Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- The market
- Auto sales—new car and light truck sales increase more than 10% for two consecutive years
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- Figure 1: Total U.S. unit sales of cars and light trucks, 2006-11
- In-vehicle technology sales—entertainment picks up while security fails
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- Figure 2: Total in-vehicle entertainment vs. information/security sales to dealers, 2006-12
- Market factors
- Old cars need replacing as average age reaches 11 years
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- Figure 3: Average age of cars and light trucks in operation, 2006-11
- Decreasing costs of technology help innovations go mainstream
- Distracted driving a growing issue
- Segmentation
- Factory-installed innovations are replacing systems sold in the aftermarket
- Diverse menu of entertainment and safety innovations now available for consumers
- The consumer
- One third of drivers currently use safety and environmental innovations
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- Figure 4: Safety and Innovations in most current vehicle, January 2012
- Entertainment innovations still new to most consumers
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- Figure 5: Electronics, entertainment, and connectivity innovations in most current vehicle, January 2012
- Innovation leaders benefit from first mover advantages
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- Figure 6: Top five rated* companies rated on being leading innovators by area of innovation, January 2012
- Safety, simplicity trump entertainment according to consumers
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- Figure 7: Perceived importance of key automotive innovation areas, January 2012
- What we think
Insights and Opportunities
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- Safety and information innovations can help parents worry less about kids
- Let users download their own upgrades and repairs
- Location-based marketing perfect for consumers on the move
Inspire Insights
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- Trend: Switched Off
- Trend: Without a Care
Market Size
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- Auto sales
- Key points
- New car and light truck sales increase 10%+ for second consecutive year
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- Figure 8: Total U.S. unit sales of cars and light trucks, 2006-11
- Crossover/SUV sales increase more than 35%, now represent one third of vehicles sold
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- Figure 9: Total U.S. unit sales of cars and light trucks, by segment, 2009-11
- In-vehicle technology sales
- Key points
- Aftermarket in-vehicle technology sales being replaced by OEM units
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- Figure 10: Total U.S. sales to dealers of in-vehicle technology*, 2006-12
Market Drivers
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- Key points
- With average age of cars at record high, many consumers lack innovations
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- Figure 11: Average age and number of passenger cars and light trucks in operation, 2006-11
- Innovations go mainstream as technology becomes more affordable
- Rising gas prices impact how much consumers can spend on innovations
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- Figure 12: Average U.S. regular gas price, 24 month average, May 2012
- Annual miles driven double over past two decades, gridlock worsens
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- Figure 13: Total annual vehicle miles driven, 1970-2011
- Issue of distracted driving raises chance of more regulation
- EV/hybrid sales light, although consumers being incentivized
Segment Performance
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- Key points
- Factory-installed innovations shape aftermarket sales landscape
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- Figure 14: Total in-vehicle entertainment vs. information/security sales to dealers, 2006-12
- Recent sales decline in all segments excluding factory-installed systems
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- Figure 15: Total in-vehicle entertainment and information/security sales to dealers, by segment, 2009 and 2011
- Entertainment and safety innovations have come a long way since the CD player and airbag
Segment Performance—Entertainment Devices
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- Key points
- Factory-installed systems increase 42%
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- Figure 16: Total in-vehicle entertainment sales to dealers, by segment, 2006-12
- Sound technology could help stabilize aftermarket sales
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- Figure 17: Total in-vehicle entertainment sales to dealers, by segment, 2009 and 2011
Segment Performance—Safety and Information
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- Key points
- Sales of aftermarket safety and information innovations decline nearly 25%
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- Figure 18: Total in-vehicle information/security sales to dealers, by segment, 2006-12
- Portable navigation systems make up majority of information technology sales
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- Figure 19: Total in-vehicle information/security sales to dealers, by segment, 2009 and 2011
Leading Companies and Brand Qualities
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- Ford leads industry in connectivity with SYNC and MyFord Touch
- GM OnStar opens dashboard to apps
- Toyota builds on first mover advantage from Prius
- Nissan offers concierge services in luxury Infiniti brand
- Hyundai Blue Link connectivity platform locates points of interest
- Luxury brands offer more than “basic” connectivity
Innovations and Innovators
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- Driverless cars not merely science fiction
- Traffic Jam Assist broadens notion of “mobile office”
- “Road Trains” of connected cars let commuters sit back and enjoy the ride
- Vehicle-to-vehicle communications could prevent thousands of minor accidents per year
- Innovations monitor health of a driver
Marketing Strategies
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- Overview
- Ford aims at bloggers for personal touch
- Ford Swap Your Ride shows real consumers enjoying SYNC
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- Figure 20: Ford Ad, two women in swap your ride, April 2012
- Marketing safety starts with emotion
- Volkswagen ad resembles public service announcement
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- Figure 21: Volkswagen Ad, please don’t makeup and drive, 2012
- Infiniti ad focuses on safety with mini-drama sure to resonate with all
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- Figure 22: Infiniti Ad, even before you do, April 2012
- Toyota partners with CMT Listen Up to introduce Entune
- Toyota ad focuses on Entune’s multimedia library for CMT listeners
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- Figure 23: Toyota Ad, salute to CMT Listen Up musicians, April 2012
- Toyota ad introduces Entune features to wider audience with humor
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- Figure 24: Toyota Ad, father and daughter with Entune, April 2012
Safety and Environmental Innovations
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- Safety and environmental innovations currently owned
- Key points
- Many drivers using safety and environmental innovations today
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- Figure 25: Safety and environmental innovations in most current vehicle, January 2012
- Middle-aged drivers present opportunity but need crafted message
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- Figure 26: Safety and environmental innovations in most current vehicle, by age, January 2012
