboration brings casual gaming to BMW
- Mercedes strives to transform cars into mobile entertainment hubs
- Honda CR-V boasts cutting-edge technology
- DS integrates ChatGPT in cars in Europe
- BMW’s MyBMW App seeks to revolutionise the EV journey
- The 2025 Tesla Model 3 aims to redefine electric driving with its advanced technology
- Volkswagen integrates ChatGPT into its vehicles
- Domino’s introduces pizza ordering through Apple CarPlay
- Vauxhall launches a barista counter in the boot of its Mokka EV
- The new Honda Brio equipped with advanced safety features
- Mercedes-Benz reveals new AI-powered MBUX virtual assistant
- Advertising and marketing activity
- Skoda partners with pet charity and dog competition to appeal to pet owners
- Dacia Duster ad highlights advanced tech capabilities
- Mercedes utilizes storytelling to showcase autonomous driving features
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Appendix
- Report scope and definitions
- Market definition
- Abbreviations and terms
- Methodology
- Consumer research methodology
Safety features and cost concerns dominate consumer preferences, with a focus on value and reliability in new vehicle technologies.
Manufacturers should expedite the development and integration of automated diagnostic systems, as 69% of consumers who own a motorised vehicle show interest, offering a clear opportunity to enhance vehicle reliability and reduce maintenance costs through early problem detection.
A significant 65% of motorised vehicle owners express concern over the high cost of new vehicle tech, viewing these features as major contributors to increased vehicle prices, posing a challenge for automotive brands to balance innovation with affordability. Establishing a sense of value by emphasising the advantages of tech features can help overcome this key barrier.
39% of 17-34 year old motorised vehicle owners cite entertainment as the most desired tech in the next vehicle. AI-powered entertainment options can offer good potential. AI can track users’ media preferences, and recommend playlists/podcasts/audiobooks tailored to the time of day, their mood, or the nature of their journey. If users head to a business meeting, their car might play a motivational podcast/favourite focus playlist. In contrast, on the way to a long-awaited holiday, it could switch to an upbeat music selection to boost their spirits.
This report looks at the following areas:
- Opportunities arising from the most sought-after technology features in vehicles, as identified by motor vehicle owners.
- Major barriers towards new technology in vehicles and Mintel’s recommendations for overcoming these challenges.
- Consumer attitudes towards the use of in car technology and why balancing consumer expectations with technological advancements is key to thriving in this market.
- Prospects driven by the interest in specific emerging in-vehicle solutions, from automated diagnostics, driver monitoring, mixed-reality heads up display to gesture recognition/speech, and facial recognition/biometrics.
Consumers prioritise safety technology in their vehicles, showing keen interest in in-car entertainment options and advanced features including automated diagnostics
Utku Tansel, Senior Retail Analyst
Market Definitions
For the purposes of this Report, Mintel has used the following definitions:
The in car technology can be either portable or embedded in a vehicle.
Portable technology is specifically designed to be moved from place to place during use as opposed to being designed for use in situ. Embedded technology is designed to be used solely in a particular place and for the purpose of this report in a vehicle. It typically comprises hardware and software that have been installed by an OE manufacturer as part of the production process or fitted as an upgrade.
This report covers a range of technologies and services that span both portable and embedded categories. Examples of equipment include laptop computers, smartphones, personal portable devices such as game consoles, speakers, wearable technology and AR/VR technology.
Analysis refers only to trends in the consumer market unless stated otherwise.
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