The auto sector witnessed massive ups and downs in the last decade. But with the global digitisation buzz, it is set for an extensive change. The tango between tech and auto companies is gaining momentum. Electric mobility and green energy, machine learning and artificial intelligence, augmented reality and virtual reality, 5G cellular networks, Connected Autonomous Shared Electric (CASE), Internet of Things (IoT), stringent emission regulations and cyber security are among the tech trends that will reshape the landscape of the automotive industry.
Electric mobility and green energy
Electric mobility is regarded as a saviour technology as it helps humankind tackle the challenges of depleting fossil fuel reserves and rapidly deteriorating ambient air quality. Electrification is more relevant for urban areas where charging facilities can be packed with other utilities and amenities.
The future of electric mobility relies on the local design and manufacturing of batteries as per Indian requirements. According to a recent analysis, EV MOM sales between February-May 2022 have been up by 88%. Investors, government agencies, and car manufacturers are pouring money into this research to profit from emission-free electric vehicles. The outlook of the automotive sector has changed due to the large-scale damage caused to the environment and the increasing rate of reliance on fossil fuels.
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A technology trend buzzing all around, especially in the mobility world, is Connected Autonomous Shared Electric (CASE). It indicates that mobility in the future will go way beyond traditional automotive development. There will be a shift of focus with more attention toward developing mobility solutions rather than designing the vehicle. It takes a deep dive into the technologies that depend on sustainability, energy, and the environment.
Internet of Things (IoT)
The Internet of Things (IoT) is another promising technology trend. It refers to devices that are connected to each other via the internet. IoT has enabled devices like wearables, smartphones, home appliances, and cars. These products are capable of ‘talking’ to each other and exchanging data over the internet.
IoT allows car owners to track mobility requirements, lock doors remotely, track the energy consumption of EVs, use traffic monitoring systems, receive notifications for vehicle maintenance, and more. The biggest advantage of the technology is quick data collection, integration in the system and instant analysis resulting in controlled action.
The technology can improve customer service, enable predictive maintenance, efficiency, surveillance, and better safety.
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AI-based vehicles are the pacesetters in the auto sector. The technology enables smart travel methods, where vehicles do not need drivers and can work on software and sensors. These autonomous vehicles focus on reducing the need for human drivers and make daily transport convenient and hassle-free.
Virtual Reality and Augmented Reality
Virtual Reality (VR), Augmented Reality (AR), and Extended Reality (ER) are next-generation technology trends. AR enhances the users’ environment while VR immerses them in an environment. The technologies have massive potential in entertainment, marketing, training, education, simulation, etc. Therefore, it is soon expected to see these forms of technologies integrated into the automotive sector.
The Bottom Line
The end consumer might find all of this mind-boggling technical jargon. However, the transformative impact will remain high. For instance, a connected and enabled eco-system can send notifications when the engine oil or brake oil dip and require refilling in a day or two. The devices will be able to provide pre-emptive notifications based on driving patterns and road conditions. As a result, the cost of maintenance will reduce significantly. Disruptive technologies can also increase the longevity of the vehicle. Collision detection technology can bring down the number of accidents.
The automotive sector shows an upswing every year in the demand for newer technologies. Industrialists and researchers are innovating the latest manufacturing technologies to meet the demand. Car manufacturers are also implementing various techniques to provide the best and most innovative technology to their end-users. In the years to come, the auto sector is gearing to welcome any upcoming innovations which will change the face of the industry across the globe.
(Rajeev Kumar is the CTO of CarWale)
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FAQs
India Automobile Market Analysis
The Analysis Of Automobile Industry In India Market is expected to register a CAGR of 8.10% during the forecast period. India's Automotive Market was valued at USD 100 billion in 2021 and is expected to reach USD 160 billion in 2027.
What are the technological changes in the car industry? ›
New technology in the automotive industry opens up new opportunities. AI, additive manufacturing, the Internet of Things, and 5G have become sources of product innovation and manufacturing efficiency, which in turn has led to revolutionary changes in customer experience.
Which is a recent trend in the automotive industry? ›
Autonomous Vehicles are Changing the Face of the Auto Industry. Autonomous vehicles are one of the prime automotive industry trends of 2024. The autonomous car market in 2020 was $21 billion. The expected reach in 2026 is expected to reach nearly $62 billion at a growth of CAGR 22.75%.