- Crossover drivers use more innovations
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- Figure 27: Safety and environmental innovations in most current vehicle, by type and make of primary vehicle, January 2012
- Safety innovations drivers would like to own
- Key points
- Half of those surveyed would like a hybrid vehicle
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- Figure 28: Safety and environmental innovations would like to have/don’t want in next vehicle, January 2012
- Middle-aged consumers want safety innovations
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- Figure 29: Safety and environmental innovations would like to have in next vehicle, by age, January 2012
- More affluent, luxury car owners want more innovations, need cutting edge
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- Figure 30: Safety and environmental innovations would like to have in next vehicle, by household income, January 2012
- Safety and environmental innovations manufacturers should focus on
- Key points
- Safety and environmental innovations important to half or more of consumers
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- Figure 31: Safety and environmental innovations that manufacturers should focus on, by gender, January 2012
- Small cars with more features will appeal to less affluent consumers
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- Figure 32: Safety and environmental innovations that manufacturers should focus on, by household income, January 2012
- Luxury car owners looking for “wow” factor
Electronics, Entertainment, and Connectivity Innovations
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- Electronics, entertainment, and connectivity innovations currently owned
- Key points
- Entertainment innovations still new to most consumers
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- Figure 33: Electronics, entertainment, and connectivity innovations in most current vehicle, January 2012
- Middle-aged consumers have need for entertainment innovations
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- Figure 34: Electronics, entertainment, and connectivity innovations in most current vehicle, by age, January 2012
- Luxury car owners far more likely to have entertainment innovations
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- Figure 35: Electronics, entertainment, and connectivity innovations in most current vehicle, by type of primary vehicle, January 2012
- Electronics, entertainment, and connectivity innovations would like to own
- Key points
- Majority want current innovations
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- Figure 36: Electronics, entertainment and connectivity innovations would like to have/don’t want in next vehicle, January 2012
- Men play to stereotype in looking for entertainment options
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- Figure 37: Electronics, entertainment, and connectivity innovations would like to have in next vehicle, by gender, January 2012
- Young consumers looking for personal library connectivity
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- Figure 38: Electronics, entertainment, and connectivity innovations would like to have in next vehicle, by age, January 2012
- More affluent looking for more entertainment options
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- Figure 39: Electronics, entertainment, and connectivity innovations would like to have in next vehicle, by household income, January 2012
- Electronics, entertainment, and connectivity innovations manufacturers should focus on
- Key points
- Respondents are not yet very interested in potential innovations
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- Figure 40: Auto electronics, entertainment, and connectivity innovations that manufacturers should focus on, January 2012
- Younger respondents are more interested in potential innovations
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- Figure 41: Auto electronics, entertainment, and connectivity innovations that manufacturers should focus on, by age, January 2012
- Middle-aged respondents want recent innovations
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- Figure 42: Electronics, entertainment, and connectivity innovations would like to have in next vehicle, by age, January 2012
- SUV owners want innovations to entertain passengers
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- Figure 43: Electronics, entertainment, and connectivity innovations would like to have in next vehicle, by type of vehicle owned, January 2012
Which Auto Companies Are Leading Innovators
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- Key points
- Innovation leaders benefit from first mover advantages
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- Figure 44: Auto companies/makes considered to be leading innovators, by area of innovation, January 2012
Perceived Importance of Key Auto Innovation Areas
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- Key points
- Safety and fuel efficiency considered far more important than entertainment
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- Figure 45: Most important key automotive innovation areas, January 2012
- Entertainment and connectivity still popular among 18-24 year olds
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- Figure 46: Most important key automotive innovation areas, by age, January 2012
Attitudes to Automotive Innovation
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- Figure 47: Interest in and attitudes to in-dash infotainment innovation, by age, January 2012
- Even split regarding issue of distracted driving calls for nuanced message
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- Figure 48: Concerns over use of infotainment systems, by age, January 2012
- Majority of luxury car owners want simple in-dash system
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- Figure 49: Interest in and attitudes to in-dash infotainment innovation, by primary vehicle type, January 2012
- Nearly half of luxury car owners believe innovations help awareness
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- Figure 50: Concerns over use of infotainment systems, by primary vehicle type, January 2012
- Nearly half of low- to modest-income households concerned about cost
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- Figure 51: Interest in and attitudes to in-dash infotainment innovation, by household income, January 2012
- Safety concerns stable across income groups
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- Figure 52: Concerns over use of infotainment systems, by household income, January 2012
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Impact of Race and Hispanic Origin
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- Key points
- Hispanics more likely to own safety innovations
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- Figure 53: Safety and Innovations in most current vehicle, by race/Hispanic origin, January 2012
- Hispanic and black respondents more interested in safety innovations
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- Figure 54: Auto safety and environmental innovations that manufacturers should focus on, by race/Hispanic origin, January 2012
- Black and Hispanic respondents more interested in entertainment innovations
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- Figure 55: Auto electronics, entertainment, and connectivity innovations that manufacturers should focus on, by race/Hispanic origin, January 2012
- Blacks and Hispanics more likely to want innovations in next car
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- Figure 56: Electronics, entertainment, and connectivity innovations would like to have in next vehicle, by race/Hispanic origin, January 2012
Appendix—Trade Associations
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