Technology driven trends are about to revolutionize the way industry players respond to an ever-changing customer behavior. Due to constant developments in emerging markets, many economies are changing; the materialization of sustainability policies, altering consumer preferences, and the fast increase of new technologies are supporting digitization and automation. Advanced business models have managed to revolutionize industries such as the car industry, thus being able to give birth to 4 disruptive trends driven by technology in the automotive sector: autonomous driving, diverse mobility, connectivity and electrification.
Driven by connectivity services, shared mobility & feature upgrades
Brand new business models have the highest chances to expand even further, and automotive revenue pools have just surpassed the 30% mark, adding another $1.5 trillion. The auto revenue pool seems to be increasing and diversifying; the industry is relocating to a data-drive services and mobility services on demand. Statistically speaking, this can add up to $1.5 trillion in additional revenue by 2030.
Increased connectivity, and the ever expanding autonomous technology, is changing the industry allowing cars to become genuine platforms for passengers and drivers; soon enough, they’ll use their vehicles as a form of services and media. The innovative attribute, particularly in systems that are software based will demand cars to become up-gradable. Shared mobility solutions will go mainstream, and consumers will become more aware of the potential of advanced technology in cars. Basically, technology increases the demand for upgradability.
Vehicle unit sales keep growing, in spite of a shift in mobility
In spite of a visible relocation toward shared mobility, unit sales keep growing. Nevertheless, experts argue that the annual rate will drop from 3.6% to 2% by 2030. The decrease might occur due to macroeconomic factors and the increase of brand new mobility services, like e-hailing and car sharing. Analysis suggest that populated areas with fertile ground and an established vehicle base fit the profile. Brand new mobility services can lead to a decline in car sales. However, the decline has high chances of being offset by booming sales shared vehicles. That’s because these break down more often, and need to be replaced.
Fully autonomous cars by 2020
From a commercial point of view, fully autonomous cars won’t be available until 2020. In the meantime, ADAS (advanced driver assistance systems) will most likely have a fundamental role in prepping consumers, regulators and corporations for what’s coming next in 2020 – the driverless car. The introduction of ADAS have proven that the main things that come in the way of faster inclusion in the market are consumer understanding of the technology, pricing, and safety & security issues. As for technological abilities, major startups and tech companies have already showed car manufacturers that they would like to participate.
Furthermore, consumer acceptance and regulations may pose additional challenges for autonomous cars. Nevertheless, these hurdles are easy to address; once they’re fixed, customers will have a lot of benefits to reap from autonomous vehicles. They’ll be able to watch movie and use social media while traveling.
Viable & competitive electric cars
Lower battery costs, stricter emission regulations, and a charging infrastructure that’s more widely available will most likely lead to the creation of new and powerful momentum for electrified vehicles – fuel cell, hybrids, battery electric and plug-in. In 2030, the sales percentage of electric cars will vary from 10% to 50%. In smaller sized towns, it will be difficult to compel buyers to make a purchase because it will be difficult to make locals understand the perks going electric. Nevertheless, if the costs go down and more people are clearly given a reason to buy (convenient price), then they’ll most likely do so.
Bottom line is the auto industry is changing and adapting at a really fast pace. If yours is now made of Porsche body kits, you might want to reconsider. Soon enough there will be a pool of choices for your new wonder car. The features cars will have sometime in the future will completely revolutionize the way we see vehicles today. However, the competition is switching from peers to competitive interactions. Tech companies will also start fighting for an opportunity to integrate their technology in the latest and most advanced vehicles.
Driven by connectivity services, shared mobility & feature upgrades
Brand new business models have the highest chances to expand even further, and automotive revenue pools have just surpassed the 30% mark, adding another $1.5 trillion. The auto revenue pool seems to be increasing and diversifying; the industry is relocating to a data-drive services and mobility services on demand. Statistically speaking, this can add up to $1.5 trillion in additional revenue by 2030.
Increased connectivity, and the ever expanding autonomous technology, is changing the industry allowing cars to become genuine platforms for passengers and drivers; soon enough, they’ll use their vehicles as a form of services and media. The innovative attribute, particularly in systems that are software based will demand cars to become up-gradable. Shared mobility solutions will go mainstream, and consumers will become more aware of the potential of advanced technology in cars. Basically, technology increases the demand for upgradability.
Vehicle unit sales keep growing, in spite of a shift in mobility
In spite of a visible relocation toward shared mobility, unit sales keep growing. Nevertheless, experts argue that the annual rate will drop from 3.6% to 2% by 2030. The decrease might occur due to macroeconomic factors and the increase of brand new mobility services, like e-hailing and car sharing. Analysis suggest that populated areas with fertile ground and an established vehicle base fit the profile. Brand new mobility services can lead to a decline in car sales. However, the decline has high chances of being offset by booming sales shared vehicles. That’s because these break down more often, and need to be replaced.
Fully autonomous cars by 2020
From a commercial point of view, fully autonomous cars won’t be available until 2020. In the meantime, ADAS (advanced driver assistance systems) will most likely have a fundamental role in prepping consumers, regulators and corporations for what’s coming next in 2020 – the driverless car. The introduction of ADAS have proven that the main things that come in the way of faster inclusion in the market are consumer understanding of the technology, pricing, and safety & security issues. As for technological abilities, major startups and tech companies have already showed car manufacturers that they would like to participate.
Furthermore, consumer acceptance and regulations may pose additional challenges for autonomous cars. Nevertheless, these hurdles are easy to address; once they’re fixed, customers will have a lot of benefits to reap from autonomous vehicles. They’ll be able to watch movie and use social media while traveling.
Viable & competitive electric cars
Lower battery costs, stricter emission regulations, and a charging infrastructure that’s more widely available will most likely lead to the creation of new and powerful momentum for electrified vehicles – fuel cell, hybrids, battery electric and plug-in. In 2030, the sales percentage of electric cars will vary from 10% to 50%. In smaller sized towns, it will be difficult to compel buyers to make a purchase because it will be difficult to make locals understand the perks going electric. Nevertheless, if the costs go down and more people are clearly given a reason to buy (convenient price), then they’ll most likely do so.
Bottom line is the auto industry is changing and adapting at a really fast pace. If yours is now made of Porsche body kits, you might want to reconsider. Soon enough there will be a pool of choices for your new wonder car. The features cars will have sometime in the future will completely revolutionize the way we see vehicles today. However, the competition is switching from peers to competitive interactions. Tech companies will also start fighting for an opportunity to integrate their technology in the latest and most advanced vehicles.
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