Business Wire

Cubic³ Research Finds Automotive OEMs View Connectivity as Crucial for Security as Half of Consumers Worry Their Car Can Be Hacked

Share

Research from Cubic³, a global leader in software-defined vehicle (SDV) solutions, emphasises the opportunities and challenges facing automotive OEMs as they persuade drivers to buy and subscribe to in-vehicle digital services, such as predictive maintenance, safety features and autonomous driving.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250429601913/en/

Boston Consulting Group forecasts the software-defined vehicle (SDV) market will create over $650 billion value potential by 2030. The survey of 8,000 consumers (equally split between the US, UK, Germany and Japan) and 60 global OEM executives finds that the challenge for OEMs is how to persuade and prove to drivers the benefits of paying for digital services, which constitute an integral part of SDVs and thereby turning this forecast into reality.

Perceptions of Paying for Digital Services

The research shows current consumer willingness to pay for in-car digital subscriptions is likely to increase. 1 in 4 (25%) consumers have paid for digital services for their vehicles, almost doubling (44%) for those in the 18-24 age range. Only 1 in 5 consumers globally said they wouldn’t be willing to pay anything in monthly subscriptions.

Automakers estimate drivers are willing to pay $11 a month for digital services, while drivers say it’s $7.70 – a 30% difference. However, in countries where car usage is higher, the willingness to pay increases. For example, American respondents report they are willing to pay the most at $8.52 a month.

The survey grouped digital services into three categories to reveal consumer willingness to pay for each group. Nearly half (51%) of consumers are willing to pay for ‘vehicle-based services’, such as autonomous driving. Globally 40% of consumers are willing to pay for ‘connected services,’ such as video and music streaming, and 39% are willing to pay for ‘data services,’ such as predictive maintenance.

OEMs need to both monetise digital services and turn them into recurring revenue streams. Automakers think predictive maintenance, enhanced safety features, and autonomous driving are most likely to contribute the most to recurring revenue.

“Until recently, most consumers viewed buying a car as a ‘one-and-done’ affair. Although the concept of paying for in-car digital services is relatively new, we are already seeing significant adoption from consumers,”says David Kelly, Chief Corporate Officer, Cubic³. “It will take time for OEMs to persuade the public of the value of digital services, but it is encouraging to see younger drivers – so called digital natives – happy to pay for these services."

OEMs (Mostly) Share Driver Concerns Over Cybersecurity and Data Privacy

Consumers are concerned about industry practices around data, with half (Global: 48%) reporting they worry their car could be hacked. Fortunately, OEMs hold automotive cybersecurity in high regard. 86% report that cybersecurity of their digital services is important and the same amount say that connectivity is important for protecting vehicles throughout the vehicle’s whole lifecycle.

OEMs are closely monitoring potential targets by hackers, such as interfaces and APIs, digital sims, infotainment systems and telematics.

49% of UK consumers do not think OEMs should be able to sell driver data to third parties as an additional revenue stream, compared to 44% globally. This is compared to 26% who think it’s fine and 20% (Global: 24%) who are ambivalent about it. However, fewer than one in five (18%) OEMs are currently selling data on. Japanese consumers are the least likely to disapprove of selling data on with 26% saying so. Americans are the most likely to disapprove, with 50% saying it should not be allowed.

Safety Features and Speed Limiting Technology

OEMs must navigate nuanced consumer sentiment on issues of safety regulation, but consumers broadly support safety features that ensure vehicle longevity and affordability. 49% of respondents would seek repair services within a week of noticing a warning light. The mean response was 1.5 weeks, with 19% saying they’d seek service within 2-4 weeks. In fact, 67% report they take their car in for necessary repairs as soon as possible when receiving a recall notice.

Ultimately, this highlights the industry opportunity for over-the-air (“OTA”) updates, to revolutionise consumer satisfaction, safety, and convenience by allowing automakers to address select performance needs without requiring physical vehicle inspections.

A third (33%) of OEMs indicated that they plan to implement speed limiting and anti-distraction technology in the next 3 years, including in countries, like the United States, where legislation does not yet require it. Although half (55%) of US drivers favour safety features like these being introduced as standard in new vehicles, a significant minority are against. In fact, if speed-limiting technology were introduced, 38% of Americans and Germans say they will buy a different car. This shows that the topic is divisive, and OEMs may face backlash from the public should they implement it.

Looking Ahead

The report showcases a nuanced, yet optimistic future for OEMs navigating a rapidly changing automotive landscape. The willingness to pay for digital services is increasing, particularly given the new generation of drivers that are digital natives and accustomed to connectivity.

For more information, you can find the Consumer and OEM Attitudes to Software-Defined Vehicles Report here.

About the Survey

Two surveys were conducted concurrently to understand and compare automotive executive and consumer attitudes towards SDVs.

  • OEM methodology: Conducted between October and December of 2024 by Sapio Research. It evaluated 60 automotive executives.
  • Consumer methodology: Conducted in September and October of 2024 by Sapio Research. It surveyed 8,000 adults aged 18+ across the UK, Germany, US and Japan.

