Connected, Autonomous and Electric Vehicles: The Optimum Value for a Successful Business Model

In the nearest future, the transportation industry will be witnessing a transitional period towards the wide spread of connected autonomous electric vehicles (CAEVs), These high tech vehicles are projected to create significant economic benefits in terms of safer transportation, more efficient commuting and substantial reduction of (GHG) emissions. However, the customer's perceived value of CAEVs is still not clear and questionable. This study sheds the light on the consumer adoption process of new technologies and the diffusion of innovations to global markets. It investigates the optimum value for CAEVs business model in order to successfully commercialize them in global markets. The results of focus groups suggest that connected autonomous electric vehicles (CAEVs) will provide an optimum value for producers and users once they are introduced in enabling environment particularly smart cities where IoT and applications of artificial intelligence and machine learning are enabled on a large scale. Despite the fact that automobile manufactures ought to overcome legislative and safety challenges, they need to create a new market for these vehicles substantiating real value to customers. The findings of this study open new horizons for future research on successful commercialization of CAEVs.