IPSOS VIEWS #12 October 2017 The Future of Mobility On the road to driverless cars Peter Otto 2 The Future of Mobility 1. The German Association of the Automotive Industry (VDA) published: “German manufacturers and suppliers are ready to facilitate vehicles with initial automated systems from 2018 onwards.” Autonomous vehicles, with cars capable of driving themselves in all, or nearly all, situations predicted to first hit the market between 2021 and 2025 reuters/article/us-china-autos-autonomous-idUSKCN12Q0OZ Disruptive driving (driverless cars and connectivity), electrification (battery electric vehicles) and shared mobility (car sharing and ride hailing) are the three key trends which could reshape the whole automotive landscape. But how will consumers react towards all these concepts of future mobility? In this article, we want to focus on disruptive driving. To start, we would therefore like to define disruptive technology as technology which changes everything about the way in which something happens and the removal of human control from vehicles is probably the biggest single change since the motor car replaced the horse and carriage. Cars havent changed too much over the last few decades, but the automotive industry is well on its way towards a new era. The latest technology enables more relaxed driving on motorways or in dense city traffic, and assisted parking. Nevertheless, todays driver must still concentrate on the driving environment to remain safe. While some consumers still arent truly convinced that driverless cars could be a reality soon, the industry has defined a clear roadmap towards fully automated driving (see Figure 1) under all conditions with no humans needed inside the car. Highly Automated Cars arent on the road yet, but it is predicted that such vehicles will be on the road within 5-10 years 1 . Introduction The key trends Figure 13 How accurate these predictions of driverless cars are remain to be seen. In the meantime, Ipsos has interviewed more than 130,000 car owners from nine countries to find out more about: attitudes to automated driving; how it could affect the vehicles; who is most likely to want it; who will be the most trusted technology provider; and concerns about the concept. To measure the future success of new technologies and business models, we will need to connect the key trends. While electrification and shared mobility are not discussed here, we will soon see concepts arising that merge those trends into a single mobility concept. For example: battery powered self-driving micro buses, which will pick-up passengers individually after clicking a button on an app; and despite some driving enthusiasts having difficulties imagining Fahrvergnügen enjoyment of driving in self-driving vehicles, even privately owned passenger cars will be equipped with future mobility features which could make our life easier. All these new trends and exciting model launches will slowly be recognised by consumers and their preferences will continuously change over the coming years. “ In this instance, a disruptive technology is one which changes everything about the way in which something happens”The Future of Mobility 4 As part of the survey, we evaluated the interest and payment acceptance of some future mobility services. As illustrated in Figure 2, these have been ranked by disruption levels, from a low level of disruption like an emergency button in the car, to a high level of disruption such as fully automatic parking, which allows the passenger to leave the car while the car parks by itself somewhere nearby. Fully Autonomous Driving is just one of many potential services and features that disrupt current driving normality. We evaluated sixteen future car services (across different disruption levels) and found out that Fully Autonomous Driving (20%), Emergency Service (17%) and Traffic Prediction (10%) are considered to be the most important mobility features for the future. Disruptive driving Figure 2 Level of Disruption Emergency Service pressing a button for help in case of crime/emergency assistance both in/outside the car Check car location e.g. Anti-Theft application/Alarm Tracking (incl. automatically speed reduction of stolen cars) Connected Drivers Preference (seat/steering wheel setting, desired temperature, playlists, interior lighting, etc.) Automated Car-to-Car Communication - preventing collisions, traffic density, early detection of congestions Sending an Identification Signal e.g. for In-Car delivery (Amazon will deliver parcels into the car while parking) Advanced Drive Assist Systems (e.g. active lane assist, adaptive cruise-control with stop & go for city or highways) Predicting the traffic - connecting real-time and predicted/future data to realising traffic jams before they arise Connected Route Service - based on drivers preference based on real-time information (like opening hours) Smart Refilling/Recharging - Monitoring the cheapest gas/recharging stations and automated refill Search for Nearby Parking Lots - Navigation system is indicating currently available parking lots Connected Homes/Daily Life Management (e.g. control of lights, thermostats or refilling the fridge while driving) Tele Diagnostic - car data (e.g. oil level, tyre pressure) will be send for diagnosis or remote services via web access Fully Autonomous Driving no need to touch the steering wheel, cars drive the whole trip fully autonomous Mobile Living room - Fully Autonomous cars can be used as a second mobile room, to work, take a nap etc. Mobile Health Management - In-Car health monitoring & self-driving will be activated in case of emergency Fully Automated Parking - passengers will be able to leave the car and car will park fully automated and pick-up passengers afterwards LOW HIGH5 The concept of the driverless car brings both questions and opportunities. Will it improve road safety and reduce the incidence of traffic jams and accidents? And while were being driven around by this computer on wheels, will our cars become a mobile device in the Internet of things? Just the mere act of being driven will free up our time and opens the door to a whole new world of activities for car travel. In Figure 3, we can see by region how people envision spending an hour in a car in which they are being driven in a fully automated car. Fully automated driving Activities while driving fully automated Asia America Europe Sleep / take a nap 10 min 6 min 5 min Work, write mails and business communication 5 min 5 min 5 min Communicate privately (directly or via phone/e-mail/messenger/video) 15 min 14 min 17 min Relax by reading (books/online news feeds, etc.) 4 min 5 min 5 min Relax by watching movies/videos/TV-series/playing games 8 min 6 min 5 min Online shopping 2 min 2 min 1 min Still pay attention to the road 16 min 22 min 22 min 60 min Such a change in behaviour while travelling will most likely lead to very different interior concepts. Traditional car interiors with two seats in the front and two or three in the back, all pointing towards the front, may soon be discarded as a concept. As there wont be any drivers, everyone in the vehicle will be a passenger and therefore can relax as passengers currently do. In the future, front and rear seats could be folded into lying positions, or seats could be