Consumers to Pay Fewer Than 30% of Car Infotainment Plans: ABI

Connectivity will be available in more than half of new vehicles sold globally this year and more than 70% in 2028, but automakers “still have not found an effective strategy to recoup the connectivity and airtime costs” they’re investing in connected cars, reported ABI Research Wednesday. “Connected services adoption is low, especially among lower-tier vehicles, and the increase in free trial periods means that the ratio of paid subscriptions will contract by 20% between 2021 and 2028.” Connected services subscriptions are being extended to drive higher customer engagement, sais ABI. The average free trial period in the U.S. is increasing from three to six months, and in Europe from one to three years. Many carmakers in China offer “free for life connectivity,” it said. The “drawback” is that the ratio of subscriptions paid by consumers will “dwindle,” it said. ABI estimates more than 70% of “active infotainment subscriptions” globally will be on a free-trial or free-for-life “arrangement” in 2022, it said.