Nearly 80 percent of car buyers globally would delay new car purchase by one year to get connected feature
Wi-Fi hotspots most sought after feature in new car
DALLAS, OCT. 13, 2015 – Three out of every four consumers said they consider connected car services an important feature in their next car purchase, according to a new AT&T Drive Studio and Ericsson study documenting the significant influence that connected car features and services are expected to have on customers’ vehicle purchase decisions in the future.
This is the second year for the study which focused on connected car awareness, feature preferences and purchase drivers. The data was sourced from customers likely to buy a car in the next three years in the United States, Germany, Brazil, Mexico and China and the survey was conducted in July 2015.
The term “connected car,” as defined in the study, is a car equipped with a wireless internet connection. This allows the car to run applications such as streaming music services and internet radio, use navigation services with real-time traffic updates, conduct local searches, use restaurant services and more, all from the car’s dashboard. This connectivity also allows the car to operate as a Wi-Fi hotspot, sharing a wireless internet connection with other devices in the car.
Orvar Hurtig, vice president, Ericsson Global Services and Head of Industry and Society at Ericsson, said, “For the second year in a row, we are witnessing a growing trend where consumers in different parts of the world are not only increasingly aware of the term connected car, but they are placing greater importance on connected car features and services.
“In addition to safety and infotainment features enabled by connectivity, automakers can also use the connectivity for over the air software updates and advanced downloadable engine configurations. For the consumer, this means that connected car services will open up the ability to add new capabilities to their car and enhance their driving experience for years after they purchase a connected car.”
The study found:
62% percent of US survey respondents are aware of the term “connected car.”
The Wi-Fi hotspot ranked as the No. 1 feature that US customers are willing to purchase for their car.
Almost 75% of those surveyed globally, after learning about connected car services, consider them an important feature in their next car.
78% of car buyers globally would delay a purchase by one year to buy a car with connected car services from their preferred brand.
When priced, US consumers prefer to add their connected car wireless connectivity to a shared data plan.
“This study confirms that drivers today are tech savvy and value services that improve their driving experience,” said Chris Penrose, senior vice president, Internet of Things, AT&T Mobility. “It’s great to see that more drivers understand what a connected car enables them to do. With this increased awareness, we believe you’ll see adoption of integrated wireless connectivity in the car continue to take off.”
Ericsson is a contributor to the AT&T Drive platform, providing a cloud-based platform on which automakers can choose to run their entire, customized connected car experience in a secure manner. Material from the research report is available to automakers through the AT&T Drive Studio.
AT&T’s Connected Car Leadership
In 2014, AT&T launched two major initiatives to lead innovation in the connected car space. The first was a pioneering connected car innovation center in Atlanta, called the AT&T Drive Studio. It also launched a new global automotive solution and development platform, AT&T Drive.
AT&T Drive Studio features a working lab and showroom to build and exhibit the latest innovations. It is a hub where AT&T works directly with companies and responds to automakers’ opportunities.
AT&T Drive is the company’s connected car platform. This modular and flexible global solution helps car makers build unique solutions for the marketplace. Auto makers can choose the services and capabilities that are important to them. They can add features for connectivity, billing, data analytics and infotainment.
AT&T is a telematics leader and connects vehicles around the globe. In the second quarter of 2015, AT&T added 1.4 million connected devices. Of those devices, nearly one million were connected cars.
AT&T was the first major wireless carrier to launch a global SIM platform for cars. The platform lets automotive, consumer and machine-to-machine equipment makers use a single carrier to wirelessly connect products across the globe.
For the complete array of AT&T offerings in the Internet of Things portfolio, visit www.att.com/IoT.
*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.
NOTES TO EDITORS
AT&T Inc. (NYSE:T, news, filings) helps millions around the globe connect with leading entertainment, mobile, high speed Internet and voice services. We’re the world’s largest provider of pay TV. We have TV customers in the U.S. and 11 Latin American countries. In the U.S., our wireless network has the nation’s strongest 4G LTE signal and most reliable 4G LTE. We offer the best global coverage of any U.S. wireless provider*. And we help businesses worldwide serve their customers better with our mobility and highly secure cloud solutions.
Additional information about AT&T products and services is available at http://about.att.com.Follow our news on Twitter at @ATT, on Facebook at http://www.facebook.com/att and YouTube at http://www.youtube.com/att.
© 2015 AT&T Intellectual Property. All rights reserved. AT&T, the Globe logo and other marks are trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.
Signal strength and reliability claims based on nationwide carriers’ 4G LTE. Signal strength claim based ONLY on avg. 4G LTE signal strength. 4G LTE not available everywhere.
*Global coverage claim based on offering discounted voice and data roaming; LTE roaming; voice roaming; and world-capable smartphone and tablets in more countries than any other U.S. based carrier. International service required. Coverage not available in all areas. Coverage may vary per country and be limited/restricted in some countries.
Download high-resolution photos and broadcast-quality video at www.ericsson.com/press
Ericsson is the driving force behind the Networked Society – a world leader in communications technology and services. Our long-term relationships with every major telecom operator in the world allow people, business and society to fulfill their potential and create a more sustainable future.
Our services, software and infrastructure – especially in mobility, broadband and the cloud – are enabling the telecom industry and other sectors to do better business, increase efficiency, improve the user experience and capture new opportunities.
With approximately 115,000 professionals and customers in 180 countries, we combine global scale with technology and services leadership. We support networks that connect more than 2.5 billion subscribers. Forty percent of the world’s mobile traffic is carried over Ericsson networks. And our investments in research and development ensure that our solutions – and our customers – stay in front.
Founded in 1876, Ericsson has its headquarters in Stockholm, Sweden. Net sales in 2014 were SEK 228.0 billion (USD 33.1 billion). Ericsson is listed on NASDAQ OMX stock exchange in Stockholm and the NASDAQ in New York.
FOR FURTHER INFORMATION, PLEASE CONTACT
Ericsson Corporate Communications
Phone: +46 10 719 69 92
Ericsson Investor Relations
Phone: +46 10 719 00 00