Capturing the advanced driver-assistance systems opportunity (by McKinsey)

Capturing the advanced driver-assistance systems opportunity

(by Mc Kinsey)

New automotive active-safety systems could provide a route to autonomous cars. Yet the auto industry has work to do to convert consumer interest in these features into actual adoptions.

January 2016 | bySeunghyuk Choi, Fredrik Hansson, Hans-Werner Kaas, and John Newman

While the prospect of completely autonomous, driverless cars continues to grab headlines globally, a quiet revolution is already fundamentally altering our vehicles. The availability and sophistication of new automotive-safety systems, collectively known as advanced driver-assistance systems (ADAS), have been changing how cars are operated and experienced. More and more vehicles already boast features that assist drivers and eliminate errors, including blind-spot and lane-departure warning systems, automatic emergency braking, lane-change assistance, drowsiness alerts, and bird’s-eye displays.

Ultimately, the proliferation of these features could provide a route to (semi-)autonomous cars—and even help prepare vehicles for a fully autonomous world.¹ Yet our research finds that to capture the ADAS opportunity fully, car manufacturers and car dealers must explain the systems’ features more actively, carefully define and satisfy customer preferences, and price the technology appropriately, on customer value. Companies that do this well are likely to be strongly positioned to capture additional economic benefits, drive brand differentiation, and advance toward the deployment of even more autonomous or semi-autonomous vehicles.

These perspectives are based on our 2015 survey of 5,500 recent car buyers across China, Germany, Japan, South Korea, and the United States. We found that few consumers had adopted ADAS features, which remain optional rather than standard on many vehicles. While about 70 percent of car buyers were aware of ADAS features, often less than 30 percent had tried or experienced them, and of those who had, about half bought them. Critically, those customers who purchased ADAS components were overwhelmingly satisfied (exhibit).

To read more : http://www.mckinsey.com/insights/automotive_and_assembly/capturing_the_advanced_driver_assistance_systems_opportunity