{"id":212,"date":"2022-05-05T08:00:31","date_gmt":"2022-05-05T08:00:31","guid":{"rendered":"https:\/\/businessner.com\/?p=212"},"modified":"2024-01-13T10:22:43","modified_gmt":"2024-01-13T10:22:43","slug":"unwrapping-the-top-10-trends-that-will-disrupt-the-automobile-industry","status":"publish","type":"post","link":"https:\/\/businessner.com\/unwrapping-the-top-10-trends-that-will-disrupt-the-automobile-industry\/","title":{"rendered":"Unwrapping The Top 10 Trends That Will Disrupt The Automobile Industry"},"content":{"rendered":"
The \u201ccar\u201d has improved tremendously over the years. As the earliest successful attempt at automobile mass production, the Ford Model T was a massive success when it hit the market at the beginning of the 20th century. Its popularity led to a 20-year production run (1908-1927), which stands as one of the longest in history. Thanks to the Model T, the automobile industry embraced assembly lines and interchangeable parts. Moreover, vehicles could finally be marketed for a wider market than just the rich and famous.<\/p>\n
However, consumers gradually began asking for more than just one reliable, budget-friendly option. Emerging markets developed, new technologies took hold, and more players entered the industry. These forces propelled a century of tremendous leaps in the auto sector.<\/p>\n
Today, the automobile industry is in a new phase of transformation. In fact, experts are calling it the most disruptive time for automobiles since the Model T era. The next two years are set to bring significant changes that will define the outlook of the industry for the next decade.<\/p>\n
If you are in any way interested in automobiles, it pays to know what is driving this revolution. In this post, we look into the top trends<\/a> in the auto industry. By the time you reach the end, you will have gotten a rather decent perspective on how the sector will be in the next ten years.<\/p>\n The \u2018Uberisation\u2019 of car rides is a rapidly growing auto industry trend. 15 million ride-hailing trips happen globally every day<\/a>. This number is expected to rise to 97 million by 2030, expanding the sector\u2019s valuation from $36 billion to a whopping $285 billion.<\/p>\n Several key factors have driven the prevalence of the ride-sharing and ride-hailing business model. These include cost, convenience, traffic, and environmental concerns. Industry statistics show that this growth is yet to impact car sales significantly, primarily because hailed and shared rides still constitute a small percentage of the total number of rides.<\/p>\n That said, ride-hailing and sharing will inadvertently tip the scale in the next few years. Consumer mobility behavior is evolving. Now more than ever, customers are demanding fit-for-purpose solutions.<\/p>\n <\/p>\n As mobile apps continue to penetrate the market, established vehicle bases like cities and suburbs are bound to experience a decline in private vehicle ownership. By 2030, a staggering one out of ten cars sold<\/a> will potentially be a shared vehicle.<\/p>\n This trend will partly be offset by increased sales in shared vehicles that need more frequent replacement due to their higher utilization and the related wear and tear. Nevertheless, the annual growth rate of global car sales is expected to drop by around 1.5% over the next ten years.<\/p>\n Thanks to the rapid advancement of smart technology, innovative manufacturers have been taking considerable interest in autonomous driving and the numerous growth opportunities it presents. The young market is already estimated to be worth more than $50 billion<\/a>, and its value is projected to reach $556 billion by 2026.<\/p>\n Autonomous vehicle development relies heavily on deep expertise in emerging technologies like artificial intelligence and machine learning. Consequently, automobile manufacturers are increasingly keen on partnering with digital tech companies or establishing digital tech divisions of their own. Just last year, Toyota partnered with Nvidia<\/a> to create an alliance that will be behind the end-to-end creation of the manufacturer\u2019s future self-driving cars.<\/p>\n Admittedly, the adoption of autonomous driving is not without its challenges. The existing forms of advanced driver-assistance systems (ADAS) have so far uncovered factors like pricing, customer understanding, and safety\/security as the key inhibitors of market penetration. Infrastructural development and government regulations may also represent additional hurdles for self-driven vehicles.<\/p>\n <\/p>\n Nonetheless, the industry is keen on addressing these challenges, mainly because of the value that autonomous vehicles promise for both customers and manufacturers. Believe it or not, it is entirely possible that autonomous cars will account for more than 15 percent<\/a> of the total passenger vehicle sales globally in 2030.<\/p>\n Today, studies place the automotive industry as the second most data-driven sector<\/a> in the world. Auto manufacturers are increasingly using mobile technology to gather tons of data about drivers, routes, destinations and traffic patterns. Systems even exist to tell you when your car needs maintenance.<\/p>\n As cars become smarter, user data and software will continue to be a critical aspect for the auto industry. Manufacturers will embrace computer programs to deliver smart solutions for collision avoidance, emergency notifications, car diagnostics, and remote monitoring. As a result, software competence will become a crucial differentiating factor for automobile players.<\/p>\n Experts estimate that vehicles in the near future will have more than 200 million lines of code<\/a> representing data. In comparison, Facebook servers have about 50 million lines. It is no surprise that KPMG expects future car manufacturers to consider data monetization<\/a> as a second valuestream.<\/p>\n Smart connectivity may have started with the smartphone, but thanks to improved network infrastructure and the growing IoT industry, it has expanded into the wider consumer electronics market. Technology has turned physics-driven machines into complex supercomputers that can talk and think for themselves.<\/p>\n1. \u201cUberisation\u201d<\/strong><\/h2>\n
2. Autonomous driving<\/strong><\/h2>\n
3. Data and software<\/strong><\/h2>\n
4. Connectivity<\/strong><\/h2>\n