7 trends that are driving the automotive industry in 2020
The global tech advancements and the ever-changing technology trends fasten the transition towards digital in the automotive industry.
The global tech advancements and the ever-changing technology trends fasten the transition towards digital in the automotive industry. Significant changes can be seen both in consumers' expectations, especially when it comes to seamless connectivity experiences, and also in the way manufacturers now have access to a highly data-driven environment when developing their products (information about drivers, preferences, routes, traffic patterns and so much more).
As a result, the automotive market faces drastic improvement needs as full connectivity, increased safety and personalized driving experiences become top requirements. That's why the trends are changing fast, thus making innovation a key driver in the mobility industry.
Discover below 7 technology trends driving the automotive industry:
Electric vehicles (EVs)
Electric vehicles are not new anymore. Their increasing popularity has transformed them into a trend more than a mere innovative product. The green factor and other advantages, such as reduced consumable and maintenance costs, increase demand for EVs. Furthermore, government incentives for the adoption of electric consumer vehicles make them even more convenient - so this trend will continue to emerge in the following years.
IoT and Smart Connectivity
IoT offers benefits both for consumers and manufacturers. Vehicles can now be connected to smart devices and leverage useful information and updates. Music, online courses, maps, and even smart home functions can be linked with smart connectivity. If Wi-Fi and Bluetooth connectivity were once considered upgrades, they will soon become a staple for every new car purchase.
Big Data &Analytics
Apart from Cloud-Based services, Data Analytics is a trend that got popular because it solves operational and business problems. With the help of IoT and Smart Connectivity, data about the customers such as preferences, destinations, preferred functionalities, budgeting and more can be thoroughly analyzed. It subsequently leads the way to more informed business decisions about planning, tracking materials, parts and subassemblies and ensuring timely delivery and installation.
Cloud-based services offer easy application management and provide flexibility and scalability. Cloud computing has become a trend in supply chain management for storing big data to access important information such as sourcing material and spare parts, logistics management and dealer management anywhere at any given time. Cloud-driven manufacturing plants can perform advanced cloud-driven operation optimization and logistics.
Better Customer Experience
In 2020, the car driving experience is about to become more personalized. Better experience when buying is provided by technologies like augmented reality systems, VR experiences and virtual showrooms that allow users to configure models as per their very specific desires. Companies are improving the customer experience by using systems like Apple Car Play that can mirror your iPhone with a seamless transition between phone and car.
Shorter Model Cycles
Technology's lifecycle in the automotive industry has an average of 5 to 8 years now. The accelerated change in digitization trends will move these model cycles to 1 to 2 years. This means that the whole sales and purchase processes will be affected as cars will depreciate faster and short-term leases will become the new normal.
Shared mobility is a trend that already started gaining popularity years ago with the ride and car-sharing services. The rising demand for shared mobility also spawned a lot of businesses from Uber to urban e-bikes. The percentage of new vehicle sales for shared mobility businesses has risen to about 15% in Europe in the last few years but was stopped by the pandemic. The new normal will probably lead to a greater success of eBikes and eScooters as they represent an alternative to public transportation by bus or tram in big cities.
Thanks to technologies such as IoT and Data Analytics, manufacturers can better understand what modern customers prefer and, therefore, they can incorporate facilities for a more digitized experience. Making use of the latest technological advancements to satisfy the ever-increasing consumer expectations has become of the essence. What's more, companies have already begun to synthesize top-notch IT trends with environmentally friendly technologies to further advance innovation in the mobility industry.
As these unprecedented times continue to shape the way industries and businesses operate and the way customers choose to buy, following the momentum and investing in new technologies will continue to be paramount to thriving in automotive.