Economies are subject to change, and it is especially apparent in today’s world where the economies change dramatically. Be it new technologies, emerging markets, changing consumer behaviors, or new business models altogether – digitization and automation are the future!
These forces have given rise to the following disruptive technology-driven trends within the context of the automotive sector:
With more industry players joining the competition to remain on top of the trends and accelerate the progress, the key is to understand the game-changing disruption that is currently on the horizon, and there is no integrated perspective on how the industry will look in the next ten years. Still, the revolution is focused on the year 2030, and automakers are aiming to provide a scenario of the possibilities in terms of the automotive value chain, markets, consumers, and even new players!
The automotive revenue pool is promising and is said to increase considerably by diversifying the on-demand mobility and data-driven services. It could create a multi-trillion revenue base, with a 30% increase from the $3.5 trillion mark as per stats from 2015!
Sounds like a buzzword! Autonomous technology and connectivity go together because where we witness technology, we are bound to experience increased connectivity. This connectivity is not only for the drivers alone but extends to passengers as well and everybody involved. The increasing speed of innovation in the software-based systems will pose the requirement for cars to be upgraded and upgradeable! Given the rise in shared mobility solutions with the shorter life cycles are commonplace, the consumers will also be constantly aware of the technological advances because, without the awareness, connectivity may be rendered meaningless! Hence, it is important to acknowledge that if the demand for technological advances and connectivity increases, the demand for upgradability in private vehicles will increase as well!
With changing technologies, the consumer perspective changes too. This comes with the changing regulations, technological breakthroughs, and the shift in mobility behavior. It is without a doubt that people use multiple modes of transportation for their journey and other means of utility, and that has resulted in diversity for businesses. They have a wide range of mobility solutions, especially in the case of dense urban environments that seem to be discouraging private-car use! There are passenger trains and other options that apparently fulfill the needs – from regular use to luxury!
There are signs of declining car ownership in the US, for instance, the share of young people holding a driver’s license has declined from a 73% in 2000 to a 70%, and there has been an increase of 30% in car-sharing and carpooling apps in North America and Germany. This shift has been especially noticeable in the last five years as more and more young people are skipping the car ownership bit!
Still, the changing perspectives and the advancement in technologies, both aspects of the automotive revolution are in part a result of the overall changing landscape, and by 2030, we are bound to see some considerable changes!