Important Auto Industry Trends to Watch Out For

There’s no denying the auto industry has undergone some major changes in the last few years. While things are on track to become “all-electric”, there are a lot more changes in store in the next decade. For example, the emergence of Mobility as a Service (MAAS) platforms. With technology currently leading the market into the future, here are the top auto industry trends to look out for in the coming years.

What auto industry trends can we expect in the next decade?

Electric Vehicles (EVs)

The rise of electric vehicles is a significant trend in the industry. With advancements in battery technology and increased focus on sustainability, more automakers are investing in and producing electric cars. This trend is driven by a combination of stricter emissions regulations, government incentives, and growing consumer demand for eco-friendly transportation options.

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Recent marketing data confirms searches for “electric vehicles” are up nearly 169% in the last five years. As the electric wave continues to spread both domestically and globally, we suspect this percentage to increase even greater.

Autonomous Vehicles (AVs)

Autonomous or self-driving vehicles are another major trend. Automakers and technology companies are investing in developing autonomous technology to improve safety and convenience on the roads. While fully autonomous vehicles are still in development and face regulatory challenges, various advanced driver-assistance systems (ADAS) are becoming increasingly common in new car models.

Connected Cars

Connectivity features in cars are becoming more prevalent. Modern vehicles are equipped with internet connectivity, enabling features such as navigation, infotainment, remote control, and vehicle diagnostics. This trend is expected to continue with the emergence of 5G technology and the integration of cars with smart home systems and Internet of Things (IoT) devices.

Shared Mobility

The concept of shared mobility, including car-sharing, ride-sharing, and carpooling, is gaining popularity. Services like Uber, Lyft, and car-sharing platforms allow individuals to access transportation without owning a car. This trend is driven by urbanization, cost considerations, and the desire for flexible transportation options.

Sustainability and Green Initiatives

Environmental concerns are shaping the auto industry, leading to a greater emphasis on sustainability. Automakers are focusing on reducing emissions, developing hybrid and electric vehicles, and implementing eco-friendly manufacturing processes. This trend is influenced by consumer demand for greener options and stricter emissions regulations worldwide.

Advanced Safety Features

Safety remains a crucial aspect of the auto industry. Advanced safety features like adaptive cruise control, lane-keeping assist, automatic emergency braking, and blind-spot detection are increasingly standard or available as optional features in new cars. The industry continues to prioritize innovations to enhance occupant safety and reduce accidents.

Mobility as a Service (MaaS)

Mobility as a Service refers to a shift from personally owned vehicles to a comprehensive mobility solution that integrates various transportation modes. MaaS platforms aim to provide seamless, multi-modal transportation options through a single app, allowing users to plan, book, and pay for various modes of transportation, including public transit, ride-sharing, and bike-sharing.

These are just a few of the significant trends shaping the auto industry right now. As technology advances and consumer preferences evolve, the industry will continue to experience rapid changes in the coming years. But one thing is for certain, we haven’t seen an automotive revolution like this since a century ago.

Range expansion will have the biggest impact on driving behaviors

Increasing electric vehicle (EV) range can have several positive impacts on the auto industry:

1. Addressing Range Anxiety: Range anxiety, the fear of running out of battery charge while driving, is a common concern among potential EV buyers. By increasing EV range, automakers can alleviate this anxiety and increase consumer confidence in electric vehicles. This can lead to higher adoption rates and increased sales of EVs.
2. Expanded Market Potential: Longer EV range opens up new market segments and customer demographics. With increased range, EVs become a more viable option for individuals with longer commutes or those who frequently travel long distances. It allows EVs to compete directly with internal combustion engine (ICE) vehicles and provides a wider range of options for consumers.
3. Enhanced Convenience: Longer EV range reduces the need for frequent charging and enables drivers to travel longer distances without interruption. This convenience factor can attract more consumers who prioritize long-distance travel or have limited access to charging infrastructure. It opens up possibilities for road trips and long-distance travel, making EVs a more versatile choice.
4. Accelerating Infrastructure Development: Longer EV range can drive the development of charging infrastructure. As the demand for EVs increases, the need for a robust and extensive charging network becomes more apparent. This, in turn, encourages investment in public charging stations and incentivizes businesses to install charging infrastructure, ultimately making EV ownership more feasible for a wider range of consumers.
5. Technological Advancements: Increasing EV range often requires advancements in battery technology. As automakers strive to extend range capabilities, they invest in research and development to improve battery efficiency, energy density, and charging speeds. These advancements not only benefit the EV industry but also have broader applications in renewable energy storage and other sectors that rely on battery technology.
6. Environmental Benefits: Electric vehicles produce zero tailpipe emissions, reducing air pollution and greenhouse gas emissions. By increasing EV range, more drivers can switch from ICE vehicles to EVs, leading to a significant reduction in carbon emissions and improved air quality. This aligns with global efforts to combat climate change and transition to cleaner transportation options.

Overview

Overall, the future of the auto industry holds both opportunities and challenges. Certain factors will contribute to its overall outlook and progression, however, the transition to electric vehicle ownership is undeniable. All things considered, the green initiative will do some good and pose new challenges ahead.