ACCELERATING INTO THE FUTURE - Acxiom
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ACXIOM ACCELERATING INTO THE FUTURE ACCELERATING INTO THE FUTURE
ACXIOM ACCELERATING INTO THE FUTURE
CONTENTS
Executive summary 3
Background 5
Driving towards an electric future 7
Exponential sales growth shows no signs of slowing down 7
UK consumer preferences and generational shifts point in the right direction 8
The roadmap to making electric mainstream 9
What roadblocks remain in the way of the shared, autonomous, connected future? 12
Fear and disillusionment set in 12
Measured excitement steps in 14
The car purchase journey of the future 16
How Acxiom can help 19
About Acxiom 20
2ACXIOM ACCELERATING INTO THE FUTURE
EXECUTIVE SUMMARY
This is a phrase that has been said often in the He was less bullish last year, after GM’s AV unit Cruise was forced to
delay the launch of its robotaxi service3. Tesla’s CEO Elon Musk remains
last few years in the automotive industry, going optimistic as ever, but the majority of industry leaders have started to pump
the breaks in the last year or so. Aurora CEO, Chris Urmson, has set a
all the way to the top. Dan Ammann, then more moderate goal: “level-four vehicles to be feasible in small quantities
president of GM, went a step further in 2016 within the next five years” 4. This has been driven in part by concerns about
personal safety.
when he said “We see more change in the
Despite the various over-estimations and setbacks, the majority of car
next five years than there’s been in the last enthusiasts in the UK now believe that we are on the verge of a revolution.
50” 1 and a year later said autonomous 89% said they expect cars to change more than they have in the past 50
years, and while many think “it might be off by a few years”, most expect
vehicles (AVs) could “change the world” 2. it in 5-10 years. More than half of car enthusiasts say the move to electric
vehicles (EVs) is the key change.
Industry experts say the car of the future is “electrified, autonomous, shared
and connected” 5. Car buyers are less confident they will be all of the
above. Most car buyers think cars will eventually be fuelled by renewable
energy, which is a step beyond electrification. Only a minority think they will
be renewable, autonomous and shared, even among younger generations.
Cars will change more in the
The majority of car buyers would like to buy an AV in the next 10 years,
next decade than they have but only a quarter would like one in the next 5 years. That majority of car
done in the last 50 enthusiasts would like to buy an electric car, but only a minority intend to
buy one in the next 2 years. Range, charging infrastructure and cost still
remain significant barriers to purchasing. The excitement is there, but it is
measured excitement.
1
GM boss sees a revolution in personal mobility (Forbes)
2
GM’s Dan Ammann: Becoming a leader in emerging tech (Autonews)
3
GM’s Cruise delays robotaxi dervice (Autonews)
4
Self-driving cars were supposed to be here already, here’s what’s next (CNBC)
5
Five trends transforming the automotive industry (PwC) 3Gen Z (16-22) 34% 45% 15% 7% Limited driving 2%
range 52% 28% 15% 3%
Millennials (23-38) 29% 46% 15% 10%
ACXIOM Gen X (39-54) 22% 47% 21% 11% Concerns about where ACCELERATING INTO
4% THE FUTURE
you can charge the car 50% 30% 12% 4%
Baby Boomers (55-73) 22% 46% 17% 15%
Executive Summary
High 4%
The Silent Generation (74+) 23% 45% 18% 14% 46% 34% 13% 3%
cost
NET 24% 46% 18% 12%
Limited choice
24% 34% 28% 8% 5%
of car models
Very interested Not very interested Limited availability of
used cars 21% 33% 19% 16% 11%
Somewhat interested Not at all interested
Lack of clarity about
18% 28% 23% 20% 10%
environmental benefits
2 Biggest change expected in next 5-10 years Fundamentally, 3 Long-term
what people viability
want in ofaautonomous,
car remains the renewable,
same as ever.
20 New car buying intention shared cars by generations
Reliability is the essential factor in buying a car, it needs to be comfortable
Essential Not very important
Electric 52% and safe, while price, performance Very important
and theNot car’s aesthetics play pivotal
important at all
72%
roles for different market
Gen Z (16-22)
segments.
Quite
26% important Fuel efficiency
41%
has 16%become17% more
69% 71%
Autonomous
63% 60%
20% important Millennials
over the(23-38)
years, but 24%
it remains a secondary
42%
concern.
11% 24%
Besides
Fuel 5%
that, the onlyGen things
X (39-54)
that appear
16%
to change
38%
someone’s
10%
decision-making
36%
are
47%
39% their life-stage (family
Baby Boomers (55-73) 11%
size = bigger 30%
car), broad
5%
societal trends
53%
(emissions
Alternative energy 4% 32% concerns) or 34
technological
The Silent Generation (74+) 9%
Purchase intent
innovation.
30%
for
8%
autonomous 54%
17% vehicles
17%
by36% generations 9% 39%
Other 19% NET
Similarly, how and where people buy cars has not changed much.
