Many surveys have extensively evaluated consumer sentiment about autonomous cars, including self-driving vehicles. Less is known about consumer attitudes toward another innovative automotive technology: remote driving. By combining sophisticated communication systems with real-time video feeds, a remote-driving system can instantly convey information about road conditions, traffic, and unexpected obstacles to an off-site driver who controls the vehicle from any location. These systems can be used in all types of on- and off-road vehicles, regardless of size.
The remote-driving function, which can be activated or deactivated as needed, could free drivers from many tedious tasks, including driving in a traffic jam, finding a parking space in a crowded lot, or taking cars to the shop for maintenance. Fleets and businesses might also be interested in remote-driving services for certain responsibilities such as last-mile delivery of goods, or delivery of rental cars or car-sharing vehicles to customers.
Beyond increasing consumer interest, remote-driving technology could benefit OEMs by generating new recurring revenue streams, improving the customer experience, and potentially increasing market share. It might also decrease total cost of ownership for fleet customers (for instance, by reducing the costs required to relocate vehicles).
To help OEMs evaluate commercial prospects for remote-driving systems, we decided to investigate this technology in more detail by launching a consumer survey. Among other issues, we explored how remote-driving systems could complement autonomous driving. The survey results indicated that customers are very receptive to remote driving for both daily use of personal vehicles, and delivery of rentals or shared vehicles. Premium customers said they are particularly interested in remote driving, suggesting that OEMs that pursue this technology should consider targeting this segment first.
A curious consumer base and a broad market
We explored the consumer perspective on remote driving by surveying about 1,500 car owners in China, Germany, and the United States. About 65 percent of all respondents stated that they are “likely” or “very likely” to use remote driving as a service. Equally important—and potentially having major consequences for OEMs—over 60 percent would consider switching to their second favorite automotive brand to gain access to such services.
Across geographies, over half of respondents expressed a neutral or positive view of remote driving. Attitudes also varied by vehicle segment. About 66 percent of drivers of premium cars said they have a positive view of remote driving, compared to 43 percent for volume-car drivers. Premium drivers were also more likely to give higher ratings for relevancy and likelihood of use.
Average willingness to pay, which was assessed by asking consumers how much they would pay for 10 minutes of remote driving, was about $9 globally, and premium drivers were willing to pay about $1 more than volume drivers. If these findings are replicated in the market, the high willingness to pay could help OEMs increase recurring revenues.
Sharing the road with autonomous vehicles
Remote driving and autonomous vehicles (AVs) both seek to provide greater convenience and freedom for passengers. Level 4 AVs, which are now being piloted, can operate without a driver in the vehicle, which is the same benefit that remote driving offers. The use cases for level 4 automation and remote driving are different but highly complementary.
While AVs have been under development longer than remote driving, their progress has been slower than expected because of regulatory and technological challenges. A 2023 McKinsey survey of 86 decision makers in the autonomous-driving industry showed that commercial at-scale adoption timelines for multiple AV use cases, including street parking and robotaxi operation, have been pushed back by an average of two to three years compared to the 2021 survey. What’s more, the first level 4 AVs may not be commercially available at scale until sometime between 2025 and 2028. Of course, approval timelines may vary by country.
It is too early to estimate when remote driving might reach the market, but it could become available before the launch of level 4 AVs and provide consumers with their first experience in a driverless car.
When level 4 AVs do launch, remote-driving systems could potentially increase the operating area for these vehicles. For instance, the first level 4 vehicles for private customers might only operate on highways and during good weather. With remote driving, the operating area may be extended to additional roads or during bad weather.
Our survey findings suggest that demand for remote-driving services could remain strong even if AVs become widely available. Overall, a third of respondents said they have no preference between remote driving and AVs; of the remaining two-thirds, 58 percent said that they prefer remote driving over AVs (exhibit). When asked about specific features, such as cost-efficiency and the ability to handle emergencies, survey respondents gave higher rankings to remote driving in most instances.
The market’s missing pieces
Our survey findings provide reason for optimism, but the market for remote driving is still in its early days. As the industry evolves, stakeholders could help build support by offering consumer education and vehicle demonstrations. They could also help address any concerns by publicizing the results of rigorous safety tests.
Beyond building consumer support, industry stakeholders might accelerate progress by continuing to improve remote-driving technologies and creating training programs for remote operators.
Consumers value their free time and are willing to pay for services that help give them more leisure. OEMs that offer remote-driving services could find that their offerings are in demand, creating the potential for higher sales and recurring revenues. As with any automotive innovations, OEMs may decide to introduce remote driving in the premium segment, which is likely to be comprised of the most receptive customers. Over time, however, OEMs may find that remote-driving services serve as an important complement to autonomous vehicles across all vehicle segments.
We will continue following the market for remote driving and plan to publish more extensive insights in an upcoming article.
Kersten Heineke is a partner in McKinsey’s Frankfurt office; Martin Kellner is a partner in the Munich office, where Anna-Sophie Smith is an asset leader and Marie Rebmann is a consultant.