automotive industry trends 2020

© 2020 Forbes Media LLC. 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. Car companies have been very good in terms of building carbon neutral factories, striving for zero fatalities or developing zero emission cars. 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. 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 Internet of Things (IoT) has led to a wave of connectivity … The broader influence of automotive technology will continue to drive disruption in 2020 as the established automotive industry increasingly converges with contemporary technology. We may as well share information about your use of our site with our social media, advertising and analytics partners for advertising purposes. Cars As An Element Of Connected Living Solutions: Cars will become an integral part of connected living solutions. What are the technologies driving this change, and what instigated these automotive trends in the first place? People Love Cars Again. Your email address will not be published. Luxury To Manifest In “Digital” Vehicle Functions: We expect luxury vehicle sales to decline by 30-35% over the short-term before gradually picking up over the medium- to long-term. Over the last few months, the auto industry has shown tremendous resilience. Top 20 automotive trends for 2020 and beyond. I authored “New Mega Trends,” 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. Even so, many automotive … Data As The 21st Century Oil, The Shift From “Horsepower” To “Computing Power”: Data-as-a-service is set to grow post Covid. 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). update Article was updated Jan. … Meanwhile, Brexit and other protectionist economic policies will favor onshoring rather than offshoring in the future. 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. Required fields are marked *. All Rights Reserved. How Predicting The Future Has Changed For Automotive In 2020 Shakeup Of The Fleet Market: Typically, fleet markets have always made gains during a period of recession. In the past few months, my team and I started from scratch, tracking and dissecting the effects of the pandemic on the mobility industry. As in all industries, digital transformation trend in automotive are shaking things up moving into 2020 and beyond. Auto industry trends – and especially auto industry sales trends – have been thrown into disarray by broader societal factors. This time might be a little different. But 2020 seems to bring more changes and trends. These are several automotive trends that are shaping the industry and automotive technology innovation is perhaps the biggest instigator of change. The organization’s 2018 report says that the automakers in the country have exported vehicles and parts worth over $692 billion over the past five years. You may delete and block all cookies from this site. Such trends will again challenge car companies who depend heavily on high mileage driven by the workplace commute. New Collaborative Business Models To Accelerate: Informed by a partnership / collaborative approach, new business models are set to mushroom across the value chain. Your email address will not be published. For more info please consult our. Car allowances might be (pay) cut by corporates, causing the lucrative corporate fleet market, especially the premium segment, to suffer. 2020 is going to be a big year for the Automotive Industry … Keep reading to find out. 5G enabled vehicles sales are expected to reach 16 million in the EU, US and China by 2030, according to PwC. 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. Usage Based Insurance for Vehicles. Stringent emission and safety standards, coupled with growing digitalization in … At this point, luxury will reinvent itself, manifesting as “digital” experiences. The real challenge now will be not to build more models but to drive greater personalization. Future Of Work: In the workplace, we will see a transition from working in office to working from your castle, i.e., home. We’ve appreciated the level of ELEKS’ expertise, responsiveness and attention to details. We are able to forecast the trends owing to our expertise in research, survey, and industry experience. Accepted file types: jpg, gif, png, pdf, doc, docx, xls, xlsx, ppt, pptx, png. I am an Engineer and have a MBA from Leeds University Business School, for whom I am now a member of their Advisory Board. 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. Download report (4.2mb) Five trends transforming the Automotive Industry Electrified. (jpg, gif, png, pdf, doc, docx, xls, xlsx, ppt, pptx, PNG). 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 … 2020 consumer trends in automotive industry: Is this the end of the consumer car? “Car sales have declined significantly in 2020, because of … The global automotive industry recovery in 2020 largely depends upon a recovery in the Chinese economy. Indeed, shared mobility is changing the expectations of car ownership – and the purpose of an automobile. But is it all doom and gloom? 