Furthermore, technology has changed the competitive map: with tech-first car manufacturers now disrupting a market previously dominated by established brands. These are several automotive trends that are shaping the industry and automotive technology innovation is perhaps the biggest instigator of change. Opinions expressed by Forbes Contributors are their own. Cars, driving and mobility in the broad are changing at an incredible pace. Even so, many automotive … The National Automobile Dealers Association highlighted in its 2018 review that new-vehicle sales breached $1 trillion. 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. Electrified. 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. ), while auction prices for used cars are on the up and up. Circular economy practices anchor Vision Zero. Over the last few months, the auto industry has shown tremendous resilience. I have also done an executive course at the Kellogg School of Management. Such trends will again challenge car companies who depend heavily on high mileage driven by the workplace commute. Rebirth Of The Used Car Market: In an environment where value is paramount, the used car market will make a strong comeback. Heterogeneous Society As Customer: Post Covid, social polarization along age, gender, income, and even political lines is set to intensify. 15% of new cars sold could be fully autonomous by 2030, according to IBM. At this point, luxury will reinvent itself, manifesting as “digital” experiences. I am a Managing Partner in Frost & Sullivan, Regional Leader of its Middle East, Africa and South Asia (MEASA) operations and the company’s Global Practice Head of Mobility, Aerospace, Defence & Security teams. U.S. auto industry trends aren’t very positive these days with auto dealers watching forces beyond their control put a damper on dealership sales and profits. Sales of new and used cars as well as of vehicle related services will become platform / digital based. 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. Keep reading to find out. New hotspots of growth might emerge in Russia and Eastern Europe. 2020 will be a big year for the auto … You may delete and block all cookies from this site. What are the technologies driving this change, and what instigated these automotive trends in the first place? ELEKS has been involved in the development of a number of our consumer-facing websites and mobile applications. Cars will cease to be discrete tools that get passengers from A to B. Stringent emission and safety standards, coupled with growing digitalization in … 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. From insurance to manufacturing all industries connected to automotive have evolved enormously in the past several years. This will be a key way of achieving differentiation in the future. Discover what can be learned from 8,000 global survey responses and thousands of social posts. Another example relates to the need for dedicated platform and vehicle architecture to manufacture EVs. … There’s also the eternal development vs deployment debate. Hertz’s collapse is symptomatic of the market’s decline. Follow me on Twitter: @Sarwant. Cars As Points Of Health: Built in, bought in and beamed-in features are converting the car into centers of health, wellness and wellbeing (HWW). Melysa Chong. Download report (4.2mb) Five trends transforming the Automotive Industry As a result, suppliers of automotive software solutions are becoming more prominent in the automotive supply chain. 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. Brandwatch data reveals some of the biggest consumer trends for the auto industry as we head into 2020. We have already entered 2020 and we are done with our homework to unlock various secrets of consumer trends for automotive industry. Growth In Subscription Services: I’ve always been bullish about subscription services and continue to be upbeat as they spread rapidly to developing automotive markets. Shared mobility. Car allowances might be (pay) cut by corporates, causing the lucrative corporate fleet market, especially the premium segment, to suffer. How Predicting The Future Has Changed For Automotive In 2020 Shakeup Of The Fleet Market: Typically, fleet markets have always made gains during a period of recession. 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. We might also see car companies cut back and consolidate the number of trims, variants and powertrains. 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. 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. Electric Vehicles Are a Big Deal In the 2020 Global Automotive Consumer Study published by Deloitte, EV technology takes the focus. Your email address will not be published. At ELEKS we have assisted many automotive industry players to harness the power of software in their field. When you work with ELEKS, you are working with the top 1% of the aptitude and engineering excellence of the whole country. 2020 consumer trends in automotive industry: Is this the end of the consumer car? The automotive industry was impacted with the closure of multiple production hubs due to COVID-19. I am also the founder of a think tank group that works on future (Mega) trends. By Cliff Lafreniere President, Trillium Automobile Dealers Association. Accepted file types: jpg, gif, png, pdf, doc, docx, xls, xlsx, ppt, pptx, png. 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. © 2020 Forbes Media LLC. They were very professional and very customer oriented. Connectivity. All these trends are likely to become increasingly apparent between 2020 and 2025 – which means that these are decisive years for manufacturers and their suppliers. Connected Car IoT Platforms: Much like mobile phones, we will see operating systems becoming standard for cars. Fri., Jan. 3, 2020 timer 3 min. I usually begin the year with a roundup of the top automotive trends for the upcoming year. Here are Scott’s predictions for automotive industry trends 2020: (Walmart's) total marketplace sales for #autoparts and accessories including #Amazon and #eBay will overtake that of … 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. The rise of transportation options and diminishing interest in car culture … Our website uses cookies to personalise content and to analyse our traffic which may also result in profiling. As a result, car companies are working on what we call “customer transformation”, in essence, creating personalized and customized digital solutions across the customers’ lifecycle management of the vehicle. 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. I am a well-known thought leader and a charismatic futurist who combines engineering acumen with strong commercial experience. We may as well share information about your use of our site with our social media, advertising and analytics partners for advertising purposes. Top 20 automotive trends for 2020 and beyond. “Car sales have declined significantly in 2020, because of … 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. If anything, the Covid crisis has completely overturned every prediction and projection made at the beginning of 2020. 