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Drivers will pay up to $1,499 for tech features, study says

🕐 3 min read

Keith Naughton Bloomberg News.

LAS VEGAS – A majority of U.S. drivers are willing to pay as much as $1,499 to have high-tech entertainment and safety devices in their vehicles as consumers demand more connectivity, according to a Harris Poll.

Back-up cameras, USB ports and smartphone charging are among the top desires, according to the online survey of 1,033 vehicle owners done for researcher AutoTrader.com. About 55 percent said music streaming services such as those of Pandora Media Inc. and Spotify Ltd. make driving more enjoyable.

Advanced auto technologies will be on display at the Consumer Electronics Show opening in Las Vegas on Jan. 6, including self-driving cars, dashboards covered in curved touch screens and vehicles controlled by smartwatches. Automakers and suppliers are seeking a piece of the $11.3 billion in factory- installed technologies going into cars this year, according to the Consumer Electronics Association.

“Consumer electronics are quickly becoming a spectacle in the automotive industry,” Michelle Krebs, an analyst for AutoTrader, said in a statement Monday. “Consumers are spending more time and money on car technology and they are particular about what they’re buying.”

If automakers come up with smart technology that’s easy to use, 51 percent of those surveyed said they would be willing to pay as much as $1,499 for it. Half also said they would wait about a year to get a car with the advanced features they want.

In-vehicle technology is the top selling point for 39 percent of auto buyers, compared to the 14 percent who care most about horsepower and handling, according to a survey from consulting firm Accenture. Internet-connected cars worldwide will grow more than fourfold to 152 million by 2020 from 36 million now, according to researcher IHS Automotive.

The AutoTrader survey, conducted in October, also found that while only 3 percent of vehicle owners have Wi-Fi in their cars, almost two-thirds of those use it daily. About 48 percent of respondents expressed a desire for in-vehicle Wi-Fi. And 52 percent said automakers should invest to improve information and entertainment systems, rather than rely on better integrating smartphone functions into dashboard touch screens.

“We’re in the information era and shoppers are informed and they are adamant about the features they want,” Krebs said. “From manufacturers to suppliers and even aftermarket consumer electronics companies, this study shows us that there is still plenty of opportunity in the vehicle electronics market.”

Qualcomm Monday showed high-speed Internet access technology in a 2015 Maserati Quattroporte GTS and a 2015 Cadillac XTS. The concept cars, using Qualcomm’s latest processors, demonstrate how services found on smartphones and tablets are making their way into vehicles.

The Cadillac concept uses Google’s Android operating system in dashboard touch screens with graphics that display navigation, music and live streaming of sports, news and entertainment. The Maserati concept has BlackBerry’s QNX operating system in rear-seat entertainment systems with touch screens that have tablet-like swipe-and-pinch controls and voice recognition, Qualcomm said in a statement.

FCA US, formerly Chrysler Group, Monday said it’s adding services on its Uconnect dashboard infotainment system that help drivers find a car in a parking lot, provide navigation destinations to vehicles remotely and automatically send e-mails on a car or truck’s mechanical health. FCA said it also redesigned the Uconnect Access app to make it function faster and more intuitively.

A record 10 automakers are showing their wares at CES on an exhibit space the size of three football fields. Ford Chief Executive Officer Mark Fields and Daimler CEO Dieter Zetsche will deliver keynote speeches at the convention.

The amount of exhibit space at CES dedicated to vehicle technologies has almost doubled during the last five years to 165,000 square feet (15,000 square meters), according to Tara Dunion, a spokeswoman for the show.

Almost one-third of U.S. households now own a vehicle that has an electronic infotainment system, according to the Consumer Electronics Association.

 

Robert Francis
Robert is a Fort Worth native and longtime editor of the Fort Worth Business Press. He is a former president of the local Society of Professional Journalists and was a freelancer for a variety of newspapers, weeklies and magazines, including American Way, BrandWeek and InformatonWeek. A graduate of TCU, Robert has held a variety of writing and editing positions at publications such as the Grand Prairie Daily News and InfoWorld. He is also a musician and playwright.

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