The future of automotive will be more flexible, convenient and customer-centric.
The automotive industry is seeing dramatic changes with the emergence of new technologies, rising customer preferences and sustainable policies. The new era of industrialized manufacturing thanks to the fourth industrial revolution (Industry 4.0) is also revolutionizing the auto sector worldwide. Today, the industry is rapidly moving towards emission-free mobility by making the transition to electrification. Besides, automakers are increasingly leveraging disruptive technologies such as artificial intelligence, deep neural networks and big data technologies, among others for autonomous vehicles.
As cars now become more the internet of things, the ever-growing technological trends are reinforcing inventive manufacturers to offer consumers much more than just a vehicle. So, what are the trends redefining the automotive industry in 2020 and beyond?
The shared mobility market in three core regions, China, Europe, and the United States was nearly US$54 billion in 2016 and the market will continue to experience incredible annual growth rates in the coming days. One of the most advantages of shared mobility is it can solve urban traffic congestion, benefiting both to commuting citizens and municipalities themselves. However, it will partially replace car ownership but deliver a viable solution to reduce green gas emission. Also, with convenience increasing through mobility-as-a-service apps and the rising cost of vehicle ownership, shared mobility will become more obvious and will be integrated into cities.
The internet of things (IoT) is increasingly changing the modern automobile systems giving the rise of connected cars that are equipped with internet connectivity and, in most cases, with a WLAN. This connectivity allows a car to access and send data, download software and patches, communicate with other IoT devices, and provide Wi-Fi for onboard passengers. Connected vehicles can also help people on board to find a parking spot and forecast needed repair. Currently, automakers are connecting vehicles in two ways, embedded and tethered. As embedded vehicles use a built-in antenna and chipset, tethered connections leverage hardware that enables drivers to connect their cars through their smartphones.
The rapid innovation in the automotive industry is pushing auto manufacturers toward electrification, leading to the adoption of a variety of electric and hybrid vehicles. The electrification of a vehicle powertrain, ranging from the integration of start/stop through to full battery EVs, is broadly seen as how the automotive industry in the world can move closer towards the goal of true sustainability. China is leading the global EV market, by accounting for over half of the 1.1 million EVs sold in 2017. Electric vehicles typically reduce emissions and even save money, as well as these vehicles are very responsive and have very good torque.
Changing Consumer Mobility Behavior
With increasing technological advances in the automotive industry, consumer behaviour is changing significantly. As individuals extensively make use of multiple modes of transportation to complete their journey, they are changing their preferred way of travelling, as well as expectations of the future of mobility. This is substantially causing the traditional business model of car sales which will be complement by a various range of on-demand mobility solutions, particularly in dense urban scenarios