World Car Trends 2014 - "Smart Efficiency and Digital Intelligence"
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World Car Trends 2014 Global Expert Community Global Media Trends 69 Top Automotive Journalists TV, Print, Online News Channels All World Car Jurors Blogs, Forums, Networks Social Channels Top 25 markets Countries All automotive brands [> 150] and models Brands
World Car Trends 2014 | Summary Introduction The Electric Vehicle Recession? The World Car Awards brings together top journalists After the hype in 2012, Electric vehicles are currently from all over the world. PRIME Research combines the losing some momentum. expertise of this panel with our industry-leading media Plug-in hybrids are seen as the most promising electric study on over 150 brands across 25 markets globally. drivetrain option for 2014, however the onset of Automotive Trends 2014 premium electric vehicles driven by the BMW i3 and Efficiency, lightweight materials, design, connectivity and Tesla Model S bring electric vehicles back into the new energy powertrains are the most important spotlight. Coverage around these two models accounts automotive trends for 2014. These trends form part of a for over 40% of all media coverage on electric bigger picture within the automotive industry, “the vehicles. Our expert community evaluates these two efficiency cluster” which we at PRIME call “Smart models far better than first and second generation EVs. Efficiency”. “Digital Intelligence” “Smart Efficiency” Connectivity and in-car electronics rank as the fourth Smart Efficiency is driven by a variety of related most important trend, with infotainment and technologies like the downsizing of engines, while connectivity systems seen as increasingly significant. improving power and performance, significant weight Digital intelligence is describing a major macro trend of reduction and more stability, improved aerodynamics the years to come. Tech giants such as Apple, Google & while increasing desirability and new energy Microsoft have now joined the game: teaming up with powertrains; particularly plug-in hybrids. automotive brands to create the next generation of digital cars. Lightweight Constructions Lightweight materials are currently in the spotlight. Once “Smart Efficiency” and “Digital Intelligence” represent key reserved for premium cars, the Ford F150 has brought trends in the industry for 2014. Utilising these trends is aluminium to the mass market, and the BMW i3 has the challenge for the automotive industry today and in positioned carbon fibre as a material manageable and the near future. suitable for premium cars. 3
Efficiency is the top trend in 2014 The current “efficiency cluster“ is driven by downsizing of engines, lightweight constructions, improved aerodynamics and plug-in hybrids. 1 Efficiency 2 Lightweight Materials Top 5 3 Design Trends 4 Connectivity 2014 Plug-in Hybrids Battery Electric Vehicles Fuel Cell 5 New Energy Cars Quality Safety Budget Cars Car Sharing 0% 5% 10% 15% 20% 25% 30% ? “What will be the most important trends in the automotive industry in 2014?” 5
Lightweight is the top emerging trend in 2014 The importance of lightweight constructions and materials has been on the increase since 2012. 2012 2013 2014 Efficiency Connectivity Efficiency Lightweight Connectivity Efficiency Materials 2 New Energy New Energy Design Cars Cars Design Design Connectivity Lightweight New Energy Budget Cars Materials 5 Cars Safety Budget Cars Quality Quality Quality Safety Lightweight Materials 8 Safety Budget Cars Car Sharing Car Sharing Car Sharing 0% 10% 20% 30% 0% 10% 20% 30% 0% 10% 20% 30% ? “What will be the most important trends in the automotive industry in 2012 / 2013 / 2014?” 6
Engine downsizing is seen as the most promising weight saver Two important shifts in perception – the Ford F150 for aluminium and the BMW i3 for carbon fibre. mixed good very good The actual downsizing of an engine for weight Downsizing of Engines / reduction is seen as the most promising Powertrains technology to save weight. The new Ford F-150 shifts the image of aluminium Aluminium from a rather exclusive to a more volume material for weight-saving. Clever material mix is seen as a very promising Material-Mix option for weight saving. The BMW i3 could change the perception of carbon fibre: from an expensive and exclusive to Carbon Fibre an affordable, mass-market material for weight- saving. High strength steels are still evaluated very 2014 positively, but are seen due to the already wide High Strength Steel Expert Panel use within the industry as a kind of maxed out option for weight saving. 0 1 2 3 ? “From your point of view, what are the most promising lightweight technologies?” 7
Content 1. Top Automotive Trends 2. New Energy Cars 3. The “Digital Car“
