The automotive industry is in the midst of a digital revolution, with connected services rapidly reshaping how vehicles are designed, sold, and experienced. Nowhere is this transformation more dynamic—or more nuanced—than in the key markets of Europe and Asia. Here, unique regulatory environments, consumer behaviors, and local partnerships are driving the adoption of connected vehicle services in ways that are both regionally distinct and globally influential.
Connected vehicles are no longer just about navigation or entertainment. They are sophisticated digital platforms, equipped with sensors, telematics, and software that enable a host of new services—ranging from predictive maintenance and usage-based insurance to in-car commerce and over-the-air (OTA) updates. This shift from a product-centric to a service-centric model is redefining what it means to own, use, and experience a vehicle, and is unlocking new revenue streams for OEMs, suppliers, and partners.
Europe has long been at the forefront of automotive safety and environmental regulation. A prime example is the European Union’s eCall mandate, which requires all new cars sold in the EU to be equipped with technology that automatically contacts emergency services in the event of a serious accident. This initiative not only saves lives but also accelerates the integration of telematics and connectivity as standard features in vehicles. Such regulatory frameworks have made Europe a leader in embedding connected services as a baseline expectation for both consumers and manufacturers.
European consumers are increasingly open to digital services, but they are discerning about value. While subscription-based models for features like navigation, remote start, or advanced driver assistance are gaining traction, many buyers expect core connected services to be included in the purchase price. This has prompted OEMs to experiment with bundled offerings and flexible subscription tiers, especially in the luxury segment. For example, Volvo’s Care by Volvo program offers a flat monthly fee that includes insurance, maintenance, and connected services, reflecting a shift toward convenience and transparency.
Europe’s diverse landscape—spanning urban centers, rural areas, and cross-border travel—demands robust infrastructure and collaboration. Automakers are partnering with telecom providers, charging networks, and local governments to ensure seamless connectivity and support for electric vehicles (EVs). Initiatives like the IONITY joint venture (involving BMW, Mercedes-Benz, Ford, Volkswagen, and Hyundai) are building a pan-European fast-charging network, while innovative solutions like Renault’s Plug Inn peer-to-peer charging platform address infrastructure gaps in remote regions. These partnerships are essential for delivering reliable, value-added services to European drivers.
Asia, and particularly China, is setting the pace for connected vehicle adoption. With a tech-savvy, mobile-first population and a government committed to digital infrastructure, the region is a hotbed for innovation. Chinese automakers like Geely are pioneering online sales, app-based vehicle sharing, and digital key features, while local consumers readily embrace new mobility concepts such as car subscriptions and Mobility-as-a-Service (MaaS). The integration of connected services is often more holistic, with vehicles serving as nodes in broader digital ecosystems that include payments, entertainment, and smart city applications.
Asian governments are playing an active role in shaping the connected vehicle landscape. In China, aggressive investment in 5G networks and smart city infrastructure is enabling advanced vehicle-to-everything (V2X) communication, supporting both autonomous driving and real-time data services. Regulatory support for EVs and connected platforms is also strong, with incentives for manufacturers and consumers alike. This top-down approach accelerates the deployment of new technologies and encourages cross-industry collaboration.
Asia’s automotive market is characterized by a high degree of collaboration between OEMs, technology giants, and mobility startups. Joint ventures and partnerships are common, allowing automakers to leverage expertise in cloud computing, AI, and digital payments. For example, many Chinese vehicles now feature integrated platforms that connect drivers to a suite of services—from navigation and entertainment to insurance and maintenance—often powered by local tech leaders. This platform approach enables rapid innovation and creates opportunities for new business models, such as in-car commerce and data-driven personalization.
Across both regions, the ability to harness vehicle data is central to delivering value-added services. Predictive maintenance, usage-based insurance, and personalized content are all enabled by real-time data analytics and AI. However, consumer expectations around privacy and control are also rising, especially in Europe, where data protection regulations are stringent. OEMs must balance innovation with transparency, ensuring that customers understand and consent to how their data is used.
While the opportunities are vast, regional differences present unique challenges:
The next decade will be pivotal for automotive players in Europe and Asia. Those who invest in connected services, forge strategic partnerships, and embrace data-driven innovation will be best positioned to lead in a rapidly evolving landscape. By tailoring strategies to regional nuances—whether it’s regulatory compliance in Europe or digital ecosystem integration in Asia—OEMs and partners can unlock new revenue streams, enhance customer loyalty, and shape the future of mobility.
At Publicis Sapient, our global reach and regional expertise empower automotive leaders to navigate this transformation. The future of mobility is connected, intelligent, and collaborative—and the time to act is now.