|[December 02, 2013]
Strong Interest in new In-Car Technologies by Consumers in Emerging Economies Could Influence Demand, Accelerate Rollout of Next-Generation Connected Vehicle Technologies, Accenture Research Indicates
NEW YORK --(Business Wire)--
High interest in next-generation in-car technologies among drivers in
emerging economies could help shape future demand for sales and provide
the automotive industry with a sustained revenue stream, a new survey by
Accenture (News - Alert) indicates. The survey shows that drivers are twice as likely
to choose a car based on in-vehicle technology options than its
performance, demonstrating the continued importance of the connected
vehicle to the automotive industry.
of 14,000 drivers in Brazil, China, France, Germany, Indonesia, Italy,
Malaysia, South Africa, South Korea, Spain, the UK and the United States
examined their current use of connected vehicle technologies and
expectations for future use. Technologies and digital services covered
by the survey included navigation and traffic services; a range of
autonomous driving aids; in-car services, including entertainment, work
tools and learning; safety services; black box-type monitoring of a
person's driving patterns that can help reduce insurance premiums; and a
number of passenger-related services. Thirty-nine percent of the drivers
surveyed said that their primary consideration in choosing a new
automobile is in-car technology, compared with 14 percent who said
driving performance had the greatest influence on their choice.
According to the survey, drivers in China, Brazil, Indonesia and
Malaysia expressed the strongest interest in all of the connected
vehicle technologies and digital services currently available, which are
used widely by consumers in more mature markets. Among the respondents
in emerging economies, Chinese drivers had the highest current usage and
greatest desire for future use of most of the technologies and services,
followed by drivers in Brazil, Indonesia, Malaysia and South Africa.
"Combined with the increased use of connected vehicle technologies and
digital services among consumers in mature markets, the high demand
across the emerging world will no doubt speed the development and
influence the rollout of next-generation products and services by the
global auto industry," said Luca Mentuccia, global managing director for
Accenture's Automotive practice. "This is especially significant
considering that nearly 40 percent of drivers surveyed indicated that
in-car technology is the primary factor they consider in purchasing a
While there is ongoing debate about the future and safety of driverless
cars, Accenture's research shows that, on average, 90 percent of the
survey respondents have an interest in some autonomous driving options,
primarily those related to safety. The most popular features include
lane-changing warning systems, collision-warning systems, lane-keeping
systems, automatic braking systems that prevent hitting an object and
fully automatic parking.
Accenture believes that the demand for individual aspects of autonomous
driving will encourage original equipment manufacturers (OEMs),
regulators and industry organizations to address the issues that are
currently preventing the widespread use of driverless vehicle technology.
The research uncovered strong interest among consumers in vehicle health
reports and vehicle lifecycle management services. According to
Accenture, OEMs that are able to tap into this demand could open up new
revenue streams around maintenance-related digital services and engine
and parts wear and tear. While only 13 percent of drivers surveyed said
they currently use a vehicle health report and 12 percent use vehicle
lifecycle management services, 39 percent and 37 percent, respectively,
expect to start using these services soon.
"This increasing level of demand could lead to the rise of
concierge-type digital services as drivers outsource the real-time
monitoring of engine performance to third-party service providers,
expanding the OEM after-sales revenue model," Mentuccia said. "However,
as drivers increase their demand for next-generation connected vehicle
technologies across navigation, infotainment, safety, autonomous driving
and mobile device integration, vehicle manufacturers face a challenge in
being able to meet the complex integration requirements of a broad array
of technologies in each range of vehicles. They must also look at
maximizing sales by incorporating the right technologies into the
appropriate vehicle range in each country."
Accenture believes that the ability to source data from vehicles will
enable a range of new business-to-business and business-to-consumer
digital services. For OEMs, detailed data from vehicles could help them
improve their engineering processes, reduce warranty costs and improve
their relationships with dealers by helping dealers manage parts
inventory and service.
Data sourced from vehicles could also be used to enable a portfolio of
value-added B2C services, including vehicle diagnostics, driving
dashboards and concierge services, delivered to drivers through multiple
devices: a vehicle's head unit, a driver's smartphone and/or tablet.
When examining individual country responses, the following trends
drivers show a strong interest in the majority of connected vehicle
services and also are the most influenced by technology, over engine
performance, when it comes to making a vehicle purchase. They are the
most likely group to pay for services using a monthly fee and they are
most interested in giving full social media connectivity, a specific
capability for reading and dictating emails and car-to-car
communications to passengers.
