GM’s in-car subscriptions to generate $25 bn by 2030
General Motor’s in-car subscription services are expected to generate nearly $2 billion in revenue this year, and should reach $25 (€21.6) billion by 2030. That would put GM in the same league as Netflix or Spotify. Just over a quarter of GM’s 16 million vehicles on the road in the U.S. and Canada are owned by people who pay for subscription services.
GM’s currently support subscription services like OnStar, which provides in-vehicle security, emergency and navigation services. On average, GM customers chose a bundle of 25 subscription options out of a current total of 45. Internal research shows GM customers are prepared to spend up to $135 (€116.8) per month on subscription products and services. Other valuable products include OnStar Vehicle Insights, offering valuable fleet management data; and Maps+, a navigation tool launched in April that can be activated via the Alexa voice assistant.
GM expects in-vehicle subscriptions to grow significantly following the launch of Ultifi in 2023. Ultifi is an end-to-end software platform that will enable enhanced subscription services and over-the-air software updates. By 2030, the Detroit-based OEM expects 30 million of its vehicles in the U.S. to be connected, which translates into a market potential of $80 (€69.2) billion – of which GM hopes to capture up to $25 billion in additional revenue by selling hardware, subscriptions and insurance.