The automotive sector has long been a pillar of the tech and industrial industries, but it is changing quickly due to factors like self-driving cars, increased connectivity, and longer-range electrical models.
In the upcoming ten years, the automotive industry anticipates significant changes as a result of the world’s rapid digitalization. As cutting-edge technology has revolutionized lifestyles and given rise to new needs over the past five years, the industry has already undergone significant change.
Let’s take a look at the top 6 technological developments that are most responsible for this massive change in the automotive sector.
AI-based autonomous vehicles
In the near future, AI in the automotive industry may have a significant impact on how we produce, buy and drive our vehicles. The recent collaboration between Toyota and Nvidia is an example of the immense future potential that automakers see in artificial intelligence, which will combine hardware and software. Autonomous, self-driving vehicles and smart travel may be made possible by artificial intelligence. These vehicles are self-driving and rely on sensors and software for control and navigation.
Manufacturers are already collaborating with leaders in the fields of AI and machine learning to create cutting-edge uses for this technology. It is important to remember that ethical and safety concerns continue to plague this industry, and an AI-related safety incident could spell the end for a manufacturer’s reputation.
However, investments are likely to keep coming in given that the autonomous vehicle industry is expected to be worth USD 556.67 million by 2026, especially as more applications are discovered.
Mankind has benefited from the use of vehicles because it has made traveling very simple. However, 15% of carbon dioxide emissions come from automobiles, which depletes priceless fossil fuel reserves and could have a permanent negative impact on the environment.
On the other hand, electric cars are praised for their higher levels of energy efficiency, which lower fuel consumption and harmful emissions. They can be charged with clean energy from renewable resources and run on batteries. In fact, a number of significant automakers have jumped on board by creating their own electric vehicles.
Consumers, however, continue to have concerns about electric cars. Price reductions are necessary for greater adoption. Infrastructure is also still lacking, making it challenging to find charging stations in more rural areas.
In addition to electric vehicles, the shared mobility sector is also expanding in order to reduce its carbon footprint. Shared mobility is a part of the sharing economy, which includes coworking spaces and short-term leases. It encourages people to share their vehicles in order to meet their transportation needs without using more than necessary.
For example, Beam is a recent startup in Singapore, which advertises e-scooters. To promote shared mobility, they provide integrated e-scooters. Using the official app, users can locate the closest Beam e-scooter, use it for transportation, and then leave it parked in a visible parking place where other users can find it.
Even though COVID-19 has undoubtedly tempered interest in shared mobility systems, there is no doubt that this profitable business model will manage to survive and even thrive, albeit in new and inventive ways.
Shorter model cycles
In the past, it was typical for newer models to be introduced 5–10 years after the original model.
This model cycle has been shortened to 1-2 years, thanks to a recent change in the automotive industry. Automobile manufacturers are now more likely to introduce newer models more frequently, which enables them to boost sales as more people upgrade their vehicles. This could mean that businesses decide to target more specialized demographics with their most recent models, enabling them to meet specialized needs and take a customer-centric approach.
The increased pace, though, might make it difficult for automakers to keep development costs down. If the pace is accelerated, R&D costs will increase, so it will take time to determine whether this trend will continue over time.
Although the automotive industry has had difficulty in the past few years, the trends we anticipate emerging will enable businesses to recognize and optimize larger-scale systems in product development, delivery, and usage. Without a doubt, the industry will face new difficulties, but in the end, that is how progress is made.