Automotive Industry: A Comprehensive Overview
Today, global economies are changing dramatically, triggered by rapidly emerging markets, the rise of new technologies, changing customer preferences around ownership, and sustainability policies. Increasing automation, digitization, and new business models have revolutionized every industry and the automotive industry is no exception. Connectivity and latest autonomous technology will increasingly convert cars into a platform for passengers and […]
Today, global economies are changing dramatically, triggered by rapidly emerging markets, the rise of new technologies, changing customer preferences around ownership, and sustainability policies. Increasing automation, digitization, and new business models have revolutionized every industry and the automotive industry is no exception. Connectivity and latest autonomous technology will increasingly convert cars into a platform for passengers and drivers to utilize their time during transit to consume novel forms of services and media or to other personal activities. Rapid innovation, especially in software-based systems, will require cars to be updated. As shared mobility solutions with shorter life cycles will become very common in the near future, consumers will be aware of innovations, which will subsequently increase the demand for upgrades in privately used cars as well. All such factors and forces are giving rise to several disruptive automotive industry trends that will fasten the pace of evolution in the industry. However, like most industries, automotive industry challenges are numerous. In this article, we have analyzed the automotive industry trends and challenges that will help industry players to prepare themselves better for uncertainties by discussing potential future states.
Automotive industry trends
Automotive’s future is automated, shared, updated and connected
Cars of the future will emit lower exhaust fumes and noise since they will be powered by electricity. Cars in the future will be more accessible because users will not need a driving license to use it. Additionally, it will be more affordable because it will no longer have to be bought outright but can instead be paid for in small amounts peruse. In the years to come, going emission free will be a global initiative. Rapid progress in areas like AI, machine learning and deep neural networks have made it possible to achieve what until recently was utopian. Car2Car, Car2X communication, and carpooling and sharing facilities are some the most emerging automotive industry trends currently.
The center of interest will be the user
The future of the automotive industry will be more focused on users. By modeling the behavior of the user, it is easy to calculate the individual personal mileage and, therefore, the overall car mileage in a specific market. This will make it easy to predict the vehicle inventory and sales with greater certainty. This is one of the automotive industry trends that will bring in more user-friendly cars on the road in the years to come.
Changing mobility needs
Automotive industry trends are driven to a large extent by younger, technically savvy generations. The changes in mobility needs are one of the fastest growing automotive industry trends in almost every market in the world. The time is not too far when user preferences will move more towards autonomous mobility. By 2030, the share of autonomous driving in overall traffic may rise to as much as 40%.
Automotive industry challenges
To deal with the Chinese market
The Chinese market has been evolving, offering a plethora of opportunities and challenges for global automotive players. In the next decade, one of the gravest automotive industry challenges will be to compete with the soaring sales rate of Chinese automobiles, globally. Despite its moderating expansion rate, China is expected to remain one of the leading engines for the global automotive industry. So, the market players need to build a successful strategy to understand the structure and capacity trends of Chinese manufacturers.
Data management in connected cars
Today, cars are already smart and connected. Built-in cameras, lidars, and radars can be used for real-time analysis of the vehicle’s environment, and such data sources are extremely powerful. This data can be utilized for safety and better assistance. But data management in connected cars is one of the biggest automotive industry challenges that companies need to face today. They need to come up with more innovations in the next few years to manage such data efficiently.
Adopting a sustainable technique
Integrating innovations into cars is not an easy process in terms of validation, development, and investment. Advanced technologies are becoming more and more complex. So, efforts are required to stay sustainable and achieve better performance along with innovations, and this is one of the critical automotive industry challenges. Also, sustainability is important for managing environmental impact too.