Electric vehicle recession? After the hype in 2012, electric vehicles finally arrived in ”reality“ – but electric vehicles are still among the top 5 most important trends within the industry. 2012 2013 2014 Efficiency Connectivity Efficiency Lightweight Connectivity Efficiency Materials New Energy New Energy Cars 3 Cars 3 Design Design Design Connectivity Lightweight New Energy Budget Cars Materials Cars 5 Safety Budget Cars Quality Quality Quality Safety Lightweight Safety Budget Cars Materials Car Sharing Car Sharing Car Sharing 0% 10% 20% 30% 0% 10% 20% 30% 0% 10% 20% 30% ? “What will be the most important trends in the automotive industry in 2012 / 2013 / 2014?” 9
Visibility of EVs is pushed by Tesla Model S and BMW i3 Out of more than 250 EV models in 2013-2014, the Tesla Model S and BMW i3 combined account for more than 40% of all coverage. Almost every second electric vehicle story is about either one of them. Media Panel | Share of coverage 2013-2014 12% Tesla and BMW i Emerging Trend Hype Slowdown Other EVs game changer? 58.3% 9% 6% 5,1% 4,8% 4,8% 4,8% BMW i3 Tesla Model S 4,6% 21.3% 20.4% 2,9% 3% 100% = Total e-car coverage in 2013/2014 2,0% 42% 0% 2008 2009 2010 2011 2012 2013 2014 100% = Total automotive media coverage in respective year 100% = Total electric vehicle coverage in 2013/2014 10
PHEVs remain the most promising electric drivetrain option However, BEV are experiencing a new momentum through premium electric vehicles. very poor mixed very good Plug-in hybrids Electric vehicles with Is the Tesla Model S a game changer? Combining range extender zero emissions with a good range and breathtaking sports car performance. ► New momentum through premium electric vehicles. 2013 Expert Panel 3 Battery electric vehicles 2014 Expert Panel 2013 2014 ► But safety issues remain. Fuel cell vehicles -3 -2 -1 0 1 2 3 ? “From your point of view, what are the most promising powertrain options regarding e-mobility?” 11
Tesla and BMW with outstanding EV reputation BEV gain credit in 2014 due to i3 and Tesla Model S – Premium electric vehicles might be the game changer in the future. very poor mixed very good 1 Tesla Model S Premium electric vehicles 2 BMW i3 Second generation and compact electric vehicles First Generation and low budget “Compromised“ electric vehicles electric vehicles 2014 Expert Panel -3 -2 -1 0 1 2 3 ? “How would you rate the following e-cars from a general perspective?” 12
Norway: Tesla achieves an 11% market share in March ‘14 Exponential growth of EVs in Norway; especially the Tesla Models S due to generous government subsidiaries. Electric vehicles registration figures in Norway 12.000 › EVs in Norway achieved a 5.6% 10.000 market share in 2013. › No purchase tax, no 8.000 VAT, no tolls are making EVs very 6.000 attractive. › Free and extra parking 4.000 areas for EVs. › EV infrastructure. 2.000 › Clean Norwegian 0 energy production. 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 13
Norway with pioneering character regarding E-Mobility The former benchmark market for E-Mobility, Japan, slightly loses the confidence of the expert community and remains on one level with Germany and the USA. very poor mixed very good Norway Japan Germany USA The Tesla factor › Supercharger infrastructure › Plans for France battery gigafactory UK Ambitious plans, limited China momentum › 5 million e-cars in 2013 2020 Italy Expert Panel › New joint-venture brands arrive 2014 › Denza Spain Expert Panel › Zinoro ? “Which markets will be the key drivers for e-mobility?” 14
Fuel-Cell with chances in the long run In the last 10 years, Honda showed the strongest ambitions of all manufacturers regarding fuel cell technology, followed by Hyundai/Kia and Mercedes-Benz. Fuel-Cell “Hype“ period Attention-shift to BEV Re-Focus on FCEV Comeback as “Next Generation EV“? Most major manufacturers focus on FCEV First volume BEV appear on the Especially Hyundai/Kia continues to FCEV in series (announcements): as battery technology is not improving fast market and the BEV hype begins. focus on FCEV and in 2014 Hyundai/Kia: 2014 | Toyota: 2015 | Honda: 2016 | Daimler: 2017 enough and the range issue as well as high Manufacturers shift their focus on announcements of affordable FCEV costs are thought hard to be solved. battery electric vehicles rather than in series strongly increase. continuing their FCEV strategy. 1,0% 0,8% 0,6% 0,4% 0,6% 0,6% 0,5% 0,5% 0,4% 0,2% 0,3% 0,3% 0,3% 0,1% 0,1% 100% = all automotive coverage in respective year 0,0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 15
Content 1. Top Automotive Trends 2. New Energy Cars 3. The “Digital Car“
Connectivity is already a key factor in evaluating a car For 71% of automotive journalists, connectivity already is or is quickly becoming a key factor in evaluating a car. “Yes, as it becomes a priority for young “It is becoming a key factor, because buyers.” younger people do not care about powertrains, maximum speed and Increasingly emotional driving anymore.” [42%] Already [29%] Not yet No [17%] “No. Ease of use is, but connectivity is not [12%] critical. It's also very difficult to communicate, given that average readers just want to know if they can plug the “Not yet but is going to grow once they phone in or not.” sort out the basics.” ? 2013 Expert Panel: “Is connectivity a key factor in evaluating a car?” 17