Traditional purchase methods (cash, savings or 82% personal
78%
finance) and
Car with assisted driving Hybrid car Electric car
e.g. parking assistance or
locations (traditional
Yes, I think all dealer)
of the above are
will still
happendominant - more
I think than
we’ll invent three-quarters
67%entirely
an new form of
lane keeping assistance of car buyers follow
I think that
most cars willroute.
be fuelledHowever,
by there does
transport makingappear to be a gradual
cars obsolete
52%
renewable energy, but not autonomouse I think cars will remain51%
mostly
48% as they are
generational shift towards newer 45% methods (HP, PCP, PCH) and
for a very long time
locations
(online, car supermarkets). For example, Millennials are almost 4x as likely
as Baby Boomers 22%
6 Important factors in car purchases 17% 18%to have bought their car online, and Gen Z are 2x as
11%10%
likely as Millennials.7% What remains unknown is how much of this is driven
3% 2%
Reliability 56% 36% 7% 10% by their (short-term) financial
17 2Interest situation
in electric and
cars by much
how is down to their
generations
years 5 years 10 years
Safety 41% 38% 16% 5% (long-term) purchase preferences.
How it feels (comfort) 34% 50% 15% 10% Gen Z (16-22) Baby Boomers (55-73)
Gen Z (16-22) 37% 38% 19% 6%
Performance 33% 39% 24% 3% 1% Millennials (23-36) The Silent Generation (74+)
MillennialsGen
(23-38)
X (39-54) 31% 43% 17% 10%
Price 29% 45% 21% 3% 1%
Gen X (39-54) 20% 43% 23% 14%
How it looks (aesthetics) 29% 40% 26% 6% 1%
Fuel efficiency Baby Boomers (55-73) 12% 41% 25% 21%
23% 38% 26% 10% 2%
The automaker 14% 36% 37% 10% 2% The Silent Generation (74+) 9% 41% 32% 18%
NET 20% 42% 23% 15%
Essential Not very important
Very important Not at all important
Very interested Not very interested
Quite important
Somewhat interested Not at all interested
4ACXIOM ACCELERATING INTO THE FUTURE
BACKGROUND
A nationally representative sample of 4,000 people were surveyed to The overarching objective was to understand what direction society is
measure some of the established megatrends – environmentalism, moving and how businesses in these industries should prepare for this,
desire for authenticity, connected worlds creating disconnected both in terms of risk mitigation and innovation.
societies – and explore how they connect to sector-specific trends.
This was followed up by surveying a sub-section of the population in each
This was within 6 key sectors: industry that were particularly close to the trends, to dig deeper into
what is driving them and understand what the early adopters or enthusiasts
believe are most worthy of attention. The sub-section included:
1 Automotive
2 Consumer electronics
Car enthusiasts
3 Financial services
Fintech users
4 Telecoms
Shopping enthusiasts
5 Retail
6 Travel
Cord-cutters
Authentic travellers
Digital detoxers
5ACXIOM ACCELERATING INTO THE FUTURE
BACKGROUND
In this case, the focus is on car enthusiasts. You can find a profile of them
to the right. They will be the key feature of analysis, as we asked them the
most probing questions, and their interest in the subject allowed them to
give more thoughtful answers than your average person. AUTO CAR
ENTHUSIAST
A secondary feature of the analysis will be the nationally representative SEGMENT
audience, with a particular focus on how attitudes and behaviours differ
across generations. Here is a profile of each generation from the nationally
representative survey.
This will be supported by secondary research from a variety of sources, to Bought an average of
provide an international and historical context with hard numbers where 3 cars in the last decade,
possible. They will be cited throughout the report. More male, slightly older most have changed car
and more urban brand in the last 5 years,
and most bought their
first car before they
turned 20
Profile of each generation from the nationally representative survey
Gen Z Millennials Gen X Baby Boomers The Silent
Generation
Years born 1997-2004 1981-1996 1965-1980 1946-1964 1928-45
Age 16-22 23-38 39-54 55-73 74-91
Relationship status Mostly single Mostly married Mostly married Mostly married Mostly married
Working status Mostly students Mostly employed full time Mostly employed full time Mostly retired Mostly retired
Independence vs.
Obedience Independence Independence Independence Mixed Obedience
Security vs.
Convenience Mixed Mixed Mixed Security Security
6ACXIOM ACCELERATING INTO THE FUTURE
DRIVING TOWARDS AN
ELECTRIC FUTURE
Exponential sales growth shows no signs of
slowing down
The majority of experts and car buyers agree that the car of the future will
be electric.
In 2010, just a few thousand electric vehicles were sold globally. By 2018
that had catapulted forward to 2 million, and Bloomberg NEF estimate that
annual passenger electric vehicles (EVs) will continue to grow exponentially,
reaching 10 million in 2025 and 28 million in 2030, accounting for roughly a
quarter of all sales6.