About Cubic³

Cubic³ provides advanced connectivity solutions for software-defined vehicles (SDVs) across 200+ countries. We help automotive, agriculture and transportation OEMs navigate the complexities of connecting vehicles while ensuring compliance with global regulations. With access to over 550 mobile networks, our smart connectivity empowers OEMs to innovate, scale and unlock new opportunities, driving efficiency and growth.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250429601913/en/

Contacts

Press contacts
Fight or Flight for Cubic³
cubic@fightorflight.com
Tel: +44 330 133 0985

(c) 2024 Business Wire, Inc., All rights reserved.

Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.

Subscribe to releases from Business Wire

Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from Business Wire

Perma-Pipe International Holdings, Inc. Announces First Quarter Fiscal 2025 Financial Results13.6.2025 15:14:00 CEST | Press Release

Perma-Pipe International Holdings, Inc. (NASDAQ: PPIH) announced today financial results for the first quarter ended April 30, 2025. “Sales for the first quarter were $46.7 million, resulting in an increase of $12.4 million, or 36.2%, compared to $34.3 million in the same quarter last year. Net income attributable to common stock of $5.0 million was an increase of $3.6 million, or 243%, compared to $1.4 million in the first quarter of the prior year,” noted President and CEO Saleh Sagr. Backlog currently stands at $131.1 million, a decrease of $7.0 million, compared to $138.1 million at January 31, 2025. However, the Company has experienced a significant increase in backlog of $68.0 million, or 108%, compared to $63.1 million at April 30, 2024. We feel encouraged with the level of backlog we have obtained, which remains more than double the level of reported backlog at the end of the first quarter last year,” Mr. Sagr continued. “Our first quarter results represent unprecedented perfor

Capcom’s Devil May Cry 5 Sales Top 10 Million Units!13.6.2025 15:00:00 CEST | Press Release

Capcom Co., Ltd. (TOKYO:9697) today announced that worldwide cumulative sales of Devil May Cry 5 havesurpassed 10 million units. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250613788747/en/ Devil May Cry 5 logo In Devil May Cry 5, players can enjoy thrilling, high-speed gameplay, stylish action, and beautiful graphics, depicted with intricate realism thanks to Capcom’s proprietary RE ENGINE. The title has garnered strong support from users due to its exceptional gameplay experience, leading to expanded sales as a catalog title since its release. Capcom provided an even more advanced story and action elements in the game with the addition of a new playable character, and more recently, on April 3, 2025, the company released the new Devil May Cry animated series on Netflix, in line with the company’s Single Content Multiple Usage strategy. The animated series has garnered critical acclaim from around the world, and with mor

realme Summer Party: a Major Event and an Exclusive Collaboration with TikTok13.6.2025 14:59:00 CEST | Press Release

realme, one of the world's leading smartphone brands, held a summer festival on June 6 and 7 at the foot of the Eiffel Tower with fun activities. Visitors could try their hand at ring throwing, immortalize their moments at the Photobooth van, or leave with exclusive gifts. Each participant received a voucher to exchange for a prize in the dedicated area for a successful festive experience. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250612984325/en/ Live photo from realme Summer Party and the newly launched GT 7 Dream Edition A festive event at the foot of the Eiffel Tower The event was a great success, thanks to the engagement of participants on-site and through social media. Many visitors shared photos and videos, creating a dynamic and friendly atmosphere, amplified by the realme community. An exclusive collaboration between realme and TikTok This collaboration between realme and TikTok extends beyond this event. Indee

Take It Slow: Why Ireland Is the Perfect Destination for the ‘Unrushed’ Traveller13.6.2025 14:30:00 CEST | Press Release

Tourism Ireland--In a world that’s always rushing, Ireland is extending a gentle invitation: take your time. With its winding coastal trails, soul-soothing landscapes, and deep-rooted traditions, Ireland is emerging as one of Europe’s most natural fits for slow tourism — a growing global travel trend focused on deeper, more meaningful experiences over fast-paced itineraries. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250612345730/en/ Cycling on greenway, County Waterford From misty mornings in the Burren to long afternoons along the Wild Atlantic Way, Ireland rewards those who slow down. Whether it’s connecting with local craftspeople, foraging along the coast, lingering over storytelling sessions in a pub, or staying in family-run farmhouses — the country’s charm reveals itself not in a rush, but in the details. What is ‘Slow Tourism’? Slow tourism encourages travellers to engage more fully with a destination, spending

Technology Reply earns Oracle Service Expertise in Artificial Intelligence for the Western Europe region13.6.2025 10:00:00 CEST | Press Release

Technology Reply, a company of the Reply Group specialising in the design of solutions based on Oracle technologies, has been presented with the Oracle Service Expertise in Artificial Intelligence for the Western Europe region, further consolidating its position as a key partner for AI projects on Oracle Cloud Infrastructure (OCI). This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250613439196/en/ Thanks to this certification, Technology Reply strengthens its role as a technology partner for companies seeking to enhance their enterprise applications, improve user interaction, and accelerate decision-making processes through artificial intelligence and Oracle technologies. The Service Expertise certification is in recognition of Technology Reply’s technical and design capabilities in building solutions based on OCI’s AI services, including the use of pre-trained models, chatbot development, custom model creation, and the adoptio

In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.

Visit our pressroom
World GlobeA line styled icon from Orion Icon Library.HiddenA line styled icon from Orion Icon Library.Eye