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Not all advanced vehicle technologies are created equal, according to a survey, which finds that consumers prioritize safety technologies over convenience features.

After decades of investment by the automotive industry, technologies are finally in place to make self-driving cars a reality in the not-so-distant future. Many of today’s vehicles offer partial self-driving features, including lane-change warning systems, adaptive cruise control, and emergency braking systems. Emerging technologies could enable even more connectivity between cars and with the transportation infrastructure such as highways, road signs, and traffic signals. Executives from several leading automakers expect advanced self-driving technology may be available by 2021 or sooner.¹

But are U.S. consumers ready for self-driving cars? Deloitte LLP’s “Global Automotive Consumer Study” sheds light on consumers’ interest in advanced vehicle technologies and their willingness to pay for cars that incorporate them, which could help automotive CIOs educate and inform product teams on how to prioritize technology investments at their companies.

Increased Interest in Advanced Technologies

According to the survey, 67 percent of consumers strongly desire advanced vehicle technologies, up from 56 percent in a 2014 Deloitte LLP study. Forty-three percent of these consumers express interest in partial self-driving features such as automated parking assist (up from 38 percent in 2014), while 39 percent express interest in fully self-driving vehicles (up from 36 percent in 2014). Younger consumers may offer a sweet spot for automakers and technology companies, as nearly 60 percent of Gen Y and Gen Z respondents (those born after 1976) indicate strong interest in both partially and fully self-driving cars, a significantly higher percentage than all other age groups surveyed.

Consumers Value Safety Features

Consumers’ interest in advanced vehicle technologies has seemingly increased, yet the amount they are willing to pay for them has declined significantly in the past few years. According to the recent survey, consumers would pay an average of $925 extra per vehicle for various advanced vehicle technologies, down about 30 percent from $1,370 in the 2014 study. Fortunately for automakers, not all consumers are resistant to paying for advanced automotive features. Gen Y and Gen Z consumers say they are willing to pay, on average, a $1,600 premium for vehicles with advanced technologies, about $900 more than Gen Xers (born between 1965 and 1975), and $1,300 more than Baby Boomers (born between 1946 and 1964) and pre-Boomers (born before 1946). When it comes to investing in advanced vehicle technologies, automakers might consider focusing on features consumers find most valuable. Of the 32 features tested in the study, the five consumers preferred most relate to safety, including technologies that:

Recognize the presence of objects on the road and avoid collisions

Inform the driver of dangerous driving situations

Automatically block the driver from dangerous driving situations

Automatically take steps in medical emergencies

Enable remote shutdown in case of theft.

These consumers express less interest in service-enabling technologies. When asked which technologies they find least useful, they cite vehicle features that:

Automatically pay toll road, parking, and priority lane fees

Empower customers with the ability to design and personalize vehicles

Allow drivers to control automated systems in their homes

Enable ultrasmall, low-speed, self-driving vehicles for urban environments

Help manage daily activities.

Companies doubling down on in-vehicle technologies that allow occupants to better manage their daily activities or control various home-based systems may look to re-evaluate their strategies. Many consumers are already comfortable using smartphones to accomplish these tasks and see little added value in having them embedded in the vehicle’s technology. Indeed, auto executives might reconsider whether the battle between in-vehicle technology and “brought-in” technology (in the form of smartphone apps) is worth waging.

Where to Place Strategic Bets

Building a compelling value proposition is critical for OEMs looking to monetize investments in future vehicle technologies. As automotive industry companies evaluate their technology and marketing strategies in light of consumer preferences, they might consider the following:

Focusing on safety features. Even though consumers may be skeptical of fully self-driving cars, many want advanced technology features related to self-driving capabilities. Investing in these areas could increase consumers’ comfort level with advanced vehicle technologies, and delivering flawless execution could help gain consumer trust and confidence.

Tapping into the broader innovation ecosystem. Currently, many car companies follow their own proprietary strategies for developing self-driving features. This could result in high manufacturing costs difficult to sustain over the long term, particularly in a global environment characterized by hypercompetition and challenging profit margins. In addition, some government agencies are contemplating establishing standards for these technologies, which may increase costs for OEMs. Accordingly, automakers could benefit from developing alliances and investigating potential synergies with suppliers, technology providers, and perhaps fellow carmakers to reduce costs and streamline advanced R&D efforts.

Recognizing significant generational and geographic differences in consumer preferences. The research shows that consumers’ preferences vary substantially by generation and geography. This suggests the need for more detailed assessments using advanced data analytics to understand more individualized ways of serving them.

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The march toward fully self-driving vehicles is proceeding, but its path may not be straightforward and the pace may not be smooth. Current and emerging technologies can enable cars to function in ways once thought possible only in the movies, but most U.S. consumers aren’t yet ready to give up complete control of their cars. A key to faster adoption is increased consumer confidence in the safety of self-driving features. Building such confidence may take time and effort. It will likely require numerous large-scale, in-market pilots launched across multiple markets. In parallel, automakers could benefit from taking incremental steps toward self-driving cars by introducing more active safety features.

—by Craig Giffi, vice chairman and U.S. automotive industry leader, Deloitte LLP; Joe Vitale, principal, Deloitte Consulting LLP; and Gina Pingitore, managing director, Deloitte Center for Industry Insights, Deloitte Services LP