There is significant variation in EV uptake across the globe currently. China
leads the way at the moment, and Bloomberg NEF estimate they will
account for 48% of passenger EV sales in 2025. In Europe, PwC predicted
that by 2030, half of new car sales could be fully electric, 45% from hybrid,
and just 5% from internal combustion engine (ICE) vehicles. Looking just
5 years ahead, as many as 60% of new vehicles sold in Europe could be
electric or hybrid, of which 20% would be fully electric7.
These estimates are based on demographic changes, evolving
consumer preferences, rapid technological development, and favourable
environmental policies. The regulatory conditions are the most difficult to
predict in an uncertain political climate, as seen in the US’ unexpected
withdrawal from the Paris Agreement, but as it stands all trends are
pointing in the right direction for EVs.
The average Lithium-ion battery pack was more than 6x cheaper in 2018
($176) than it was in 2010 ($1,160). As this trend continues, Bloomberg
NEF predict price parity in most market segments by the mid-2020s, albeit
6
Electric vehicle outlook 2019 (Bloomberg NEF)
7
Five trends transforming the automotive industry (PwC) 7Autonomous 20%
Millennials (23-38) 24% 42% 11% 24%
Fuel 5% Gen X (39-54) 16% 38% 10% 36%
Baby Boomers (55-73) 11% 30% 5% 53%
Alternative energy 4%
ACXIOM The Silent Generation (74+) 9% 30% 8% 54%
ACCELERATING INTO THE FUTURE
Other 19% NET 17% 36% 9% 39%
The profile of modern shopping Yes, I think all of the above will happen
I think most cars will be fuelled by
I think we’ll invent an entirely new form of
transport making cars obsolete
renewable energy, but not autonomouse I think cars will remain mostly as they are
for a very long time
6 Important factors in car purchases
with wide differences in some segments and regions8. The EU
set mandatoryReliability
emissions reduction
56%targets for 2015, which
36% contributed
7% 10% 17 Interest in electric cars by generations
to a reduction in Safetyaverage emissions
41% of 14%, and38%
stricter regulations
16% 5%
being phased
How it feels in from 2020 seek
(comfort) 34% to reduce emissions
50% targets by
15%a 10%
Gen Z (16-22) 37% 38% 19% 6%
further 21%9Performance
. 33% 39% 24% 3% 1%
Millennials (23-38) 31% 43% 17% 10%
Price 29% 45% 21% 3% 1%
Gen X (39-54) 20% 43% 23% 14%
According to (aesthetics)
How it looks Deloitte, interest 29% in cars powered 40% by alternative 26% energy
6% 1%has
Baby Boomers (55-73) 12% 41% 25% 21%
increased significantly
Fuel efficiency in most
23% markets10 . For example26%
38% in the US,
10%while
2%
The Silent Generation (74+) 9% 41% 32% 18%
more than The halfautomaker
of the US still want the
14% 36% internal combustion 37% engine
10% in 2%
their
NET
next car, it dropped from 71% down to 59% in just the last year. Hybrid 20% 42% 23% 15%
cars are 3x as popular as battery powered
Essential Notelectric vehicles in most
very important
markets, with China leading the way on battery
Very important powered EVs (BEVs).
Not at all important
Very interested Not very interested
Quite important
However, across the board, BEVs become much more popular as the Somewhat interested Not at all interested
price of fuel goes up.
UK consumer preferences and generational shifts point 18 Interest in hybrid cars by generations
in the right direction
Gen Z (16-22) 34% 45% 15% 7%
Our study looked at consumer preferences in the UK, with a particular
Millennials (23-38) 29% 46% 15% 10%
focus on sizing the trends across generations and understanding the Co
Gen X (39-54) 22% 47% 21% 11%
drivers of those trends among car enthusiasts. yo
Baby Boomers (55-73) 22% 46% 17% 15%
The Silent Generation (74+) 23% 45% 18% 14%
We found the same positivity towards EVs, underpinned by promising
NET 24% 46% 18% 12%
changes in consumer preferences as you go down the generations.
The majority of car buyers are interested in EVs, and that increases
significantly among Millennials and Gen Z. In fact, the younger Very interested Not very interested
generations are slightly more interested in EVs than hybrid cars, Somewhat interested Not at all interested
while Baby Boomers and The Silent Generation are significantly more
en
interested in hybrid cars.
20 New car buying intention
8
Electric vehicle outlook 2019 (Bloomberg NEF) 72% 69% 71%
9
Reducing CO2 emissions from passenger cars (EU) 63% 60%
10
2020 Global Automotive Consumer Study (Deloitte) 8
47%
39%ACXIOM ACCELERATING INTO THE FUTURE
Among car enthusiasts, the majority said that the move to EVs was the
biggest change expected in the next 5-10 years. 2 Biggest change expected in next 5-10 years 3
Electric 52%
Q: What do you think will be the biggest change in that time?
