The autonomous car A consumer perspectiveUpskilling your people for the age of the machine 2Executive Summary Extensive survey of over 5,500 consumers from around the world, as well as executives at 280 companies, from automotive OEMs to technology players Key findings Consumers are ready for self-driving cars and optimistic about the future of this technology Consumers see self-driving cars are more than just a means of transport The in-car experience will be critical, with consumers wants having implications for many other industries, such as media and entertainment, retail, and healthcare These excpectations of in-car experiences will not only impact the automotive industry, but also multiple other industries, including media and entertainments, retail, and healthcare. Four priorities for organizations looking to accelerate the journey towards a self-driving future They are positive about autonomous cars and a majority (59%) are awaiting their arrival with “anticipation” 63% want to spend the time that self-driving cars save them in “socializing” Keep the consumer informed and listen to customer needs They see an expanded remit for these vehicles: over half (54%) are comfortable with the self-driving car picking up or dropping off family members and friends, and close to half (49%) see these vehicles running errands Acceptance is growing: within five years 52% would prefer to be driven in a self-driving car than a normal one 58% want to disconnect from digital tools and enjoy the road Understand and reassure the consumer: safety and security are key Consumers trust automotive OEMs over new startups when it comes to these vehicles and are more optimistic than auto executives when it comes to overcoming the challenges of self-driving Nearly one in four consumers want to spend the time saved engaging in physical activities that will help them stay fit Develop software competencies: accelerate the change inside the company Build an ecosystem of services: partner with technology and content providers They see these vehicles making their lives better: half (50%) expect self-driving cars to save them time, expecting to save as much as 6.5 hours a week 3It will not be long before self-driving cars evolve from their testing phase to become a concrete reality for consumers. Both automotive players and suppliers, such as GM, Daimler, Ford, Continental, and Bosch and tech players, such as Google and Tesla, are involved. These organizations are making significant investments in hardware and software capabilities as well as in testing and piloting vehicles. As of December 2018, the US had 24 pilots running, with nearly 50 other pilots taking place in other parts of the world, including Europe, Canada, China and Australia. 1The self- driving technology company Waymo has been conducting consumer testing of self-driving cars. Since July 2018, 400 families in Phoenix, Arizona have been volunteering for Waymos autonomous ride-hailing cars, 2and the company launched its ride-hailing service in Phoenix in December 2018. 3Bosch is collaborating with Daimler to launch a pilot autonomous program in San Jose, California, in late 2019. 4 Initiatives such as these as well as the considerable attention that self-driving cars have been generating in the media for some time now have resulted in significant consumer awareness. The vast majority of consumers in our survey, 93%, had heard of self-driving cars before taking the survey. However, we wanted to understand more about consumer expectations and how companies are addressing them. We therefore undertook significant research involving both sides of the debate; in total, we spoke with over 5,500 consumers and 280 executives from leading organizations. We supported this quantitative research through in-depth interviews with industry experts. The research methodology at the end of this report provides further details. For this study, we focused exclusively on the ownership of self-driving vehicles by end consumers who would use a self- driving vehicle for personal, non-commercial use. Mobility services based on self-driving cars are beyond the scope of this report. While the role of public policy, local and federal governments, and other players is instrumental for a self- driving future, for this research we have limited the scope to automotive players and consumers. The report will help companies understand consumer expectations from a self- driving future, and accordingly prepare their organization. Specifically, this report has four goals: 1. To explore consumer readiness for driverless cars 2. To understand, in-depth, consumers expectations for driverless cars 3. To assess automotive companies investments in driverless cars, and examine where they are missing the mark, in terms of what consumers want and expect 4. To share recommendations on how organizations can accelerate the journey towards a self-driving future. The Society of Automotive Engineers (SAE) International classifies autonomous vehicles as follows: Level 0: Systems in place to issue warnings, but no vehicle control Level 1: Shared control between the driver and the system. The driver needs to be alert and ready to take control at any time Level 2: Automated systems assume complete control of the vehicle. However, contact between hand and wheel is mandatory during this level to confirm driver readiness to take over Level 3: The driver can safely turn their attention away but must still be prepared to intervene within some predefined time Level 4: Driver attention is not mandatory. Completely autonomous self-driving possible within limited area (geofenced) or under special circumstances (for example, traffic) Level 5: No human intervention required Introduction 4 The Autonomous Car: A Consumer Perspective 4