The Global Automotive Industry is set to reach USD 2.5 Tn by 2023, growing at a CAGR of 14.71 %.
- Transportation, commercial operations, emerging markets, technological innovations, and sustainability policies are driving this growth.
- Autonomous Vehicle, Shared Mobility, Connectivity Services, EV Development, and 3D Printing will support Automotive growth over the next 5 years.
- ADAS, Electrification, Connectivity, and Manufacturing will be high priority in 2023.
- Software integration, charging infrastructure, security, and fuel efficiency are key challenges for the industry.
- Globally, the APAC region accounts for the highest workforce count at 40% followed by EMEA (35%) and Americas (25%).
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The Global Automotive Industry is to reach USD 2.5 Tn by 2023, growing at a CAGR of 14.71 % from USD 1.9 Tn in 2021.
The increasing need for transportation, tourism and commercial operations in the aftermath of the COVID-19 pandemic is set to drive the Automotive Market for the decade to come.
Development in emerging markets, rise in new technologies, sustainability policies and changing consumer preferences will also support the rapid growth of this market.
Emerging Trends in the Automotive Industry
For the decade to come, the Automotive Industry has to shift its focus from traditional tech use cases to modern innovations powered by emerging technologies. To do this, the industry must keep anticipating the trends of tomorrow and innovate accordingly to support the rapid growth expected.
Some of the emerging trends in the Automotive Industry include:
Autonomous Vehicle: Leading automobile players are increasingly investing in the R&D of Autonomous Vehicles to push the limits of personal exploration.
Mobility: Shared mobility options are turning a creative, affordable, and convenient alternative to owned vehicles. Leading automobile players are also targeting this segment.
Connectivity: The connected car technology will grow in diverse ways in the next decade powered by predictive intelligence and maintenance technology.
Electric Vehicles: There is a fierce competition in the market to software operating systems to power the innovate zero-emission EVs.
3D Printing: Automobile companies are trying to lower production costs and time using 3D printing to produce critical parts of an automobile.
Technology Partnerships: With rapid technological advancements being witnessed in modern-day vehicles, automakers and tech companies have begun forming partnerships to develop Electric, Connected and Autonomous vehicles.
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Key Segments Overview
The Automotive Industry is keen to enhance its four key segments, that include ADAS, Electrification, Connectivity and Manufacturing. The industry aims to leverage advanced technologies to develop next-gen connected cars, autonomous and e-vehicles to define new-age mobility.
Let us explore each segment briefly and try to unearth a few trends that could be relevant to service providers.
Advanced Driver Assistance Systems (ADAS):
The ADAS segment is booming with new technological developments and the major trends we’re witnessing here include:
- Autonomous Driving Systems: Automotive players are looking out for advanced safety measures in Autonomous driving with environmental sensor technologies and AI/ML to provide enhanced vehicle motion control.
- Tech-powered Driver Assist Systems: Automotive players are leveraging AI, Deep Learning, GPS and IoT technologies to enhance driver and passenger safety by providing auto-braking and lane assist features.
The electric segment is preparing to transform the future of transport pushed by zero-emission policies and sustainable consumers. Some of the significant trends in this segment include:
- E-Mobility: OEMS are partnering with tech service providers to accelerate e-mobility adoption by developing advanced battery-powered vehicles to provide smart mobility solutions globally.
- Charging Solutions: Automotive players are developing wireless battery management systems and smart charging services with their tech service providers to unlock the full value of EVs.
Since autonomy and electrification have largely formed the foundation of the Automotive market, connectivity would play a crucial role in the development and deployment of both.
Some of the key trends to watch out for will include:
- In-Vehicle Infotainment Systems: Companies are developing connected car platforms powered by emerging tech including IoT and GPS to provide enhanced traffic safety solutions and real-time vehicle monitoring.
- Real-time Performance Monitoring: Automotive players are developing advanced connected vehicle solutions to connect with drivers in improving vehicle management and performance monitoring including vehicle health.
The manufacturing segment will largely contribute to the rest of the segments in rolling out multi-functional parts and systems in large quantities to support higher demand.
Some of the major trends in manufacturing include:
- 3D Printed Auto Components: Top automakers are utilizing 3D printing tools to rapidly design, develop and deliver auto components for vehicle parts.
- Digital Manufacturing: Companies are using AI/ML, Cloud and Computer Vision Technology to accelerate digital manufacturing capabilities intended to transform automaking operations. These include predicting the performance of parts and improving the quality of vehicle design.
Key Focus Areas for Service Providers
Since this is a re-developing market post the impact of the pandemic, the opportunities in this industry are endless. Most opportunities are segmented into timelines that service providers have to focus on. Let us explore these opportunities.
- Automation traction control
- Automated Emergency Braking
- Automotive Heads-Up Display
- Vehicle On-board Diagnostics
- Autonomous Vehicle Parking
- Autonomous Cars
- Electric/Hybrid Vehicle Development
- 3D Printed Auto Components
- Driver Monitoring System
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