Technology-Headlines

by George Heymann

Conflicting demands ‘create huge opportunities for automotive technology providers’

By Maria Santiago

Technology Market

Application of new technology in vehicles has become a critical success factor for automakers

As state and local governments are enacting distracted-driver laws, consumers are increasingly looking for technology solutions to legally and safely make calls, get directions or check email while driving, according to the JD Power and Associates 2011 US Automotive Emerging Technologies Study.

The study measures consumer interest and purchase intent for emerging automotive technologies, both before and after market price is revealed.

With government-imposed restrictions on the use of handheld phones while driving, the onus is on the automakers and their technology partners to find simple and effective solutions that will keep consumers happy while staying within the law. Technology providers that can best enable consumers to stay informed, connected and secure while driving stand to gain the most. Automakers may benefit from this new environment, but also take the risk that a suboptimal solution will create consumer dissatisfaction, damage their brand reputation and reduce consumer loyalty.

“The key for automakers and suppliers regarding hands-free technology, as with most technologies, is to integrate it into the vehicle in a way that is easy to understand and operate, yet sophisticated enough to handle all of the tasks that drivers expect,” said Mike VanNieuwkuyk executive director of global vehicle research at JD Power and Associates. “The engineering is extremely complex, but the driver interface has to be simple.”

The vast majority (86%) of smartphone owners indicate that they use their device while in their vehicle. The two most common activities are making or receiving calls and getting directions. When given the opportunity to select which of 21 technologies included in the study they would like to have on their next vehicle at their respective market prices. Wireless connectivity systems receive the third-highest level of interest (50%) among the technologies included in the study. Additionally, interest in this feature remains fairly strong across all age groups, with a high of 57 percent of 18-25 year olds and a low of 43 percent of 57-65 year olds expressing an interest after they’ve seen the price tag.

“Consumers want to make use of their smartphones while driving, and most are willing to pay for the

There are new opportunities in the automotive technology market, says JD Power

technology that enables this,” said VanNieuwkuyk.

Interest after market price is revealed
Remote vehicle diagnostics     55%
Non-branded premium sound system     52%
Wireless connectivity system     50%
Rear-vision camera system     46%
Blind spot detection     45%

Consumers also show great interest in technologies they perceive will keep them safe. Features such as remote vehicle diagnostics, which provide owners with vital information on the performance and health of their vehicle, as well as rear-vision camera systems and blind spot detection receive among the highest levels of interest after the market price for each feature is revealed.

“Technologies that can help prevent accidents by informing consumers of potential hazards that cannot easily be seen from the driver’s seat are well received,” said VanNieuwkuyk. “These features allow consumers to stay focused on the road and drive with confidence.”

The study also finds the following trends:

Given a market price of $200, nearly 60 percent of consumers who own a portable digital music player would like to integrate the player through their vehicle’s controls and display.
Among vehicle owners currently in a free trial period for satellite radio, 54 percent indicate they are “definitely” or “probably” interested in having the technology in their next vehicle at the market price of $12.95 per month.

Forty-five percent of smartphone owners are interested in technology that would enable them to use their phone as a remote control to start their vehicle, unlock the doors or open the trunk via a smartphone app at the market price of $300.

Among portable navigation system owners, 44 percent express interest in a $200 portable navigation device interface, which enables the system to integrate with the vehicle’s display.

The 2011 US Automotive Emerging Technologies Study is based on responses from nearly 18,000 vehicle owners. The study was fielded in May 2011. The study includes 21 primary technologies, each with related secondary technologies; analyses on device connectivity, navigation, safety and premium sound systems; a key emerging technologies packaging exercise; an emerging technologies adoption calculator; and expanded psychographic and lifestyle-driven content.

Headquartered in Westlake Village, Calif., JD Power and Associates is a global marketing information services company providing forecasting, performance improvement, social media and customer satisfaction insights and solutions. The company’s quality and satisfaction measurements are based on responses from millions of consumers annually. For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. JD Power and Associates is a business unit of The McGraw-Hill Companies.

Founded in 1888, The McGraw-Hill Companies is a leading global financial information and education company that helps professionals and students succeed in the Knowledge Economy. Leading brands include Standard & Poor’s, McGraw-Hill Education, Platts energy information services and JD Power and Associates. The Corporation has approximately 21,000 employees with more than 280 offices in 40 countries. Sales in 2010 were $6.2 billion.

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One Response

  1. Used Cars Twin Cities says:

    Given the fact that so many cars are wired to Wi-Fi and the internet somehow it could prove to be a security issue hacking and virus wise. Maybe some programs can be developed to deal with that in the future.

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