Connected Infotainment Services Finding Little Consumer ‘Traction’: ABI
Demand for vehicle connectivity remains strong in all global regions, despite “disappointing consumer uptake” of infotainment-related connected services, reported ABI Research Wednesday. It’s projecting that at least 73% of new vehicles shipped globally in 2027 will have embedded connectivity, but…
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only 43% of them will have an “active infotainment subscription.” Though embedded connectivity in new vehicles is expected to become “ubiquitous” within the decade, “most active connections today are of essential telematics services only,” said ABI. Connected infotainment services are struggling to gain consumer “traction,” it said, estimating churn rates run as high as 90% “in mass-market models after the free trial period." ABI forecasts that cellular connectivity will be in 53% of vehicles shipped this year, with 83% of those equipped with connected infotainment systems. Only 24% will have active infotainment subscriptions, it said.