In today’s world, everything is increasingly connected. Smartphones connect us to the rest of the world like never before. Our doorbells, TVs, and even water kettles are “smart” and can connect to the internet. Our voice assistants turn on the lights and give us the latest news update every morning.
It’s no surprise that more cars are becoming connected too.
Today, connected car innovation is driven by consumer demand for convenience, safety, and efficiency. A 2024 survey by Salesforce revealed that 65% of drivers were initially not familiar with the term ‘connected car.’ But when these drivers were made aware of the term and its meaning, they said connected car features were just as important as a car’s brand.
So, while you might have heard about connected vehicles, it can be challenging to grasp the idea of connected cars even if you’re familiar with some of the capabilities and applications that use technology today. In fact, many drivers are actively using these capabilities without even realizing that it's because of connected car technology.
This blog post has all the answers for you.
What is a connected car?
A connected car is equipped with embedded telematics, a technology that allows it to connect to the internet. Like a smartphone, a connected vehicle has a 4G or 5G cellular modem built into it that allows it to share information with other devices inside and outside the car. 9 out of 10 cars manufactured today are considered connected cars because they’re shipped with built-in connectivity. Given these developments, we’re on track to see 95% of all vehicles on the road be connected cars by 2030.
Over the past decade, connected cars have evolved from simple integrations with GPS navigation systems and infotainment capabilities to sophisticated data-sharing that enables preventive alerts and proactive communication, advanced diagnostics, and enhanced safety features.
The most popular connected car features include in-vehicle capabilities like integrations with Apple CarPay or Android Auto, driver assist features, wi-fi, over-the-air software updates, emergency services, and on-demand functionalities that can be accessed through an automaker’s connected services application.
But that’s not all.
These are also the out-of-car capabilities that include software applications drivers use to optimize their driving experience beyond the car.
What are connected car applications?
Connected car applications use the data generated by vehicle connectivity. These apps aren’t necessarily included in an automaker’s connected services subscription, but they still provide immense value to drivers and businesses because of their user-centric and purpose-built design. These apps are developed by businesses specializing in solutions for a particular use case or industry, like ride-sharing, energy management, auto insurance, or auto repair and maintenance.
In our 2023 State of Connected Car Apps report, 56% of respondents had used a mobile or web-based application to get additional vehicle services. Echoing the findings in the Salesforce research mentioned earlier, we also discovered a tight correlation between connected car capabilities and brand, with 51% of drivers saying they would consider switching to a different car brand or model if that meant access to a larger ecosystem of connected car applications and services.
8 apps that use connected car technology
Do drivers really use connected car applications?
The answer is yes! Every single day, we see drivers connecting their vehicles to applications that mobility businesses build with the Smartcar integration.
Here are 8 apps that use connected car technology to collect driver consent and retrieve vehicle data to add value to everyday consumers:
Uber
The problem: The last thing any Uber passenger wants is to book a ride only to find themselves running 30 minutes late to a meeting or a trip to the airport because the EV they’re in runs low on battery. Occurrences like this hinder the reliability of rideshare for consumers, reduce income potential for drivers who are trying to make a living, and can even diminish overall trust in EVs as a carbon-efficient vehicle option.
The solution: Connected car technology helps Uber get visibility into EV battery ranges of EVs on their platform to prevent Uber drivers from accepting trips that require them to stop halfway to find a charger. It also takes the responsibility off of drivers to make this assessment for every single ride request. Accurate and automated ride assignments based on real-time EV battery range help Uber drivers eliminate range anxiety, take on more trips without interruptions and boost star ratings and tips from customers.
Turo
The problem: Turo hosts who listed more than one car on the platform spent a lot of their time meeting guests to exchange car keys before and after each trip. These hosts would have multiple trips booked on a given day, making it challenging to coordinate in-person check-in and check-out times with every guest. With many hosts using Turo as a primary income source, this challenge makes it extremely difficult to manage operations effectively for their small fleet and keep passengers happy.
It can be a logistical nightmare.
— Liz Nunley, Senior Product Manager at Turo.
“Imagine you have several trips starting and ending every day. Or you have a guest arriving late from an international flight. Or you are out of town during the start or end of a trip. All these cases require a lot of effort from our hosts to make sure they can physically meet their guest.” says Liz Nunley, Senior Product Manager at Turo.
The solution: Turo uses connected car technology to enable remote lock and unlock capabilities so hosts can securely share digital car keys with guests. This allows guests to access rented cars on their own without a host present for check-in and check-out.
CAFU
The problem: Range anxiety is one of the biggest concerns of EV drivers and potential buyers, especially in areas where the accessibility of public or even home EV charging is limited. CAFU adds an additional infrastructure layer on top of public charging networks with on-demand EV charging. These chargers are delivered directly to drivers in residential neighborhoods, public parking lots, and community events, but it does require visibility into an EV’s battery data for reliable service.