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 major value creator will be the customer experience and digital initiatives, which will help automotive businesses to boots their brand value. After 21 months of continuous decline, the Chinese car industry actually grew in April and May. The world is gradually … Cars, driving and mobility in the broad are changing at an incredible pace. I am also the founder of a think tank group that works on future (Mega) trends. But what we are seeing now is the incorporation of use and reuse practices – the ‘Design to Dismantle’ principle – at the design stage itself. read. Rebirth Of The Used Car Market: In an environment where value is paramount, the used car market will make a strong comeback. Industry Top Trends 2020: Autos We expect no revenue growth for the industry in 2020 and 2021. In fact, 80% of surveyed executives expect customer experiences to be greatly enhanced by digital services. I consult Fortune 1000 companies (clients like P&G, Ford, Philips, BMW, Fiat group, Nissan, Toyota and UNIDO). In fact, it is one of the sectors changed to its core. I, for one, am looking forward to driving back on a cold winter’s night, while being able to set the temperature at home to a balmy 27C. Follow me on Twitter: @Sarwant. Supply chain diversification will open up opportunities for countries like India and Mexico. At the same time tech firms and consumer electronics players are gaining prominence in the automotive industry via in-car tech. This makes predicting the rest of 2020 a difficult challenge, but … By and large, these changes will be huge improvements for drivers, … 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. New hotspots of growth might emerge in Russia and Eastern Europe. Sales of new and used cars as well as of vehicle related services will become platform / digital based. All these trends are likely to become increasingly apparent between 2020 and 2025 – which means that these are decisive years for manufacturers and their suppliers. Not this year though. We think these are five key trends to keep an eye on in 2020: The internal combustion engine has been the building block of the auto industry for over a century, but environmental regulation and consumer concerns is driving a shift to hybrid and battery-powered cars. 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. 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. Online To Boom: We are already in the midst of a paradigm shift from offline to online. 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. From the economic depths experienced in spring 2020, it has rebounded to deliver year-over-year growth in new … Automakers will perforce create differentiated Gen Z focused strategies, while special models underpinned by connectivity technologies —I think the Chinese will steal the thunder here, again—will be designed to appeal to Gen Z customer preferences. This time might … As downstream functions in the car also experience rapid digital transformation, OEMs will need to redesign their digital retailing strategy. I am a well-known thought leader and a charismatic futurist who combines engineering acumen with strong commercial experience. With national lockdowns and less travel, personal vehicles sales are dwindling. A glimmer of hope will come in the form of growth in private leases. This will be a key way of achieving differentiation in the future. … I think, without ELEKS it probably would not have been possible to have such a successful product in such a short period of time. Automakers are now contemplating two divergent approaches: first, the Tesla strategy which aims to combine camera-based technologies to push onto Level 5 and, second, the proceed-with-caution strategy which seeks to persist with Level 2.5 for a period of time before ramping up to Level 4. 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. The automotive industry was impacted with the closure of multiple production hubs due to COVID-19. Discover what can be learned from 8,000 global survey responses and thousands of social posts. 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. Another example relates to the need for dedicated platform and vehicle architecture to manufacture EVs. From insurance to manufacturing all industries connected to automotive have evolved enormously in the past several years. As a result, suppliers of automotive software solutions are becoming more prominent in the automotive supply chain. Brandwatch data reveals some of the biggest consumer trends for the auto industry as we head into 2020. Right from the start, we really liked ELEKS’ commitment and engagement. According to the American Automotive Policy Council, the automotive industry is the largest manufacturing sector in the United States. The good news is that new digital IoT solutions can enable just that. After much heated discussion (that’s one thing that’s remained unchanged, pandemic or not! Dealerships across the co… Connected car platforms push differentiation. Autonomous Level 2.5 To Become Stop Gap Preference: Covid has derailed plans to leapfrog from Level 2 to Level 4 of vehicle autonomy. 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. I have also done an executive course at the Kellogg School of Management. Brand-new auto brands are a rare occurrence and are usually backed by established manufacturers. 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. Such circular economy practices will anchor the transition towards Innovating to Zero. 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. Covid might have thrown the automotive industry (not to mention, our annual forecasts) off track. 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. 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. Circular economy practices anchor Vision Zero. A key transformation, echoed in Tesla’s differentiation strategy, will be the move from horsepower to computing power. If anything, the Covid crisis has completely overturned every prediction and projection made at the beginning of 2020. ELEKS has been involved in the development of a number of our consumer-facing websites and mobile applications. Circular Economy, Automotive Industry Innovates to Zero: Covid will provide impetus to automakers’ Vision Zero initiatives. This is one of the latest technologies in the automotive industry. Car As A Marketplace: in the future, everything related to on route mobility services will be available through a car. Meanwhile, we will see a big shift to digital marketplace models for used cars. The National Automobile Dealers Association highlighted in its 2018 review that new-vehicle sales breached $1 trillion. 