Connected vehicles are booming – they’re often mentioned in the same breath as autonomous cars, but are much more achievable from a technical perspective. Car makers are increasingly making on-board cellular data connections a standard option, too, and now we have some insight into why – a survey of automotive company executives found that they share the opinion that connected cars are huge revenue generators, with around 10x the earning power of the average non-connected vehicle.
The auto execs, responding to a survey created by KPMG with a sample group of 1,000 high-level car company employees, found that 76 percent of respondents said connected cars generate tenfold what a standard vehicle can produce in terms of available revenue streams, and 71 percent said the impact is so significant that just tracking unit sales to measure relative carmaker performance is an outdated measure that no longer paints an accurate picture.
As car themselves start to come online, becoming yet another computing touchpoint in our lives, the opportunity for data exchange will mean new potential revenue for automakers. “Even if actual vehicle ownership decreases over time, the services side of the business stands to recoup and possibly exceed those losses,” explains TechCrunch’s Darrell Etherington, “and car makers don’t want to cede that potential to software-specific tech companies.”