Global survey identifies preferences among new vehicle
intenders
According to IHS Automotive forecasts, 55 percent of annual
global new vehicle sales in 2020 will be vehicles that are
connected – and at that time, nearly half of the global fleet of
vehicles in operation will be connected(1). Findings from a new IHS
Automotive global consumer survey, Connected Cars, indicate that
new advanced technologies and increased connectivity are driving
consumer preferences as they consider new vehicles.
More than 4,000 vehicle owners intending to purchase a new
vehicle within the next 36 months were surveyed, representing four
key automotive markets – the U.S., China, Germany and the United
Kingdom. This is the fourth annual survey of its kind from IHS
Automotive, part of IHS Markit (Nasdaq: INFO), a world leader in
critical information, analytics and solutions.
Through the survey, IHS Automotive analysts sought to understand
which services are must-haves for consumers intending on purchasing
a new vehicle for personal use in the next three years, as well as
gain an understanding on the propensity of consumers who would be
willing to pay for these advanced technologies – and assess how
much they would be willing to spend. Manufacturers and technology
suppliers can use these findings to help address market needs as
they develop new solutions for the global marketplace.
ADAS Leads Consumer Preferences
While ADAS systems are most desirable among global survey
respondents, consumers do not want to pay for these advancements.
Traditionally packaged within vehicles as part of optional features
like leather seats and high-end infotainment systems, consumers
expect advanced safety systems to be included in new vehicles at no
charge – since electronic stability control systems and pre-charged
brakes have become standard equipment on a global scale.
However, of the global audience, U.S. consumers are most willing
to pay for ADAS features, indicating they would be willing to spend
between $427 and $505 at the time of vehicle purchase, depending on
the feature. This is in line with current market prices. Consumers
in other regions are less willing to pay market prices for these
technologies in their next vehicle.
Software Updates Worth Paying for, Consumers say
74 percent of consumers who currently own a vehicle with an
infotainment system are willing to pay for software updates that
improve or add functionality to their vehicle, and the response was
universally global. In the US, 89 percent of millennials surveyed
indicated they would pay for a software update – and more than 90
percent of millennials in China agreed they would be willing to
pay.
Navigation Apps Most Popular for In-Car Use of
Smartphones
When using smartphones in vehicles, the most often used apps by
consumers while in their vehicle were those intended for
navigation, as indicated by 52 percent of respondents globally.
Apps for weather were second, with 41 percent of respondents, and
37 percent of consumers reported using both music and news apps
while in their vehicles.
Not surprisingly, these features are the most popular for
embedded displays in audio and navigation systems. Interestingly,
podcasting apps registered very low among the audience surveyed,
despite a recent resurgence in popularity.
Navigation apps are particularly popular in China with 56
percent of respondents using this, compared to respondents in
Germany (55 percent) and in the US (54 percent). In China, the
breakneck construction of new roads and highways likely makes
drivers more dependent on navigation apps. China also diverged from
the other regional respondents by being more likely to use music
apps (43 percent), social networking (37 percent) and driver’s aids
(30 percent) in the car when compared to average.
However, communications apps are much more popular in Germany
(33 percent), China (24 percent) and the UK (20 percent) when
compared to the US (14 percent).
Autonomy Preferences Vary; Millennials are Onboard
Nearly one third of survey respondents in all age categories
indicated they would ride in a self-driving vehicle and purchase
one. An additional 25 percent suggested that while they would
indeed ride in one, they would not purchase one.
However, millennials are excited about autonomy – when analyzing
responses from millennials, more than half are ready to be driven
in one and would purchase one; while nearly 75 percent are
comfortable with artificial intelligence driving the vehicle.
Recent IHS Automotive forecasts indicate 21 million vehicles with
some form of autonomy will be sold in 2035 – and with substantial
growth between now and then, it's possible millennials could make
up a large share of the initial customer base for these advanced
vehicles.
Footnotes:
(1)
Connected vehicles include those with a
combination of the following technologies: Advanced driver
assistance systems (ADAS), smartphone integration, telematics,
infotainment, remote vehicle controls, Wi-Fi, and autonomy.
(2)
Additional details from this survey will
be released in the coming weeks.
About IHS Markit
(www.ihsmarkit.com)
IHS Markit (Nasdaq: INFO) is a world leader in critical
information, analytics and solutions for the major industries and
markets that drive economies worldwide. The company delivers
next-generation information, analytics and solutions to customers
in business, finance and government, improving their operational
efficiency and providing deep insights that lead to well-informed,
confident decisions. IHS Markit has more than 50,000 key business
and government customers, including 80 percent of the Fortune
Global 500 and the world’s leading financial institutions.
Headquartered in London, IHS Markit is committed to sustainable,
profitable growth.
IHS Markit is a registered trademark of IHS Markit Ltd. All
other company and product names may be trademarks of their
respective owners © 2016 IHS Markit Ltd. All rights reserved.
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IHS MarkitMichelle Culver, +1
248-728-7496michelle.culver@ihsmarkit.comorPress Team, +1
303-305-8021press@ihs.com
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