GadgetWheels
Car tech needs
a recharge
Drivers in USA and Europe are disconnecting from connectivity as automakers services fall flat, sending a strong signal to the global industry.
Connected car technologies and subscription services are falling flat as motorists demand more value and more advanced features. This is a key finding from Smartcar’s 2025 State of Connected Car Apps report, which has uncovered a significant gap between driver expectations and the connected car ecosystem.
While the study was conducted in the USA and Europe, it sends a signal to the rest of the global market – including manufacturers in South Africa. Among the red lights: while drivers are eager to adopt technology to address vehicle-related pain points, many are unaware of the benefits and availability of vehicle connectivity.
Key findings include:
- Low connected services adoption: 76% of drivers are not subscribed to their automaker’s connected services, highlighting low market penetration and perceived value. However, 67% of connected services users are eager for more features and willing to pay a premium for enhanced offerings.
- Third-party app usage: 56% of drivers use third-party apps for tasks like insurance, maintenance, and EV charging, reflecting a preference for solutions that enhance convenience, security, and cost-effectiveness.
- Cost sensitivity: Cost remains a barrier, with 65% of respondents citing high prices as a reason for not using connected services or related applications.
Despite these challenges, the report signals growing openness to vehicle connectivity. Transparency and trust are essential, with 55% of drivers willing to share vehicle data if informed of its benefits.
Auto insurance remains a key use case, with 43% of drivers identifying it as the most valuable application of vehicle data. While concerns about data privacy persist, only 22% of drivers are unwilling to share data for personalised insurance rates.
“Our findings emphasise how collaboration between automakers and mobility businesses leads to more innovation that meets driver expectations,” said Sahas Katta, CEO and co-founder at Smartcar. “By working together to address the pain points surfaced in this report, the automotive industry can help drivers maximise connected car technology for safer, more affordable, and sustainable mobility.”
Get the full report here.
