How Will The Connected Car Change The Dynamic Between Automakers And Consumers?

Automakers can no longer be a point-of-sale relationship, it has to be constantly nurtured to develop a permanence, says Aria System’s Brendan O’Brien.

Connected cars are expected to make up 75 percent of total car shipments worldwide in 2020, compared with just 13 percent in 2015, according to Gartner.

But unlike features added to cars like FM radio and air conditioning, the features and services associated with the Internet of Things will also pave the way for new ways carmakers and drivers will interact, notes Brendan O’Brien, chief innovation officer and co-founder of Aria Systems, a software company that provides cloud-based billing services for companies such as digital mapping platform HERE, ride-sharing provider Zipcar, Suburu.

In O’Brien’s view, much of the new opportunity for automakers in the age of the connected car will be “recurring revenue” because of the very nature of how these IoT features are consumed, measured and paid for. Some examples of those services and features include subscriptions to consumption-based recurring payment schemes for such things as ride sharing, location services, apps (from connected devices), telematics, wi-fi access, internet radio, among others.

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