|Today, autonomous cars are becoming a reality. According to IBM, 15% of new cars will be self-driven in 2030. By then, McKinsey predicted that 50% of new cars will be electrified vehicles. Therefore, what are the technologies driving this change, and what initiate these automotive trends?
Challenges faced by the automotive industry
Technology is challenging the status quo throughout the automotive sector and eventually affecting the car manufacturers and supply chain. The Internet of Things and 5G drive pervasive connectivity, boosting the development of autonomous driving. It is not just in-car technology that is changing, at the same time, technology trends like AI and machine learning also change the automotive industry.
Technology trends in automotive industry
For many years, the internal combustion engine has been the building block of the auto industry. However, factors like environmental regulation and consumer concerns are driving a shift to hybrid cars. The growing adaption of electric cars subsequently causing the expansion of charging infrastructure.
2.Fast-moving industry entrants
In the past, brand-new auto brands are a rare occurrence. However, with the emergence of company like Tesla that takes advantage of automotive industry disruption such as electrification, it pointed out a future trend of this industry.
These days, ride-hailing apps like Grab, MyCar and MULA are very popular. These ride-hailing and other types of shared mobility is set to increase in the future. Indeed, shared mobility is changing the expectations of car ownership and the purpose of an automobile.
In addition, automotive technology will continue to drive disruption in the coming years as it converges with contemporary technology. Cars will transform from discrete tools into autonomous cars that integrated into a tech-reliant society.
Besides, successful auto manufacturers will adjust their R&D processes. Due to the fast-changing automotive industry, manufacturers need to do so in order to innovate faster and more responsively to this future trend.
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