Interest in new in-car technologies in emerging economies could fuel demand: Accenture

Drivers in emerging economies could help shape future demand for sales of new in-car technologies and provide the automotive industry with a sustained revenue stream, notes an Accenture survey of drivers in 12 countries around the world.

Released Monday, the survey conducted by Coleman Parkes Research indicates 39% of drivers reported their primary consideration in choosing a new automobile is in-car technology, compared with 14% who said driving performance had the greatest influence on their choice.

This shows the continued importance of the connected vehicle to the automotive industry, notes a statement from Accenture, a global management consulting, technology services and outsourcing company.

In all, 14,195 online interviews were carried out among adults in Brazil, China, France, Germany, Indonesia, Italy, Malaysia, South Africa, South Korea, Spain, the United Kingdom and the United States. At least 1,000 interviews were done in all regions with the exception of China, where 3,000 interviews were undertaken, the statement notes. All respondents – who were asked about current use of connected vehicle technologies and expectations for future use – had a car at their disposal, and either had or were planning to buy a smartphone.

The survey covered technologies and digital services such as 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.

Accenture reports that 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, the company adds.

An average of 90% of respondents reported having an interest in some autonomous driving options – primarily those related to safety – such as lane-changing warning systems, collision-warning systems, lane-keeping systems, automatic braking systems 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,” notes the statement.

Accenture reports that social car shopping tools and crowd funding for car purchases have started to emerge, where social media is being used to customize new cars. The company 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 search out the next generation of connected vehicle services.

OEMs able to tap into customer interest in vehicle health reports and vehicle lifecycle management services could open up new revenue streams around maintenance-related digital services and engine and parts wear and tear, Accenture suggests. The survey found that 39% and 37% of surveyed drivers, respectively, expect to start using vehicle health reports or vehicle lifecycle management 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,” says Luca Mentuccia, global managing director for Accenture’s automotive practice. Vehicle manufacturers, for their part, will face the challenge of meeting the complex integration requirements of a broad array of technologies in each range of vehicles, Mentuccia adds.

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, the statement adds.

The increased use of connected vehicle technologies and digital services among consumers in mature markets and the high demand across the emerging world will “speed the development and influence the rollout of next-generation products and services by the global auto industry,” Mentuccia expects.

“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,” he says. “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.”

A selection of other survey findings, by country, include the following:

– Brazilian drivers are the most likely group to pay for services using a monthly fee and 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 20 areas of connected vehicle technologies and digital services for drivers, and in most cases, have the highest current usage of these technologies and services.

– Drivers in Germany have the biggest interest in a free basic service, paid for by advertising, compared to the other countries, and have the lowest interest in a number of the technologies that allow for maintenance-related services;

– Drivers in Malaysia have a strong interest in car parking space detection systems and fully automatic parking assist systems;

– U.K. drivers are the only drivers who still see engine performance as more important than the car’s driving performance when buying a new car, and show the lowest level of interest in real-time entertainment services and productivity services; and

– Drivers in the U.S. have the lowest interest in connected navigation services, such as real-time traffic information, and have very low interest in productivity services such as e-mail and calendar access.