With smart home technology already fast moving from the virtual to the virtually here, connected cars appear ready to swoop in as the “next major battleground,” according to a new report from Business Insider. And while entertainment is touted to be among the more popular features, it is expected to only generate $13 billion in revenue in 2020, making it pale in comparison to the $44 billion safety features is set to deliver. The total connected-services pie is supposed to hit $152 billion by that year.
The entertainment integrations the BI Intelligence report expects include apps such as Pandora, Yelp and Facebook.
Interestingly, a J.D. Power U.S. Tech Choice Study, released in April, says that Apple’s CarPlay and Android Auto only generated “lukewarm interest” among those surveyed, though it also suggested attitudes could shift.
Five years isn’t a very long time, but with technology moving at the speed of sound, anything—including attitudes—can indeed change. And they’d have to—the Business Insider survey further suggests about 80% of consumers currently have either never heard of the “connected car” or aren’t sure what it’s about.
Not surprisingly, millennials are ahead of the curve on the technology. According to the Power survey, that demo is ready to pay up to $3,700 more to get a full package of connected devices, far more than any other group. And as the Business Insider report adds, 25% of global consumers would freely accept in-car advertising if that meant they’d get extra tech for free. So another group will be happy with the tech’s advantages—marketers looking to break into connected-car-related sales.