Future of the Automotive Industry

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The automobile sector is undergoing significant transformation. What was once known as the automotive industry will be renamed the mobility industry in the coming years, encompassing the next generation of products and services that enable the transportation of people and goods, as well as new technologies in material and digital sciences and business models like ride-sharing and shared ownership.

Each of these phenomena is disruptive enough to need changes in company strategies. However, when combined, they result in a complete change. And it’s not only for current gamers. The technology sector is seeing the emergence of new, non-traditional firms. Companies that don’t adapt quickly enough will fall behind and be unable to compete, perhaps forcing a major upheaval in the industry’s environment, participants, and power relations.

So, what can we say about the automobile mobility of the future?

Electric vehicles

Despite the fact that the automobile industry has progressed significantly over the previous 50 years, any new technology or production innovations have been implemented very slowly across comparable platforms and by similar firms. This seems to be changing, as the development of electric vehicles accelerates, not only for passenger cars but for the whole transportation sector.

If electric cars take over the automotive industry in the near future, they will benefit the environment in a variety of ways, including improved air quality, reduced carbon emissions in transportation, lower driving costs, and reduced global warming. Because of the need to resolve future energy supplies, the electric vehicle industry has witnessed substantial growth.

How will electric vehicles affect the automobile industry?

Electric vehicles will change the way in which the automobile industry operates. Essentially, electric vehicles will bring rise to the adoption of newer technologies. Gone are the days when automobile manufacturers manufactured just mechanical cars. Manufacturers will need to heavily enter into the software domain as well – all because of the new areas that electric vehicles open. 

Here are some major ones – 

1. Autonomous Vehicles– Driverless cars will usher in a revolution in the automotive industry since they will be able to operate independently of the person in the driver’s seat. It may seem to be impossible, but it is not!.

2. Vehicles controlled by Artificial Intelligence (AI)– Artificial intelligence in autos is becoming more intense and sensitive, and they are already largely equipped to respond to commands that are as common as voice communications.

3. Vehicle-to-Vehicle Communication– Vehicle to Vehicle (V2V) networks allow cars to share information and communicate with one another. Vehicles may communicate on a variety of characteristics like speed, road conditions, activity, hazards, and so on. It will not only improve car safety but will also effectively assist vehicles in maintaining a strategic distance from a route that may take a little longer to complete due to heavy activity. All of these slogans will help to create a fully equipped Vehicle-to-Vehicle network arrangement that has no limitations.

Autonomous cars (Cars that are self-driving or without a driver)

Artificial intelligence, machine learning, and deep neural networks have made it feasible to accomplish what previously appeared impossible – the construction of a driverless/autonomous vehicle. To any of us, the transition to complete autonomy will not be a novel or unexpected notion. Driverless technology is available in the form of connection and autonomy in automobiles today, ranging from autonomous emergency braking, lane and parking assist technologies to internet access through mobile networks capable of keeping vehicle passengers linked to the online world.

But, precisely, what is an autonomous car, and what are its advantages?

An autonomous vehicle uses numerous in-car technologies and sensors, such as adaptive cruise control, active steering, anti-lock brake systems, GPS navigation technology, lasers, and radar, to drive itself from a starting point to a predefined destination in ‘autopilot’ mode.

The advantages

  • Better transportation interconnectedness
  • Congestion reduction: In 2017, NSW will spend $6.9 billion on traffic congestion.
  • Lower pollutants and emissions: Transportation energy usage may be reduced by up to 90%.
  • More mobility options: for the aged, the young, and the handicapped
  • Greater comfort, efficiency, and dependability
  • Lower maintenance and operating expenses

Connected cars

Why can’t automobiles connect to the internet while everything else can? Cars are growing smarter, and smart technology integration has been more common in recent years. You’ll receive a fresh look screen, new applications, and entertainment material updated on a regular basis, much like your smartphones. Through sensors integrated into the car, they can analyze the needs of the driver and passengers. Smart automobiles can keep us safe while also assisting us in locating a wonderful meal, a spot to relax, or recommending our favourite tunes for the duration of our travel. This is a technology that has been rapidly advancing.

By 2027, the market for connected automobiles is expected to be worth more than $215 billion. 5G-enabled smart vehicles will become the new standard as demand for increased connection grows. What we anticipate from a car is evolving from a tool that just transports us from point A to point B to a fully integrated, linked centre.

Connected automobiles offer significant advantages, including the possibility of becoming safer and less detrimental to the environment. They also provide the automobile industry with a greater potential to develop and build deeper consumer ties than ever before. 5G connection is the automotive industry’s future, and it will revolutionize mobility as we know it.

Here are four ways that 5G-connected automobiles are altering the driving experience throughout the globe.

