The Impact of Vehicle Electrification and Connectivity on Electrical System Design

Connectivity

Internet-connected infotainment systems are platforms for delivering an increasingly rich set of content and services to drivers and passengers. While OEMs have been offering connectivity, telematic services and infotainment systems for many years, monetizing these services continue to be weak. But this is about to change.

Today’s consumers demand connectivity, sophisticated mobile apps and rich online content. An Autotrader study shows that connectivity is becoming an important factor in car buying decision. According to this study, 48% of car buyers prioritize in-vehicle technology over more traditional considerations such as brand name, body style and performance.

In the past, OEMs offered sophisticated head units and brand-name high-end audio systems, but these were mostly available in high-end models, assuming luxury car buyers will be willing to pay a premium for high-tech features and expensive annuity-based services, a model that has seen only moderate success.

Today, as the Autotrader study shows, 56% of car shoppers, especially the under-35 demographic, know exactly what in-vehicle technology they like and are less willing to compromise on the features they want. Realizing this demographic shift, OEMs are moving to better align the value proposition to demographics by adding connectivity and in-vehicle features across their portfolio, including their non-premium brands.