Strategic Analysis of US Consumers’ Preference to Pay for Driving Dynamics Systems and Technologies, 2016

Driving Dynamics is One of the Top Three Criteria Considered by Consumers During Vehicle Selection Process

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This study discusses US consumers’ preference to pay for driving dynamics systems and technologies that can be leveraged to transform the business for automotive participants. As the automotive industry is facing narrowing margins, the need to keep the customer committed to the brand for their next purchase is paramount. This can be achieved by creating an experience across the lifetime of the customer's ownership through preferred driving dynamics features. The need for manufacturers is to look beyond seeing themselves as just product suppliers and start focusing on creating new identity as per the expectation of consumers in the market. Automotive manufacturers are focusing keenly on building preferred driving dynamics system in their cars. To match the market expectation, it becomes essential for OEMs to understand the consumers’ willingness to pay for certain features, which will enable OEMs to build cars that can change the form and function compared with what is being offered now and also help them to accelerate their transformation capability in the areas of emerging consumer preferences to gain competitive edge in the market. Changing consumers’ preferences toward various features of driving dynamics might have an impact on OEMs when choosing the partner to co-develop systems and technologies. Hence, OEMs should keep a close track of customer preferences to stay competitive. Few observations on consumers’ preferences based on the survey conducted are that subcompact car buyers are keen on seeing additional features in the upcoming versions and willing to pay a higher price for the new capabilities, while luxury vehicle owners and younger buyers give more importance to personalization, telematics (safety and security) and infotainment features. Steering, braking, suspension, wheels & tires, and driveline are the systems that will have a significant influence on driving dynamic features of the cars. Apart from these important features of driving dynamics, reliability and safety will be the top motivators of next vehicle purchase decision among the consumers, particularly for women and senior drivers. It is also observed that regardless of engineering viability or actual reliable advantages of vehicle features, consumers’ decision to buy the next vehicle is also based on their perceived needs and their perception of the benefits of those features. To cater to the growing expectations of the consumers in the US market, it becomes unavoidable for the automotive manufacturers and suppliers to expand their portfolio to offer in-car convenience based on the buyers preferences.

Key questions this study will answer:
• What are the influential factors of the vehicle selection process and the importance of key vehicle attributes in the vehicle purchase decision?
• How is the importance of different driving dynamics systems and attributes perceived by the consumers?
• What are the preferences for driving dynamics systems: steering, braking, suspension, driveline, and integrated systems for driver assistance?
• What are the expectations, concerns, performance requirements, and technology/feature preferences for different systems: steering, braking, suspension, driveline, and integrated systems for driver assistance?
• What is the purchase likelihood and penetration of different systems and technologies in the future?

Table of Contents

1. Executive Summary
Executive Summary—Key Findings
Executive Summary—Systems and Technologies Segmentation
Current Versus Future Outlook
2. Research Scope, Objectives, Background, and Methodology
Research Scope, Aim & Objectives
Executive Summary—Systems and Technologies Segmentation
Research Methodology
3. Next Vehicle Purchase Decision Drivers
Vehicle Attribute Importance for Next Vehicle Purchase
Next Vehicle Purchase Segment and Budget
Budget for Next Vehicle by Vehicle Purchase Segment
Share of Current Vehicle Owners in Next Vehicle Purchase by Segments
Current Vehicle Owner Migration to Next Vehicles
4. Driving Dynamics Influencers and Feature Take Rate and Willingness to Pay
Driving Dynamics Influencers
Vehicle and Driving Dynamics Feature Influencers—Cars
Vehicle and Driving Dynamics Feature Influencers—Light Trucks
5. Steering System
Steering System Take Rate
Steering System Take Rate by Next Vehicle Purchase Segment
Steering System Take Rate by Current Vehicle Segment
Advanced Steering Feature Take Rate
Advanced Steering Feature Take Rate by Next Vehicle Purchase Segment
Advanced Steering Feature Take Rate by Current Vehicle Segment
6. Braking System
Brake Feature Take Rate
Brake Feature Take Rate by Next Vehicle Purchase Segment
Brake Feature Take Rate by Current Vehicle Segment
7. Suspension System
Suspension System Take Rate
Suspension System Take Rate by Next Vehicle Purchase Segment
Suspension System Take Rate by Current Vehicle Segment
8. Tires & Wheels
Wheels Take Rate
Wheels Take Rate by Next Vehicle Purchase Segment
Wheels Take Rate by Current Vehicle Segment
Tire Take Rate
Tire Take Rate by Next Vehicle Purchase Segment
Tire Take Rate by Current Vehicle Segment
9. Driveline System
Driveline System Take Rate
Driveline System Take Rate by Next Vehicle Purchase Segment
Driveline System Take Rate by Current Vehicle Segments
10. Growth Opportunities and Companies to Action
Growth Opportunity—Steering, Brakes, Suspension, Tires & Wheels and Driveline
Driving Dynamics—5 Major Growth Opportunities
Strategic Imperatives for Success and Growth
11. Conclusions and Recommendations
Current Versus Future Outlook
The Last Word—3 Big Predictions
Legal Disclaimer
12. The Frost & Sullivan Story