1. Increased safety- 

The vehicle-to-everything communications allow for a more direct flow of information between automobiles, pedestrians, and road infrastructure. This implies that drivers will be notified of surrounding risks like broken-down automobiles, lowering the risk of an accident. It has the potential to make a huge difference in global traffic safety.

2. Consumer encounters- 

As consumers become increasingly aware of the advantages of keeping connected, driver demand for connection is growing. Drivers in 5G-enabled automobiles may use their favourite entertainment applications from the comfort of their vehicles, such as music streaming services or audiobook services.

3. Advantages for the environment- 

Car-to-infrastructure communication allows for direct communication between a vehicle and surrounding road infrastructure without the need for a central mobile network connection. This may, for example, notify drivers of an impending red light or traffic congestion, enabling them to adapt their route appropriately or adjust the vehicle’s speed to optimize fuel efficiency and decrease emissions.

4. Automakers’ other income sources- 

5G also gives automakers a significant income potential that extends beyond the point of sale. It will enable manufacturers to build long-term relationships with consumers by enabling remote diagnostics, predictive maintenance, and online service scheduling – all of which would be impossible without integrated connectivity.

Shared mobility

Carpooling and automobile rentals have begun to gain popularity in India in recent years, but the epidemic has added an unanticipated complexity to these services. However, once the COVID-19 is under control and India returns to normality, we anticipate the car-sharing service to regain its previous vigour.

The advancement of electric, autonomous, connected, and shared technologies will result in a significant rise in the automobile industry’s pace of innovation. These technologies have the potential to preserve the environment, generate employment, and launch hundreds of new products. All of these ideas point to a consumer-centric marketplace in which driving will become simpler, safer, less expensive, and more pleasant. At the same time, the car industry will be forced to reinvent itself to a great part as a result of the shift in individual mobility. In the future, younger and more tech-savvy individuals will play a key role in pushing the development of more sustainable and convenient transportation options

The Advantages of Shared Mobility

More cost-effective-

Because it is less costly to acquire and maintain a car, shared mobility is more cost-effective. You can lower your overall costs and save a lot of time by using shared mobility. Car-sharing services have huge promise in terms of reducing traffic congestion, pollution, and energy usage. Individual passenger car utilization is reduced as a result of shared mobility, and passengers are able to reach their destinations more quickly.

Eco-friendly-

Shared mobility reduces the number of automobiles on the road while simultaneously lowering CO2 emissions, resulting in a pollution-free environment. An average vehicle emits 4.6 metric tons of carbon dioxide per year, according to the US Environmental Protection Agency. Every year, a half-million tons of carbon dioxide is released into the atmosphere by millions of cars in cities.

Mobility in the City-

Road traffic has become a major issue in cities throughout the globe as urbanization and population have increased. To address this issue, smart mobility offers advantages to both commuters and governments, as well as total interoperability between public and private transit lines.

Flexibility-

There are a variety of forms of transportation available, allowing passengers to choose the one that best suits their needs.

Safety- The incidence of deaths and injuries is dramatically decreased when people use shared mobility.

DRAWING CONCLUSIONS FOR AUTOMOTIVE MOBILITY IN THE FUTURE

We can see that the automobile sector confronts four key problems in this somewhat perplexing and conflicting context.

1. How to improve their ability to predict changes in demand and ownership profiles, and then adapt their vehicle and service offerings, as well as capacity and footprint, in response? – Given the degree of variance across regions, this will include improving product portfolios on a region-by-region basis and establishing retention strategies for downgrading or departing current consumers.

2. How to maximize the benefits of electric power- OEMs are now unable to capitalize on the pent-up demand for hybrid vehicles due to the restricted variety of models offered. However, if companies could aggressively fill this ‘option gap,’ they might enjoy the benefits by upscaling and reinforcing brand signals about their green credentials to buyers searching for more environmentally friendly automobiles. Manufacturers will be relying on exploiting ICE cost structures to dominate areas where electric infrastructure is lacking until they do so.

3. How to expand the mobility services market- The creation of a truly independent ecosystem will take time, which entails embracing the fact that efficient monetization is still a long way off. However, a bigger share of the stakes in that future value chain are allocated today, and playing that card will be a balance of positioning and profit needs. Meanwhile, OEMs should make sure that any autonomous capabilities on self-owned cars provide obvious and provable benefits to the driver so that when technology and legislation collide, the market is ready for any ‘hockey stick’ takeoff.

4.  How to make the ‘new’ value chain more efficient- OEMs may achieve this by forming partnerships with ‘old-style’ physical dealerships to create high-performance ecosystem networks for electric charging. They may then use this connection to influence public views of new mobility alternatives and provide integrated solutions that benefit consumers along the value chain.

Market share and profitability in the future will increasingly be a trade-off between wise present investment and a commercial assessment of how markets and value chains will look in ten years. There will be a tremendous chance for individuals who play their cards well to take a greater share of the future earnings pool.

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