The connected car services market is evolving, but new survey data from S&P Global Mobility reveals rising consumer hesitation. While some drivers remain satisfied and willing to pay for features like navigation and infotainment, adoption rates are declining due to pricing, privacy, and subscription fatigue. OEMs are under pressure to improve transparency, user experience, and affordability as they expand digital offerings to boost post-sale revenue.
Here’s why it matters:
Dealers play a critical role in introducing connected services to consumers, often during the vehicle delivery process. As OEMs seek to monetize post-sale subscriptions, dealers are expected to facilitate activations and promote services. However, declining interest and rising skepticism make this a harder sell. Dealers must be prepared to address consumer concerns about data privacy, long-term costs, and usability if they are to help OEMs succeed in building recurring revenue streams through connected technologies.
Key takeaways:
- Willingness to pay is declining
The percentage of consumers willing to pay for connected car services decreased from 86% in 2024 to 68% in 2025, primarily due to concerns about cost and value. - Data privacy remains a major barrier
Consumers are growing increasingly concerned about how their data is collected, stored, and utilized, particularly as automakers expand their monetization efforts. - Fewer buyers know about connected features
A fifth of non-subscribers say they were never offered or made aware of connected car services, highlighting a communication gap at the point of sale. - Subscription fatigue is setting in
Buyers are frustrated by recurring fees, fragmented service tiers, and hardware-based features that require separate payments to activate. - Opportunity still exists with satisfied users
Among consumers who use connected services, satisfaction and word-of-mouth remain strong, especially in navigation and infotainment categories.
As OEMs roll out more connected service offerings, dealers should prioritize education, simplify onboarding, and clearly explain long-term value to retain interest and build customer trust.
