In-car lifestyle experiences
The Emerging Competitive Frontier for the Automotive Industry
The European automotive landscape is evolving at an unprecedented pace. Just a few years ago, industry conversations centered on electrification, supply chain resilience, and sustainability—alongside the growing threat of new entrants. Today, while these remain critical, a new frontier is emerging: the in-car experience.
This shift has been evident in recent automotive and consumer trade shows (e.g., CES 2025), where the transformation of in-car interactions—powered by Software-Defined Vehicles (SDVs) and AI-driven ecosystems—has captured consumer attention like never before.
According to Deloitte’s 2025 Global Automotive Consumer Survey, vehicle features now rank as the third most important purchase criterion, with brand loyalty eroding as consumers prioritize experience over brand familiarity.
The battle for differentiation is intensifying, with legacy automakers, startups, and tech giants either competing or collaborating to redefine in-car experiences.
So far, the industry’s focus has been on "functional" features—such as ADAS, biometrics, and enhanced driver assistance—which are expected to become baseline expectations.
However, true differentiation is likely to emerge from "lifestyle" features—from cloud gaming and AI-powered recommendations to immersive entertainment and personalized digital ecosystems. As cars increasingly become "third living spaces," the need for compelling, seamless, and monetizable lifestyle experiences has never been more urgent—particularly as European OEMs face the dual challenge of cost pressures and technologically advanced new entrants. The ability to curate and commercialize these experiences will not only shape consumer loyalty but also create new revenue models in an era where traditional profit streams are under strain.
Yet, many questions remain:
- How will in-car lifestyle experiences evolve by 2035?
- Which players are best positioned to capture value?
- And what strategies will ensure long-term monetization?
This publication explores these critical dynamics, hypothesizing four potential future end-states and outlining no-regret strategic moves for industry players seeking to thrive in the evolving landscape of in-car experiences. This report is part of a broader initiative by Monitor Deloitte to track and analyze key technological shifts in the automotive industry, including the transition to Software-Defined Vehicles.
Guillaume Crunelle
Olivier Perrin
