Exploring business models for software-defined vehicles: Subscription-based paradigms and their impact on automotive innovation and consumer adoption
Independent Researcher.
Research Article
World Journal of Advanced Research and Reviews, 2019, 01(02), 061–077
Article DOI: 10.30574/wjarr.2019.1.2.0004
Publication history:
Received on 15 January 2019; revised on 18 March 2019; accepted on 22 March 2019
Abstract:
The automotive industry is transforming with the advent of Software-Defined Vehicles (SDVs), which leverage advanced software to enhance driving experiences and vehicle functionality. This research explores the emerging business models associated with SDVs, particularly focusing on subscription-based paradigms. These models offer an alternative to traditional vehicle ownership, potentially reshaping consumer behavior and automotive innovation.
This study examines the implications of subscription-based business models on automotive companies and consumers through a comprehensive literature review and empirical research. It analyzes how such models facilitate continuous innovation by enabling manufacturers to seamlessly deploy software updates and new features. Furthermore, the study investigates consumer attitudes towards subscription services, identifying key factors influencing adoption and barriers preventing widespread acceptance.
The findings suggest that while subscription models can foster greater flexibility and personalization for consumers, challenges such as pricing concerns and a reluctance to depart from traditional ownership remain significant. This paper concludes with recommendations for automotive stakeholders to enhance consumer acceptance and maximize the benefits of subscription-based business models, alongside suggestions for future research in this evolving field.
Keywords:
Software-Defined Vehicles (SDVs); Subscription-Based Business Models; Automotive Innovation; Consumer Adoption; Mobility Solutions
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Copyright information:
Copyright © 2019 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0