Online To Boom: We are already in the midst of a paradigm shift from offline to online. Furthermore, technology has changed the competitive map: with tech-first car manufacturers now disrupting a market previously dominated by established brands. By when, according to McKinsey, 50% of new cars will be electrified vehicles. People Love Cars Again. We’ve appreciated the level of ELEKS’ expertise, responsiveness and attention to details. Nowadays, vehicles come with a tamper-proof digital identity that differentiates them ⦠After a peak of 4.1 million off-lease vehicles came back to the market in 2019, Cox Automotive Chief Economist Jonathan Smoke is forecasting that inventory levels in 2020, in ⦠Your email address will not be published. As a result, suppliers of automotive software solutions are becoming more prominent in the automotive supply chain. The global automotive industry recovery in 2020 largely depends upon a recovery in the Chinese economy. This will be a key way of achieving differentiation in the future. Get in touch to see how we can help your company to not just adapt to a rapidly changing automotive industry, but to thrive in a changing motoring environment – pivoting off technological change to outpace competitors. They were very professional and very customer oriented. The rise of transportation options and diminishing interest in car culture ⦠All Rights Reserved. Covid might have thrown the automotive industry (not to mention, our annual forecasts) off track. Future Of Work: In the workplace, we will see a transition from working in office to working from your castle, i.e., home. I have also done an executive course at the Kellogg School of Management. The 2020 Global Automotive Consumer Study provides insights into how consumer opinion about these disruptive technologies may affect the future of the automotive industry and where automakers are investing to bring these advanced features to market. The breadth of knowledge and understanding that ELEKS has within its walls allows us to leverage that expertise to make superior deliverables for our customers. Sales of new and used cars as well as of vehicle related services will become platform / digital based. Car companies have been very good in terms of building carbon neutral factories, striving for zero fatalities or developing zero emission cars. Two Speed World Economy: Globally, auto sales will recover much faster in China and the U.S. than the EU and India. Required fields are marked *. This time might ⦠The Automotive 2030 Executive Survey conducted by IBM reveals that for automotive businesses to differentiate their brands, Ride-hailing apps like Uber, Lyft and Bolt are incredibly popular but are a relatively ⦠Usage Based Insurance for Vehicles. Shakeup Of The Fleet Market: Typically, fleet markets have always made gains during a period of recession. The broader influence of automotive technology will continue to drive disruption in 2020 as the established automotive industry increasingly converges with contemporary technology. A key transformation, echoed in Teslaâs differentiation strategy, will be the move from horsepower to computing power. I foresee two major shifts here: one, from the premium segment to more volume segment offerings and, two, from being primarily city-based models to becoming more pan-country based models. Another example relates to the need for dedicated platform and vehicle architecture to manufacture EVs. © 2020 Forbes Media LLC. Ride-hailing apps like Uber, Lyft and Bolt are incredibly popular but are a relatively recent phenomenon. With national lockdowns and less travel, personal vehicles sales are dwindling. Continuing Growth of Electrification. I am also the founder of a think tank group that works on future (Mega) trends. Auto industry trends â and especially auto industry sales trends â have been thrown into disarray by broader societal factors. Electric Vehicles Are a Big Deal In the 2020 Global Automotive Consumer Study published by Deloitte, EV technology takes the focus. Autonomous cars are becoming a reality, with IBM predicting that 15% of new cars will be self-driving as soon as 2030. From insurance to manufacturing all industries connected to automotive have evolved enormously in the past several years. Automakers will perforce create differentiated Gen Z focused strategies, while special models underpinned by connectivity technologies âI think the Chinese will steal the thunder here, againâwill be designed to appeal to Gen Z customer preferences. Cars As An Element Of Connected Living Solutions: Cars will become an integral part of connected living solutions. Automotive industry trends in 2020 are primarily dictated by the demands of a new class of consumers â sophisticated customers with a high level of consciousness and awareness, ever ⦠The real challenge now will be not to build more models but to drive greater personalization. As downstream functions in the car also experience rapid digital transformation, OEMs will need to redesign their digital retailing strategy. From the economic depths experienced in spring 2020, it has rebounded to deliver year-over-year growth in new ⦠Data As The 21st Century Oil, The Shift From âHorsepowerâ To âComputing Powerâ: Data-as-a-service is set to grow post Covid. ⦠Meanwhile, we will see a big shift to digital marketplace models for used cars. Shared mobility. Accordingly, commuting miles will decrease and the role of the car, which used to be primarily for work commutes, will shift to being used for the weekends, evening trips and shorter drives. By and large, these changes will be huge improvements for drivers, ⦠This trend will be noticeable in countries like China, India and Saudi Arabia which have young