Top 5 Emerging Trends in Automotive Industry: Dreams Turning into Reality
The automotive industry is currently in the biggest transformation process ever experienced. With the advent of fully functional autonomous cars with digitally enhanced specifications, the global transportation scenario is expected to change significantly in the next few years.
Major automotive manufacturers are striving to enhance their offerings by incorporating technologically driven trends in the latest models. These manufacturers are entering into partnerships with technology giants to develop software for the vehicle to operate efficiently. Autonomous vehicles are the future trend in the industry to ensure safety among passengers and the pedestrian in the best possible manner.
So what lies ahead?
With the increasing trends towards digital transformation and adoption of 5G technology, the automotive industry is on the path of revolution- creating surplus opportunities for the future generation. Autonomous driving is the future. However, due to the lack of skilled workforce and infrastructure in major developing economies such as China, India, Middle East and other regions, there is still a long way ahead for the global market to transform the overall automotive industry.
Various market research firms have highlighted the significance of current digital transformation, as well as social trends and consumer demands, which are facilitating the automotive industry globally. According to Next Move Strategy Consulting, the global electric vehicle market size was estimated to be USD 176.62 billion in 2019 and is predicted to reach USD 1559.84 billion by 2030 with a CAGR of 21.9% from 2020-2030. Innovative software for automotive industry, along with unique designs are creating opportunities for this industry.
Automobile industry globally is offering lucrative opportunities to the market growth due to the availability of enhanced technologies such as artificial intelligence, machine learning, internet of things (IoT), and 5G networking. The incorporation of all these car tech innovations in vehicles will promote enhanced specifications and will drive the consumer demand.
Tesla promised the deployment of autonomous robotaxis in the year 2020. However, amidst the prevailing global pandemic, the launch has been postponed and is expected to deploy the services with human monitoring by mid-2021. This is solely depending upon the regulatory approval by the respective country.
Gradual increase in electric vehicles will also lead towards mass production of the technology. With growing concerns towards optimization of natural resources, electric vehicles are gaining tractions due to their environment friendliness. For instance, in September 2019, Ford Motor Co launched eight electric vehicles in Europe. Ford’s launches include electric variants of the Mondeo. The automaker also plans to launch nine other electric vehicles by 2024 in Europe, including a new Mustang-inspired electric sports utility vehicle.
Additionally, manufacturers are setting up charging stations for these vehicles, in accordance with the government mandates and regulations regarding the adoption of electric vehicles. Similarly, US government provides subsidies in the deployment of charging stations for electric vehicles to enhance its awareness and adoption among consumers.
The self-driving cars and trucks market has become highly competitive due to the presence of various market players with substantial market size. Some of the key players include Google LLC, Nissan Motor Company, General Motors, Honda Motor Corporation, Daimler AG (Mercedes Benz), Volkswagen AG, BMW AG, Volvo Car Corporation, Audi AG, Toyota Motor Corporation, Tesla, and Ford Motor Company.
Top 5 Emerging Trends which are Transforming the Automotive Industry
Four-wheeled cars with basic features are moving towards heavy innovation and advanced features through the adoption of various futuristic equipment. Here are the top 5 trends which are transforming the landscape of the automotive industry:
Connectivity and Data Transmission
Connectivity and data transmission are expected to play a key role in the automotive industry. Due to the emergence of autonomous driving, connectivity is one of the pivot role in this industry. Data transmission and processing in automotive can be used to monitor traffic, parking, detection of objects or pedestrian, and engine control and monitoring. For instance, ADAS (Advanced driver-assistance systems) is paving its way into the automobile industry. Connectivity and data transmission will have the ability to share details related to driving conditions, environment, and many more.
With the growing advent of digitization, the blockchain model in the automotive industry helps in sharing vehicle data with the manufacturers and dealers in a secured way. The blockchain model assists in improving the efficiencies in the supply chain. It also improves vehicle data and information to ensure information optimization.
Surge in Demand for Electric Vehicles
The electric vehicles are becoming popular. Big automotive manufacturers such as Texas Instruments, Geely, Hundai, and BMW among others are investing in R&D to manufacture these enhanced technologies. As the global automotive industry is pushing its boundaries towards electric and intelligent vehicles, automakers are paving their way to introduce platforms for numerous electric vehicles. According to Next Move Strategy Consulting, there have been tremendous growth in the technology over the period of time which has also led to the technological advancement and drastically evolving infrastructure are expected to accelerate the electric vehicle market. Moreover, increasing demand of renewable energy to reduce the pollution is further expected to drive the market growth.
Advent of 3D Printing Technology
The automotive industry is followed by innovative ideas and applications which are transforming the industry rapidly. Automakers are using enhanced technologies such as 3D printing to develop exterior body of the vehicle so that it is capable enough to endure crashes and collision. This technology is transforming the basics of traditional car designing. The chassis of the vehicle, in the solid state, is being developed by 3D printing.
Innovative manufacturing in the automobile industry is making its way towards developing self-driving technology. This is expected to open new opportunities for the automotive business growth globally. According to estimates, the vast potential of autonomous vehicles is expected to offer boom to the startups in this industry verticals. With the advent of AI and machine learning, along with 5G revolution throughout the globe, autonomous vehicle and autonomous driving is expected to be the next reality. In 2015, Tesla Motors came up with furtherance in the US that included Tesla Autopilot capability- a gateway towards autonomous driving.
How Bright is the Future?
According to estimates, more than 60 companies have applied to test autonomous vehicles in US, up till June 2020. However, the authorities are still reluctant to commercialize the technology due to repetitive planning and execution errors by the vehicle, which can be fatal for the people. Minimization of road accidents is one of the key parameters for autonomous vehicles, making the commercialization is debatable.
The automotive industry is growing at a considerable pace. With the emerging trends, it is expected that the coming generation will witness vast amount of interesting technologies in the near future. The future of the automobile industry is quite lucrative and will undeniably transform the entire market at the global front.
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