A new report finds that vehicle technology is becoming an increasingly important factor in what consumers buy and whether they return to the same automotive brand, especially among younger buyers.
The details: The report—conducted by The Harris Poll and titled AutoTechCast—finds that technology is increasingly associated with repeat purchase intent, with Gen Z and Millennials showing the strongest connection between tech and their vehicle choices.
78% of Gen Z and Millennials said in-car technology played a large role in choosing their current vehicle, up 20 percentage points since 2016.
Among Gen X, 63% said technology played a large role, an increase of 16 points, while 44% of Boomers agreed, up eight points.
79% of Gen Z and Millennials said the technology in their vehicle has made them more likely to buy from the same brand again, up 14 points since 2016.
Among Gen X, 72% said the tech in their car made them more likely to buy from the same brand, up 15 points from a decade ago.
61% of Boomers indicated that technology has made them more likely to return to the brand, up six points since 2016.
What they’re saying: “Vehicle technology is playing an increasingly important role in brand growth – especially for younger buyers who judge a car the way they judge a smartphone,” said Greg Paratore, VP of The Harris Poll, per the press release.
Why it matters: As technology plays a larger role in vehicle choice and brand loyalty, dealers that effectively demonstrate and explain in-car features could have a greater opportunity to influence purchasing decisions and strengthen customer retention, particularly among younger buyers.
Between the lines: Buyers’ preferences for vehicle technology vary across available features, with driver-assistance alerts ranking high overall and younger buyers over-indexing on certain safety technologies.
Among driver-assistance alerts, blind-spot alerts rank first overall at 42%, followed by forward-collision alerts at 30%, pedestrian or cyclist alerts at 27%, parking sensors at 26%, and side-collision and lane-departure alerts at 25% each.
Gen Z over-indexes most on “hands-on-wheel” reminders, at 24%, 10 points above the all-adult average, while Millennials over-index on speed-limit alerts, also at 24%.
Gen X over-indexes on drowsiness alerts at 24% and Boomers on lane-departure alerts at 34%.
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Digging deeper: Gen Z recorded the largest average increase in its interest index as automakers continue to ramp up technology investments, with the vehicle software market alone projected to grow from $41.12 billion in 2026 to $113.09 billion by 2034, according to Fortune Business Insights.
From 2023 to 2026, Gen Z recorded an average 6.5-point increase in interest in emerging technology, versus 4.4 points for Gen X, 3.4 points for Millennials, and 0.4 points for Boomers.
The largest increases among Gen Z were for battery-electric engines (+19.2 points), vehicle-to-vehicle communications (+17.2), and EV/fuel route planning (+15.6).
Gen Z also saw increased interest in vehicle cybersecurity (+15.3) and augmented-reality head-up displays (+14.1).
Bottom line: Technology is becoming an increasingly important driver of both vehicle selection and brand loyalty, signaling that effectively showcasing and educating customers on new technology could become critical for dealers looking to win buyers and keep them with the brand for their next purchase.
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