How do consumers feel about connected vehicles?
Research paints a confusing picture
New research from electronic systems design software company Cadence Design Systems has revealed that a majority of consumers believe hyper-connectivity will benefit them within five years.
However, this contradicts other recent studies, which suggest consumers don’t value the benefits of connectivity enough to pay for it. These were the findings of Deloitte’s 2021 Global Automotive Consumer Study, which also found that car buyers expect advanced features and connectivity to come as standard in new vehicles.
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Cadence commissioned their survey to determine consumer awareness and perceptions of hyper-connectivity and hyper-scale computing’s impacts on their lives. Entitled: Hyperconnectivity & You – A Roadmap for the Consumer Experience, the report delivers insight on the opportunities and challenges of deploying electronic devices in the connected world of consumer electronics, automotive and healthcare industries.
The positive impact of hyper-scale computing
The report reveals that 32% of consumers surveyed have a basic knowledge of hyper-scale computing, compared to more than 70% for more established technologies, including VR (virtual reality), 5G communications and AI (artificial intelligence). Despite this low awareness, 62% believe hyper-scale computing will have a positive impact on their lives in the next five years, with mobile phones expected to experience the greatest impact.
The greatest fear is data hacking
The three most important factors in determining consumers’ preference for a device are: greater battery life, robust security and consistent reliability. But data security is a primary concern, with many consumers fearful their data will be hacked.
What consumers like about connected cars is the possibility for frictionless vehicle maintenance and over-the-air software updates, plus the ability to make purchases using in-car technology and payment systems. Connectivity and autonomy will be important considerations for consumers in judging how advanced a car is.
Cadence’s research, which took place in Q4, 2020, surveyed 3,073 adults in five key technology markets, including: the USA, UK, Israel, China and Germany.
Deloitte’s research, which surveyed more than 24,000 consumers in 23 countries found that while vehicle connectivity is increasing, consumers are becoming less clear about the benefits over time. Concerns over the security and safety of connected vehicles is high, with many consumers fearing their car being hacked into and their safety compromised. Deloitte’s research uncovered that the majority of consumers are unwilling to pay more than a €400 premium for safety and connectivity features.
Who benefits from vehicle connectivity?
City planners, car manufacturers, vehicle fleet owners and operations, leasing companies and the like, all benefit from connected car data but consumers don’t yet, that’s what their current perception is anyhow. Add to that the suspicion that “Big Brother is Watching You!”, which many people surmise, and it’s obvious there’s work to be done before consumer acceptance of connected vehicles goes up.
Car manufacturers and leasing companies should focus on increasing consumer confidence through full transparency as to why connected car data is being collected and how it’s being used. They must also support better collaboration between people and technologies, improve technology convenience and ensure greater benefits for consumers.
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