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. Instead, autos will be integrated into a tech-reliant society, with 16 million 5G-enabled vehicles sold, every year, by the end of the next decade. Shakeup Of The Fleet Market: Typically, fleet markets have always made gains during a period of recession. Nowadays, vehicles come with a tamper-proof digital identity that differentiates them … My team and I pioneered the “Macro to Micro” approach in analyzing Mega Trends in 2008, which has since been tried and tested with Fortune 1000 companies in developing white space opportunities. Online To Boom: We are already in the midst of a paradigm shift from offline to online. Car As A Marketplace: in the future, everything related to on route mobility services will be available through a car. In 2030, the share of electrified vehicles could range from 10 percent to 50 percent of new-vehicle sales, according to Mckinsey. This field is for validation purposes and should be left unchanged. From the economic depths experienced in spring 2020, it has rebounded to deliver year-over-year growth in new … Cars As An Element Of Connected Living Solutions: Cars will become an integral part of connected living solutions. ), 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. But while the global auto sales industry … As in all industries, digital transformation trend in automotive are shaking things up moving into 2020 and beyond. technology innovation continues to be of top importance. The wave of technology that is upending the staid automotive industry also implies a shift in the balance between hardware and software. After 21 months of continuous decline, the Chinese car industry actually grew in April and May. Software and dataare becoming essential to develop both local and global strategies. Adapting to today’s automotive industry challenges implies several technology trends that affect how the car industry goes about its day to day business in the next decade, modifying the way consumers use and experience autos. Indeed, shared mobility is changing the expectations of car ownership – and the purpose of an automobile. Another consequence of lower commuting miles will be felt in lower aftermarket sales. I, for one, am looking forward to driving back on a cold winter’s night, while being able to set the temperature at home to a balmy 27C. Kimberly Matenchuk, Senior Director of Sales at GE Digital, United Kingdom, says that innovation is dependent on the needs. Continuing Growth of Electrification. People Love Cars Again. Covid might have thrown the automotive industry (not to mention, our annual forecasts) off track. And the automotive industry is no exception from these changes and developments. However, it has provided automakers with an unexpected opportunity to introspect and home in on the most impactful ideas and trends that will shape their future in the decade ahead. The Automotive 2030 Executive Survey conducted by IBM reveals that for automotive businesses to differentiate their brands, By when, according to McKinsey, 50% of new cars will be electrified vehicles. This is one of the latest technologies in the automotive industry. Ride-hailing apps like Uber, Lyft and Bolt are incredibly popular but are a relatively recent phenomenon. Meanwhile, Brexit and other protectionist economic policies will favor onshoring rather than offshoring in the future. By and large, these changes will be huge improvements for drivers, … Such circular economy practices will anchor the transition towards Innovating to Zero. Connected car platforms push differentiation. For instance, car companies will also become charging point utilities, much like what VW has done. But is it all doom and gloom? For more details on these emerging automotive industry trends… I consult Fortune 1000 companies (clients like P&G, Ford, Philips, BMW, Fiat group, Nissan, Toyota and UNIDO). Gen Z As Car Buyers: A big one for car companies will be the coming of age of Gen Z customers. read. Ride-hailing apps like Uber, Lyft and Bolt are incredibly popular but are a relatively … All Rights Reserved. Data As The 21st Century Oil, The Shift From “Horsepower” To “Computing Power”: Data-as-a-service is set to grow post Covid. The major value creator will be the customer experience and digital initiatives, which will help automotive businesses to boots their brand value. But what we are seeing now is the incorporation of use and reuse practices – the ‘Design to Dismantle’ principle – at the design stage itself. Executives surveyed by IBM rated automotive “hard” skills such as engineering or software development as most critical to their organizations’ success. How 2020 Trends and Insights are Reshaping the Automotive Industry. I authored “New Mega Trends,” published in 2012 with Palgrave Macmillan, which has since been sold in over 30 countries and is currently being translated into Chinese for a China market release in 2014. In their pursuit of value creation, retention and enhancement, automakers will push forward on connectivity platforms, personalized offerings and FoD services. As car companies revisit their value chains, they will evaluate reused and shared parts for new product development. It all makes for a complex mix of challenges that auto industry players are learning to adapt to. Our latest research shows that consumer interest in cars is as strong as ever. Automotive industry trends in 2020 are primarily dictated by the demands of a new class of consumers – sophisticated customers with a high level of consciousness and awareness, ever … 5G enabled vehicles sales are expected to reach 16 million in the EU, US and China by 2030, according to PwC. Rise Of Lean Product Development Strategy, Diversification Of Supply Chains: The Covid crisis has highlighted the overdependence of the auto industry on Chinese suppliers for parts, especially in the electric vehicle (EV) market. The organization’s 2018 report says that the automakers in the country have exported vehicles and parts worth over $692 billion over the past five years. We’ve appreciated the level of ELEKS’ expertise, responsiveness and attention to details. Toyota on Tuesday reported a 23% drop in U.S. new vehicle sales in August versus the same month in 2019, as a two-month industry-wide shutdown of auto production in the spring to halt … 2020 is going to be a big year for the Automotive Industry … 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. The good news is that new digital IoT solutions can enable just that. They came to us with their best people to try to understand our context, our business idea, and developed the first prototype with us. 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