7 Oct 16
News

New-car connectivity increasing rapidly

Both the share of connected cars and the level of their connectivity is increasing rapidly, a study by JATO Dynamics shows. 

The automotive data provider examined the availability of selected car connectivity features in the German new car market between early 2014 and June 2016.

→ At the start of 2014, Bluetooth was standard in only around 45% of new cars sold in Germany. By now, it is standard in over 60% of new German cars, optional in a further 36% and not available at all in only 4%. Volkswagen is a notable exception, offering Bluetooth as standard in only 13% of its vehicles, and optional in all others. Bluetooth is used mainly for music streaming and mobile phone connection.

→ The presence of Telematics in new cars in Germany has increased from around 5% at the start of 2014 to 28% now. Take-up will speed up with the adoption of EU regulation mandating eCall technology – i.e. the ability of the car itsel to dial 112 in case of emergency – from April 2018. 

→ Apps control, i.e. the ability to operate mobile apps via your car's controls, has gone up from under 5% in Q3 2014 to standard in 17% of new cars in Germany now, and optional in another 50%. Apps control is most widespread in small SUVs, where it is present in 70% of units sold. Standard apps control penetration exceeds 75% in the Ford Focus, Opel Astra and Mazda 3. Sales volumes for this feature are relatively low, because it is being superseded by more advanced mobile integration technology.

→ Built-in apps are offered by only 10% of new German vehicles as standard, and another 50% as an option. Nearly half of all built-in apps are installed in the Opel Astra/Insignia, Skoda Superb, Nissan Qashqai and the Mazda CX3/CX5.

→ Full, web-browsing internet connectivity is standard in only 5% of cars at present and optional in a further 15%, but JATO believes the car industry is on the cusp of great change in this matter – especially as this technique is widespread in electric vehicles, which will also be in autonomous vehicles. An in-built internet connection allows manufacturers to update software remotely. 

→ Wifi connectivity – the ability to connect to a wifi-enabled device like a laptop or phone – is currently standard in only 
4% of vehicles, mainly executive-class vehicles. It is optional in a further 38%. 

→ Mobile integration – distinct from apps control in that it refers to the option of displaying smartphone interface on the vehicle infotainment screen – is a standard feature in only 6% of all cars sold in Germany, but is on the increase. The most common mobile integration software used in Q2 2016 was Apple Car Play (83%), followed by Android Auto (60%) and Mirror Link (35%). All three are combined in 12% of all standard mobile integration installations.

Based on these findings, JATO Dynamics sees the market for car connectivity reaching a tipping point, with EU regulations, safety concerns and corporate considerations further boosting what is rapidly becoming an important differentiator in car choice.  

Image: public domain

Authored by: Frank Jacobs