For more details on these emerging automotive industry trendsâ¦ Sales of new and used cars as well as of vehicle related services will become platform / digital based. Initiatives here will increasingly involve licensing models or collaborative endeavors like GMâs with Cruise and Honda. Discover what can be learned from 8,000 global survey responses and thousands of social posts. As downstream functions in the car also experience rapid digital transformation, OEMs will need to redesign their digital retailing strategy. 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. Not this year though. But while the global auto sales industry â¦ With national lockdowns and less travel, personal vehicles sales are dwindling. This field is for validation purposes and should be left unchanged. It all makes for a complex mix of challenges that auto industry players are learning to adapt to. We have already entered 2020 and we are done with our homework to unlock various secrets of consumer trends for automotive industry. Continuing Growth of Electrification. All these trends are likely to become increasingly apparent between 2020 and 2025 â which means that these are decisive years for manufacturers and their suppliers. Dealerships across the coâ¦ 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. 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. For more info please consult our. (jpg, gif, png, pdf, doc, docx, xls, xlsx, ppt, pptx, PNG). A key transformation, echoed in Teslaâs differentiation strategy, will be the move from horsepower to computing power. 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. Opinions expressed by Forbes Contributors are their own. I think, without ELEKS it probably would not have been possible to have such a successful product in such a short period of time. The Internet of Things (IoT) has led to a wave of connectivity â¦ 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. At the same time tech firms and consumer electronics players are gaining prominence in the automotive industry via in-car tech. 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. New hotspots of growth might emerge in Russia and Eastern Europe. Cars As An Element Of Connected Living Solutions: Cars will become an integral part of connected living solutions. Here are Scottâs predictions for automotive industry trends 2020: (Walmart's) total marketplace sales for #autoparts and accessories including #Amazon and #eBay will overtake that of â¦ Brand-new auto brands are a rare occurrence and are usually backed by established manufacturers. After 21 months of continuous decline, the Chinese car industry actually grew in April and May. Stringent emission and safety standards, coupled with growing digitalization in â¦ Autonomous cars are becoming a reality, with IBM predicting that 15% of new cars will be self-driving as soon as 2030. Circular economy practices anchor Vision Zero. From the economic depths experienced in spring 2020, it has rebounded to deliver year-over-year growth in new â¦ Online To Boom: We are already in the midst of a paradigm shift from offline to online. By when, according to McKinsey, 50% of new cars will be electrified vehicles. 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 â¦ I authored âNew Mega Trends,â 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. Automotive industry trends in 2020 are primarily dictated by the demands of a new class of consumers â sophisticated customers with a high level of consciousness and awareness, ever â¦ Car As A Marketplace: in the future, everything related to on route mobility services will be available through a car. Â© 2020 Forbes Media LLC. Melysa Chong. Ride-hailing apps like Uber, Lyft and Bolt are incredibly popular but are a relatively â¦ 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). If SUVs and cross overs were the dominant body styles of the last decade, the next decade could see the emergence of new body styles driven either by Covid, the shift to a second type of car or the debut of a new generation of boxy, monolithic models for the growing Gen Z customer segment. Nowadays, vehicles come with a tamper-proof digital identity that differentiates them â¦ This will be a key way of achieving differentiation in the future. I am a well-known thought leader and a charismatic futurist who combines engineering acumen with strong commercial experience. Kimberly Matenchuk, Senior Director of Sales at GE Digital, United Kingdom, says that innovation is dependent on the needs. The Automotive 2030 Executive Survey conducted by IBM reveals that for automotive businesses to differentiate their brands, Follow me on Twitter: @Sarwant. Circular Economy, Automotive Industry Innovates to Zero: Covid will provide impetus to automakersâ Vision Zero initiatives. EY & Citi On The Importance Of Resilience And Innovation, How Digital Workflows Helped Save Basketball During The Pandemic, Impact 50: Investors Seeking Profit â And Pushing For Change, Michigan Economic Development Corporation With Forbes Insights. 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. People Love Cars Again. The automotive industry was impacted with the closure of multiple production hubs due to COVID-19. Meanwhile, Brexit and other protectionist economic policies will favor onshoring rather than offshoring in the future. I expect over 100 connected car features to be available to consumers across emerging and developed markets by 2025, from current figures of less than 40 in most high-end vehicles. Such trends will again challenge car companies who depend heavily on high mileage driven by the workplace commute. 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 â¦ This creates a serious challenge for car companies that have hitherto excelled at segmenting and sub-segmenting both cars and customers. ELEKS has been involved in the development of a number of our consumer-facing websites and mobile applications. Right from the start, we really liked ELEKS’ commitment and engagement. 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. What are the technologies driving this change, and what instigated these automotive trends in the first place? 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. 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Car companies have been very good in terms of building carbon neutral factories, striving for zero fatalities or developing zero emission cars. Software and dataare becoming essential to develop both local and global strategies. U.S. auto industry trends arenât very positive these days with auto dealers watching forces beyond their control put a damper on dealership sales and profits. You may delete and block all cookies from this site. Two Speed World Economy: Globally, auto sales will recover much faster in China and the U.S. than the EU and India. 2020 Consumer Trends for the Automotive Industry 1. I have also done an executive course at the Kellogg School of Management. The world is gradually â¦ read. After much heated discussion (thatâs one thing thatâs remained unchanged, pandemic or not! I am a Managing Partner in Frost & Sullivan, Regional Leader of its Middle East, Africa and South Asia (MEASA) operations and the companyâs Global Practice Head of Mobility, Aerospace, Defence & Security teams. In fact, it is one of the sectors changed to its core. 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. Digital disruption is transforming the automotive industry. CL. 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. 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. I usually begin the year with a roundup of the top automotive trends for the upcoming year. â¦ 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. According to the American Automotive Policy Council, the automotive industry is the largest manufacturing sector in the United States. Electrified. We may as well share information about your use of our site with our social media, advertising and analytics partners for advertising purposes. If anything, the Covid crisis has completely overturned every prediction and projection made at the beginning of 2020. Brandwatch data reveals some of the biggest consumer trends for the auto industry as we head into 2020. New Collaborative Business Models To Accelerate: Informed by a partnership / collaborative approach, new business models are set to mushroom across the value chain. 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