Gartner Research estimates that by 2012, the majority of car makers will be focused on providing data connectivity options in new vehicles. However, car makers may discover that their strategy of charging extra for embedded connectivity is not a good match for this generation of new drivers.
Millions of consumers who are happy to use smartphones with full data plans as wireless connectors are creating a new market for in-car navigation, entertainment and information services. And they are not waiting for car makers to offer new options. Anyone willing to rely on their own mobile connection can get the real time traffic, navigation and other services linked to any vehicle for a lot less money than the car manufactures are charging for embedded navigation systems. Instead of paying over a thousand dollars for a built-in GPS, or settling for a lower priced but unconnected TomTom or Garmin navigator, you can have the best of both worlds by using your smart phone. That’s one attraction of the Ford SYNC (www.ford.com) business model. Ford already has a million SYNC customers and is busy making SYNC available in more 2010 vehicles and adding new features and services. Buy a new Ford and SYNC services come free for three years. New content partners and services providers can join the SYNC ecosystem any time – in fact Ford execs are touting their partnering strategy as an example of how an auto company can learn to act like a consumer electronics company. Sync’s original emphasis on media and entertainment on the go is now balanced with 911 Assist and vehicle health reports as well as expanded voice activated calling shortcuts and saved locations.
It seems increasingly likely that this decade will see mass market adoption of the wirelessly connected car—but probably not in the way the car makers are expecting.