Next-Generation In-Car Technologies in Emerging Economies to Shape Demand and Sales

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, according to a new survey by Accenture. 

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.

The survey 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.

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.

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.

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.

About Accenture

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. More info at: www.accenture.com

 

 

Tags: Accenture

Category: General Update