Smartcar Report Reveals Significant Gap Between Drivers
Smartcar has released its 2025 State of Connected Car Apps report, shedding light on a growing disconnect between drivers and the connected car ecosystem. The findings highlight a paradox: while drivers express a strong interest in leveraging technology to address vehicle-related pain points, many remain unaware of the benefits and availability of vehicle connectivity solutions.
The comprehensive report, based on a survey of over 1,000 drivers across the United States and Europe, explores several critical aspects of connected vehicle technology. It assesses drivers’ familiarity with automaker-provided connected services, their most valued software features, and their willingness to share vehicle data for improved experiences. The results offer valuable insights for automakers, third-party app developers, and businesses in the mobility industry seeking to align their services with consumer needs.
Key Findings from the 2025 Smart car Report
Low Adoption of Connected Services
One of the most striking revelations is the low adoption rate of automaker-connected services. A staggering 76% of drivers are not subscribed to their automaker’s connected services, pointing to low market penetration and a perceived lack of value. This suggests a need for better awareness, education, and affordability in subscription models to encourage broader adoption.
However, among those who have engaged with connected services, the feedback is overwhelmingly positive. The report found that 67% of existing connected services users are eager for additional features and are willing to pay a premium for enhanced offerings. This indicates that once drivers experience the benefits, their willingness to invest in these technologies increases significantly.
The Rise of Third-Party Apps
Despite low adoption of automaker-provided connected services, drivers are actively using third-party applications to enhance their driving experience. The report shows that 56% of drivers rely on third-party apps for tasks such as:
- Insurance management
- Vehicle maintenance and diagnostics
- EV charging station access and payment
- Security and anti-theft monitoring
This preference for third-party solutions suggests that drivers prioritize convenience, accessibility, and cost-effectiveness when choosing digital tools for vehicle management. It also signals an opportunity for automakers to integrate with or collaborate with third-party app developers to increase engagement with connected vehicle services.
Cost Remains a Major Barrier
One of the primary reasons behind the low adoption of connected services is cost sensitivity. According to the report, 65% of respondents cite high prices as a deterrent to using automaker-connected services or related applications. Many drivers believe that these services should be included as part of their vehicle purchase or available at a lower cost to encourage broader usage.
To bridge this gap, automakers and service providers must explore alternative pricing strategies, such as:
- Tiered subscription models that allow users to choose only the features they need.
- Freemium models offering basic services for free with paid premium features.
- Bundled offerings with insurance, maintenance, or financing packages.
By addressing cost concerns and demonstrating clear value, automakers can enhance the adoption of their connectivity solutions.
Growing Openness to Vehicle Connectivity
Despite challenges such as low adoption rates and cost concerns, the report suggests growing acceptance and openness toward vehicle connectivity, particularly when transparency and trust are prioritized.
The survey indicates that 55% of drivers are willing to share vehicle data when they understand the tangible benefits, such as improved safety, cost savings, and enhanced user experience. This suggests that clear communication and education about how data is used and the advantages it offers can significantly influence drivers’ willingness to participate in connected car ecosystems.
Auto Insurance as a Leading Use Case
Among the various applications of vehicle data, auto insurance stands out as a key area where drivers see value. The report found that 43% of respondents consider vehicle data sharing for personalized insurance rates to be the most beneficial use case.
Usage-based insurance (UBI) models, which offer discounts based on driving behavior, have gained popularity in recent years. However, concerns about data privacy persist, with 22% of drivers unwilling to share their data for personalized insurance. This highlights the need for insurers and automakers to implement robust privacy safeguards and transparent data policies to reassure customers and encourage broader adoption.
Industry Implications and the Path Forward
Smartcar’s findings emphasize the necessity for stronger collaboration between automakers, mobility businesses, and technology providers to meet the evolving needs of drivers.
Sahas Katta, CEO and co-founder at Smartcar, stated, “Our findings emphasize how collaboration between automakers and mobility businesses leads to more innovation that meets driver expectations. By working together to address the pain points surfaced in this report, the automotive industry can help drivers maximize connected car technology for safer, more affordable, and sustainable mobility.”
To bridge the gap between driver expectations and available connectivity solutions, industry stakeholders must focus on:
- Enhancing Awareness and Education – Many drivers remain unaware of the full range of benefits that connected vehicle services provide. Automakers and service providers need to invest in targeted marketing and educational campaigns to improve adoption.
- Improving Affordability and Accessibility – The cost of connected services remains a significant barrier. Exploring flexible pricing models, such as pay-as-you-go services or bundled plans, can help increase adoption.
- Building Trust Through Transparency – Concerns around data privacy and security can deter drivers from sharing vehicle data. Companies must prioritize clear communication, user consent, and robust security measures to build consumer trust.
- Expanding Third-Party Integrations – Since many drivers prefer third-party apps, collaborating with external developers to provide seamless integration can enhance the usability and appeal of connected car services.
- Leveraging AI and Machine Learning – Advanced analytics and AI-powered insights can help personalize the connected car experience, making it more relevant and valuable for drivers.