The solution: With connected car technology, EV owners can easily use the CAFU app to order a charger to their vehicle’s location, view charging progress, schedule charging sessions, and more. The app needs insight into an EV’s location, state of charge, and charging to deliver the most convenient and reliable service delivery for drivers. Without vehicle connectivity, drivers would have to estimate charging completion times and forego any scheduled charging capabilities that are triggered when their EV battery drops below a certain threshold.
Paydrive
The problem: Paydrive was started to solve the frustration drivers had with unfair auto insurance premiums that had little to do with their actual risk. When calculating insurance rates, traditional insurers tend to focus on factors like a policyholder’s age, place of residence, and car model instead of monthly mileage and driving behavior. These calculation factors often cause drivers to pay more than they drive. According to a survey by JD Power, nearly one-third of auto insurance customers in the US saw a rate increase in the past year. These hiked prices make pay-per-mile products more enticing.
The solution: Despite many insurers introducing usage-based insurance into their product suite, only 38% of customers said that the information collected by UBI technologies was consistently accurate. Paydrive uses connected car technology to automatically retrieve and verify miles driven without any hardware installations or inaccurate software telematics. Paydrive uses vehicle connectivity to periodically check each vehicle’s location. Then depending on the type of roads a policyholder most frequently drives on, Paydrive will then adjust their pricing to reflect the corresponding accident risk.
Caremiles
The problem: Many drivers consider purchasing an EV because of its sustainability impact (on top of many other things, of course!) But the average driver is still largely unaware of how EVs actually make a dent in transportation emissions. In fact, some existing EV drivers may hesitate when asked to quantify the impact their vehicle leaves on the climate. This gap, if not addressed, would only fuel further misconceptions about EVs, negatively influence EV adoption, and hinder overall progress toward transportation decarbonization.
The solution: Caremiles uses connected car technology to help drivers calculate the carbon footprint of their EV trips and directly mitigate their carbon impact by planting trees. The app gets this carbon footprint value by retrieving an EV’s VIN and mileage. Based on the vehicle’s fuel efficiency and the number of miles driven, Caremiles then calculates the number of trees that a driver can plant to offset carbon emissions produced when driving their EV. Drivers can see their carbon footprint and plant tries directly through the Caremiles app.
Bumper
The problem: The average cost of a vehicle in the US is over $10,000 annually, with monthly payments for new vehicles hitting an all-time high in 2023. Bumper helps vehicle owners spend less money on unexpected maintenance. With the price of car parts increasing by almost 15% in the past two years, proactive maintenance and preventive auto care are even more top of mind for vehicle owners.
The solution: Bumper uses connected car technology to give drivers a vehicle data dashboard to help them stay on top of maintenance schedules, avoid costly breakdowns, and preserve the value of their vehicle. Vehicle connectivity allows Bumper to predict a vehicle’s next tire, brake, and oil change before then, pushing these as proactive alerts that drivers can act on before a vehicle issue arises.
Podero
The problem: Energy costs for end users can be high if it doesn’t account for price fluctuations or usesv locally generated power like those from photovoltaic (PV) systems — also known as solar power systems. Podero helps utilities better maximize market volatility and deliver the best tariffs for end users.
The solution: Podero uses connected car technology to integrate with a utility’s fleet of consumer EVs. These direct integrations give utilities accurate visibility into the charging behavior of energy consumers (like their charging status, when they charge, or how much energy they consume during charging) so they can better understand when to participate in energy markets and maximize savings for end-users by taking advantage of times when energy is cheaper.
Autoscope Labs
The problem: According to the Council On Criminal Justice, auto thefts increased by 59% between 2019 and 2022. In 2023, the New York City mayor announced plans to crack down on auto thefts, especially viral social media videos that resulted in more thefts of certain Kia and Hyundai. Auto theft has a significant impact on victims and the economy. Stolen cars cost victims time, money, and the freedom to move. It also increases insurance premiums for everybody and enables perpetrators to use stolen vehicles to commit other crimes.
The solution: Autoscope Labs uses connected car technology to help auto theft victims track stolen vehicles by allowing them to log in to their connected services account and provide consent to share their location data with authorities to find the stolen car. Once the car has been recovered, victims can then explicitly revoke data-sharing permissions from the app. This emphasis is consent is especially important after recent investigations by the FTC on several automakers for not informing customers before turning over location data to government agencies and authorities.
The connected car market is growing — but there are challenges.
Every year, there are more and more connected cars on the road both in the U.S. and globally. In the United States, almost 99% of all passenger vehicles sold today are connected.
Research by S&P Global Mobility also shows that by 2025, 350 million vehicles on the road globally will support over-the-air update capabilities, while 25% of new vehicles will have built-in 5G connectivity.
