Consumers willing to pay for in-car technology

Consumers willing to pay for in-car technology

Consumers are willing to pay for advanced technology in their next new vehicle, with distinct preferences for different types of technology, according to a new study by IHS Markit.

The study, conducted in the U.S., Canada, Germany, China and the U.K., found that U.S. consumers are most likely to pay for a rear-seat entertainment system and will pay an estimated $640. Telematics is also high among consumer preferences integration of GPS technology with computers or mobile devices to produce navigation and safety systems. GMês OnStar was an early example. IHS Markit forecasts that 87 percent of new vehicles sold in the U.S. will be equipped with telematics by 2022.

Across all five countries, 32 percent of respondents said they would be willing to pay for telematics in their next new vehicle, and 29 percent said they would pay for in-car WiFi. U.S. consumers would pay $484 for telematics and $472 for in-vehicle WiFi.

More than half of respondents said they already have a vehicle with an infotainment or navigation system that offers features such as roadside assistance, stolen vehicle assistance, crash notification or turn-by-turn navigation. These features also garnered the most interest for future vehicles in all five countries. The top choices were real-time traffic information, dynamic routing and maps that are updated wirelessly based on current conditions, wireless updates, roadside assistance and stolen vehicle assistance.