Aftermarket Vehicle Information, Service and Management Apps Gain Popularity in North America, Finds Frost & Sullivan

MOUNTAIN VIEW, Calif., Jan. 23, 2013 /PRNewswire/ -- The proliferation of connected devices, particularly smartphones and tablets, has accelerated the adoption of vehicle management apps in North America. While infotainment and convenience solutions dominate the automotive apps aftermarket, the focus is expected to shift toward vehicle service, information and management apps. This shift will ensure long-term revenue opportunities for original equipment manufacturers (OEMs), third-party developers and aftermarket participants in North America.

New analysis from Frost & Sullivan (http://www.automotive.frost.com), North American Aftermarket Automotive Apps—Strategic Analysis of Vehicle Information, Service and Management Apps, that includes a "Voice of Customer" survey, reveals that nearly 50 percent of respondents are either familiar with or have used vehicle management apps. The study also found that close to 50 percent of respondents are likely to use vehicle management and breakdown assistance apps if they were available inside the vehicle.

If you are interested in more information on this research, please send an email to Jeannette Garcia, Corporate Communications, at [email protected], with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

Vehicle owners accustomed to the connected experience demand greater integration of mobile and in-vehicle apps that will allow them to monitor their vehicles, receive on-the-go services, and purchase parts and accessories. This increasing demand enhances the prospects of the North American automotive apps aftermarket.

"The advancement of remote diagnostic and prognostics capabilities will be a turning point for the aftermarket vehicle management apps," said Frost & Sullivan Industry Analyst Kumar Saha. "As vehicle owners show greater willingness to invest in apps with effective breakdown assistance and repair or maintenance tracking, revenue generation will increase."

Several OEMs are looking to offer more comprehensive features along with their basic products through either a subscription or a 'freemium' model, in which they gain consumer appeal and then charge a fee.

However, monetization of vehicle management apps continues to be a challenge. Aftermarket participants and dealerships primarily use apps as value added features in their overall e-commerce strategies, limiting opportunities for direct revenues.

While independent third-parties earn the highest revenues through lead generation, advertising, and listing fee models, OEMs and aftermarket participants need to introduce app-enabled remote diagnostics and prognostics capabilities to ensure revenue generation and remain competitive.

"Vehicle management apps must include advanced features, such as real-time vehicle monitoring, remote repair and tracking capabilities to attract payments from vehicle owners," concluded Saha. "Distributors and retailers need to find the right industry partners to introduce these capabilities and generate a new revenue stream."

North American Aftermarket Automotive Apps—Strategic Analysis of Vehicle Information, Service and Management Apps is part of the Automotive & Transportation Growth Partnership Services program, which also includes research in the following markets: Strategic Analysis of the North American and European Tire Pressure Monitoring System Aftermarket, U.S. Generation "Y":  Beliefs and Attitudes Towards Environment and Personal Mobility Needs and Vehicle Preferences, Strategic Analysis of the Impact of Smartphones and Apps on the European and North American Infotainment Market, Business Models and Opportunities in the North American Traditional and Peer-to-Peer Carsharing Market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

• The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
• The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us:     Start the discussion

Join Us:           Join our community

Subscribe:       Newsletter on "the next big thing"

Register:         Gain access to visionary innovation

North American Aftermarket Automotive Apps—Strategic Analysis of Vehicle Information, Service and Management Apps
NB13-18

Contact:
Jeannette Garcia
Corporate Communications – North America
P: 210.477.8427
E: [email protected]

SOURCE Frost & Sullivan

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED