While automakers get excited about the commercial opportunities promised by the software-defined vehicle (SDV), more than half of consumers fear their personal data may be hacked.
That’s one of the major findings by a study of 8,000 motorists in the U.S., U.K., Germany and Japan plus 60 senior automaker executives surveyed by SDV specialist Cubic³.
Despite the privacy concerns, nearly half of the younger respondents, aged 18-24 years, already pay monthly subscriptions for on-board automotive digital services and automakers believe enhanced safety features and autonomous driving features are most likely to drive recurring revenues for them.
The study highlights forecasts by the Boston Consulting Group the SDV market could create more than $650 billion value potential by 2030.
Key findings of the study suggest 25% of motorists polled have paid for digital services for their vehicles, almost doubling among 44% for younger motorists. About 20% of consumers globally said they would not be willing to pay for any automotive feature by monthly subscription.
For those who would be prepared to pay, the U.S. respondents would be willing to pay a higher fee than the penny-pinching U.K. motorists who set the monthly limit at just £4.89 ($6.55) a month.
The study groups digital services into three categories revealing the most appealing to consumers are vehicle-based services such as autonomous driving features, with 51% globally saying they would be willing to subscribe monthly.
Next most popular are connected services, such as video and music streaming with 40% willing to sign up for these. Finally, 39% would be willing to pay for data services, including predictive maintenance.
With cybersecurity concerns, 48% say they are worried about the SDV being hacked and the automaker executives share their concerns. Of these, 86% report cybersecurity of their digital services is important and the same amount say connectivity is important for protecting vehicles throughout the vehicle’s lifecycle.
Auto executives say they are closely monitoring potential targets by hackers, such as interfaces and APIs, digital sims, infotainment systems and telematics.
Some 44% of consumers do not think automakers should be able to sell driver data to third parties as an additional revenue stream. This is compared to 26% who think it is permissible and 24% who are ambivalent about it.
U.S. consumers are most likely to disapprove of automakers selling their data to third parties, with 50% disapproving, while just 26% of Japanese consumers did not want their data sold.
Over-the-air updates for safety and maintenance features are broadly welcomed with 49% saying they would seek repair services within a week of noticing a warning light. Some 67% report they take their car in for necessary repairs as soon as possible when receiving a recall notice.
However, while 33% of auto executives confirm they plan to implement speed limiting and anti-distraction technology in the next three years, in the U.K. 28% of drivers say they would, instead, choose a car that does not have this technology.
The study says this shows the topic is divisive and automakers may face backlash from the public should they implement it.
In summing up, David Kelly, chief corporate officer for Cubic³, says the survey shows there is increasing acceptance of monthly auto subscription services but it will take some time for automakers “to persuade the public of the value of digital services, but it is encouraging to see younger drivers – so-called digital natives – happy to pay for these services.”
