As we delve deep into 2019, it’s exciting to reflect on the top industry trends that are driving new automotive revolution; from the amount of software that will triple in the next 15 years to industry leaders guided with new mindsets, continuously evolving while keeping ever-demanding customers in mind.
Companies that stay up to date with these trends, and focus on the future of the industry will benefit immensely. Increasing productivity, reducing the time for manufacturing processes by choosing the right production KPI, and keeping a close eye into the world of technology, are just a small number of advantages that a company in the automotive industry could benefit from.
Let’s take a look at the most prominent ones.
1. In the limelight: Innovation
The future of the automotive industry lies within innovation, Tesla being at the forefront of this trend. As mentioned earlier, the software will be tripled and manufacturers will become more focused on delivering more efficient vehicles, redefining their roles. With the recent introduction of the dog mode, manufacturers won’t be concentrated solely on increasing the scale of their production, but also implementing innovation to be able to stay agile and focused on customer’s evolving needs.
2. Computer on wheels
New technologies mean new opportunities. Adapting the production processes to bring innovation and digitalization in the manufacturing sector will bring enormous capabilities in utilizing unprecedented amounts of analytics and data. The automotive industry can leverage the power of a business dashboard for the efficient operational and strategic performance of the business, 3D printing for mainstream production, while artificial intelligence can boost productivity by 39%.
“The automotive industry will see more disruption in the next ten years than it has seen in the last 50 years,” said Asutposh Padhi, a senior partner at McKinsey. Readiness to adapt and create computers on wheels will enable increased productivity and sustainable business development.
3. Autonomous cars
In a progressive scenario, fully autonomous cars will account for up to 15% of vehicles sold worldwide in 2030, showed the latest research at McKinsey:
According to their report, the challenges will be “pricing, consumer understanding, and safety/security issues.” Currently, autonomous driving is experienced through driver assistance functions, but with this trend growing each year, the future will bring us even more human-error-free self-driving cars. Implementing smart technologies (cameras, mirrors) and developing deep expertise in AI will create even more connection with the machine learning industry. In fact, Nvidia has already partnered with Toyota to develop autonomous systems.
4. Financial opportunities
Improvements in customer experience, creation of new revenue streams in the industry by utilizing artificial intelligence, mobility-as-a-service, blockchain, and various ownership models offered to consumers will keep the industry excited but anxious at the same time, according to an article published by Accenture. This generates even bigger importance of conducting timely and efficient financial reporting practice so that the decision-making process of car dealers, manufacturers, banks, start-ups, and various other stakeholders creates a profitable and sustainable business environment.
5. Friendliness with the environment
Electrical and hybrid vehicles have increased in popularity in recent years, and this trend is not going to slow down any time soon. There are several benefits which these kinds of vehicles bring to the environment, but also benefits to the industry: by 2030, 55% of all cars sold in Europe will be electric, according to PwC, a global professional services network.
Let’s not forget that the energy for these vehicles should come from a renewable source. Another challenge is to increase their range per charge while decreasing the time needed to charge so it might be useful to keep an eye on this trend and see how it develops in the future.
6. Smart driving
One of the emerging trends in the automotive industry is digitalization and connectivity, according to KPMG, a multinational professional services network. Creating intelligent systems that will manage the parking, avoid collisions, send notifications, provide car diagnostics or simply suggest the driver on the optimal speed is currently increasing in importance within the industry, and soon we will have supercomputers in our cars, communicating with the help of wireless networks and Internet of things while driving.
Smartphones will enable a car connected to the outside world and the driver. This massive amounts of data and increased technology will increase the overall traffic safety, a crucial factor for many buyers when it comes to vehicles.
These trends are just the tip of the iceberg of what the automotive industry is currently experiencing, and can expect in the near future. Let us keep an eye on each, and see how businesses will adapt to reach successful business outcomes.