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Predicting Future Trends in the Automotive Industry

In terms of revenue, the automotive industry is one of the most important economic sectors in the world. However, it faces the prospect of immense changes over the next period of its history and companies will need to adapt and think outside the box if they are going to survive. This article takes a look at some of the predictions for the future of the industry and suggests how companies might move forward, maintaining their relevance for twenty first century consumers. In essence, the key challenges, of technology and changing consumer behaviours, are shared with other industries, but because the motor industry has run with the same model for so long, it needs to make a special effort to adapt to the modern age.

1. Business Models are likely to alter

As consumers adapt to driverless technology they will have more time to do other things whilst in transit. There will therefore be greater opportunities for car companies to work with technology companies to integrate technology consumer options into vehicles. There is also a shift towards more shared transport and so new services could come about to take hold of this trend. Companies such as Uber have already jumped on this bandwagon.

2. ‘Traditional’ market opportunities in developing nations

There will continue to be growth of traditional car sales (for individuals) in developing nations where the automotive industry has not been traditionally strong in the past. Newer car companies, such as those in China, are likely to fight to make the most of these opportunities. Growth is likely to slow or even shrink in Europe and North America.

3. Vehicles should be designed with multiple uses in mind

Gone are the days for most in Europe and North America when different vehicles are used for different purposes. In the future, vehicles will be required that can have multiple different uses. They must be robust, efficient and spacious whilst also being compact. It is very likely in the future that people who live in cities will be less likely to own cars themselves but perhaps will take part in car share schemes and use multiple forms of transport. Those who live in rural areas will continue to require personal vehicles as they need to travel further and longer and often require vehicles for work.

4. The rise of the autonomous car

Driverless cars are now a real possibility. The technology has already been tried out on the roads of several countries and companies are keen to get the technology out to consumers. In many ways, the technology lies at the centre of a new mode of travel and will enable the growth of say other tech marketing opportunities in vehicles. It will allow consumers to do other things when traveling and make cars far more like trains when it comes to the ability to work from anywhere. It is very likely that they will be on the market by 2020 and will be common by 2030 and 2040. Autonomous technology provides an opportunity for smaller start up companies to get on the ladder and make an impact on the automotive industry.

5. Electric vehicles will be more competitive

As technology improves, especially battery technology, the future for the electric vehicle looks increasingly bright. They offer a wide range of benefits for both consumers and for companies in the long term and it is of little surprise that companies such as Tesla and Toyota have been pouring investment into research over the past few years. It is likely to be an area of market growth that will experience a great amount of competition but it is where the world is going. Some parts of the world will be far quicker in adopting the technology, with the markets that are only just adopting traditional vehicles (petrol and diesel engines) later to shift towards electric.

It is an exciting time for the motor industry and there are a number of key opportunities that companies face. There is the potential for businesses to fail to adapt or to adapt too slowly but most of the big players such as Porsche tuning uk are already fully aware and have been preparing for this predicted future for a number of years. The future is far from certain and there are a number of directions that consumers could chose to take things in. What is for sure is that it is very likely to follow the technology industry closely and the shift will be towards making the lives of people easier and more stress free.
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About the Author

John Smith is interested in writing about cars and technology related issues. He has a deep knowledge at this field. Also he writes for a site offering high quality Porsche parts, accessories and spares.

Predicting Future Trends in the Automotive Industry Reviewed by Brandon on 12:25 AM Rating: 5

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