Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Automotive Innovation - US - May 2012

The pace of automotive innovation continues to accelerate as car makers compete to remain competitive in an increasingly connected and digitally capable environment. New car sales have increased by over 10% for two consecutive years and the average age of vehicles in operation is at a record high level of eleven years. As more consumers need to replace their aging vehicles, shopping for innovations is becoming a major part of the new car buying process.

This report provides an up-close look at auto innovation, including:

  • How is consumer behavior changing in the face of high gasoline prices and what are auto fuel companies are doing to respond?
  • What types of entertainment, connectivity, safety and environment innovations do consumers currently use? Which innovations would they most like to have in a new car?
  • What are the leading brands offering in terms of auto innovation and how are innovations being marketed?
  • How does the environment for new car sales, including the average age of vehicles in operation, impact future need for auto innovations?
  • Is distracted driving a real issue and what is the consumer standpoint?
  • Which brands are perceived as innovation leaders and why?
  • What characteristics do consumers demand in auto innovations?
  • How do attitudes regarding auto innovations vary among different consumer groups such as age, income, or type of vehicle owned?

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Scope and Themes

    • What you need to know
      • Definition
        • Data sources
          • Sales data
            • Consumer survey data
              • Advertising creative
                • Abbreviations and terms
                  • Abbreviations
                    • Terms
                    • Executive Summary

                        • The market
                          • Auto sales—new car and light truck sales increase more than 10% for two consecutive years
                            • Figure 1: Total U.S. unit sales of cars and light trucks, 2006-11
                          • In-vehicle technology sales—entertainment picks up while security fails
                            • 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
                              • 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
                                          • Figure 4: Safety and Innovations in most current vehicle, January 2012
                                        • Entertainment innovations still new to most consumers
                                          • Figure 5: Electronics, entertainment, and connectivity innovations in most current vehicle, January 2012
                                        • Innovation leaders benefit from first mover advantages
                                          • Figure 6: Top five rated* companies rated on being leading innovators by area of innovation, January 2012
                                        • Safety, simplicity trump entertainment according to consumers
                                          • Figure 7: Perceived importance of key automotive innovation areas, January 2012
                                        • What we think
                                        • Insights and Opportunities

                                          • 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

                                                  • Trend: Switched Off
                                                    • Trend: Without a Care
                                                    • Market Size

                                                        • Auto sales
                                                          • Key points
                                                            • New car and light truck sales increase 10%+ for second consecutive year
                                                              • 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
                                                              • 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
                                                                  • Figure 10: Total U.S. sales to dealers of in-vehicle technology*, 2006-12
                                                              • Market Drivers

                                                                • Key points
                                                                  • With average age of cars at record high, many consumers lack innovations
                                                                    • 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
                                                                        • Figure 12: Average U.S. regular gas price, 24 month average, May 2012
                                                                      • Annual miles driven double over past two decades, gridlock worsens
                                                                        • 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

                                                                            • Key points
                                                                              • Factory-installed innovations shape aftermarket sales landscape
                                                                                • Figure 14: Total in-vehicle entertainment vs. information/security sales to dealers, 2006-12
                                                                              • Recent sales decline in all segments excluding factory-installed systems
                                                                                • 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

                                                                                • Key points
                                                                                  • Factory-installed systems increase 42%
                                                                                    • Figure 16: Total in-vehicle entertainment sales to dealers, by segment, 2006-12
                                                                                  • Sound technology could help stabilize aftermarket sales
                                                                                    • Figure 17: Total in-vehicle entertainment sales to dealers, by segment, 2009 and 2011
                                                                                • Segment Performance—Safety and Information

                                                                                  • Key points
                                                                                    • Sales of aftermarket safety and information innovations decline nearly 25%
                                                                                      • Figure 18: Total in-vehicle information/security sales to dealers, by segment, 2006-12
                                                                                    • Portable navigation systems make up majority of information technology sales
                                                                                      • Figure 19: Total in-vehicle information/security sales to dealers, by segment, 2009 and 2011
                                                                                  • Leading Companies and Brand Qualities

                                                                                    • 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

                                                                                                • 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

                                                                                                          • Overview
                                                                                                            • Ford aims at bloggers for personal touch
                                                                                                              • Ford Swap Your Ride shows real consumers enjoying SYNC
                                                                                                                • Figure 20: Ford Ad, two women in swap your ride, April 2012
                                                                                                              • Marketing safety starts with emotion
                                                                                                                • Volkswagen ad resembles public service announcement
                                                                                                                  • Figure 21: Volkswagen Ad, please don’t makeup and drive, 2012
                                                                                                                • Infiniti ad focuses on safety with mini-drama sure to resonate with all
                                                                                                                  • 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
                                                                                                                    • Figure 23: Toyota Ad, salute to CMT Listen Up musicians, April 2012
                                                                                                                  • Toyota ad introduces Entune features to wider audience with humor
                                                                                                                    • Figure 24: Toyota Ad, father and daughter with Entune, April 2012
                                                                                                                • Safety and Environmental Innovations