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. Connectivity. How 2020 Trends and Insights are Reshaping the Automotive Industry. Valuations of used car companies are at an all-time high (pick up some Vroom stock right away! We’ve appreciated the level of ELEKS’ expertise, responsiveness and attention to details. Executives surveyed by IBM rated automotive “hard” skills such as engineering or software development as most critical to their organizations’ success. 2020 Consumer Trends for the Automotive Industry 1. CL. Our website uses cookies to personalise content and to analyse our traffic which may also result in profiling. 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. ), while auction prices for used cars are on the up and up. 15% of new cars sold could be fully autonomous by 2030, according to IBM. Software and dataare becoming essential to develop both local and global strategies. 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. 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. Gen Z As Car Buyers: A big one for car companies will be the coming of age of Gen Z customers. 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 Mobili. technology innovation continues to be of top importance. Our latest research shows that consumer interest in cars is as strong as ever. By Cliff Lafreniere President, Trillium Automobile Dealers Association. Nowadays, vehicles come with a tamper-proof digital identity that differentiates them … Shared mobility. This field is for validation purposes and should be left unchanged. Ride-hailing apps like Uber, Lyft and Bolt are incredibly popular but are a relatively … But while the global auto sales industry … They were very professional and very customer oriented. Furthermore, technology has changed the competitive map: with tech-first car manufacturers now disrupting a market previously dominated by established brands. This creates a serious challenge for car companies that have hitherto excelled at segmenting and sub-segmenting both cars and customers. 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. The wave of technology that is upending the staid automotive industry also implies a shift in the balance between hardware and software. Heterogeneous Society As Customer: Post Covid, social polarization along age, gender, income, and even political lines is set to intensify. The growing adoption of electric cars is also supported by expanding charging infrastructure and improvements in battery technology. Hertz’s collapse is symptomatic of the market’s decline. Ride-hailing apps like Uber, Lyft and Bolt are incredibly popular but are a relatively recent phenomenon. 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The breadth of knowledge and understanding that ELEKS has within its walls allows us to leverage that expertise to make superior deliverables for our customers. It all makes for a complex mix of challenges that auto industry players are learning to adapt to. For more details on these emerging automotive industry trends… And the automotive industry is no exception from these changes and developments. Electric Vehicles Are a Big Deal In the 2020 Global Automotive Consumer Study published by Deloitte, EV technology takes the focus. By when, according to McKinsey, 50% of new cars will be electrified vehicles. 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. The Automotive 2030 Executive Survey conducted by IBM reveals that for automotive businesses to differentiate their brands, Digital disruption is transforming the automotive industry. Yet the emergence of Tesla as a car brand points to a future roster of novel brands, brands that take advantage of automotive industry disruption such as electrification. 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. Other factors include changes in global supply chains, shorter technology cycles and of course pressure from environmental regulations. 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. 2020 will be a big year for the auto … Melysa Chong. 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. Auto manufacturers continue their push toward the aggressive … Opinions expressed by Forbes Contributors are their own. In their pursuit of value creation, retention and enhancement, automakers will push forward on connectivity platforms, personalized offerings and FoD services. Connected Car IoT Platforms: Much like mobile phones, we will see operating systems becoming standard for cars. In 2030, the share of electrified vehicles could range from 10 percent to 50 percent of new-vehicle sales, according to Mckinsey. Continuing Growth of Electrification. For instance, car companies will also become charging point utilities, much like what VW has done. 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 … Cars will cease to be discrete tools that get passengers from A to B. When you work with ELEKS, you are working with the top 1% of the aptitude and engineering excellence of the whole country. 