Global Automotive Industry Trends
Over the past five years, there have been many new and innovative trends in automotive industry influenced by technology, research, economics, and consumer behavior. The latest trends in the automotive industry have revolutionized the future of cars and driving. The worldwide sale of automobiles crossed 90 million at the end of 2017 witnessing many digital trends in the automotive industry. The technology trends in the automotive industry are aimed at enhancing consumer experience and safety and ameliorate the profit margins of automotive manufacturers and OEM across the world. The top automotive industry trends in 2018 are expected to set the benchmarks for investments and innovation for the future. Some of the emerging trends in the automotive industry are increased automation, digitization, and innovative business models which are reshaping the automobile manufacturing industry all over the world.
The disruptive trends in the automotive industry are predicted to increase the sales of automobiles at a CAGR of over 4% for the next five years. Autonomous mobility and shared riding are the recent trends in the automotive industry which are likely to gain vital traction over the course of next ten years. It is predicted that the global share of autonomous driving will constitute almost 40% of the global road traffic by the end of 2030 and China will be one of the fastest growing markets for autonomous mobility to transform the automotive industry. The digital trends in the automotive industry are leading to virtual car showrooms where virtual reality plays a larger role than physical car models. The latest trends in the automotive industry suggest that most of the leading automotive manufacturers across the world are focusing on selling cars and spare parts through their websites as e-commerce is also playing a big role in helping to influence and evolve the buying preferences of the consumers.
Automotive Industry Trends in 2018
Automotive industry trends in 2018 reveal technology is transforming the market for sales of new and used cars. It is estimated that almost 40% of buyers of cars use their mobile phones while making the purchase on a digital platform. Also, it has been observed that around 92% of potential car buyers research about their choice of the car online than visiting a car dealer. The emerging trends in automotive industry suggest that the car manufacturers are revamping their websites and creating informative and attractive content on their websites to capture the interests of car buyers online. Many car makers are engaging in online reputation management (ORM) to manage their brand as online reviews also seem to influence the choices of consumers nowadays. The leading technology trends in automotive industry are autonomous driving, Big Data, electrically powered vehicles, and blockchain technology. Autonomous driving is one of the most major innovations in the automotive industry for the recent times, and fully autonomous level 5 cars are expected to hit the roads by 2020.
New technologies such as 5G and Artificial Intelligence (AI) are going to make it possible for the emergence of driver-less cars who will provide higher safety compared to self-driven ones. Big Data technology is focused on using IoT to improve communication between two vehicles wirelessly, multiple sensors, radars, cameras, and LIDARs are going to enhance the safety and comfort of consumers in a major way. Electrically powered cars are another technology trend in the automotive industry driven by efforts to reduce air pollution and conserve energy with China and Europe being the leading markets for e-vehicles around the world. Blockchain technology is one of the latest trends in automotive industry which will redefine the strategy of pricing cars and eliminate counterfeit products from auto spare parts industry with an accurate and trusted protocol.
Read more: Top 5 South Korean Car Brands for 2018
Top 10 Automotive Industry Trends
|1. Autonomous Mobility|
|2. Digital Retailing Turning into a Reality|
|3. IoT Enabled Connected Cars|
|4. Shared Commuting on a Rise|
|5. Blockchain Technology for Better Pricing|
|6. Big Data Analytics|
|7. Car Models Annual Upgrades|
|8. Sale of Electric Cars are Growing|
|9. Redesigned Distribution Models|
|10. Millennials are the Biggest Consumer|
Global Automotive Industry Trends
The global automotive industry is ready for disruptive trends owing to the high technological advancements and product innovation in the recent past. The automotive industry stands to gain an additional 30% revenue worth $1.5 trillion with the growth of data and mobility services within the next five years. The recent trends in automotive industry reveal that the autonomous mobility technology will help make the car a platform for both passengers and drivers to utilize the time on other activities. The global automotive industry is driven by the growing middle class and the car sales worldwide will continue to grow despite the rise of e-hailing and car sharing sectors. The emerging trends in automotive industry show that consumer mobility is changing and by 2030 one-tenth of all car sales will be a potential shared vehicle. North America and Germany have witnessed a growth of almost 30% in carpooling individuals over the past five years. It is also estimated that within the next ten years, almost 15% of new car sales will be for a fully autonomous car. Almost all major automotive manufacturers are planning to launch the electric version of most of their car models, and countries like France and UK have proposed to ban and phase out fuel powered vehicles by 2040.
Presently, electric vehicles constitute a mere 1% of the global automotive industry, but this segment is growing rapidly at over 30% every year and will eventually dominate the market in the future. Automotive industry trends in 2018 suggest that the millennials constitute the largest segment for car buyers and the leading car manufacturers are emphasizing on understanding and studying their buying behavior to market to them more effectively. The digital trends in automotive industry have shown that the car dealership model is rapidly declining and online car shopping is gaining prominence at a fast rate.
Future Trends in Automotive Industry
According to a survey by Deloitte, the following trends in automotive industry are growing prominent over the past few years. Almost 75% of car buyers in India will choose to purchase their next car directly online from the website of the OEMs than visiting a dealership outlet. Over 60% of Chinese consumers have a growing preference for a hybrid car or a vehicle with alternate powertrain capabilities. Technology trends in automotive industry are driving the innovation and restructuring of existing business models and paved the way for various new players in the global market over the past one decade. 3D printing is also emerging and is expected to revolutionize the process of car designing and accident repairs. The emerging trends in automotive industry suggest that the car of future will be powered electrically, connected, and autonomously driven. The automotive industry trends in 2018 highlight a fundamental change of approach of the automotive manufacturing industry towards a digital and technology-driven business process to stay afloat in the evolving market.
The depletion of non-renewable fuels will surely lead to an eventual extinction of internally combustible engines with electricity being the viable option to increase fuel efficiency. The trends in automotive industry suggest a substantial decline in global levels of emission by the end of 2025. The traditional powertrains are losing their market share and alternate powertrain equipped vehicles are likely to grow to almost 8% by the end of 2022. The recent trends in automotive industry also point out the growing importance of internet and e-commerce for new car buyers and websites are accounting for a significant portion of the total sales of new cars. Automotive industry trends in 2018 suggest that the future is uncertain and not predictable for many but is brimming with opportunities for growth and sustainability.