The Evolution Of The Automotive Industry: Current Trends and Future Forecast
Disruptions To The Automotive Industry
The automotive industry is ready for disruption. As the technological revolution roars on, four factors that we expect to play a major role in the industry’s growth over the next 10 years include diverse mobility, autonomous driving, electrification, and connectivity.
The automotive industry is dependent on electric mobility. New technologies in electric cars and public transport will change the way that most people view the industry in the near future. And as governments and individuals take a less active approach to driving, the number of cars in use will fall in the coming years. Autonomous driving is one of the most talked-about technologies in the automotive industry. The vehicle will eventually become a mobile office and entertainment center. With climate change becoming more of a grave reality and gas prices continuing to rise, the shift to electric vehicles (EVs) is gaining momentum. The sales of EVs increased by 33 percent to 3.3 million in 2016, and Tesla now holds a place amongst the top three car brands in the world, Tesla, Renault, and Volkswagen.
The Future Of The Automotive Industry
The automotive industry is set to undergo a tremendous shift in the coming years. The traditional models of manufacturing, selling, servicing, designing, and financing vehicles are still very much alive yet the industry at large is headed in a new direction. People are placing greater priority on sustainability, and trends in consumer behavior, mobile fleet sharing, and connected cars are expected to continue changing as car makers adopt new, advanced tech solutions. The car manufacturers that will come out on top will be the ones that are able to maintain current operations and profitability while at the same time expanding their capacity to incorporate and build upon new automotive innovations.
With all of this change taking place, the skills required amongst automotive professionals will take a completely new turn. In the old automotive world, companies primarily required employees with engineering backgrounds. However, as smart cars replace traditional vehicles, car companies are going to require more employees with software skills and computer science backgrounds.
Cars are going to become self-aware, with connected platforms that can incorporate new software, and they are going to require far more engine control units (ECUs) and internal sensors. Along with car sales, subscription-based offerings for EV charging, rideshare, parking, and car share services will soon be included. Fleets will become electrified and computer-operated, and insurance will run on algorithms, influenced by data from smart cars.
How Will Drivers Be Impacted?
While automobile manufacturers have been quick to put driverless cars with automated features on the map, the next leap will be full-autonomous driving. This is expected to be made available to consumers by 2022, and it will require the current technology to evolve to achieve it. While this will happen over time, some companies are already making significant investments in this area. Google and Mercedes, for instance, have both developed cars that can operate without human input. As a result, car manufacturers will need to have a more flexible and modular system in place for driverless cars.
How will the automotive supply chain be affected?
Suppliers will need to build the technology necessary to support new trends, and they will need to develop tight knit systems with manufacturers while carefully monitoring new technologies and industry developments. In a recent webinar, Joachim Skarpil, Head of Automotive Suppliers at Capgemini stated, “The future innovations will be achieved by software components, and each automotive supplier needs to find its own individual answers. So, new products or other products with new services and new business models need to be developed. In the future, automotive suppliers will have to be more flexible and even faster than ever before.” And as connected cars begin to be rebuilt, core suppliers such as Buffalo Core Supply will be tasked with sourcing more ECM’s and ECU’s and less engines and transmissions.