Market Trends in Automotive Industry: Now and Future
As technology continues to play an increasingly central role in our daily lives, we’re ushering in a new era for the automotive industry—and the economy. Consumers have adapted to fast access and delivery via online platforms, and they have come to expect the same when it comes to their in-car services. So, what are the top market trends in automotive industry consumers expect to see in years to come?
What Are the Current Automotive Industry Trends?
The outlook for automotive trends to come is strong. Consumers expect more and more from the technologies they use, and the automotive industry is poised to meet their demands. There are four main sectors in which we can expect to see a rise in technology-driven trends:
- Diverse mobility
- Autonomous driving
What Are the Top Technology Trends in the Automotive Industry?
Electric vehicles are the future of today. Not only is this emission-free innovation beneficial to our environment, but it also opens up the potential for exploring a world of fully electric mobility. There are a few challenges to overcome before we reach a tipping point in the popularity of electric cars, including insufficient charging infrastructure, low battery capacity, and full-fleet electrification.
Before electric vehicles can fully evolve, these concerns will need to be addressed. As industry titans like Ford, Chevrolet, and BMW make strides towards solutions—like an annual 7% increase in average battery energy density—it doesn’t seem like these challenges will be present for very long. With car companies reporting electric car sales as outpacing the broader auto industry, consumers seem to agree.
Internet-of-Things (IoT) Technology
With IoT technologies, secure interactions between vehicles and infrastructure components improve road safety, pollution, traffic congestion, and energy spent, with the added bonus of better fleet management. Many startups and emerging automotive companies are developing novel technologies to gather vehicle data and allow vehicles to understand and comprehend their surroundings at any given moment. This data can be used to offer value-added services to drivers through in-car apps. IoT technology also allows users to access real-time driving data, which can be utilized in navigation applications to alert drivers of certain traffic hazards or bad road conditions.
Fully Autonomous Vehicles (AV) by 2030
Driverless cars, or self-driving vehicles, are truly an innovation of the future with their ability to operate themselves, allowing drivers to get to their destination safely. Although autonomous vehicles most likely won’t be our standard form of transportation in the next few years, we can expect these machines to hit the market as early as 2030 with the help of advanced driver-assistance systems (ADAS). By that same year, the AV market is anticipated to see staggering growth with a 41.57% compound annual growth rate between 2021–2030.
The primary challenges for faster market penetration include safety and security issues, consumer understanding, and pricing, but ADAS will play a crucial role in preparing consumers and corporations for this new reality. Tech players and automotive startup companies will also play a huge role in developing autonomous vehicles, which offer tremendous benefits to consumers.
Artificial Intelligence (AI)
Similar to autonomous vehicles, consumers will benefit greatly from artificial intelligence services like AI guides, which help drivers in safety, fleet management, and vehicle enhancement services like insurance and inspection. Furthermore, artificial intelligence is also applicable in automotive manufacturing, accelerating production rate, lowering costs, and facilitating as high as a 20% increase in productivity. Connectivity is another service aided by artificially intelligent programs that track vehicular data to streamline driver safety, fleet management, insurance, and maintenance.
Big Data & Data Analytics
Using data gathered from vehicles, advanced data analytics provides maintenance assistance, alerts authorities of accidents, and informs managers about the status of their fleets. With the help of predictive analysis, big data also helps drive sales, implement production targets, optimize supply chains, and enhance product designs for upcoming vehicles.
Procon Analytics, a US-based startup, is one of the leading software companies that influence big data to provide automotive financing solutions by getting a hold of millions of real-time data points. They also provide software solutions for fleet tracking and asset management.
How much will interactions between drivers and vehicles change once we evolve to an autonomous world? With human-machine interfaces, drivers use speech input or haptic feedback to control vehicles. Human-machine interfaces create a safer and more enjoyable experience for the driver by expanding which aspects of the car can be controlled while in motion.
Human-machine interfaces also include smart virtual assistants who help riders interact with both the vehicle and service providers. Startups like Apostera offer advanced ADAS, which combines augmented reality, smart camera, and surround-view monitoring to prevent collisions, assist drivers in maintaining safe distances from other vehicles and enable additional autonomous driving options.
How is the Automotive Industry Evolving?
Though this list only contains a few of the top market trends in automotive industry, we can, there are many more advancements to look forward to within the next few years. Innovations like hybrid vehicles, robotic systems, and automotive sensor technologies will transform the automotive sector as we know it. While we can only make a calculated guess on what the future of the automotive industry holds, one thing we know for sure is that it is headed in the right direction as new opportunities and futuristic prospects advance opportunities across the industry.
For the past 20 years, Ken Ro has dedicated his time in the financial services industry. Prior to joining ZT Corporate, he assisted in starting the Platinum Global Advisors, LLC. He was also a part of the Private Client Services division of Deutsche Bank PWM as a top producing advisor, a Vice President of Morgan Stanley Private Wealth Management, and a Vice President at UBS Private Wealth Management. In addition to wealth management, Ken also has experience in capital raise and business development as Director of Business Development for Group 11. Ken Ro received a Bachelor of Science in Business Administration and Finance from the University of Southern California.