populations as well as the U.S. where car ownership happens at a much younger age. ELEKS has been involved in the development of a number of our consumer-facing websites and mobile applications. The major value creator will be the customer experience and digital initiatives, which will help automotive businesses to boots their brand value. I am a Managing Partner in Frost & Sullivan, Regional Leader of its Middle East, Africa and South Asia (MEASA) operations and the companyâs Global Practice Head of Mobili. Top 20 automotive trends for 2020 and beyond. Circular economy practices anchor Vision Zero. While hardware used to dominate automotive technology there is a clear transfer in that the use of cars is increasingly underpinned by novel software solutions. For instance, car companies will also become charging point utilities, much like what VW has done. Cars, driving and mobility in the broad are changing at an incredible pace. If SUVs and cross overs were the dominant body styles of the last decade, the next decade could see the emergence of new body styles driven either by Covid, the shift to a second type of car or the debut of a new generation of boxy, monolithic models for the growing Gen Z customer segment. I am a Managing Partner in Frost & Sullivan, Regional Leader of its Middle East, Africa and South Asia (MEASA) operations and the companyâs Global Practice Head of Mobility, Aerospace, Defence & Security teams. Electrified. We think these are five key trends to keep an eye on in 2020: The internal combustion engine has been the building block of the auto industry for over a century, but environmental regulation and consumer concerns is driving a shift to hybrid and battery-powered cars. What are the technologies driving this change, and what instigated these automotive trends in the first place? As in all industries, digital transformation trend in automotive are shaking things up moving into 2020 and beyond. ), while auction prices for used cars are on the up and up. I am an Engineer and have a MBA from Leeds University Business School, for whom I am now a member of their Advisory Board. Initiatives here will increasingly involve licensing models or collaborative endeavors like GMâs with Cruise and Honda. I think, without ELEKS it probably would not have been possible to have such a successful product in such a short period of time. For more info please consult our. These are several automotive trends that are shaping the industry and automotive technology innovation is perhaps the biggest instigator of change. This creates a serious challenge for car companies that have hitherto excelled at segmenting and sub-segmenting both cars and customers. Yet the emergence of Tesla as a car brand points to a future roster of novel brands, brands that take advantage of automotive industry disruption such as electrification. Software and dataare becoming essential to develop both local and global strategies. This field is for validation purposes and should be left unchanged. Kimberly Matenchuk, Senior Director of Sales at GE Digital, United Kingdom, says that innovation is dependent on the needs. 15% of new cars sold could be fully autonomous by 2030, according to IBM. According to the American Automotive Policy Council, the automotive industry is the largest manufacturing sector in the United States. More than 50 presentations and keynotes were held, and nearly all presenters and speakers mentioned how they are changing their production and marketing strategies through digitalization and the latest user feedback. If anything, the Covid crisis has completely overturned every prediction and projection made at the beginning of 2020. Discover what can be learned from 8,000 global survey responses and thousands of social posts. At this point, luxury will reinvent itself, manifesting as âdigitalâ experiences. ), here is our pick of the top 20 trends that we believe will shape the future of the auto manufacturing industry in a Covid-defined 2020 and beyond. U.S. auto industry trends arenât very positive these days with auto dealers watching forces beyond their control put a damper on dealership sales and profits. IoT and 5G drive pervasive connectivity, boosting a steady march to autonomous driving, with advanced driver-assistance systems (ADAS) already a common in-car feature. Cars will cease to be discrete tools that get passengers from A to B. And the automotive industry is no exception from these changes and developments. Connected car platforms push differentiation. I usually begin the year with a roundup of the top automotive trends for the upcoming year. Heterogeneous Society As Customer: Post Covid, social polarization along age, gender, income, and even political lines is set to intensify. Our latest research shows that consumer interest in cars is as strong as ever. ELEKS has been involved in the development of a number of our consumer-facing websites and mobile applications that allow our customers to easily track their shipments, get the information they need as well as stay in touch with us. In fact, it is one of the sectors changed to its core. The good news is that new digital IoT solutions can enable just that. We may as well share information about your use of our site with our social media, advertising and analytics partners for advertising purposes. A glimmer of hope will come in the form of growth in private leases. The organizationâs 2018 report says that the automakers in the country have exported vehicles and parts worth over $692 billion over the past five years. Even so, many automotive ⦠read. The popularity of ride-hailing and other types of shared mobility (including car-pooling apps like BlaBlaCar) is set to increase in the 2020s as technology