Findings:
Verra Mobility conducted a survey of 2,000 American vehicle owners (owning or leasing vehicles 2019 or newer) to explore attitudes toward connected vehicle technology. The results revealed that 51% of respondents find the idea of a vehicle acting as a digital wallet appealing, and 54% would enable such a feature. Awareness and usage of connected vehicle services are growing, with 62% of respondents aware of these services and 49% currently using at least one.
Key Takeaway:
Consumers are increasingly interested in connected vehicle services, particularly the ability to use their vehicle as a digital wallet for payments like tolls, parking, and maintenance. The growing adoption of connected technology in vehicles presents significant opportunities for automakers and service providers.
Trend:
The trend toward phygital experiences continues with vehicles serving as digital wallets, enabling seamless payment options directly through the car’s infotainment system. Consumers want convenience and integration of digital services within their vehicles, reducing reliance on smartphones for these tasks.
Consumer Motivation:
Consumers are motivated by:
Convenience: Being able to make payments (e.g., tolls, parking) directly from their vehicle without needing to use their phone or other devices.
Seamless integration: Reducing the need to connect a smartphone to a car for digital services.
Cost-effectiveness: 57% of respondents said they would spend more on a vehicle if it came with connected services, showing the perceived value of these features.
What is Driving the Trend:
Technological advancements: The proliferation of connected vehicles is increasing, with projections showing over 400 million connected cars globally by 2025.
Desire for ease of use: 70% of Americans prefer not having to connect their smartphone to their vehicle to access digital services, highlighting the need for native connectivity within the car itself.
Digital payment convenience: More than half of respondents want to use their vehicle as a digital wallet, showing demand for integrated payment solutions in vehicles.
Who Are the People:
The survey focuses on American vehicle owners with cars manufactured in 2019 or newer. These consumers are early adopters of connected vehicle technology, interested in features that simplify their driving experience and offer digital convenience.
Description of Consumers’ Product or Service:
Consumers are interested in connected vehicle services such as digital wallets integrated into their cars. This feature would enable automatic payments for services like tolls, parking, and maintenance directly through their car's infotainment system without needing a smartphone connection.
Age Group:
The survey includes American vehicle owners of varying ages but particularly those familiar with modern technology, which likely includes Millennials, Gen X, and tech-savvy Boomers.
Conclusions:
The shift toward connected vehicles that serve as digital wallets is gaining traction. Consumers increasingly view their cars as platforms for convenient, integrated digital services, including seamless payments and automated transactions. The automotive industry is positioned to capitalize on this demand by expanding connected vehicle features.
Implications for Brands:
Automakers should continue developing and integrating connected vehicle services, especially digital payment options, as consumer demand for such features grows.
Tech companies and service providers have opportunities to collaborate with automakers to provide seamless digital services within cars, enhancing the user experience.
Implications for Society:
The adoption of connected vehicles could streamline everyday tasks like toll payments and parking, improving overall efficiency. However, it also raises questions about data privacy and the security of digital transactions within vehicles.
Implications for Consumers:
Consumers will benefit from increased convenience and a more seamless driving experience with the integration of digital wallets in their cars. They can expect fewer interruptions when driving and more options for automated payments for services.
Implication for the Future:
As more vehicles become connected, we may see a standardization of digital payment features in vehicles, with cars acting as hubs for digital services. This could lead to innovations in connected vehicle ecosystems and greater integration with smart cities.
Consumer Trend:
The trend of vehicles becoming digital platforms is growing, with consumers expecting more seamless, integrated services in their cars. The desire for digital wallet functionality within vehicles is a major driver of this trend.
Consumer Sub-Trend:
There is a sub-trend of consumers preferring native digital services (directly within the car) over those requiring smartphone connections, further pushing demand for fully integrated connected vehicles.
Big Social Trend:
The rise of phygital experiences and digital-first convenience is spreading to the automotive industry, as consumers expect frictionless digital interactions across various aspects of their lives.
Worldwide Social Trend:
Globally, the trend toward connected vehicles and digital integration is accelerating, with countries adopting smart technology solutions in their infrastructure, paving the way for cars to act as digital hubs in an increasingly connected world.
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