Which New Car Tech Will Consumers Pay For?

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Out of 31 car options from sunroofs to WiFi, the most sought after feature in the US that consumers will actually pay for is a rear-seat entertainment system, according to a survey by IHS Markit.

Consumers are willing to pay $640 for back seat video, the survey found.

Also popular was telematics, with 32 percent claiming they would pay up to $484 for the feature and in-car WiFi with 29 percent ready to pay up to $472 for the service.

More than half of all respondents say they already have a vehicle with an infotainment or navigation system with features such as roadside assistance, stolen vehicle assistance, crash notification or turn-by-turn navigation.  And consumers want these features on their next car. On a global basis, 32 percent of respondents cited roadside assistance as the most important telematics feature in a new vehicle, with stolen vehicle assistance important to 28 percent of respondents.

Automatic crash notification and turn-by-turn navigation were both preferred by one quarter of respondents. In addition, the inclusion of real-time traffic information was overwhelmingly preferred by 51 percent of total respondents, with dynamic routing and a desire for maps to be updated wirelessly based on current conditions preferred by 41 percent for routing and 36 percent for wireless updates respectively.

For consumers surveyed in China, however, remote vehicle control from a smartphone was the most popular feature, with 39 percent of respondents indicating that feature was most important to them. Respondents in China represented a slightly younger demographic than in other countries, with the vast majority living in urban centers where technology was more widely accepted.

As in-vehicle technology continues to grow, so does consumer desire to integrate their mobile apps into their vehicle. Among those surveyed, nearly all consumers who had familiarity with replicating their smartphone system onto an in-vehicle display indicated they were interested or somewhat interested in having this feature in their next new vehicle.

In addition, nearly half of all respondents said they use navigation apps most often in the car.  Weather apps followed with 40 percent of respondents using them in the car, followed by music apps at 36 percent. This creates significant opportunity for screen projection solutions, such as Apple CarPlay and Android Auto, said IHS.

See the full IHS Markit press release here.

Photo: Autoevolution

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3 Comments

  1. RSE remains to be a very strong category for us….particularly overhead systems. we just added a new RSE display to our showroom to promote even more and replace our older/outdated display.

  2. $640 for FACTORY rear seat entertainment? Guess that’s why it looks as ugly as it does in that BMW pic. hahaha

  3. Would be interested to know what these consumers are considering “rear seat entertainment.” Certainly is not an over head monitor with dvd any more. We have removed our video display as of this year due to sales in that department dropping off almost completely.

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