AlixPartners survey places specific values on ADAS features
For dealerships with high-line vehicles and other late-model inventory that have advanced driver-assistance systems (ADAS) features, a survey and report released on Thursday by global consulting firm AlixPartners put specific dollar figures on how much consumers value that equipment.
According to the Society of Automotive Engineers (SAE), these features range from Level 1 such as collision warnings to Level 4/5 that include full control of steering, braking and emergency autonomous driving.
Key ADAS features that a majority of surveyed consumers said they value and place importance on in their next purchase include:
—Adaptive cruise control
—Automated emergency braking
—Highway hands-free driving
—Lane following in stop-and-go traffic
—Automated parking
Those with prior ADAS experience are 12-52% more likely to endorse and expect these features, according to AlixPartners research.
Furthermore, customers perceive the value of Level 2 and Level 2+/Level 3 to be $2,800 and $4,300, respectively, another AlixPartners analysis showed.
And 60% of consumers are willing to consider subscriptions for safety- and convenience-oriented features, according to that AlixPartners survey.
Experts said those findings are fueling the business case for automakers as they look to boost revenue from ADAS features, which is projected to reach $191 billion globally by 2030.
“People are especially willing to pay for the safety and connectivity ADAS features offer,” said Mark Wakefield, global co-leader of the automotive and industrial practice at AlixPartners and a partner and managing director at the firm. “If handled right, this can be an excellent opportunity for automakers to satisfy customers by delivering on issues they care deeply about; tap a recurring revenue stream; increase the viability of subscription plans; and even reduce warranty costs.
Bottom line: A majority of respondents to the AlixPartners survey of more than 3,200 consumers in China, the U.S., and Germany said they will trust ADAS features.
“The willingness to embrace ADAS technology follows a broader trend AlixPartners has uncovered in recent automotive industry studies, including its recent AlixPartners Global Automotive Outlook,” Wakefield said.
Among the other key findings in the survey and report:
—60-82% of consumers will trust ADAS systems, depending on the level of automation offered in the vehicle and previous experience with the technology.
—Customers with prior ADAS systems average a 31-40% higher willingness to pay for full Level 5 vehicle autonomy.
—37% of the $191 billion in automaker ADAS revenue that AlixPartners forecasts by 2030 will come from subscriptions.
—Level 2 and Level 3 ADAS-system costs will decline 38% by 2030, driven by hardware cost reductions.
—For advanced ADAS systems (Level 3 and higher), 43% of consumers prefer pay-per-use or subscriptions, while only 41% prefer upfront payment.
“The future of the automotive industry is increasingly new-tech driven by consumers who value features that are apparent in everyday driving – whether they be safety-oriented or the type of connectivity they experience on a smartphone,” Wakefield said.
“Buyers tell us that automakers should get ahead of the curve on ADAS technology, and that those willing to stake a leadership claim with new feature offerings and innovative pricing models will be rewarded as the industry gradually moves toward increased connectivity and increasingly autonomous driving,” Wakefield went on to say.