turnable by 360°, or combined into sofas. Its an exciting time for interior designers of cars, and customer understanding will be key in predicting the most successful concepts of the future. Figure 3The Future of Mobility 6 Younger consumers (below 35 years old) are more open and interested in new features such as connectivity and autonomous driving services, while older consumers (above 50 years old) are more reserved. A second differentiation factor is the place of residence. Consumers living in smaller cities (rural and thinly populated areas) show a lower interest in future mobility services, while residents in mega and big cities are more interested. The key target group with the highest interest is therefore young urban consumers. The mobility industry fully understands that technological developments are fundamental. On the other hand, new services and future features must be accepted by consumers and that is far more complicated than just focusing on these young urban consumers. Who is it for? Fully Autonomous Driving (normalised per country, differences to average displayed) Figure 4 high low high Willingness to pay Interest7 For these mobility providers, it is essential to have a precise understanding of the various vehicle segments (by size and body types, makes and brand categories), as well as the relevant regions. Interest differs a lot by region. Across the globe, fully automated driving functions are perceived as the most interesting development. The survey data implies that self-driving cars will be welcomed in Asia (especially in Japan), while consumers in Northern Europe (particularly those in France and Germany) remain very critical towards this new technology. While Figure 4 appears to show that the Japanese overall would be more interested in fully automated driving features, this doesnt show the whole picture, as interest and acceptance varies a lot by service. As we saw in Figure 3, Asian consumers seem to trust self-driving cars the most, as reflected in their plans to nap for 10 minutes in an hour-long journey nearly twice as long as their European and American compatriots. The global development of future mobility will always need to take local needs and requirements into account.The Future of Mobility 8 If consumers assume that their car in 2023 would have fully automated driving functions, which they could switch on and off as they like, less than 15% anticipate always using this function. More than a third intend to not use self-driving functions at all. The highest predicted refusal of driving fully automated is recorded in Germany, France and the UK, where we see a lack of interest from 45-50% of people. This high refusal rate could be driven by a distrust in new technology, which is reflected in the wish to continuously pay full attention to the traffic an understandable position given the current situation. But even if we assume that the distrust in self-driving technologies will dissipate the longer they have been successfully proven in the market, there will still be various barriers, which the industry needs to overcome. One of these will likely be the concerns about data protection and privacy. Governments, authorities and vehicle producers are discussing regulations for how long the route- tracking information will be stored inside the automotive black box. Some consumers see the access and storage of their individual movement patterns quite critical. In almost all countries, there is a high concern (from 40-60%) regarding such data security issues. Concerned consumers are significantly less interested in self-driving cars than consumers who dont see privacy issues. A quarter of consumers (26%), with low or no privacy concerns, rate fully autonomous driving functions as the most preferred (top 3) future mobility feature. However, 17% of consumers who are afraid to give access to their movement data, are significantly less interested in self-driving cars. Besides the human dislike of sharing too much personal data, there are other barriers, such as the incidence of car sickness when not paying close attention to the road. There are many technical questions the engineers are currently trying to solve, and there will be many more questions related to consumer understanding which need to be explored more deeply over the coming years. Concerns9 It is not only the traditional car industry that is working to reshape the future of mobility. Completely new players are pushing their way into this field, and thus there are serious worries about being the next Nokia. Will car producers die out? Will OEMs fade from emotional brands to unbranded component suppliers? Or will they be able to steer the future of mobility themselves? Google, Apple and Samsung are examples of technology companies that might agree that cars are the ultimate mobile device. In addition to the tech companies who are engaging with their own mobility projects, there are tech suppliers, like Intel-Mobileye, NVIDIA and Microsoft who are in close cooperation with the traditional vehicle industry in supporting autonomous driving and other Who will provide the future of mobility? cloud-based services. The traditional automotive suppliers, like BOSCH, Delphi or ZF, on the other hand, are fully involved in the roadmap towards future mobility. Beside car producers and tech companies, many other industry sectors are active in the space of future mobility. Public transport providers, energy companies, car rental, car sharing and ride sharing companies are all fighting for their share of this fast-growing market. Its not the case that most consumers believe that the emerging western car manufacturers, who were founded in the 21st century, such as Tesla, will necessarily be trusted most. While two out of ten consumers in global key markets do trust companies like Tesla, almost 80% Figure 5 Leader in Autonomous DrivingThe Future of Mobility 10 Conclusion Method: In wave 1 Ipsos interviewed more than 130,000 car owners across nine countries, in the Americas (USA, Brazil), in Europe (France, Germany, UK, Italy and Spain) as well in Asia (China and Japan). Interviews were conducted online in January and analysed in April and May 2017. All results are weighted by net population and size of car parks. This paper is the first in a series of three on future mobility. For more information on this survey, please contact FutureMobilityipsos of consumers still see traditional car manufacturers who have a long history, as the trusted leaders of future mobility. However, when asking consumers explicitly which company they consider as leader in autonomous driving, we receive interesting insights (Figure 5). While Toyota (23%), Tesla (22%) and BMW (20%) are viewed as being the three leading players in the realm of self- driving cars, they are followed by the two large tech companies Google (17%) Apple (16%), before other large traditional OEMs like the Volkswagen-Group (15%). Of course, this ranking does not match the real level of leadership in autonomous technologies, as experts might see it, but this is the reality on how consumers rank the competition in the field of self-driving cars globally. And perhaps its not surprising, that consumer perception varies greatly by country. While Japanese consumers are fully convinced that their Japanese