The global connected car market size reached $84.9 billion in 2023 and is expected to triple in size in the next decade. But automakers face challenges in meeting expected profit targets from connected car data. News outlets reported this past July that the total revenue currently generated by connected services and paid updates comes up to about $6 billion — a long way away from initial revenue projects of $200 billion.
One of the key causes of this pushback is around the sale of consumer data. A recent survey found that 96% of surveyed drivers want to own any and all data generated from their car. Mobility data is sensitive and drivers echo this sentiment by expressing discomfort with the idea of their vehicle data being collected without their knowledge.
A few things need to be true for connected services to provide value to consumers and entice drivers to pay for a connected services subscription:
- Consumers have data transparency: Drivers are in the know of what data points are collected from their vehicle and for what purpose.
- Consumers choose what value they get from their data: Drivers can choose the apps and services they want to use and provide explicit consent to sharing data with those solutions.
- Consumers pay for a premium subscription because they get to maximize that value: Drivers are more open to pay for a premium service because it unlocks access to their favorite services as opposed to features they don’t use.
How do apps access connected car data?
So, how do you know if your car is connected and can share connected car data with applications?
The backbone of connected car technology lies in vehicle telematics powered by your automaker’s connected services.
If you have a connected vehicle, your car manufacturer will offer you access to their connected services app. A connected services app is a mobile app that allows you to locate and unlock your vehicle from your phone, preheat the battery, and more. Each car brand offers its own connected services app. For example, Ford’s app is called FordPass, Chevrolet’s is called myChevrolet, and Jeep’s is called Uconnect.
Even if you don’t have your car brand’s app downloaded on your phone, your vehicle might still be connected. Head over to connectyourcar.com for a step-by-step guide to determine whether your car is eligible and set up your connected car account.
Ten years ago, automotive data marketplaces dominated the scene by accessing and selling aggregated and anonymized connected car data. But this data, largely obtained without consumer consent, simply will not meet regulatory standards and consumer demands today.
A connected car platform like Smartcar empowers application developers with APIs and SDKs that access vehicle data upon receiving consumer consent.
Consent management requires drivers to provide explicit permissions to applications before their data is used for any purpose. It also ensures that drivers can clearly see what connected car data they’re sharing, what service or application has access to this data, and how the data will be used. Here’s what Smartcar’s consent management solution looks like:
Are connected cars a security risk?
As with any technology that involves data sharing, connected car security concerns are top of mind for consumers.
Challenges in communicating transparently about vehicle data collection with drivers have resulted in severe unintended consequences for consumers, like involvement in data breaches or higher insurance rates caused by inaccurate data collection and risk assessments.
To address these concerns, consent management is key to ensuring users have control over their data and how it's shared. Consent management allows drivers to choose the value they get from sharing data with their favorite connected car apps and services, which helps mitigate potential risks associated with connected car data being used for unintended purposes.
Automakers and connected car applications need a neutral platform to help them effectively facilitate consent management and avoid connected car security risks through the following measures:
- Industry-standard authorization protocol (like OAuth 2.0) which establishes requirements for granting access to user data on another platform.
- API tokens management systems that enable secure data transfers without drivers having to share their connected services login information with another party.
- A permissions screen that clearly defines the specific data points for specific purposes — not a blanket "agree to all" option or text buried within pages of terms and conditions.
- Easy opt-out for users to withdraw consent at any given time.
Is my car connected?
Head over to connectyourcar.com for a step-by-step guide to determine whether your car is eligible and set up your connected car account. If your car brand is not included on connectyoucar.com, check your car brand’s website or call them to ask whether your car is eligible.
What should mobility businesses look for in a connected car platform?
For businesses to securely and effectively use connected car data, connected car solutions like Smartcar can be a big factor in helping accelerate time-to-market. Here are some key features connected car apps should look for in a connected car platform:
- Standardized integrations: Automaker APIs return a lot of data, but not all of it will be relevant to your product. Apps need standardized outputs to ensure integrations are stable and predictable for data collection and event-based action to happen at scale. Smartcar’s connected car platform takes data standardization off the plate of app developers. Our customers can work with comprehensive SDKs and documentation to incorporate our API into existing app infrastructures and streamline integrations across 40+ brands in North America and Europe.
- Consent management: A consent management system ensures that users have control over their data is crucial for privacy and trust. Building this robust system also requires developer resources allocated toward efforts like creating permission management systems for vehicle manufacturers' API tokens and developing the UI for authentication routes. Smartcar’s user consent flow, Smartcar Connect, is pre-built for developers and also supports all our compatible brands.
- API management: Pre-built connected car APIs alone aren’t enough to ensure smooth data sharing. Developers need tools to simplify the process of configuring vehicle onboarding flows, debugging API errors, monitoring vehicle connections, and removing dormant vehicles. Developers use the Smartcar dashboard today to collaborate on their integrations with stakeholders and act quickly on integration issues to increase user conversion rates.
Here’s a full checklist that connected car apps can use to evaluate connected car solutions:
