Telefónica published a report in July 2014 titled "Connected Car Report 2014" which provided insights into the connected car market, challenges, and consumer awareness and demand for connected car products and services based on a survey of over 5,000 drivers in 5 countries. The report found that 71% of drivers were interested in or already using connected car services, with safety, diagnostics, and navigation features being the most important. It also found that 35% of consumers expected to use car sharing services rather than own a car by 2034. Telefónica is involved in connected car initiatives through its global M2M alliance, fleet management partnerships, providing connectivity for Tesla, and a telematics-based motor insurance policy

1. Telefónica
Connected Car Report 2014
Telefónica

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Connected Car Report 2014
Telefonica DigitalTelefónica
Telefónica published the ‘Connected Car Industry
2014′ report, featuring global research and
contributions from seven of the world’s largest car
manufacturers in July 2014.
The report provides insights into the connected car
market, challenges and research into consumer
awareness and demand for connected car products
and services.

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Company Name
Connected Car Report 2014
Telefonica DigitalTelefónica
For the Connected Car Report 2014, Telefónica commissioned
globally recognised research firm, YouGov to survey 5,012
adults, aged 18 or over, and that held a valid driver’s licence. It
spoke to respondents in Spain, Brazil, USA, UK and Germany in
January 2014.
The respondents were asked what they think about - and what
they want from - connected cars. The research has revealed
some fascinating insights on levels of demand for connected
cars, and what connected services drivers value the most.
Industry experts from Kia, GM, Renault, Fiat, Volkswagen,
Nissan, Ford and Telefonica were also interviewed, offering
feedback on the industry and the research results.

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Six key findings of the report
Alternative services such as car
sharing are gaining momentum, 35%
believe they will not own a car in 2034.
73% of respondents say safety
and diagnostics features are the
most important connected
features
80% of interviewees expect the Connected
Car of the future to have all the technology
we are used to everywhere else in our lives
Almost three quarters
of people are interested
in or already using
Connected Car services
Drivers prefer to pay for the basic
connected services then choose
additional services as needed
60% of respondents
prefer to access
connected services via
the dashboard
Telefónica

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23%
34%
Global demand for the connected car
0% 5% 10% 15% 20% 25% 30%
I already use connected car services
My next car will have connected services
I have heard of connected car services,
and will consider them for my next car
I have heard of connected car services,
but am not interested in having them
I have not previously heard of connected
car…
I have not previously heard of connected
car services, and am not interested in…
Don't know
Much has been talked about the future of connectivity in cars. Our consumer
research showed that there is substantial global demand for connected car
services, with 71% of drivers interested in using or are already using
connected car services.
Telefónica

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3%
46%
28%
2%
23%
34%
14%
The user experience
80% of interviewees expect the connected
car of the future to provide the same
connected experience they are used
to at home, at work and on the move
via their mobile phone.
Consumers today expect connectivity as a
given wherever they are, and the car is no
exception. However, the automotive
environment is unique and provides
new challenges for connected services.
Strongly agree Agree Neither agree
nor disagree
Disagree Don’t know
How much do you agree or disagree with
this statement: Cars of the not-too-distant
future will have all the technology that we
are used to everywhere else in our lives
Telefónica

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The Connected Car services that consumers want today
Telefonica DigitalTelefónica
73%
73%
61%
54%
3%
26%
6%
31%
73%
62%
17%
9%
73%Across all the markets we
surveyed, there was clear
consensus about the three features
most in demand: increased safety,
early warning systems (vehicle
diagnostics) and smarter
navigation.
Almost three-quarters (73%) of
respondents chose safety and
diagnostics features as the most
important, giving a clear indication
of the areas they would expect
connected services to focus in the
future.

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To own or not to own
8%
23% 28%
7%
30%
Our survey found that on average,
35% of consumers expected not
to own their own car by 2034, and
instead predicted they would be using
alternative options such as car sharing
services.
A report from Navigant
Research predicted global
membership of car sharing schemes
will rocket from 2.3 million in 2013 to
more than 12 million by 2020.
Strongly agree Agree Neither agree
nor disagree
Disagree Strongly disagree
How much do you agree or disagree with
each of the following statements? – In
2034, many people will not own a car but
will use car sharing services instead
Telefónica

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80%
7%
8%
6%
How consumers want to access different services
Telefonica DigitalTelefónica
73%
54%
Assuming you had a connected car,
how would you prefer to access each of the services below?
Safety technology
Car Dashboard Tablet/smartphone dock Dedicated device Don’t know
Vehicle diagnostics
69%
8%
15%
7%
40%
28%
17%
15%
70%12%
12%
6%
Navigation
Infotainment

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Preferred payment models
Telefonica DigitalTelefónica
73%
73%
61%
54%
The survey suggests that OEMs still
have some way to go before they
break out of their traditional role as
a manufacturer and become a full,
connected service provider. It also
highlights the varying preferred
payment methods for connected
services.
The most popular payment method was
for basic connectivity with the option to
choose additional services as needed.
PAYG and one-off payments were also
popular which suggests manufacturers
will need to give customers several
payment options.
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Global payment preferences

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What do the experts have to say?
Telefonica DigitalTelefónica
Coming soon…
“Consumers are aware of connected cars and it is now becoming a key
communication point for Nissan to reinforce the ‘Innovation that excites’
branding.” Ian Digman, Nissan
“We’re beginning to see our customers prepared to pay for some connected
services via a yearly subscription, such as navigation in particular. However,
there is also a growing demand for pay-as-you-go services…” Nicolas Nollet,
Renault
“I believe that car sharing is an opportunity, especially within the growing trend
for mega cities. In these enormous urban centres one will always need a car
and will always need services.” Massimo Cavazzini, Fiat

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What do the experts have to say?
Telefonica DigitalTelefónica
Coming soon…
“When customers are connected and cars are connected you have a much
greater ability to create services because you'll be able to interact with the car
remotely to locate it, unlock it, or arrange to share it with somebody else.” Greg
Ross, GM
“The big use case right now that we’re exploring is the value proposition
around remote control. Remote start, door lock/unlock, windows
down…anything that controls the car in some fashion from a remote device.”
John Ellis, Ford
“the fact is that connectivity is no longer optional, it is part of every OEM’s DNA
from now on.” Henry Bzeih, Kia Motors

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What do the experts have to say?
Telefonica DigitalTelefónica
“I think if we knew the answer to what to do with the data generated by
connected services, it would be the million-dollar question. The first thing that
needs to happen is for auto makers to start realising what they can do with that
data, what the value is, what they can do legally, and what the consumer is
okay with too.” Ben Auslander, VW
“I am confident that, by 2020, we will have a high penetration of connected
cars (~90%). This will be a mixture of 2G, 3G, and in most instances 4G.”
Pavan Mathew, Telefónica

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What is Telefónica doing?
Telefonica DigitalTelefónica
For us the connected car is no longer just a concept, but a reality. We
have the platforms, the partnerships, and the industry insight to help
car manufacturers seize the opportunity.
 We have taken the lead in forming a global M2M alliance which to date
comprises of eight leading mobile operators around the globe. This
alliance was formed to help bring M2M technology to market.
 We are at the forefront of developments in services like fleet
management, partnering with the likes of Sascar to develop fleet
management solutions for light vehicles in Brazil.
 Earlier this year Telefónica was selected by Telsa to provide connectivity
to its award winning Model S across multiple countries in Europe,
including Germany and the UK.
 Telefónica has invested in the insurance telematics market, launching a
pioneering motor insurance policy with European insurance company
Generali Seguros, which calculates the premium according to driving
habits.

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