Autonomous 20%
Mi
A: The rise of full EVs, and the decline of the internal combustion
Fuel 5%
engine. I think the effect will be as dramatic as mobile phones
Baby B
versus landlines. Alternative energy 4%
The Silent G
Other 19%
While only a tiny segment of car enthusiasts have an electric car currently,
the vast majority would like to buy one in 10 years, and nearly 50% would Y
like to buy one in 5 years. Hybrid cars are significantly more popular in the I
next 2-5 years, but between 2025-2030 EVs will race ahead. The majority re
of car enthusiasts believe that EVs will eventually become the most popular
“ “ “
kind of car.
6 Important factors in car purchases
The reason for the short-term preference for hybrid cars is an active Reliability 56% 36% 7% 10%
awareness of the current barriers to using an electric car. While the majority Move towards Electric cars. But Electric cars - if
Safety 41% 38% 16% 5%
of car enthusiasts were clear in their belief that EVs are the biggest change pure electric but after they can sort anyone puts charging
How it feels (comfort) 34% 50% 15% 10%
on the horizon, many included caveats, particularly around charging. only when a far out a longer charging points in. There isn’t
Performance 33% 39% 24% 3% 1%
greater increase period. Today it’s a charger within a Mi
Price 29% 45% 21% 3% 1%
The roadmap to making electric mainstream in both range and a waste of time. mile of my home!
How it looks (aesthetics) 29% 40% 26% 6% 1%
chargeability are
Fuel efficiency
Batteries are bad and Baby B
23% 38% 26% 10% 2%
The 3 essential barriers to EVs currently are the limited driving range, introduced.
The automaker 14%
not enough
36%
charging 37% 10% 2% The Silent G
concerns about the charging infrastructure and high prices. A limited choice points.
of car models, limited availability of used cars and lack of clarity about the Essential Not very important
environmental benefits are secondary concerns, but pale in comparison. Very important Not at all important
Quite important
Limited driving range was the most important reason people chose against
buying an electric car last time, while the charging infrastructure is seen as
the thing most needed to make EVs mainstream.
9ACXIOM ACCELERATING INTO THE FUTURE
The profile of modern shopping
While the average person only drives 40km per day, the majority think
the minimum driving range should
18 Interest be around
in hybrid cars by300km – a significant step
generations 22 Barriers to purchasing electric car
up from the current standard of 200km. As EVs become mainstream, it’s
possible those consumer preferences will soften, in the same way people
Gen Z (16-22) Limited driving
34% 45% 15% 7% 2%
gradually adjusted from the Nokia 3310 lasting for days to the everyday range 52% 28% 15% 3%
Millennials (23-38) 29% 46% 15% 10%
charging of the iPhone. However, charging points will need to be much Concerns about where
Gen X (39-54) 22% 47% 21% 11% 50% 30% 12%
4%
more common and accessible to enable that. While most people in most you can charge the car 4%
Baby Boomers (55-73) 22% 46% 17% 15%
countries are willing to pay more for an EV, for many the acceptable High 4%
The Silent Generation (74+) 23% 45% 18% 14% 46% 34% 13%
premium maxes out at c. €1,00011. cost 3%
NET 24% 46% 18% 12%
Limited choice
24% 34% 28% 8% 5%
This will come as no surprise to automakers. Rather, it is an indication that of car models
the automotive industry
Very and its customers are
interested largely
Not very in sync around the
interested Limited availability of
21% 33% 19% 16% 11%
used cars
challenges to tackle, to encourage
Somewhat interestedmass adoption:
Not at all interested
Lack of clarity about
18% 28% 23% 20% 10%
environmental benefits
• Globally, the number of charging outlets installed annually increased
from 77,000 units in20 New
2012 tocar buying
632,000 intention
units in 2018, and new companies
Essential Not very important
are entering the market. However, without further technological Very important Not important at all
innovation and government
72%
invention, it will still prove to be a significant Quite important
69% 71%
barrier for those 63%
without access to60%
home charging.
47%
• The cost of39%
batteries dropped from $1,160/kWh in 2010 to $176/kWh
in 2018, and it is predicted to32%
drop to $87/kWh in 2025 and $62kWh in 34 Purchase intent for autonomous
2030, which will play a pivotal role in the affordability
17% challenge12. vehicles by generations
• The driving range problem remains a technical and technological 82%
78%
Car with assisted driving
challenge,e.g.
asparking
EVsassistance
produce or
fewerHybrid car
emissions Electric car
than hybrids at the 200km 67%
range but lane
more emissions
keeping assistance at the 400km range, undermining its
52% 51% 48%
environmental value while remaining prohibitively expensive13. 45%
22%
17% 18%
11%10%
7%
3% 2%
2 years 5 years 10 years
11
2020 Global Automotive Consumer Study (Deloitte)
12
Electric vehicle outlook 2019 (Bloomberg NEF)
13
Global EV outlook 2019 (IEA) Gen Z (16-22) Baby Boomers (55-73) 10
Millennials (23-36) The Silent Generation (74+)ACXIOM ACCELERATING INTO THE FUTURE
≥
It is a reminder to the UK government that improving the charging
infrastructure is pivotal in the search to reduce carbon emissions. Transport
accounted for 33% of UK emissions in 2018, the highest of any industry14.
