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Mark Peters : June 19th 2017 - 21:46 CET

Consumer preferences for automotive technology


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IHS MarkitSurvey on consumer preferences for automotive technology : IHS Markit published a new survey on consumer preferences in purchasing automotive technology. More than 5,000 vehicle owners intending to purchase a new car within the next 3 years were surveyed in the 2017 Automotive Connected Services and Apps Consumer Analysis, representing five key automotive markets - the United States, Canada, China, Germany and the United Kingdom. IHS Markit is headquartered in London and is one of the most important automotive industry’s leading source for market-wide insight and expertise. This is the fifth annual survey of its kind from IHS Markit and identified key attributes for consumers, providing insight into preferences, desires and future interest as new vehicle intenders return to market.
Automotive Technology Survey

Automotive technology survey
"The 2017 survey includes consumer input on 31 technologies, from a variety of viewpoints," said Colin Bird, automotive technology analyst for IHS Markit and co-author of the report. "Suppliers and automakers alike will be able to use these findings to help drive future business decisions and technology investments, while determining future product offerings."

Interestingly, creature comforts topped consumers’ interests at the top of the list of technologies those surveyed would be willing to pay for. Consumers in four regions reported the highest propensity to invest in sunroof-moonroof technology in their new vehicle, with consumers in Germany willing to spend an additional $642 USD to have their next new vehicle equipped with one. Consumers surveyed in China agreed to pay $440 USD for similar technology.

Alternatively, consumers in the United States were most likely to pay for a rear-seat entertainment system, indicating a threshold investment of an estimated $640 USD. Rear-seat entertainment ranked second for United Kingdom and China audiences, with a price point of $388 USD, but did not resonate as a top choice by consumers in any other region included in the survey.

Connected vehicles

Connected vehicles
According to IHS Markit forecasts, by 2022, significant volumes of new vehicles will be equipped with telematics (87% US; 91% German; 92% UK; 89% Canadian; and 54% of Chinese vehicles) and more than half of the global fleet of vehicles in operation will be connected.

In comparison, 32% of all respondents surveyed agreed that telematics would be a feature they would be willing to pay for in their next new vehicle, and in-car wireless internet was noted by 29%. However, when asked about cost, both of these technologies were mentioned with a much lower price point by consumers willing to pay for them and different price points that varied by region.

Important electronics

Important electronics and services
Roadside assistance, crash notification and GPS navigation systems are top of mind for consumers. More than half of all respondents indicated they already have at least one vehicle that featured an infotainment or navigation system that offered features such as roadside assistance, stolen vehicle assistance, crash notification or turn-by-turn navigation.

These features garnered the most interest for future vehicles as well, across all geographies. 32% of respondents globally indicated roadside assistance as the most important telematics feature in a new vehicle, with stolen vehicle assistance important to 28% of respondents.

Automatic crash notification and turn-by-turn navigation were both preferred by 25% of respondents. In addition, the inclusion of real-time traffic information was overwhelmingly preferred by 51% of total respondents, with dynamic routing and a desire for maps to be updated wirelessly based on current conditions preferred by 41% for routing and 36% for wireless updates respectively.

Remote vehicle control

Remote vehicle control from a smartphone
For consumers surveyed in China, however, remote vehicle control from a smartphone was the most popular feature, with 39% of respondents in the region indicating that feature was most important to them. Respondents in China represented a slightly younger demographic than in other countries, with the vast majority living in urban centers where technology was more widely accepted.

As in-vehicle technology continues its growth trajectory, so too does consumer desire to integrate their mobile apps into their vehicle. Among those surveyed, nearly all consumers who had familiarity with replicating their smartphone system onto an in-vehicle display indicated they were interested or somewhat interested in having this feature in their next new vehicle.

Screen projection solutions

Apple CarPlay and Android Auto
In addition, nearly half of all respondents indicated navigation apps as the leading use of smartphone apps in the vehicle. Weather apps followed with 40% of respondents using them in the vehicle, and 36% of respondents use music apps while in their vehicle. This creates significant opportunity for screen projection solutions, such as Apple CarPlay and Android Auto.

"Consumers expect a lot from their next vehicle," Bird said. "Their expectations are constantly evolving as well, as consumers expect development and implementation of these technologies in vehicles to be introduced as quickly as consumer electronics such as smartphones and tablets. It’s up to OEMs and suppliers to determine how to best address these challenges and ramp up business plans accordingly."




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