Drivers in China
show the highest interest in twenty areas of connected vehicle
technologies and digital services for drivers, more than any other
country. In most cases Chinese drivers have the highest current usage
of these technologies and services.
Drivers in France
would like passengers to have access to a driver fatigue warning
device but show a very low interest in real-time social media and
gaming infotainment services.
When asked about payment choices for connected vehicle services,
drivers in Germany
have the biggest interest in a free basic service, paid for by
advertising, compared to the other countries. They are the least
likely to use real-time news, sport and weather information. They also
have the lowest interest in a number of the technologies that allow
for maintenance-related services.
drivers have the highest interest in real-time entertainment content
such as social media and gaming, as well as productivity services such
as email and calendar content. They are also very interested in using
educational and e-learning services in the car and the most likely
group to pay for connected vehicle services through a single purchase
for a predefined period.
drivers would like to allow passengers to use a system that enables
them to stop the vehicle if the diver is incapacitated or taken ill.
Drivers in Malaysia
have a strong interest in car parking space detection systems as well
as fully automatic parking assist systems. In the event of an
emergency, respondents said they wanted a system that stops the car
and automatically sends out an emergency call.
African drivers have the highest interest in a range of safety
features, including an automatic emergency call service for their
vehicle when a crash takes place, lane changing warning systems,
fatigue warning devices and collision warning technology. They are the
current highest users of vehicle tracking services.
Korean drivers show some of the highest interest in using a
range of the digital travel services such as live traffic information
and local searches for points of interest. They are the highest
current users of 'black box' services that monitor driving to reduce
When asked about general use of connected vehicle services, Spanish
drivers are the most likely group to use them only for better driver
experience and minimizing driver distraction. They have the highest
interest in an automatic emergency call service for their vehicle and
drivers are the only drivers who still see engine performance as more
important than the car's driving performance when buying a new car.
They show the lowest level of interest in real-time entertainment
services such as social media and gaming, as well as productivity
services such as email and calendar access.
Drivers in the United
States have the lowest interest in connected navigation
services such as real-time traffic information and have very low
interest in productivity services such as email and calendar access.
With technology now the most significant criteria in vehicle buying
decisions, manufacturers are turning to digital technologies to shape
demand for the next generation of connected vehicles. Social car
shopping tools and even crowd funding for car purchases have started to
emerge, where social media is being used to customize new cars.
Accenture predicts a rapid increase in new digital strategies, digital
technologies and digital processes by OEMs as they seek to innovate,
compete and expand as their customers seek out the next generation of
connected vehicle services.
"Connected vehicle technology is rapidly becoming a key car-purchasing
criterion," Mentuccia said. "As a result, it also is dominating much of
the industry's advertising campaigns. Going forward, consumer
expectations for better technology will require that manufacturers
provide more customized, interactive websites to better aid consumers in
making car-buying decisions. Accenture
research has shown that the industry needs to consider adopting
digital innovations, such as web chat and mobile-enabled websites, to
enhance consumers' digital shopping preferences."
About the study
The survey was conducted by Coleman Parkes Research. It consisted of
14,195 online interviews amongst adults in Brazil, China, France,
Germany, Indonesia, Italy, Malaysia, South Africa, South Korea, Spain,
the UK and the United States In all regions at least 1,000 interviews
were completed with the exception of China where 3,000 interviews were
undertaken. All respondents had a car at their disposal and either had,
or were planning to buy, a smartphone.
Accenture is a global management consulting, technology services and
outsourcing company, with approximately 275,000 people serving clients
in more than 120 countries. Combining unparalleled experience,
comprehensive capabilities across all industries and business functions,
and extensive research on the world's most successful companies,
Accenture collaborates with clients to help them become high-performance
businesses and governments. The company generated net revenues of
US$28.6 billion for the fiscal year ended Aug. 31, 2013. Its home page
The Accenture Connected Vehicle Business Service provides asset-based
services and end-to-end solutions to automotive and heavy equipment
companies, and suppliers. Through the use of Accenture's proprietary
on-board and connectivity solutions, telematics assets and big data,
Accenture can design, build and run a range of technology services to
improve the customer experience and create efficiencies in areas such as
real-time predictive monitoring and maintenance. Manufacturers can
benefit from new streams of revenues generated by Accenture's
application of analytics, process improvement, program management and
integration capabilities for third-party providers.
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