continues to support these trends while consumers seek ways to save money. In the past few months, my team and I started from scratch, tracking and dissecting the effects of the pandemic on the mobility industry. Growth In Share Of Wallet Across Product Lifecycle: Car companies now focus not just on selling hardware, i.e., the metal, but equally on generating continuous revenues across the lifecycle of the vehicle. This makes predicting the rest of 2020 a difficult challenge, but ⦠Your email address will not be published. Valuations of used car companies are at an all-time high (pick up some Vroom stock right away! âCar sales have declined significantly in 2020, because of ⦠Keep reading to find out. Thereâs also the eternal development vs deployment debate. Growth In Subscription Services: Iâve always been bullish about subscription services and continue to be upbeat as they spread rapidly to developing automotive markets. Follow me on Twitter: @Sarwant. Indeed, shared mobility is changing the expectations of car ownership – and the purpose of an automobile. Voice recognition and personal assistants, combined with the launch of 5G in the near future, will connect the vehicle-to-home, vehicle-to-vehicle and vehicle-to-everything. EY & Citi On The Importance Of Resilience And Innovation, How Digital Workflows Helped Save Basketball During The Pandemic, Impact 50: Investors Seeking Profit â And Pushing For Change, Michigan Economic Development Corporation With Forbes Insights. And it’s not just in-car technology that is imposing change, the mobility revolution plus tech trends including AI and machine learning has meant that cars are used differently. So far, Frost & Sullivan has already identified six such platforms with used car sales likely to migrate wholly online over the next 3-5 years. Connected Car IoT Platforms: Much like mobile phones, we will see operating systems becoming standard for cars. Our website uses cookies to personalise content and to analyse our traffic which may also result in profiling. The growing adoption of electric cars is also supported by expanding charging infrastructure and improvements in battery technology. New HWW features like ionizers and ozonizers that purify in-vehicle air as well as self-cleaning car surfaces will become standard offerings in cars. Doing so will include partnering with vendors previously outside the auto industry and may mean more extensive use of platforming to cater to diverging global consumer needs and requirements. (jpg, gif, png, pdf, doc, docx, xls, xlsx, ppt, pptx, PNG). Gen Z As Car Buyers: A big one for car companies will be the coming of age of Gen Z customers. A wave of technology and growing concern about the environment is challenging the status quo throughout the automotive sector – affecting car manufacturers, the supporting supply chains and everything in between. All these trends are likely to become increasingly apparent between 2020 and 2025 â which means that these are decisive years for manufacturers and their suppliers. The automotive industry was impacted with the closure of multiple production hubs due to COVID-19. CL. At ELEKS we have assisted many automotive industry players to harness the power of software in their field. Brandwatch data reveals some of the biggest consumer trends for the auto industry as we head into 2020. Return Of The Hatchback And New Body Styles: We might see the return of the hatchback, exemplified by the VW Golf, as a second car. I am willing to wager that deployment rather than development will determine the winner of the autonomous race and that China will be the first to dash over the finish line. I consult Fortune 1000 companies (clients like P&G, Ford, Philips, BMW, Fiat group, Nissan, Toyota and UNIDO). Meanwhile, Brexit and other protectionist economic policies will favor onshoring rather than offshoring in the future. Source: Automotive 2030 Executive Survey by IBM, Data-Driven Digital Transformation of a Car Rental Business, We need your name to know how to address you, We need your email to respond to your request, We need your phone number to reach you with response to your request, We need your country of business to know from what office to contact you, We need your company name to know your background and how we can use our experience to help you, We will add your info to our CRM for contacting you regarding your request. In 2020 successful auto manufacturers will adjust their R&D processes to innovate faster and in a manner that is more responsive to a changing automotive industry. The Internet of Things (IoT) has led to a wave of connectivity ⦠How 2020 Trends and Insights are Reshaping the Automotive Industry. We are able to forecast the trends owing to our expertise in research, survey, and industry experience. 2020 is going to be a big year for the Automotive Industry ⦠Brand-new auto brands are a rare occurrence and are usually backed by established manufacturers. New Collaborative Business Models To Accelerate: Informed by a partnership / collaborative approach, new business models are set to mushroom across the value chain. My team and I pioneered the âMacro to Microâ approach in analyzing Mega Trends in 2008, which has since been tried and tested with Fortune 1000 companies in developing white space opportunities. 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Businesses to boots their brand value industry via in-car tech and especially auto industry shown... From these changes and developments added to that is the automotive industry trends 2020 manufacturing sector in the industry! Covid crisis has completely overturned every prediction and projection made at the same tech!
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