Safety and Security: The Real Game-Changers in Connected Vehicles

Guest Authored By: Jazz Hampton, Chris Spanos

In the midst of rapid digitalization and rising connectivity, the automotive industry stands at a crucial juncture. Valued at $86 billion in 2021, the global connected vehicle market is anticipated to escalate to a staggering $300 billion by 2030, reflecting a robust CAGR of 17% in the coming years. In 2021 alone, there were approximately 84 million connected cars navigating U.S. roads, a number expected to balloon to over 305 million by 2035, solidifying the U.S. as the predominant market for connected vehicles.

This meteoric expansion compels us to critically analyze and imaginatively reshape the services that this technology can offer. With an astounding 91% of new vehicles sold in the U.S. in 2021 being connected, we find ourselves in the midst of an automotive transformation. This transition, while challenging, presents a wealth of opportunities for drivers, industry innovators, investors, and policymakers alike.

To shed light on this significant paradigm shift, we—the contributors to this discussion—bring a wealth of experience from the realm of mobility services.

I am Jazz Hampton, co-founder and CEO of TurnSignl, an application designed to connect drivers with attorneys during crucial roadside incidents, offering real-time support and legal advice. Joining me is Chris Spanos, co-founder and former CEO of Urgently Roadside Assistance, a game-changer in the digital roadside experience. Our collective mission is to explore the future of connected services in the automotive industry and their transformative potential.

Connected vehicles are growing beyond entertainment.

The image of connected vehicles often evokes thoughts of entertainment—a vibrant playground for app developers and content creators. But should we question whether the allure of infotainment is overshadowing other equally, if not more, impactful areas of growth? We assert that the true potential of connected vehicles lies beyond entertainment—it's rooted in safety and security services.

The same global connected cars market, set to reach $300 billion by 2030, offers diverse services including driver assistance, safety, entertainment, well-being, vehicle management, and mobility management. The safety segment, the highest contributor to the market and expected to grow at a CAGR of 17.8% during the forecast period, signals an industry-wide shift towards enhanced road safety. Therefore, while infotainment offers an attractive value proposition, we contend that safety and security services harbor an even greater opportunity.

Emphasizing these services is pivotal to unlocking the vast potential of the connected vehicle industry.

Let's explore the business case for connected vehicle safety services, which is unquestionably compelling. Such offerings generate attractive recurring revenue streams for automakers, increase customer retention and satisfaction, and provide substantial data monetization potential. A study by McKinsey reveals that on a per-vehicle level, connectivity could deliver up to $310 in revenue per year, on average, in 2030. Given the clear consumer demand, automakers that lead the pack with distinctive safety offerings have the capacity to charge premiums and still witness mass adoption.

The potential to form partnerships with insurers further widens revenue opportunities. Additionally, the data gathered from connected safety features facilitates preventative maintenance, reduces warranty costs, and paves the way for personalized insurance models. Amid an automotive industry grappling with plateauing car sales, emerging mobility competitors, and evolving consumer habits, connected safety serves as a crucial pathway for growth.

The market potential is simply too substantial for OEMs to overlook in their product roadmaps and go-to-market strategies.

Leaders are making the shift.

There are already trailblazers in the industry demonstrating the potential of connected safety and security offerings. Prominent players such as OnStar, owned by General Motors (GM), have managed to harness the power of connectivity for safety. OnStar has garnered substantial customer loyalty and furnished GM with consistent recurring revenue through in-vehicle services like automatic crash response, roadside assistance, stolen vehicle assistance, and remote diagnostics. This strategy has resulted in invaluable brand loyalty and steady revenue for GM.

Looking forward, home security companies are identifying opportunities to extend into the vehicle domain. Notably, ADT has formed a partnership with Ford. By integrating the home and vehicle security ecosystems, these companies can offer superior peace of mind and differentiated services to customers seeking comprehensive protection. The success of OnStar and the interest from home security leaders underscore the tremendous consumer demand for connected safety solutions. This presents a ripe opportunity for collaborations and innovation as automakers strategize to capture market share by distinguishing themselves through safety services.

Backed by the data and the clear business case, companies like TurnSignl are stepping in to address the challenges of roadside safety.

On-demand legal guidance ensures driver safety.

TurnSignl emerged out of a necessity and an unwavering commitment to driver safety. Our platform connects drivers with attorneys in real time during key roadside incidents, such as when a driver is pulled over or involved in an auto accident. Since our Minnesota launch in 2021, we have expanded our reach, making the platform accessible nationwide. Our mission is clear: to de-escalate roadside interactions, protect drivers' rights, and ensure everyone involved - drivers, passengers, and law enforcement officers - returns home safely.

We actively reach out to law enforcement agencies across the country, educating officers on the advantages of drivers using TurnSignl and how it contributes to safer roadside interactions. When officers see a TurnSignl bumper sticker, they can feel assured that it will be one of the safest interactions they have that day.

Today, thousands of users nationwide appreciate and share the value that TurnSignl brings. This sentiment resonates deeply with us, the co-founders of TurnSignl. All of us were born and raised in Minnesota. Two of us, Andre Creighton and Mychal Frelix, had grown up with Philando Castile's family in St. Paul. Both completed their MBAs before deciding to co-found TurnSignl. When they presented the idea to me, I did not hesitate. I resigned from my corporate law job to join the team - the memory of the recent tragic loss of George Floyd, just a few miles from my home, was a potent motivator.

As a co-founder, I bring to TurnSignl my unique background as a trucking litigator, former public defender, husband, and Black parent. Recognizing the need for a comprehensive solution that ensures safety and security for all on the road, I have no doubts about our ability to provide just that. We are not just creating a product but fostering a community built on trust, safety, and a shared commitment to positive change.

The future of roadside interactions is digitally connected.

Under the leadership of Chris Spanos, Urgently has successfully disrupted the roadside assistance market, emerging as the leading digitally connected roadside assistance platform in North America. With over 50 customer partners and a network of 80,000+ connected service professionals across the region, Urgently exemplifies the positive impact and potential of digitally connected safety and assistance services.

Since its inception in 2013, Urgently has scaled to over $185 million in annual revenue in 2022, securing industry investment and service partnerships with leading brands such as BMW and Jaguar Land Rover, among others, demonstrating that OEMs and their customers value and benefit from digitally connected safety and assistance services.

The U.S. Transportation Department recently awarded $94.8 million to 59 projects aimed at boosting road safety and implementing advanced technology in transportation, indicating a clear commitment by policymakers to enhancing safety and efficiency on our roads. This focus aligns perfectly with our vision for connected vehicles.

We firmly believe that connected vehicles offer a robust platform to enhance the safety and security of all road users. While infotainment certainly holds value, we must not lose sight of the higher priority and greater opportunity: safety and security services that not only bring peace of mind to drivers but also boost revenue for automakers.

We invite all stakeholders, including policymakers and industry leaders, to join this critical conversation on shaping the future of connected vehicles. Together, we can take actionable steps to steer this revolution towards a safer, more secure driving experience for the benefit of all stakeholders.