IMS Research survey indicates that the auto industry will receive loyalty, not revenue, from Apps

A new consumer survey by IMS Research of 2,250 people from the US, UK and Germany showed that only 28% of respondents would be willing to pay for apps in the car, if they were available.

Results from the survey showed that a ‘willingness to pay’ for apps doesn’t always equate to extra revenue. The survey showed that 55% of smartphone and tablet owners would be willing to pay for apps, but in actuality nearly 70% have never paid for an app.

The automotive industry has struggled for several years to recreate the consumer electronic (CE) experience within the car.

The stark results from this new IMS Research study show that consumer app purchases are unlikely to represent a significant revenue stream.

Furthermore, more traditional routes to generating revenue through apps – such as advertising – are likely to be restricted.

“This comes at a time when more and more vehicle manufacturers are offering connected head units which feature apps. However, unless they are able to come up with a viable business model, the revenue generation from apps is likely to be limited,” said Nimisha Patel, analyst at IMS Research.

The survey showed that nearly 60 percent of respondents would prefer to get a car specific app through their smartphone app store rather than from a portal from the vehicle manufacturer.

This indicates that not only will the automotive industry struggle to generate revenue through the sale of apps, but that most consumers would prefer to interact with their CE device rather than a vehicle specific portal.

Despite this negativity, there is some solace for the automotive industry. The survey showed that if apps were available in the car, driving specific apps (such as navigation) would be most popular and something consumers would be willing to pay for. Furthermore, this is a nascent market and consumer perception may change as familiarity increases.

By engaging with drivers through apps on a daily basis, auto makers may find they increase brand loyalty, which is perhaps a more valuable commodity in the longer term.

RECENT ARTICLES

Motive and Navistar partner to equip fleet operators with robust vehicle telematics data and insights

Posted on: July 1, 2022

San Francisco, USA. 29 June 2022 – Motive, the specialist in Automated Operations, and Navistar, a manufacturer and solutions provider to the medium-, heavy- and severe-service trucks industry, announced today a strategic partnership and future product integration that will connect Motive’s Automated Operations Platform with Navistar’s OnCommand Connection telematics and Advanced Remote Diagnostics solutions.

Read more

Seamless indoor cellular coverage has earnt its rightful place as a 4th utility

Posted on: July 1, 2022

“Network infrastructure including fibre broadband and Wi-Fi access points are factored into all new building projects from the outset, with mobile coverage infrastructure taking second place. Both should be given equal status in a world driven by tech,” says Colin Abrey of Nextivity.

Read more
FEATURED IoT STORIES

9 IoT applications that will change everything

Posted on: September 1, 2021

Whether you are a future-minded CEO, tech-driven CEO or IT leader, you’ve come across the term IoT before. It’s often used alongside superlatives regarding how it will revolutionize the way you work, play, and live. But is it just another buzzword, or is it the as-promised technological holy grail? The truth is that Internet of

Read more

Which IoT Platform 2021? IoT Now Enterprise Buyers’ Guide

Posted on: August 30, 2021

There are several different parts in a complete IoT solution, all of which must work together to get the result needed, write IoT Now Enterprise Buyers’ Guide – Which IoT Platform 2021? authors Robin Duke-Woolley, the CEO and Bill Ingle, a senior analyst, at Beecham Research. Figure 1 shows these parts and, although not all

Read more

CAT-M1 vs NB-IoT – examining the real differences

Posted on: June 21, 2021

As industry players look to provide the next generation of IoT connectivity, two different standards have emerged under release 13 of 3GPP – CAT-M1 and NB-IoT.

Read more

IoT and home automation: What does the future hold?

Posted on: June 10, 2020

Once a dream, home automation using iot is slowly but steadily becoming a part of daily lives around the world. In fact, it is believed that the global market for smart home automation will reach $40 billion by 2020.

Read more

5 challenges still facing the Internet of Things

Posted on: June 3, 2020

The Internet of Things (IoT) has quickly become a huge part of how people live, communicate and do business. All around the world, web-enabled devices are turning our world into a more switched-on place to live.

Read more

What is IoT?

Posted on: July 7, 2019

What is IoT Data as a new oil IoT connectivity What is IoT video So what’s IoT? The phrase ‘Internet of Things’ (IoT) is officially everywhere. It constantly shows up in my Google news feed, the weekend tech supplements are waxing lyrical about it and the volume of marketing emails I receive advertising ‘smart, connected

Read more
IoT Newsletter

Join the IoT Now online community for FREE, to receive: Exclusive offers for entry to all the IoT events that matter, round the world

Free access to a huge selection of the latest IoT analyst reports and industry whitepapers

The latest IoT news, as it breaks, to your inbox