Required fields are marked *. Brand-new auto brands are a rare occurrence and are usually backed by established manufacturers. 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. This creates a serious challenge for car companies that have hitherto excelled at segmenting and sub-segmenting both cars and customers. We might also see car companies cut back and consolidate the number of trims, variants and powertrains. But what we are seeing now is the incorporation of use and reuse practices – the ‘Design to Dismantle’ principle – at the design stage itself. 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 … The National Automobile Dealers Association highlighted in its 2018 review that new-vehicle sales breached $1 trillion. I consult Fortune 1000 companies (clients like P&G, Ford, Philips, BMW, Fiat group, Nissan, Toyota and UNIDO). In their pursuit of value creation, retention and enhancement, automakers will push forward on connectivity platforms, personalized offerings and FoD services. Other factors include changes in global supply chains, shorter technology cycles and of course pressure from environmental regulations. Auto industry trends – and especially auto industry sales trends – have been thrown into disarray by broader societal factors. Stringent emission and safety standards, coupled with growing digitalization in … 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 … 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. The global automotive industry recovery in 2020 largely depends upon a recovery in the Chinese economy. Autonomous Level 2.5 To Become Stop Gap Preference: Covid has derailed plans to leapfrog from Level 2 to Level 4 of vehicle autonomy. Our website uses cookies to personalise content and to analyse our traffic which may also result in profiling. When you work with ELEKS, you are working with the top 1% of the aptitude and engineering excellence of the whole country. Ride-hailing apps like Uber, Lyft and Bolt are incredibly popular but are a relatively recent phenomenon. But while the global auto sales industry … Circular economy practices anchor Vision Zero. 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. With national lockdowns and less travel, personal vehicles sales are dwindling. In 2030, the share of electrified vehicles could range from 10 percent to 50 percent of new-vehicle sales, according to Mckinsey. Car companies have been very good in terms of building carbon neutral factories, striving for zero fatalities or developing zero emission cars. 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. This field is for validation purposes and should be left unchanged. We may as well share information about your use of our site with our social media, advertising and analytics partners for advertising purposes. Future Of Work: In the workplace, we will see a transition from working in office to working from your castle, i.e., home. Keep reading to find out. The good news is that new digital IoT solutions can enable just that. 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According to the American Automotive Policy Council, the automotive industry is the largest manufacturing sector in the United States. 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. There’s also the eternal development vs deployment debate. Your email address will not be published. If anything, the Covid crisis has completely overturned every prediction and projection made at the beginning of 2020. read. The growing adoption of electric cars is also supported by expanding charging infrastructure and improvements in battery technology. Such circular economy practices will anchor the transition towards Innovating to Zero. I think, without ELEKS it probably would not have been possible to have such a successful product in such a short period of time. Follow me on Twitter: @Sarwant. Dealerships across the co… Our latest research shows that consumer interest in cars is as strong as ever. As in all industries, digital transformation trend in automotive are shaking things up moving into 2020 and beyond. Fri., Jan. 3, 2020 timer 3 min. By and large, these changes will be huge improvements for drivers, … “Car sales have declined significantly in 2020, because of … People Love Cars Again. Sales of new and used cars as well as of vehicle related services will become platform / digital based. The broader influence of automotive technology will continue to drive disruption in 2020 as the established automotive industry increasingly converges with contemporary technology. 2020 is going to be a big year for the Automotive Industry … Electric Vehicles Are a Big Deal In the 2020 Global Automotive Consumer Study published by Deloitte, EV technology takes the focus. Enabling technologies will convert cars into marketplaces, allowing consumers to do literally everything—refueling, purchasing services, paying for tolls, getting Features on Demand (FoD), and much more—from the comfort and convenience of their car. 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. The major value creator will be the customer experience and digital initiatives, which will help automotive businesses to boots their brand value. The real challenge now will be not to build more models but to drive greater personalization. Over the last few months, the auto industry has shown tremendous resilience. Connected car platforms push differentiation. CL. By Cliff Lafreniere President, Trillium Automobile Dealers Association. Usage Based Insurance for Vehicles. 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. As a result, suppliers of automotive software solutions are becoming more prominent in the automotive supply chain. A key transformation, echoed in Tesla’s differentiation strategy, will be the move from horsepower to computing power. For more details on these emerging automotive industry trends… Cars As An Element Of Connected Living Solutions: Cars will become an integral part of connected living solutions. (jpg, gif, png, pdf, doc, docx, xls, xlsx, ppt, pptx, PNG). After much heated discussion (that’s one thing that’s remained unchanged, pandemic or not! Covid might have thrown the automotive industry (not to mention, our annual forecasts) off track. Right from the start, we really liked ELEKS’ commitment and engagement. What are the technologies driving this change, and what instigated these automotive trends in the first place? Added to that is the fact that most western countries have reached peak car already. Online To Boom: We are already in the midst of a paradigm shift from offline to online. Download report (4.2mb) Five trends transforming the Automotive Industry It all makes for a complex mix of challenges that auto industry players are learning to adapt to. 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. Top 20 automotive trends for 2020 and beyond. I have also done an executive course at the Kellogg School of Management. update Article was updated Jan. … 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. 