Analysis of the North American Advanced

Features Market and Optional/Standard

Strategy of OEMs

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Jennifer Carson Corporate Communications

(210) 247.2450

Jennifer.Carson@frost.com

Research Authors

Neelam Barua

Industry Analyst

Automotive &

Transportation

neelamb@frost.com

@neelb82

Vishwas Shankar

Senior Consultant and

Program Manager

Automotive &

Transportation

vishwass@frost.com

@vishwas_shankar

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Key Questions the Analysis Answers

What is the value proposition of the automotive industry and the dynamics and impact on features

and specifications?

What are the future strategies of key North American OEMs for volume and premium segments?

What are the benefits, advantages, and disadvantages of features offered as standard, optional, and

advanced?

Who are the key automotive OEMs driving the features in cars to be offered as standard, optional, or

advanced?

What are the customer perceptions and demands for features and attributes on vehicle segments?

How does an OEM decide on features as standard or optional? What are the key factors for pricing

a feature or technology package in a car?

Source: Frost & Sullivan analysis.

Key Highlights

• The ADAS features are migrating from the luxury brands into volume

categories—B, C, and even A segment cars. These features are offered as

options at reduced prices.

• Connected Car and V2V/V2I will no longer be optional for automotive OEMs

as these applications will become a mandate and be offered as standard

features.

• Price and functionality will be the major differentiating factors among

suppliers of various technologies.

• The future automotive industry will witness high-end navigation, head-up

display (HUD), and reconfigurable dashboard technologies. Haptic feedback-

based technologies and emotional intelligence in cars will be emphasized.

• Among the various advanced technologies in the automotive industry, safety

technologies, followed by comfort and convenience, are the most preferred

among North American OEMs.

Source: Frost & Sullivan analysis.

Active Safety

Comfort and Convenience

Comfort, health, and Wellness

Convenience

•

Handling and Styling

Active Safety and Security

Executive Summary—Advanced Features Technologically advanced cameras will be widely standard or inexpensive options (a few hundred dollars).

The automotive industry will bring in the comfort and convenience features based on customer preferences.

With rear-view camera systems,

Honda and Acura models are

the 1st vehicles in the industry

to have met the advanced

technology feature performance

criteria.

The 2014 Infiniti Q50 luxury

sedan with its iKey allows up to

4 motorists to customize a

range of operating parameters

such as seat adjustment, mirror,

and climate control settings.

Acura RLX luxury sedan

features an automatic braking

system that keeps the brakes

engaged for up to 10 minutes at

long stoplights or train

crossings.

The Mercedes-Benz S-Class

pampers its occupants with

automated heated and cooled

front seats to simulate a shiatsu

hot stone massage.

The 2014 Honda Odyssey

minivan offers a built-in vacuum

cleaner with a replaceable filter,

canister bag, attachments, and

an integrated hose.

The new Jaguar F-TYPE sports

car offers door handles that

deploy when touched or when

the car is unlocked through the

key fob.

Images are used for illustration purposes only. Source: Company media Web sites; Frost & Sullivan

OEM

Part of Existing ADAS

Package

Cost of

Existing ADAS

Package

Frost & Sullivan

Cost Estimates

of Automated

Driving Package

Optional versus

Standard

Strategy

BMW

X5

2014

• ACC Stop & Go + active

driver assist

• Night vision assist with

pedestrian detection

$1,900

$2,600

~$4,500 Optional

Mercedes-

Benz

E-Class

2014

• Lane tracking package

• Driver assist package

• Parking assist package

• PARKTRONIC with active

parking assist and exit

$875

$2,800

$1,290

$970

~$4,000 Optional

Audi

A6

• Driver assist package

• Night vision assist with

pedestrian detection

$3,250

$2,300

~$6,600 Optional

Executive Summary—Comparative Analysis of ADAS Features While BMW prices its system higher than Mercedes-Benz on the 2014 X5, the ability to automate the vehicle

in night-driving conditions is the bigger advantage for X5 over E-Class.

ACC = Adaptive Cruise Control Source: Frost & Sullivan

Executive Summary—Key Features Comparative Analysis The Subaru XV Crosstrek in mass-market vehicles and X1 and X3 in the luxury market offers many optional

interior features.

Note: Few selected models and features have been considered in the analysis.

Source: Frost & Sullivan

Vehicle System Features Model/Standard Luxury Market Model/Optional

Mass-market Model/Optional

HMI and Connectivity

OEM navigation

Range Rover Evoque Land Rover

LR2 Countryman Acura RDX Mazda CX5

Q5 GLK Class BMW X1, X3 Hyundai Tucson

Volvo XC 60 Subaru XV Crosstrek

Touchscreen RAV4 LR2 RDX GLK Class CX5

Outlander Sport XC 60 Countryman X1, X3 XV Crosstrek

Advanced voice recognition

Q5 LR2 Evoque XV Crosstrek

RDX GLK Class X1, X3 Escape

App interface solution RDX GLK Class X1, X3 CX5

Honda CRV XV Crosstrek

Convenience

Bi Xenon high-intensity headlights with AFLS VW Tiguan GLK Class Escape

LED lamps Q5 LR2, Evoque Sportage

Infinity EX X1

Rain-sensitive wiper Q5 Tiguan LR2, Evoque GLK Class Outlander

X1 Escape Countryman, X3 Outlander Sport

Intelligent headlamps Outlander Sport

Power liftgate LR2 Allroad,Q5 Escape

RDX

AFLS = Adaptive Front Lighting System; LED = Light Emitting Diode

Executive Summary—Future Vehicle Features Feature areas such as ride and handling and convenience features are expected, followed by active safety,

peripheral integration, input HMI controls, and interior features and vehicle personalization key.

• Touchpad with handwriting

recognition and haptic

feedback

• Gesture controls

• Capacitive touchscreens

• Touchscreens with haptic

feedback

Co

nve

nie

nc

e

• Active ventilated front seats

and massage

• Interior lighting (mood lighting)

• Laser headlights

• NFC-based interior

personalization (through phone)

• Predictive/learning navigation

(using cloud)

Co

mfo

rt

• Apps/in-vehicle features to

monitor air pollen levels and

blood sugar levels

• Driving dynamics

personalization (based on

map data and driving mode)

• Reconfigurable instrument

clusters

Info

tain

me

nt

an

d H

MI

inp

uts

• LTE over-the-air integration

• Wireless charging

• Over-the –air updates

Se

cu

rity

an

d C

on

nec

tivit

y

• Collision warning and

mitigation using AR

• Low-speed collision

avoidance and emergency

braking

Ac

tive

Sa

fety

• Map-enabled ADAS

(including powertrain and

suspension control)

• Night vision systems

• V2V/V2I communication

Ad

va

nce

d S

afe

ty

NFC = Near-field Communication; LTE = Long-term

Evolution; AR = Augmented Reality; V2V = Vehicle to

Vehicle; V2I = Vehicle to Infrastructure Images are used for illustration purposes only. Source: Company media Web sites; Frost & Sullivan

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