No consumer experience will be transformed more by technology than the automotive experience. According to a market study released by Technavio, for example, the size of the connected car M2M market in Western Europe is predicted to reach close to USD $34 billion in revenue by 2020. With so many connected vehicles on European roads, how will automobile marketers leverage this data to build relationships with drivers and enhance automobile brand loyalty?
For the uninitiated: A connected car has a device present inside an automobile that is connected to other devices in the car or network or services outside. A machine to machine (M2M) connection refers to a connection established between two electronic or mechanical devices for automated data transmission. An M2M connected car enables automated wireless data transmission between two cars, a car and a manufacturer, car and third-party service providers, car and enterprises, car and internet capable devices, or car and infrastructure.
The money quote from the Technavio report comes courtesy of Rakesh Panda, Technavio�s senior machine (M2M) research industry analyst:
�Vehicle-to-Vehicle communication, also known as V2X technology, is predicted to drive the growth of the connected car M2M market in Western Europe over the next four years. The market will also witness the growing use of analytics solutions for connected cars. Automobile and big data analytics companies are forging partnerships to understand vehicle performance and connecting with vehicle owners to improve brand loyalty and efficiency."
Key findings from the report include:
- Safety concerns will drive solutions. The safety segment of the connected market in Western Europe is likely to reach close to USD $8.2 billion in revenues by 2020. Some popular safety and security features include the ability to contact emergency services, vehicle diagnostics and directions, and the ability to track stolen vehicles. Safety from hackers gaining access to a cloud connected vehicles will also emerge as a key concern among vehicle owners.
- Automotive infotainment will propel the driver experience. Infotainment is the fastest-growing technology in the connected car market. Infotainment units are embedded devices deployed in vehicles that provide navigation, connectivity, and multimedia entertainment. Leading automotive manufacturers such as Honda and Daimler are entering into strategic partnerships to provide customized and personalised entertainment to their end-users. Similarly, many vendors will enter the market by providing cloud analytics for automotive infotainment.
The Bullet Point: What will all of this cloud-based personalisation and customization mean for automobile drivers in Europe and elsewhere? The history of technology teaches us that tech often arrives on the scene before marketers determine a compelling use for it. The result? Marketers often default to their own short-term interests by leveraging the tech to deliver intrusive advertising or to collect consumer data without permission. Imagine the horror of a world in which you�re forced to listen to intrusive location-based ads when you're driving along a high street, for example. Or worse yet: An automobile manufacture collects data on your driving habits and sells it to a third party, which then bombards your many devices with messages targeted to personal behavior you never knew you volunteered.
Let�s not make that mistake this time. With our automobiles soon to become just another set of nodes in the worldwide interwebs, it is imperative that marketers leverage this technology to build solutions that provide a clear exchange between data voluntarily shared by consumers, and real value delivered in the form of a personalised, unique, and relevant driver experience. The key to automotive loyalty is a connected car that doesn�t hijack the driver experience, but rather enhances it.
- Rick Ferguson