List of Figures & Charts

1. Driving Dynamics Systems and Technologies: Segmentation, US, 2016
2. Driving Dynamics Systems and Technologies: Survey Respondents Sample and Segments, US, 2016
3. Driving Dynamics Systems and Technologies: Current Vehicle Segment Distribution by Next Vehicle Purchase Segment, US, 2016
4. Driving Dynamics Systems and Technologies: Next Vehicle Purchase Segment Distribution by Current Vehicle Segment, US, 2016
5. Driving Dynamics Systems and Technologies: Take Rate and Willingness to Pay for Steering System by Next Vehicle Purchase Segment, US, 2016
6. Driving dynamics Systems and Technologies: Take Rate and Willingness to Pay for Steering System by Current Vehicle Ownership Segment, US, 2016
7. Driving Dynamics Systems and Technologies: Take Rate and Willingness to Pay for Advanced Steering Features by Next Vehicle Purchase Segment, US, 2016
8. Driving Dynamics Systems and Technologies: Take Rate and Willingness to Pay for Advanced Steering Features by Next Vehicle Purchase Segment, US, 2016
9. Driving Dynamics Systems and Technologies: Take Rate and Willingness to Pay for Advanced Steering Features by Current Vehicle Ownership Segment, US, 2016
10. Driving Dynamics Systems and Technologies: Take Rate and Willingness to Pay for Advanced Steering Features by Current Vehicle Ownership Segment, US, 2016
11. Driving Dynamics Systems and Technologies: Take Rate and Willingness to Pay for Brake System by Next Vehicle Purchase Segment, US, 2016
12. Driving Dynamics Systems & Technologies: Take Rate and Willingness to Pay by Current Vehicle Ownership Segment – Brake System, US, 2016
13. Driving Dynamics Systems and Technologies: Take Rate and Willingness to Pay for Suspension System by Next Vehicle Purchase Segment, US, 2016
14. Driving Dynamics Systems and Technologies: Take Rate and Willingness to Pay for Suspension System by Next Vehicle Purchase Segment, US, 2016
15. Driving Dynamics Systems and Technologies: Take Rate and Willingness to Pay for Suspension System by Current Vehicle Ownership Segment, US, 2016
16. Driving Dynamics Systems and Technologies: Take Rate and Willingness to Pay for Suspension System by Current Vehicle Ownership Segment, US, 2016
17. Driving Dynamics Systems and Technologies: Take Rate and Willingness to Pay for Wheels by Next Vehicle Purchase Segment, US, 2016
18. Driving Dynamics Systems & Technologies: Take Rate and Willingness to Pay by Current Vehicle Ownership Segment – Wheels, US, 2016
19. Driving Dynamics Systems and Technologies: Take Rate and Willingness to Pay for Tires by Next Vehicle Purchase Segment, US, 2016
20. Driving Dynamics Systems and Technologies: Take Rate and Willingness to Pay for Tires by Next Vehicle Purchase Segment, US, 2016
21. Driving Dynamics Systems and Technologies: Take Rate and Willingness to Pay for Tires by Current Vehicle Purchase Segment, US, 2016
22. Driving Dynamics Systems & Technologies: Take Rate and Willingness to Pay for Tires by Current Vehicle Purchase Segment, US, 2016
23. Driving Dynamics Systems and Technologies: Take Rate and Willingness to Pay for Driveline System by Next Vehicle Purchase Segment, US, 2016
24. Driving Dynamics Systems and Technologies: Take Rate and Willingness to Pay for Driveline System by Next Vehicle Purchase Segment, US, 2016
25. Driving Dynamics Systems & Technologies: Take Rate and Willingness to Pay for Driveline System by Current Vehicle Ownership Segment, US, 2016
26. Driving Dynamics Systems and Technologies: Take Rate and Willingness to Pay for Driveline System by Current Vehicle Ownership Segment, US, 2016


1. Driving Dynamics Systems and Technologies: Preference Based on Vehicle Feature and Segment, US, 2016
2. Driving Dynamics Systems and Technologies: Preference Based on Gender and Age, US, 2016
3. Driving Dynamics Systems and Technologies: Vehicle Type and Budget, US, 2016
4. Driving Dynamics Systems and Technologies: Budget for Next Vehicle by vehicle Segment, US, 2016
5. Driving Dynamics Systems and Technologies: Influence of Vehicle Features on Driving Dynamics by Non-Luxury and Luxury Vehicle Owners, US, 2016
6. Driving Dynamics Systems and Technologies: Influence of Vehicle Features on Driving Dynamics by Gender and Age, US, 2016



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