Study

Value of Time

The successive transformation of finance operations with the aim of making finance more efficient and dynamic is an item that continues to be on the agenda of CFOs and executives.

The study "The Value of Time" by the Fraunhofer IAO and Horváth & Partners provides an overview of the potential of service offers for enabling (secondary) activities during autonomous driving. A comprehensive user survey was conducted on three continents in this regard in fall 2015. The first part of the study looks initially at pending developments in vehicle automation and describes the options for performing (secondary) activities while driving. The derived service market is then structured based on various customer needs, which are fulfilled by activities. The survey design and key findings are then presented on this basis and an outlook of the market launch provided.

The study structures and quantifies the future landscape for service offers

The study centers around a user survey carried out among 1,500 test subjects from Germany, Japan, and the U.S. Owing to the variety of conceivable activities and time horizons, six needs and 21 service groups were formulated for value-added services and the survey split into two scenarios "the highly automated vehicle" (hands off and feet off) and "the driverless capsule" (hands off, feet off, and brain off). The survey's findings show that 75 percent of users are prepared to pay for value-added services and that fundamental market potential therefore exists for chargeable service offers for both scenarios in completely different areas of activity. Users will want services even on short journeys. Differences in demand arise depending on the region and age group considered. Younger people in particular show a comparatively high level of interest in services as well as in vehicle automation. A basic willingness to pay in return for an hour of free time can be shown to exist across all respondent groups, with this "Value of Time" rated as highest among the under 25s at €29 per hour. Comparing the three countries, users in Germany would pay most for an additional hour of free time.

The survey confirms the business potential of service offers

The findings of the study provide an initial overview of upcoming opportunities for offers and market structures in the future "automobile" service world. Moreover, the data collected as part of the survey also allows other further-reaching analyses, which cannot be illustrated within the scope of the present study. Thus, for example, brand-specific evaluations or targeted investigations of individual service groups are possible with respect to their target groups. Interested parties are called upon to get in touch with the contacts named at the end of the study in order to discuss the findings of the study as well as possibly other joint research questions.

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