"Not surprisingly, these devices have wide implications for consumer behavior while driving and influence consumer expectations on how vehicles and apps should integrate with them."
SOUTHFIELD, Mich.--(BUSINESS WIRE)--With nearly 2.7 billion smartphones in the hands of global consumers
today, and more than 5.5 billion projected by 2018, it’s no surprise
that consumers are increasingly more aware of and opportunistic about
them integrating seamlessly in their vehicles, according to recent
research from IHS Automotive, a global provider of critical information
and insight to the automotive industry and part of IHS, Inc. (NYSE: IHS).
A new report, Apps
in the Car 2015, includes highlights from a recent consumer
study conducted by IHS Automotive. More than 4,000 vehicle owners intent
on purchasing a new vehicle within the next 36 months were surveyed,
representing four key automotive markets – the U.S., China, Germany and
the United Kingdom. While results varied by region, key findings shed
light on consumer preferences that manufacturers and apps developers can
use to best address market needs as they develop new products for the
The report covers a number of categories, including vehicle purchase
intentions, respondent profiles, Apple CarPlay/AndroidAuto/MirrorLink
research, smartphone, mobile carrier and data plan information, apps,
navigation and music.
“Among new car intenders, nearly 90 percent of those surveyed currently
own a smartphone,” said Colin Bird, senior analyst, automotive software,
apps and services at IHS Automotive. “Not surprisingly, these devices
have wide implications for consumer behavior while driving and influence
consumer expectations on how vehicles and apps should integrate with
Mobile Apps offer Continued Growth Opportunities
In 2014, approximately 132 billion mobile apps were downloaded
worldwide, with revenue of more than $25 billion, according to IHS
research. iOS developers brought in more than $10 billion alone.
Approximately 90 percent of the revenue is generated through in-app
purchases or subscriptions, while the remaining 10 percent is attributed
to consumers who bought apps for personal, social or business use.
The majority of responders (93 percent) indicated they had downloaded
apps to their device, and 53 percent reported having paid for apps in
the past. Price points for apps varied by region, with most respondents
having spent an average of $12 to $22 USD on their most expensive app.
These findings represent the ongoing need and demand for continued
development and identify significant revenue opportunity for developers
and OEMs in the future.
Country of Response
Highest Price Paid for an App
11€/ $12 USD
Continued Growth Expected for Apple CarPlay and Android Auto
In the coming years, IHS expects significant growth by vehicle
manufacturers to integrate apps into their vehicles for various consumer
connectivity as well as increased partnerships among OEMs and apps
integrators. IHS Automotive forecasts for the three primary systems for
2015 and beyond are as follows:
IHS Automotive forecast for screen projection mode features -
annual sales units
*Figures are rounded Source: IHS Auto Tech Software, Apps &
Services Forecast, (March, 2015).
When asked about familiarity with the various integrators, and those
consumers interested in having them on their next new vehicle, results
varied widely by region.
Most Widely Used Apps in Vehicles
Nearly 45 percent of respondents agree that they would use in-vehicle
apps if they helped enhance the driving experience, with 35 percent of
them reporting they’d be most willing to use them if they were similar
to those on their smartphone. In addition, nearly 75 percent of
respondents across the regions indicated they would also be willing to
pay for updates to an app, paving the way for continued growth.
The top five categories that consumers identified as a favorite for use
in their vehicles are, in order: navigation (53 percent), weather (40
percent), music (38 percent), news (33 percent) and social networking
Least likely to be mentioned as favorites for use in the vehicle include
apps for points of interest/local, books, health and fitness,
business/productivity, education and podcasts, with less than 15 percent
use rates among respondents.
Interest and Desire for Technology/Features Evolve, with Regional
When it comes to infotainment, top features desired by respondents
across the regions were varied. The following chart demonstrates various
infotainment options and how often they were mentioned among audiences
in each country surveyed.
In-Car Music is Evolving
The majority of consumers (nearly 70 percent) surveyed indicated a
strong desire for continued listening of music via AM/FM radio and CD
options in their vehicle. However, a similar number of respondents
prefer listening to music stored on their mobile devices, and
internet/streaming radio, satellite radio options and a desire for music
stored on an in-vehicle hard drive also were listed as options. In
China, however, streaming music from a mobile device is overwhelmingly
Additional regional findings from the report will forthcoming in future
releases. The full comprehensive report is available for purchase here.
IHS Automotive, part of IHS Inc. (NYSE: IHS), offers clients the most
comprehensive content and deepest expertise and insight on the
automotive industry available anywhere in the world today. With the 2013
addition of Polk, IHS Automotive now provides expertise and predictive
insight across the entire automotive value chain from product
inception—across design and production—to the sales and marketing
efforts used to maximize potential in the marketplace. No other source
provides a more complete picture of the global automotive industry. IHS
is the leading source of information, insight and analytics in critical
areas that shape today’s business landscape. IHS has been in business
since 1959 and became a publicly traded company on the New York Stock
Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is
committed to sustainable, profitable growth and employs about 8,800
people in 32 countries around the world.