Source: www.insideradio.com, December 2022

With the bulk of radio listening occurring in vehicles, and as more and more connected cars hit the road, a new report reveals that 75% of Gen Z drivers (18-25-year-olds), and 49% of drivers overall view their vehicle as a “third place” now as compared to before the COVID-19 pandemic.

For its “The Vehicle as a Third Space” study, Xperi defined a third space for survey respondents as a place outside of work and the house, a place to relax, enjoy hobbies, and escape the stresses of work – a coffee shop, library, park, or vehicle. In this definition, the first space is the home and the second space is the workplace.

A recent Edison Research Share of Ear report shows that among those 13+ who listen to audio in a vehicle, 58% of the time is spent listening through a traditional AM/FM receiver. This trend will likely carryover as broadcasters seek to have a prominent place on connected car in-dash screens.

Key takeaways from the Xperi study show that one in four respondents would like a radio in-dash experience that is more robust, immersive, visual, and informative. Additionally, 69% of drivers say advanced personalization, including music choices, is important in enhancing the third space experience. Drivers want increased safety and peace of mind (82%) design choices, followed by comfort (80%), and audio/radio entertainment (79%).

Using their vehicle as a third space is the top reason drivers say their personal vehicle is more important today (52%), followed by discomfort with public transportation or ride sharing (48%), and the vehicle’s ability to offer a place of refuge (41%) during challenging times. Sixty-seven percent of respondents are interested in vehicle sensors that can assess health and illness, while 91% of Gen Z and Millennial drivers are interested in responsive mood-sensing technologies such as “a sound bath” or music activated by a sensed state of mind. Additionally, film/TV streaming, lighting, aromatherapy, and interactive video games are top three features of interest for at least one in four respondents.

“Automotive has conquered the vehicle exterior, but the next evolution is all about solving the vehicle interior, especially its role as a third space,” Xperi Senior VP/GM Connected Car Jeff Jury said in a release. “Consumers, especially younger drivers, are moving from viewing their vehicle as simple transportation toward seeing it as a space where they can relax and escape. This demands technology that can merge safety with a vehicle cockpit that meets their entertainment, comfort, personalization, and wellness needs. It is the future of the connected car industry.”

Xperi recently separated its product and IP businesses, with the product division retaining the company name and consisting of HD Radio, Music Metadata, DTS AutoStage, and DTS AutoSense products – collectively known as Connected Car. Its Collective Car division accounted for 17% of the company’s Q3 revenue, or $20 million.