While greenhouse gas emissions overall dropped by 32% between 1990
and 2017, from 834Mt CO2e to 566Mt CO2e, emissions increased by improving the charging infrastructure is pivotal
6% from road transport15. This is one of the primary reasons why the
in the search to reduce carbon emissions
government is set to miss its 2025 target of reducing emissions levels
compared to 1990 by 51% and must take high priority.
33%
Most people believe a combination of vehicle manufacturers and
government are responsible for building publicly accessible electric vehicle
charging stations and other EV infrastructure16. By October 2019, there
were 15,116 public electric vehicle charging stations in the UK, of which
2,495 were rapid devices. This is an increase of 312% from 2015, but the of UK carbon emissions in 2018 were
distribution of charging devices is unevenly spread across the country with due to road transport
a high concentration in London17.
This is partly driven by the fact that the private sector has been the driving
force behind the infrastructure growth, and that has not gone unnoticed
among UK car enthusiasts. The government is expected to play a more
active role if they are to achieve emissions targets. China is a good indicator
of the impact a more active government can have, as it played an important
role in increasing charging outlets from c. 20,000 in 2012 to more than
300,000 by 2018 – catapulting ahead of Europe since 2015.
14
Transport sector slow to reach UK emissions targets (Financial Times)
15
2019 road transport and air emissions (ONS)
16
2020 Global Automotive Consumer Study (Deloitte)
17
Trends emerge in the Gartner Hype Cycle for emerging technologies, 2018 (Gartner) 11ACXIOM ACCELERATING INTO THE FUTURE
WHAT ROADBLOCKS REMAIN IN THE WAY OF THE
SHARED, AUTONOMOUS, CONNECTED FUTURE
Fear and disillusionment set in
While the majority of car buyers now think most cars will be powered by
50%
a new energy source in the future, a much smaller proportion think they
will also be autonomous. This aligns with the Gartner hype cycle, in which
Autonomous Driving Level 4 had entered the Trough of Disillusionment in
Gartner’s 2018 hype cycle after it had moved on from the Peak of Inflated
Expectations in 2017, and it remained there in 201918. of the population in many countries think
autonomous vehicles will not be safe
In 2016, Elon Musk had predicted that Tesla would be demonstrating a self-
driven cross-country road trip in 2017. He followed that up a few months
later by saying “Full Self-Driving Capability” would “definitely” be ready
midway through 201719. He was one of many leaders in the industry that
made bold predictions
2 Biggestthat now seem
change a littleinambitious.
expected next 5-10Jim Hackett, the
years 3 Long-term viability of autonomous, renewable,
CEO of Ford, spoke plainly about that in 201920. shared cars by generations
Electric 52%
“We overestimated the arrival of autonomous vehicles,” Jim Hackett said
Gen Z (16-22) 26% 41% 16% 17%
at a Detroit Economic
Autonomous Club event. While20%
Ford’s first self-driving car is still
Millennials (23-38) 24% 42% 11% 24%
coming in 2021, “its applications will be narrow, what we call geo-fenced,
Fuel 5% Gen X (39-54) 16% 38% 10% 36%
because the problem is so complex.”
Baby Boomers (55-73) 11% 30% 5% 53%
Alternative energy 4%
The Silent Generation (74+) 9% 30% 8% 54%
Car buyers have noticed the various missed targets and much more
NET 17% 36% 9% 39%
conservative claims, and tempered their19%
Other expectations accordingly.
You also can’t overlook the role of fear. Alternative energy sources come
with many challenges, but they don’t generate fear like robots do. Almost Yes, I think all of the above will happen I think we’ll invent an entirely new form of
half of the population in many countries think autonomous vehicles will not I think most cars will be fuelled by transport making cars obsolete
be safe, and that hasn’t changed much since 2018. In addition, there is renewable energy, but not autonomouse I think cars will remain mostly as they are
for a very long time
caution amongst consumers with Uber running full autonomous trials or
Tesla drivers using some of the self-driving capabilities, to the extent that
6 Important factors in car purchases
Reliability 56% 36% 7% 10% 17 Interest in electric cars by generations
Safety 41% 38% 16% 5%
18
Tesla’s Musk Is overpromising again on self-driving cars (Forbes)
19 HowIsit overpromising
Tesla’s Musk feels (comfort)again on self-driving
34% cars (Forbes) 50% 15% 10%
Gen Z (16-22)
20
Ford CEO tamps Performance
down expectations for first
33%autonomous vehicles (Bloomberg)
39% 24% 3% 1%
37% 38% 19% 6% 12
Millennials (23-38) 31% 43% 17% 10%
Price 29% 45% 21% 3% 1%ACXIOM ACCELERATING INTO THE FUTURE
CURRENT PERCEPTIONS OF THE
OMNICHANNEL EXPERIENCE
many people are concerned about autonomous vehicles being tested on
public roads where they live21.
