Smartcar Report Highlights Disconnect Between Drivers and Vehicle Connectivity Solutions

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SAN FRANCISCO--(BUSINESS WIRE)--Feb 3, 2025--

Smartcar has released its 2025 State of Connected Car Apps report, uncovering a significant gap between driver expectations and the connected car ecosystem today. The report reveals that while drivers are eager to adopt technology to address vehicle-related pain points, many are unaware of the benefits and availability of vehicle connectivity.

Surveying over 1,000 drivers across the United States and Europe, the report examines drivers’ familiarity with automaker connected services, their most valued software features, and receptiveness toward data sharing.

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 personalized insurance rates.

“Our findings emphasize 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 maximize connected car technology for safer, more affordable, and sustainable mobility.”

Get the full report here.

About Smartcar

Smartcar, the leading API platform for connected vehicles, enables businesses to develop mobility solutions that give drivers control of their vehicle data. Since its founding in 2015, Smartcar has helped companies build apps for energy management, auto insurance, EV charging, and more. Backed by Andreessen Horowitz, NEA, and Energize Capital, Smartcar is driving the future of connected mobility.

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CONTACT: Winona Rajamohan

Smartcar

[email protected]

KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA

INDUSTRY KEYWORD: SOFTWARE EV/ELECTRIC VEHICLES AUTOMOTIVE TECHNOLOGY APPS/APPLICATIONS AUTOMOTIVE MANUFACTURING VEHICLE TECHNOLOGY MANUFACTURING

SOURCE: Smartcar

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PUB: 02/03/2025 12:00 PM/DISC: 02/03/2025 12:00 PM

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