Consumer Perceptions of Disruptive Innovation: The Case of Self-Driving Cars

Consumer Perceptions of Disruptive Innovation: The Case of Self-Driving Cars Abstract This study examines consumer perceptions regarding the adoption of autonomous vehicles and associated technologies. Utilizing a three-part global survey methodology—encompassing status, behavioral, and impact metrics—the research analyzes consumer perceptions across North America, South America, Europe, the Middle East, Africa, Asia, and Australia. The structured approach evaluates industry trends, automated vehicle features, localized consumer perception responses, safety, insurance, and market factors. Findings reveal that consumers explicitly favor human-dominated AI systems rather than complete vehicle automation over the next five to ten years. While immediate market demands focus heavily on complete auto-parking capabilities and AI-driven advancements in auto-brake sensitivity, traditional airbag technologies are perceived as inadequate for a self-driving ecosystem, signaling an urgent need for novel passenger safety mechanisms. Furthermore, increased vehicle automation is expected to decrease environmental pollution, but it is also projected to induce a digital divide, reduce the thrill of driving, and require stricter government safety policies before consumers view higher insurance fees as a viable option. Notably, the study debunks several common market assumptions by demonstrating that automation does not positively correlate with higher manufacturer profits, alleviated traffic congestion, automotive job displacement, or prolonged behavioral resistance to change. Finally, global market adoption potential is segmented geographically, positioning the United States and Japan as scale-driven first-movers, China as a price-driven second-mover, and India as a risk-mitigated third-mover. Author AffiliationsTarek H. SelimGlobal Expert Council, World Economic ForumProfessor Emeritus of Economics, American University in CairoContact: tarekhassanselim@gmail.com Mostafa Gad-El-RabMcKinsey & Company (Middle East)Cairo, Egypt Research ContextThis conference presentation was developed during Dr. Tarek Selim's tenure at the Department of Economics, School of Business, American University in Cairo and during Mr. Mostafa Gad-El-Rab's corporate appointment at the McKinsey & Company Middle East Cairo Office. The material was presented at the Industry Studies Association Annual Conference in Seattle, USA in May 2022.