It is predicted that by 2020, growing digitization and advancements in technology will have increased the automotive industry investments to $82 billion. Slowly, automotive companies are realizing that they must meet consumer demands for a digitally enhanced experience when they are researching, purchasing and operating a car. This has given rise new technology that is quite literally transforming the auto industry. Here is more on it.
By 2020, automotive industry investments would have increased to $82 billion. As per the reports, this increase in investments would largely be due to the growing digitization and technological advancements in the auto industry. Clearly, technology is going to transform the auto industry in the coming years and this is not a wild claim that we are making. Instead, what we say is backed by proper research.
According to a new report by Microsoft called the ‘Future of Automotive’, digital technology will transform everything in the automotive industry, from core operations surrounding the supply chain, manufacturing and dealerships/retail, to the entire value chain, which covers services, aftermarket, financing, and vehicle insurance.
The report highlights how cloud-based solutions and other digital technologies can help vehicle manufacturers, original equipment manufacturers, and dealers transform their business in order to drive new levels of service throughout the entire value chain.
According to Anand Eswaran—the corporate vice president of worldwide services at Microsoft, digital technology is enabling the accelerating pace of change which puts us at the threshold of unprecedented value creation for industry and society. Eswaran has the following to say:
“We will reimagine how we build cars, we will reimagine how we buy cars, and we will reimagine what it is to ‘own’ a car.”
He further added:
“We will democratize the automotive experience for billions of people across the world, and we will do this with our emerging digital capabilities. Traditional car manufacturers – not known for digital innovation – are embracing the ideas of connected cars and autonomous vehicles. Real social and economic impact will be realized.”
Technological Trends Reshaping the Global Automotive Sector
As technology trends reshape the global automotive sector, customer preferences are moving away from its traditional strongholds, such as chassis and engine development. This shift in customer preferences has given rise to new players in the auto industry, who are a potent mix of startups and large high-tech companies.
Some would say that these new entrants in the automotive sector are the reason for the recent technological disruption impacting the industry. While that is up for debate, one thing is as good as certain: if they haven’t done that already, the following technologies/tech trends will transform the auto industry in the coming years:
Autonomous has been a hot topic in the automotive industry ever since Google started experimenting with autonomous driving. According the Elon Musk—a tech guru and highly-successful entrepreneur, autonomous vehicle (AV) will soon be the norm. Considering that most of his previous predictions about technology have come true, you’d have to think that there is at least some truth in what Elon Musk says.
Elon Musk is not the only one singing praises of autonomous driving technology. Countless other technologists and business gurus are doing the same as well. Without a shadow of a doubt, autonomous driving is the emerging trend ruling the automotive field. Although not prevalent on the streets, self-driving technology is being experiment across the globe.
It is only a matter of time before autonomous driving starts to rule the streets as well, mainly because many advanced technologies are collaborating for this purpose. The benefits of autonomous driving technology are many includingreducing accidents caused by a lack of driver alertness and allowing drivers to be more social with fellow passengers.
Recently, a plethora of smart technologies have made their way into automobiles and this is enabling connectivity. Connected vehicles can share details about the driving conditions, such as sudden braking, speed, weather, and more. However, this is just the beginning of what we call Vehicle to Vehicle communication (V2V), a technology similar to Wi-Fi. Soon this technology will become a standard feature on almost every vehicle.
As cars get connected to each other, to the wider infrastructure, and to people, the possibilities for ‘infotainment’ innovations, novel traffic services, and new business models and services will increase. This is one of the reasons we seen endless discussion on car sensors, vehicle transmissions, and vehicle communications in the last few years.
As they mature and become more affordable, drivetrains will shift toward hybrid-electric, electric, and fuel-cell technologies. This could drive major innovation in the automotive industry.
In the past few years, the automotive industry has confronted many challenges and one of these challenges is the increase in the number of fake part sellers. A potential solution to this problem is the use of blockchain technology. Blockchain is already being examined for this purpose.
Eliminating fake parts from the market can enhance transparency in the auto industry and ensure an extremely efficient pricing strategy. Additionally, blockchain can create an accurate, trusted protocol for the increasingly important supply chain. An evolving trend in the auto industry, blockchain is gaining a lot of attention in the tech space, which has resulted in many expectations from the technology.
This technology is evident in almost every industry today and the auto sector is no exception.Many in the auto industry expect 3D printing to challenge the basic approach to car designing. We will have to wait to see if that actually happens.
From the above, it is clear that new technology is transforming the auto industry. To know more about how technology is changing the automotive sector, get in touch with us today!
by Bobby J Davidson
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