                                                                                                                  • Safety and environmental innovations currently owned
                                                                                                                    • Key points
                                                                                                                      • Many drivers using safety and environmental innovations today
                                                                                                                        • Figure 25: Safety and environmental innovations in most current vehicle, January 2012
                                                                                                                      • Middle-aged drivers present opportunity but need crafted message
                                                                                                                        • Figure 26: Safety and environmental innovations in most current vehicle, by age, January 2012
                                                                                                                      • Crossover drivers use more innovations
                                                                                                                        • 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
                                                                                                                            • Figure 28: Safety and environmental innovations would like to have/don’t want in next vehicle, January 2012
                                                                                                                          • Middle-aged consumers want safety innovations
                                                                                                                            • 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
                                                                                                                            • 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
                                                                                                                                • 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
                                                                                                                                • 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

                                                                                                                                • Electronics, entertainment, and connectivity innovations currently owned
                                                                                                                                  • Key points
                                                                                                                                    • Entertainment innovations still new to most consumers
                                                                                                                                      • Figure 33: Electronics, entertainment, and connectivity innovations in most current vehicle, January 2012
                                                                                                                                    • Middle-aged consumers have need for entertainment innovations
                                                                                                                                      • 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
                                                                                                                                      • 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
                                                                                                                                          • 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
                                                                                                                                          • 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
                                                                                                                                          • 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
                                                                                                                                          • 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
                                                                                                                                              • Figure 40: Auto electronics, entertainment, and connectivity innovations that manufacturers should focus on, January 2012
                                                                                                                                            • Younger respondents are more interested in potential innovations
                                                                                                                                              • Figure 41: Auto electronics, entertainment, and connectivity innovations that manufacturers should focus on, by age, January 2012
                                                                                                                                            • Middle-aged respondents want recent innovations
                                                                                                                                              • 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
                                                                                                                                              • 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

                                                                                                                                            • Key points
                                                                                                                                              • Innovation leaders benefit from first mover advantages
                                                                                                                                                  • Figure 44: Auto companies/makes considered to be leading innovators, by area of innovation, January 2012
                                                                                                                                              • Perceived Importance of Key Auto Innovation Areas

                                                                                                                                                • Key points
                                                                                                                                                  • Safety and fuel efficiency considered far more important than entertainment
                                                                                                                                                    • Figure 45: Most important key automotive innovation areas, January 2012
                                                                                                                                                  • Entertainment and connectivity still popular among 18-24 year olds
                                                                                                                                                    • Figure 46: Most important key automotive innovation areas, by age, January 2012
                                                                                                                                                • Attitudes to Automotive Innovation

                                                                                                                                                      • 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
                                                                                                                                                        • Figure 48: Concerns over use of infotainment systems, by age, January 2012
                                                                                                                                                      • Majority of luxury car owners want simple in-dash system
                                                                                                                                                        • 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
                                                                                                                                                        • 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
                                                                                                                                                        • Figure 51: Interest in and attitudes to in-dash infotainment innovation, by household income, January 2012
                                                                                                                                                      • Safety concerns stable across income groups
                                                                                                                                                        • Figure 52: Concerns over use of infotainment systems, by household income, January 2012
                                                                                                                                                    • Impact of Race and Hispanic Origin

                                                                                                                                                      • Key points
                                                                                                                                                        • Hispanics more likely to own safety innovations
                                                                                                                                                          • Figure 53: Safety and Innovations in most current vehicle, by race/Hispanic origin, January 2012
                                                                                                                                                        • Hispanic and black respondents more interested in safety innovations
                                                                                                                                                          • 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
                                                                                                                                                          • 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
                                                                                                                                                          • Figure 56: Electronics, entertainment, and connectivity innovations would like to have in next vehicle, by race/Hispanic origin, January 2012
                                                                                                                                                      • Appendix—Trade Associations

                                                                                                                                                        Companies Covered

                                                                                                                                                        • BMW of North America, LLC
                                                                                                                                                        • Ford Motor Company
                                                                                                                                                        • General Motors Corporation
                                                                                                                                                        • Hyundai Motor America
                                                                                                                                                        • Mercedes-Benz USA
                                                                                                                                                        • Nissan North America, Inc.
                                                                                                                                                        • OnStar Corporation
                                                                                                                                                        • Toyota Motor Corporation USA
                                                                                                                                                        • Volkswagen of America, Inc.

                                                                                                                                                        Automotive Innovation - US - May 2012

                                                                                                                                                        £3,174.67 (Excl.Tax)