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 fact, 80% of surveyed executives expect customer experiences to be greatly enhanced by digital services. At ELEKS we have assisted many automotive industry players to harness the power of software in their field. Car allowances might be (pay) cut by corporates, causing the lucrative corporate fleet market, especially the premium segment, to suffer. All Rights Reserved. Car As A Marketplace: in the future, everything related to on route mobility services will be available through a car. We are able to forecast the trends owing to our expertise in research, survey, and industry experience. Data As The 21st Century Oil, The Shift From “Horsepower” To “Computing Power”: Data-as-a-service is set to grow post Covid. 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 … 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. The Automotive 2030 Executive Survey conducted by IBM reveals that for automotive businesses to differentiate their brands, 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). New hotspots of growth might emerge in Russia and Eastern Europe. Connected Car IoT Platforms: Much like mobile phones, we will see operating systems becoming standard for cars. 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. Opinions expressed by Forbes Contributors are their own. I am also the founder of a think tank group that works on future (Mega) trends. Industry Top Trends 2020: Autos We expect no revenue growth for the industry in 2020 and 2021. 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. Cars, driving and mobility in the broad are changing at an incredible pace. You may delete and block all cookies from this site. 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. 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. At this point, luxury will reinvent itself, manifesting as “digital” experiences. Kimberly Matenchuk, Senior Director of Sales at GE Digital, United Kingdom, says that innovation is dependent on the needs. They came to us with their best people to try to understand our context, our business idea, and developed the first prototype with us. Shakeup Of The Fleet Market: Typically, fleet markets have always made gains during a period of recession. Even so, many automotive … This makes predicting the rest of 2020 a difficult challenge, but … I am a well-known thought leader and a charismatic futurist who combines engineering acumen with strong commercial experience. Furthermore, technology has changed the competitive map: with tech-first car manufacturers now disrupting a market previously dominated by established brands. 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. Your email address will not be published. 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. Meanwhile, Brexit and other protectionist economic policies will favor onshoring rather than offshoring in the future. 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. 2020 consumer trends in automotive industry: Is this the end of the consumer car? Initiatives here will increasingly involve licensing models or collaborative endeavors like GM’s with Cruise and Honda. Software and dataare becoming essential to develop both local and global strategies. But is it all doom and gloom? Another example relates to the need for dedicated platform and vehicle architecture to manufacture EVs. 2020 Consumer Trends for the Automotive Industry 1. ), 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. Not this year though. Cars will cease to be discrete tools that get passengers from A to B. 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. As downstream functions in the car also experience rapid digital transformation, OEMs will need to redesign their digital retailing strategy. 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. 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. This time might be a little different. 5G enabled vehicles sales are expected to reach 16 million in the EU, US and China by 2030, according to PwC. By when, according to McKinsey, 50% of new cars will be electrified vehicles. After 21 months of continuous decline, the Chinese car industry actually grew in April and May. 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. In fact, it is one of the sectors changed to its core. technology innovation continues to be of top importance. These are several automotive trends that are shaping the industry and automotive technology innovation is perhaps the biggest instigator of change. In the past few months, my team and I started from scratch, tracking and dissecting the effects of the pandemic on the mobility industry. The automotive industry was impacted with the closure of multiple production hubs due to COVID-19. Looking ahead to auto industry trends in 2020. I usually begin the year with a roundup of the top automotive trends for the upcoming year. We have already entered 2020 and we are done with our homework to unlock various secrets of consumer trends for automotive industry. … Heterogeneous Society As Customer: Post Covid, social polarization along age, gender, income, and even political lines is set to intensify. In contrast, the continued focus of German and Japanese automakers on horsepower could soon end up becoming misaligned with the new digital architecture requirements of vehicles. I am an Engineer and have a MBA from Leeds University Business School, for whom I am now a member of their Advisory Board. The wave of technology that is upending the staid automotive industry also implies a shift in the balance between hardware and software. The Internet of Things (IoT) has led to a wave of connectivity … ), while auction prices for used cars are on the up and up. The world is gradually … Supply chain diversification will open up opportunities for countries like India and Mexico. Such trends will again challenge car companies who depend heavily on high mileage driven by the workplace commute. Nowadays, vehicles come with a tamper-proof digital identity that differentiates them … EY & Citi On The Importance Of Resilience And Innovation, How Digital Workflows Helped Save Basketball During The Pandemic, Impact 50: Investors Seeking Profit — And Pushing For Change, Michigan Economic Development Corporation With Forbes Insights. From the economic depths experienced in spring 2020, it has rebounded to deliver year-over-year growth in new … How 2020 Trends and Insights are Reshaping the Automotive Industry. 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. 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. This will be a key way of achieving differentiation in the future. They were very professional and very customer oriented. 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. 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 … 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. This time might … For more info please consult our. 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