Sandwiched in between the hype and fear is reality.
It is often said that the automotive industry has not changed much over
the years, and there is some truth to that. One example is that over the last
15 years, only 2 new companies have entered the list of top 15 automotive
companies, while 10 new companies in the mobile handset industry
entered their top 15 list over the same time22. Another example is that
even when 5 of the top 20 companies with the highest R&D investment
were vehicle manufacturers, only 1 (Tesla) featured in the 10 most
innovative companies23.
As a result, the industry isn’t generally associated with hype. However,
this is not the first time industry leaders have made bold predictions that
didn’t quite come true, and they were off by more than a few years. When
AutoCar asked industry leaders in 1932 how they expected cars to change Rate of adoption of autonomous
in the next 10 years, Arthur Hubble of Crossley Motors believed electric
vehicles has been predicted to range
cars would be powered wirelessly, while Allen Herbert of Peugeot believed
diesel cars would supersede petrol, which would then be superseded by from as little as 10% to as much as
electric cars24. Wireless electric power never materialised, while electric cars 60% of all journeys in Europe by 2030
might supersede ICEs a century after this prediction.
Due to the uncertainty around regulations, the level of technological
innovation required and the potential for incidents – the rate of adoption
of autonomous vehicles has been predicted to range from as little as 10%
to as much as 60% of all journeys in Europe by 2030. Based on recent
developments, the lower rate of adoption looks more likely, but as we’ve
seen with the ride-sharing evolution things can change very quickly.
21
2020 Global Automotive Consumer Study (Deloitte)
22
Automotive revolution – perspective towards 2030 (McKinsey)
23
Five trends transforming the automotive industry (PwC)
24
From the archive: How will cars change in the next decade? (Autocar) 13Very interested Not very interested Limited availability of
used cars 21% 33% 19% 16% 11%
Somewhat interested Not at all interested
Lack of clarity about
18% 28% 23% 20% 10%
environmental benefits
ACXIOM ACCELERATING INTO THE FUTURE
20 New car buying intention
Essential Not very important
Very important Not important at all
72% Quite important
69% 71%
63% 60%
47%
39%
32% 34 Purchase intent for autonomous
17% vehicles by generations
Measured excitement steps in
82%
78%
Car
While few e.g. with assistednow
carparking
buyers drivingfeel confident
Hybrid car enough to
Electric
predictcar a world full
assistance or 67%
of autonomous cars,
lane keeping most people still want one for themselves! Only a
assistance
52% 51% 48%
minority would like to buy an autonomous car even 5 years from now, but 45%
by 2030 the majority are ready to take a leap into the future. Instead, most
car buyers would like a car with assisted driving capabilities in 5 years’ 17% 18%
22%
11%10%
time, while a relatively small segment of them would like assisted driving 7%
3% 2%
capabilities in 2 years’ time.
2 years 5 years 10 years
That story varies significantly as you look across the generations. Roughly Gen Z (16-22) Baby Boomers (55-73)
half of Gen Z and Millennials would like an autonomous car by 2025, Millennials (23-36) The Silent Generation (74+)
and the vast majority will want one by 2030. Gen X, Baby Boomers and Gen X (39-54)
The Silent Generation are much more cautious about full autonomy. The
younger generations are more excited for cars with assisted driving too,
but by 2025 almost half of Gen X, Baby Boomers and The Silent 35 Purchase intent for assisted driving
Generation will be ready for one. by generations
Connectivity is less straightforward because the idea remains abstract for 90%
84%
many, and the benefits are unclear. Car enthusiasts thought in-built WiFi 73%
74%
67%
and voice technology were the least important technological developments 61% 55%
Digital
over the last decade, and simply didn’t compare to in-built GPS, automatic 51%
41% 42% 42% 44%
emergency breaking or smartphone integration.
