For this second Connected Vehicle Trend Radar, Capgemini

Invent set out to explore how OEMs can make the most of

connected services in terms of monetization. We surveyed

more than 3,000 customers worldwide to find out their views

on current services. A series of expert interviews helped us

interpret the findings.

Our research shows that OEMs have yet to exploit the full

potential of connectivity. Usage of OEM-provided connected

services is generally low (44% of customers do not yet have

any connected services in their cars, and only about half of

those who do have them are frequent users).

This suggests that most OEMs have yet to penetrate the

connected services market effectively. Unlike traditional

OEMs, Tesla has strong brand awareness for connected

services, holding the #1 position in the EU, the US, and China,

and continues to reinforce its lead over traditional OEMs in

this area.

OEMs have tended to assume that they can deliver services

in much the same way as they deliver cars – doing most of

the work themselves and simply assembling elements from

suppliers instead of working alongside best-in-class partners.

With smartphones heavily used in cars, technology

companies such as Google and Apple could gain control

of the customer interface. As a result, they are losing the pole

position for connected services and, more seriously, starting

to lose customers’ loyalty too. They risk missing out on

revenue and, at worst, ending up as suppliers to

tech companies.