In-car electronics and connectivity are increasingly important Exponential increase of media attention to in-car electronics and connectivity. Media Panel | Share of coverage Top Connectivity Trends 12% In-car electronics play an increasingly Internet-based important role within the product Infotainment strategy. Systems 9% Driver Assistance 6,4% 6% 3,9% Navigation 3% 1,5% 1,5% Communication 0,2% 2013 0,1% 0,1% 0,1% 0,2% Expert Panel 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 0% 20% 40% 60% 100% = all coverage about “product strategy“ in respective year ? 2013 expert panel: What will be the most important connectivity trends in the automotive industry in 2013?” 18
The “digital” car | > 100 million lines of code Cars are no longer only hardware, they are also software products. Cars already have more lines of code than aircrafts and operating systems like Windows 8 or Apple Tiger. 100.000.000 90.000.000 80.000.000 F35 Fighter Jet 70.000.000 60.000.000 Boeing 787 50.000.000 40.000.000 US Military Drone 30.000.000 F22 Raptor Fighter 20.000.000 Jet 10.000.000 0 Space Shuttle Car Software and its “lines of code” of average modern high-end-car 19
Silicon Valley is moving in on the car industry Google is clearly seen as the key driver for the “digital car”. Apple and Microsoft are seen as more conservative. passive/conservative pro-active/aggressive “Fiat spent years betting on the wrong Microsoft horse.” The Ford Sync system is also far away from being benchmark: “Ford, with its hopeless voice command system, small 2014 screens and convoluted programming if you can't get Expert Panel the voice commands to work.” 0 1 2 3 ? “Which IT companies will be the key drivers for the “digital car”?” 20
Autonomous driving wins credit in 2014 Overall, safety related driver assistance systems are evaluated much more positively than comfort features. not important at all mixed very important Brake Assist Systems Pre-Crash Systems Intelligent Lights Pedestrian Detection Blind Spot Detection Adaptive Cruise Control Automated Crash Reporting Traffic Sign Recognition Attention Assist 2013 Nightvision Systems Expert Panel Lane Keeping Systems 2014 Expert Panel Park Assist Autonomous Driving -3 -2 -1 0 1 2 3 ? “How important and desirable are the following ‘Advanced Driver Assistance’ features from your point of view?” 21
Autonomous cars are expected within the next 5 years The world car experts are anticipating autonomous cars in series production within the next five years. 5 Years 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 ? “When do you expect to see fully autonomous driving cars in series production?” 22
Key markets for autonomous driving are USA, Germany, Japan Due to high costs and the need for infrastructure, autonomous driving will be strongly pushed by the most developed car markets. reluctant passive/conservative pro-active/aggressive USA USA, Germany and Japan are clearly Germany seen as the key markets for autonomous driving. Japan UK France China Italy 2014 Spain Expert Panel -3 -2 -1 0 1 2 3 ? “Which markets will be the key drivers for autonomous driving?” 23
Challenges to autonomous driving Legislation is seen as the biggest challenge to autonomous driving, closely followed by infrastructure and industry standards for Car-to-Car and Car-to-X communications. mixed important very important Legislation (on federal & national level) Infrastructure Investments Industry standards for Car-to-Car and Car-to-X communications Consumer Acceptance Integrity of Technology New Business Models & Scenarios Automotive Ecosystem (new players) 2014 Expert Panel 0 1 2 3 ? “How important are the following challenges enabling autonomous driving from your point of view?” 24
Safety is key to consumer acceptance of autonomous driving However, extra costs are seen as the second most important factor to clear the way for autonomous cars. mixed important very important Safety is the key to consumer acceptance of autonomous Safety / crash elimination driving. Extra cost Reduced travel times Comfort Increased productivity City motorists in Europe and the US waste Ø 60-80 hours (work while driving) per year in congestion. Data protection Improved energy efficiency Reduced need for new infrastructure New models of vehicle ownership 2014 (e.g. car sharing) Expert Panel 0 1 2 3 ? “How important are the following factors from your point of view regarding the consumer acceptance of autonomous driving?” 25
Contact PRIME Mainz (Germany) PRIME Oxford (UK) PRIME Ann Arbor (USA) PRIME Zurich (Switzerland) PRIME New York (USA) PRIME Shanghai (China) PRIME Delhi-Gurgaon (India) PRIME São Paulo (Brazil) PRIME Montevideo (Uruguay) Dr. Rainer Mathes Bernd Hitzemann Jens Meiners PRIME Research PRIME Research World Car Awards Chairman Project Director Director Steering Committee World Car Awards mathes@prime-research.com hitzemann@prime-research.com jmeiners@hearst.com
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