27% Tu
20% 23%
It is a similar story for the technology; people are most excited about the
following additions over the next 5-10 years - Intelligent glass, intelligent 2 years 5 years 10 years
Vir
lights, digital rear view mirrors, intelligent tyres, turning assistance,
driver monitoring – the excitement is there. Car-to-car communication, Gen Z (16-22) Baby Boomers (55-73)
Car-to-ca
voice-activated digital assistants and 3D augmented reality displays are Millennials (23-36) The Silent Generation (74+) Voice activated
of much less interest for now. Even when it is clarified that being able to Gen X (39-54) 3D augmente
communicate with other vehicles and road infrastructure can improve U
36 Important technological developments
in last decade
14
In-built GPS 62%ACXIOM ACCELERATING INTO THE FUTURE
35 Purchase intent for assisted driving
by generations
90%
84%
74%
73%
67%
61% 55%
Dig
51%
41% 42% 42% 44%
safety, there is limited appetite to pay a significant premium for this –
27%
at least until the results are demonstrated25. 20% 23%
Most car enthusiasts are interested in some form of in-car personalisation. 2 years 5 years 10 years
Fuel suggestions based on the route and typical fuel use is the most
popular, followed by assistance on the best driving experience (traffic, Gen Z (16-22) Baby Boomers (55-73)
Car-to
scenic route etc.) and route memory and prompt (recognising typical routes Millennials (23-36) The Silent Generation (74+) Voice activ
and asking if you’re on that journey again). Gen X (39-54) 3D augme
36 Important technological developments
in last decade
37 Excitement for new technology In-built GPS 62%
in next 5-10 years Automatic emergency breaking 56%
Smartphone integration (accessing music, 47%
calls etc. through car)
Intelligent glass 56%
Driving modes (eco, sport, comfort etc.) 42%
Intelligent lights 55%
How
Digital rear view mirrors 50% Adaptive cruise control 40%
Intelligent tyres 46% Lane keep assistance 39%
Turning assistance 44%
Electric fast charging 38%
Driver monitoring 43%
Automatic parking 34%
Virtual door mirrors 38%
37% Keyless entry / push-button start 31% How it l
Adaptive wheels
Car-to-car communication 27% Heated / ventilated seats 29%
Voice activated digital assistant 26% Voice technology integration (e.g. telling
your car to find a location) 24%
3D augmented reality displays 24%
In-built WiFi (hotspots) 22%
Under car camera 19%
None of these - I don’t care about the
None of these 5% 5%
technology in cars
62% 41 Important factors in car purchases
25
- essential / very important by interest in cars
2020 Global Automotive Consumer Study (Deloitte) 15
56%by generations in next 5-10 years
90%
84% Intelligent glass 56%
74%
73%
ACXIOM 67% Intelligent lights ACCELERATING INTO THE FUTURE
55%
61% 55%
Digital rear view mirrors 50%
THE CAR PURCHASE
51%
41% 42% 42% 44% Intelligent tyres 46%
27% Turning assistance 44%
20% 23%
JOURNEY OF THE FUTURE
Driver monitoring 43%
Virtual door mirrors 38%
2 years 5 years 10 years
Adaptive wheels 37%
Car-to-car communication 27%
Gen Z (16-22) Baby Boomers (55-73)
26%
Despite significant changes
Millennials (23-36) in the automotive industry
The Silent Generation (74+) and Voice activated digital assistant
Gen X (39-54)
changes in purchasing behaviour more broadly, most cars are 3D augmented reality displays 24%
still bought from the same places, financed in the same ways, Under car camera 19%
and motivated by the same purchase drivers. None of these 5%
36 Important technological developments
There is little to suggest that EVs in last decade change that
will significantly
equation either. The availability of fleets of shared autonomous cars
41 Important factors in car purchases
is expected to lead to fewerIn-built peopleGPS
buying their own cars, but only62%
a
- essential / very important by interest in cars
small proportion question whether they need a vehicle going forward
Automatic emergency breaking 56%
with theSmartphone
current integration
ride-sharing
(accessingservices
music, available26. Among those
47%
that do buy their owncalls car,
etc.autonomous
through car) or otherwise, the factors Reliability
93%
92%
that influence the purchase
Driving modes decision
(eco, sport, comfort etc.) and the methods to 42%
make the 87%
How it feels (comfort)
purchase will remainAdaptivethe same.
cruise control 40%
83%
Safety 75%
Lane keep assistance 39% 82%
67%
Price
Reliability
Electric fast charging 38% 78%
79%
Automatic parking 34% Performance 68%
Keyless entry / push-button start 31% 82%
How it looks (aesthetics)
is above Heated all else the number one priority
/ ventilated seats 29% 55%
61%
Fuel efficiency
when
Voice technology purchasing
integration (e.g. telling a car 65%
your car to find a location) 24% 62%
The automaker 44%
In-built WiFi (hotspots) 22%
None of these - I don’t care about the I’m a petrolhead I’m a car enthusiast, but it’s not my main passion
5%
Above all else the car needs toinbe
technology carsreliable, and that has always been
the case. Whether you’re a petrolhead or a car enthusiast, it is the
clear number one priority. For EVs that will include a practical driving
range and adequate charging infrastructure. After that, safety is the
key secondary concern, and perceptions of safety will play a pivotal
role in the uptake of autonomous vehicles. Beyond that, petrolheads
are particularly interested in aesthetics, performance and comfort,
while price and fuel efficiency matter more for others, but all of them
26
2020 Global Automotive Consumer Study (Deloitte) 16ACXIOM ACCELERATING INTO THE FUTURE
are an important factor in choosing the car, as is the brand. These factors
44 Aftersales activities improving brand loyalty
44 Aftersales activities improving brand loyalty are equally important across generations, and they will continue to drive
purchases of personal vehicles going forward.
