The automotive industry is one of the largest and influential ones that is now changing. Here are some trends for next year and more to come.
1. Electric Vehicle
Probably the most important trend in the automotive industry is the worldwide shift to electric vehicles (EVs). After a disappointing 2019 in terms of EV sales, 2020 sales surpassed expectations, growing over 40% year-over-year, having China and Europe have been leading the way in EV sales growth for the past five years.
Increasing battery efficiency as well as EV charging infrastructure can both speed up adoption. For instance, lithium-ion battery prices have fallen by 89% over the last decade.
The 2020 Tesla Model S Long Range Plus has completely changed the perception of EV range. It can go over 400 miles on a single charge. Additionally, Chevrolet, Hyundai, Kia, Nissan, and Jaguar have all released more affordable EVs that have a range of anywhere from 200 miles to 250 miles.
2. Automotive Vehicles
Also known as AV, this type of vehicle are changing the face of the industry.
According to the Society of Automotive Engineers (SAE), there are 6 stages of vehicle automation progress that goes from Level 0 (no automation) to Level 5 (full automation). There are already about 31.4 million vehicles on the road that meet the Level 1 standard.
The global autonomous vehicle market is currently valued at $54 billion, and it is expected to grow by roughly ten times in the next five to seven years.
Large automakers like Tesla, Alphabet, Ford, GM, and Volvo have all entered the autonomous vehicle space.
3. Connected Vehicles
As 5G and the internet continue their growth, vehicles are becoming more and more connected which led to the rise of the connected car. This type of vehicle is defined by its ability to communicate with other software systems and collect data from its surroundings.
Google and Ford recently announced a connected car partnership called Team Upshift. The two plan to equip Ford and Lincoln vehicles with a built-in Android operating system by 2023. This connectivity should allow drivers to remain connected at all times.
Another partnership that has been reported is between Apple and Kia. The two purportedly plan to begin manufacturing an autonomous Apple electric car by 2024.
Pretty much all industries have more and more sales online and the automotive industry is not the exception.
Pre-pandemic, about 4.2% of total car sales took place online. This number is expected to have risen as dealers everywhere turned to digital channels. This makes sense, as many car customers already said they wish they could save time by shopping online.
With online transactions, customers could complete the purchase with the click of a mouse. Unlike auto parts which Ecommerce has completely changed the auto parts market.
This e-commerce is also beneficial for automotive manufactures no matter what tier the company is located on, EquipNet is a platform completely online in which companies can sell and/or buy second-hand equipment.
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