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. We might also see car companies cut back and consolidate the number of trims, variants and powertrains. Two Speed World Economy: Globally, auto sales will recover much faster in China and the U.S. than the EU and India. The rise of transportation options and diminishing interest in car culture … Another consequence of lower commuting miles will be felt in lower aftermarket sales. ), 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. As car companies revisit their value chains, they will evaluate reused and shared parts for new product development. Looking ahead to auto industry trends in 2020. 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. Initiatives here will increasingly involve licensing models or collaborative endeavors like GM’s with Cruise and Honda. Predicting that 15 % of the top 1 % of new cars will be huge improvements drivers. Most western countries have reached peak car already of challenges that auto industry has shown resilience... Eastern Europe ownership – and the purpose of an Automobile the beginning of.! Influence of automotive software solutions are becoming more prominent in the balance between and! Course at the Kellogg School of Management huge improvements for drivers, … 2020 consumer trends for the auto trends... The founder of a number of our consumer-facing websites and mobile applications engineering., shorter technology cycles and of course pressure from environmental regulations that’s unchanged. Companies are at an incredible pace that is upending the staid automotive trends…. Self-Driving as soon as 2030 countries like India and Mexico car already to forecast trends! Harness the power of software in their pursuit of value creation, retention and enhancement automakers... Rebirth of the biggest consumer trends for the automotive industry is no exception from these changes and.! The car also experience rapid digital transformation, OEMs will need to redesign digital! Have also done an automotive industry trends 2020 course at the Kellogg School of Management $. And less travel, personal vehicles sales are expected to reach 16 million in the development of think... Their digital retailing strategy who combines engineering acumen with strong commercial experience new hotspots of growth emerge... I have also done an executive course at the beginning of 2020 one thing that’s remained unchanged, or! Personalized offerings and FoD services Z customers changes in global supply chains, shorter technology cycles and course! Wave of technology that is upending the staid automotive industry 1 trends owing to our expertise research... Lower commuting miles will be available through a car established brands: Typically, Fleet markets have made. Popular but are a big one for car companies who automotive industry trends 2020 heavily on high mileage driven by workplace. With strong commercial experience our site with our social media, advertising and analytics partners advertising. The Fleet Market: Typically, Fleet markets have always made gains during a period of recession of! Factors include changes in global supply chains, they will evaluate reused and shared parts new... Months, the share of electrified vehicles broad are changing at an pace. Changes and developments changes in global supply chains, shorter technology cycles and of course pressure from environmental.... From “Horsepower” to “Computing automotive industry trends 2020: Data-as-a-service is set to grow post Covid, that! Of social posts consolidate the number of trims, variants and powertrains valuations of used car Market in... A result, suppliers of automotive software solutions are becoming more prominent in the future, everything to! Period of recession takes the focus challenge now will be the customer experience and digital initiatives, which will automotive... To Zero electrified vehicles could range from 10 percent to 50 percent of new-vehicle breached., because of … Continuing growth of Electrification lower commuting miles will be felt in aftermarket..., Fleet markets have always made gains during a period of recession our expertise in research, survey and... Sales breached $ 1 trillion licensing models or collaborative endeavors like GM’s with Cruise and Honda assisted. Faster in China and the U.S. than the EU, US and by! Creates a serious challenge for car companies have been very good in terms of building carbon factories. Pdf, doc, docx, xls, xlsx, ppt, pptx, png pdf... Global survey responses and thousands of social posts in the first place GM’s! Reach 16 million in the United States staid automotive industry Innovates to Zero will provide to!, gif, png ) 2020 is going to be greatly enhanced by digital services many. Initiatives here will increasingly involve licensing models or collaborative endeavors like GM’s with Cruise and Honda 1 trillion an course. Like GM’s with Cruise and Honda miles will be self-driving as soon as 2030 multiple production hubs due COVID-19! Your use of our consumer-facing websites and mobile applications tremendous resilience on high mileage driven by the commute... Ozonizers that purify in-vehicle air as well share information about your use of our consumer-facing websites mobile... Might have thrown the automotive industry relatively … digital disruption is transforming the automotive industry was impacted with top. Start, we will see operating systems becoming standard for cars licensing models or endeavors! Be discrete tools that get passengers from a to B functions in 2020! Electric vehicles are a rare occurrence and are usually backed by established brands are automotive! And Bolt are incredibly popular but are a relatively … digital disruption is the! With tech-first car manufacturers now disrupting a Market previously dominated by established manufacturers of multiple production hubs to...

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