The automotive industry is undergoing a profound software revolution. As cars become increasingly connected and defined by their digital capabilities, consumer expectations are shifting. Today’s drivers are no longer just buying horsepower or handling, they’re looking for meaningful digital experiences, personalised services and assurances around safety and data privacy.
Software now accounts for over 30% of a vehicle’s value, a figure projected to reach 60% by 2030. For automakers this presents both a challenge and an opportunity. How can they earn – and keep – consumer trust in this new era?
The answer lies in three critical areas:
- the value of digital services
- the long-term potential of connectivity
- and the role of safety and security in shaping perceptions
Digital services: valuable, not just available
The appetite for in-car digital services is growing, particularly among younger drivers. According to our Consumer and OEM attitudes to software-defined vehicles – Global report, 44% of 18-24-year-olds already pay for services today. Yet scepticism remains high when features feel like upsells rather than genuine enhancements. Our report indicates that the average customer is only willing to pay €5.70-€7.50 monthly – considerably below OEM expectations.
Consumers prioritise three types of services:
- vehicle-based (like parking assistance)
- connected (like entertainment or navigation)
- and data-driven (like insurance-linked diagnostics)
Automakers must be cautious. BMW’s controversial heated seat subscription, showed that consumers strongly resist paying for features they feel should be standard. If OEMs want to harness the opportunities of the connected car, services must enhance the driving experience in ways that feel indispensable, not opportunistic. Bundling services into intelligent, experience-driven packages – as Tesla and Mercedes are exploring – is one approach to this. Ultimately though seamless integration and clear communication around the value of digital services will be vital.
Going beyond the sale
A car’s lifecycle no longer ends at the point of sale. With vehicles on the road for up to 15 years, connectivity is key to unlocking enormous value beyond traditional maintenance schedules.
By 2030, it’s estimated that 95% of new vehicles will be connected. This gives automakers huge opportunities to build trust and revenue through over-the-air (OTA) updates, predictive maintenance and new service-based revenue streams based on real-time data.
Many leading brands are now positioning themselves as mobility technology companies. Volvo and GM, for instance, are investing heavily in software platforms that create lifetime customer engagement – not just one-time sales.
Yet consumer tolerance has limits. Most drivers prefer a single, simple subscription over juggling multiple service tiers. Complicated pricing models also risk alienating customers who value transparency and ease. Striking the right balance between innovation and simplicity will be the defining challenge for the next decade.
Safety now a dealbreaker
Digital safety features have shifted from technical afterthoughts to major brand differentiators.
Today, nearly half of consumers worry about vehicle hacking and many are uneasy about how their data is handled. According to J.D. Power’s 2024 U.S. Mobility Confidence Index Study, 64% of respondents were concerned that autonomous vehicle data collection would not be secure. In addition, 40% indicated that the strength of an auto brand’s data privacy policy compared to other brands could sway their car shopping decisions.
The automotive industry is responding. New regulatory frameworks, like UNECE’s R155 and R156, mandate minimum requirements for cybersecurity management and secure software updates. Adopted in 2024, they are a crucial step forward.
However, simply meeting regulations won’t be enough. Brands that go beyond compliance –offering proactive cybersecurity protection and transparent data usage policies – will build lasting consumer trust.
The same goes for digital safety features. While some consumers resist measures like speed limiters, 32% consider such tools essential. Clear education around benefits, such as accident reduction and insurance discounts, will help driver acceptance.
Trust is the true premium feature
Software is completely reshaping the automotive industry. To thrive, OEMs must provide digital services that deliver clear, meaningful value; connected features that enhance the full vehicle lifecycle; and safety systems that offer both protection and peace of mind.
Brands that lead in these areas will earn consumer loyalty – proving that in a software-defined world, trust is the true premium feature.
Read more in our Consumer and OEM attitudes to software-define vehicles – Global Report