They’re always reliable for what I need from them 65% The vast majority of car buyers still go through traditional purchase methods
They’re always reliable for what I need from them 65%
They have good warranty services 40% (cash, savings or personal finance) and locations (traditional dealer).
They have good warranty services 40%
They’re helpful when the car breaks down 22%
Among the car enthusiasts that have bought 5+ cars in the last decade,
They’re
They keephelpful
me upwhen thewith
to date car potential
breaks down
new 22%
18%
the purchase journey hardly changed throughout this time. Millennials and
They upgrades
keep me up / models
to date/ with
otherpotential
relevantnew
info
18% Gen Z in particular are more likely to buy online than older generations, but
Theyupgrades / models
have useful things/to
other relevant
upgrade the info
car 13%
They have useful things to upgrade the car 13% they’re also more likely to buy using a personal loan, so it may say more
They have a good loyalty scheme 8%
They have a good loyalty scheme 8% about their financial situation and choices than their preferences. In any
None of these 20%
None of these 20%
case, most of Millennials and Gen Z also buy using cash or savings, and do
so with a traditional dealer.
In a scenario with high levels of disruption – including car connectivity being
widespread globally, and the use of paid content in a car going mainstream
– the automotive market is predicted to be worth as much as $6.7tn in
2030, up from $3.5tn in 2016. While one-time vehicle sales will still be the
By 2030 the automotive market is largest source of revenue, aftermarket services is predicted to grow at a
47 What would you trade for painless servicing faster rate and eventually bring in $1.2tn. The largest source of growth is
predicted
47 What wouldto betrade
you worth
foras muchservicing
painless as
predicted to come from recurring revenues from shared mobility services
$6.7 trillion
and data connectivity services, increasing from $0.03tn to $1.5tn over
Complete accces to your vehicle data
(where you’veaccces
Complete been, how youvehicle
to your drive, data
etc.)
52% that time27.
52%
(where you’ve been, how you drive, etc.)
Car enthusiasts don’t have any particular aftersales expectations – the
A fee of £50 per visit 31%
A fee of £50 per visit 31%
majority just want them to be reliable and have good warranty services.
However almost half said they would get their car serviced more often if car
A monthly subscription fee of £20 17% personalisation features (e.g. analysing car performance and notifying the
A monthly subscription fee of £20 17%
26
Automotive revolution – perspective towards 2030 (McKinsey) 17ACXIOM ACCELERATING INTO THE FUTURE
44 Aftersales activities improving brand loyalty
driver) is used in conjunction with proactive aftersales efforts (setting up the
servicing while
They’re alwaysnotifying theI need
reliable for what driver). Millennials in particular say they65%
from them would
service the car more often in that scenario, recognising the
They have good warranty services 40% convenience
that car connectivity canthe
They’re helpful when offer.
car breaks down 22%
They keep me up to date with potential new
18%
upgrades / models / other relevant info
Most car enthusiasts would be happy to give 13%
They have useful things to upgrade the car
complete access to their
vehicle data in exchange for painless
They have a good loyalty scheme
servicing
8%
too. In this case, Millennials
are much less enthusiastic. They would rather pay a monthly subscription
None of these 20%
fee or a one-off price, while Baby Boomers strongly prefer sharing vehicle
data than paying in any form. The value proposition needs to be clarified as
concerns remain about data privacy, but in general they are tentatively open
to it as long as they can see tangible benefits.
47 What would you trade for painless servicing
Complete accces to your vehicle data 52%
(where you’ve been, how you drive, etc.)
A fee of £50 per visit 31%
A monthly subscription fee of £20 17%
18ACXIOM ACCELERATING INTO THE FUTURE
HOW ACXIOM CAN HELP
Acxiom solutions can help you better connect with the
automotive consumer by helping your organisation:
Assert your automotive Establish global reach Enhance your consumer Activate your data
leadership insights
We help the top automotive Acxiom solutions deliver the With our analytics expertise, Acxiom activates data for
OEMs drive strategic growth by highest quality data for acquisition we can find and predict future automotive and services clients
maximising returns from shifts in and conquest marketing on purchases that drive incremental across our network of more than
consumer data, changing product more than 2 billion consumers value for your business. We 500 partners, including the largest
usage, new vehiclde launches in 62 countries – approximately utilise omnichannel insights and marketing technology platforms,
and innovation. two-thirds of the world’s digital techniques specific to OEMs social networks, premium
population. and their services. publishers, and advanced
TV providers.
19ACXIOM ACCELERATING INTO THE FUTURE
ABOUT ACXIOM
Acxiom enables people-based marketing everywhere through a simple, open
approach to connecting systems and data to drive better customer experiences
for people and greater ROI for business. A leader in identity, customer data
management and the ethical use of data for more than 50 years, Acxiom now
helps thousands of clients and partners around the globe work together to
create millions of better customer experiences, every day.
For more information
Visit: www.acxiom.co.uk/how-we-can-help/automotive
Email: ukenquiries@acxiom.com
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