What are the trends disrupting the automotive industry? ›
For the commercial vehicles industry, the automotive world, and more widely for the entire traditional transportation ecosystem, the winds of change are blowing as a consequence of four main trends: new Mobility trends and behaviors developing around the world, the arrival of Autonomous technologies, the development ...
What are the technological advancements in the automotive industry in India? ›
From revolutionising electric mobility to embracing connectivity, India's automotive inventions are at the forefront of new technologies in the automobile industry.
- Electric Vehicle (EV) Revolution & Charging Infrastructure. ...
- Connected Cars/Vehicles. ...
- Shared Mobility and Mobility-as-a-Service (MaaS) ...
- Autonomous Vehicles.
Major technological advancements in electric vehicles, autonomous driving, connectivity, embracing digital sales, expanding the used-car market and intense focus on safety measures are redefining the industry's growth momentum and in turn transforming both urban and rural transportation.
What is the future of automotive technology? ›
ADAS are becoming more common in cars, and we will likely see even more advanced systems emerge throughout 2024. These systems use cameras, radar, and other sensors to help drivers navigate, park, and avoid accidents. Some cars have semi-autonomous features such as lane-keeping assist and automatic braking.
How technology has advanced in vehicles? ›
Automatic braking, lane sensors, adaptive cruise control, and self-parking capabilities are all autonomous functions as well. The idea of an electric vehicle would have seemed rather futuristic mere decades ago, but green vehicles like Teslas have burst onto the scene with great success in recent years.
What are future changes in automobile technology likely to include? ›
Future changes in automobile technology are likely to include increased fuel efficiency and new industries to support it, improved safety through engineering research and development, and increased sophistication of controls and instruments.
How can we improve the automotive industry? ›
Here are six simple steps that any auto manufacturing organization can implement.
- Adopt a Team Mindset. ...
- Define Value from the Customer's Point of View. ...
- Develop a Common Understanding of the Cost of Quality. ...
- Solve Problems Completely. ...
- Practice Strong Process Discipline. ...
- Leverage Improvement Management Technology.
Based on the latest auto industry update, the top auto industry trends for 2023 to 2025 include a growing demand for both electric vehicles and autonomous vehicles. You can also expect cars to be more connected than ever in the near future.
How will AI affect the automotive industry? ›
The adoption of AI in the automotive industry significantly helps reduce costs in all aspects of operations, from designing to manufacturing. By optimizing manufacturing processes, improving supply chains, and identifying potential issues in vehicles, AI can help reduce costs in various ways.
What will the automotive industry look like in 2030? ›
Overall global car sales will continue to grow, but the annual growth rate is expected to drop from the 3.6 percent of the last five years to ~2 percent annually by 2030. This drop will be largely driven by macroeconomic factors and the rise of new mobility services such as car sharing and e-hailing.
What is the trend in cars in 2024? ›
In 2024, consumers have more options than ever to tailor their vehicles to their preferences. This includes customizable exterior and interior options, adaptive lighting systems, and even programmable sound for electric vehicles.
What are the trends in automotive components? ›
Key trends such as electrification, safety systems, connectivity, lightweight materials, supply chain optimization, and sustainability are driving changes in the market, reflecting the broader transformation in the automotive industry towards cleaner, safer, and more connected vehicles.
What is the future of auto parts industry in India? ›
100% FDI in the automotive parts industry is allowed under the automatic route. The rapidly growing auto market in India is expected to reach $300 Bn by 2026. Automotive aftermarket segment in India is expected to reach $32 Bn by 2026. Auto Components industry exports to grow 5X in next 10 years.
What is the future of auto stocks in India? ›
Auto sector stocks are on a roll. The Nifty Auto index has gained over 20% in the last year, and some stocks have even doubled in value. This is due to a number of factors, including strong demand for cars and motorcycles, rising disposable incomes, and government incentives for electric vehicles.
What is the future of auto component industry in India? ›
By 2030, Automobile and Auto-Component Industry in India is set to become the third largest market globally and have a significant role in the nation's overall economic growth and development. The Indian automobile industry is projected to witness significant growth in the coming years.
What is the growth rate of the auto industry in India? ›
A compound annual growth rate of 4.77% is expected (CAGR 2024–2028). The number of enterprises in the Automotive Products market is projected to amount to 9.54k in 2024. A compound annual growth rate of 2.08% is expected (CAGR 2024–2028).
