The automotive industry went through a difficult period during the epidemic, but it is gradually making a comeback and seems to be much more resilient than before. According to Euromonitor, unit sales will surpass pre-pandemic levels in 2022 with an estimated 78 million units sold (up 10% from 2021, which was itself up 10% from 2020). Additionally, as electrification continues to grow and connectivity technology progresses, the automobile sector is continuing to experience significant changes in business models. We decided that 2022 would be a suitable moment to examine the key trends influencing the automotive sector for these and other reasons.
More Connected Cars
Vehicles that are connected to the Internet, and more especially the Internet of Things, are known as connected cars (IoT). By utilizing on-demand technologies that let you access the internet whenever you want while driving, these cars offer a secure, cozy, and practical multimedia experience. With a variety of other systems outside of their local area network, connected cars can exchange information in both directions. These vehicles can connect to the internet and share data with devices both inside and outside the vehicle. Modern connected automobiles can transfer digital data, do remote diagnostics, provide vehicle health reports, access 4G Wi-Fi Hotspots, receive turn-by-turn instructions, alert drivers to potential problems with their vehicles, and take immediate action to avoid breakdowns.
Modern connected automobiles can transfer digital data, do remote diagnostics, provide vehicle health reports, access 4G Wi-Fi Hotspots, receive turn-by-turn instructions, alert drivers to potential problems with their vehicles, and take immediate action to avoid breakdowns. In 2022, connected car technology will take off in a variety of ways thanks to maintenance and predictive intelligence technologies. Together, they will completely change the user experience, stretch the limits of personalization, and provide automakers with new business models and potential recurring revenue sources.
New Ownership Models
New car ownership models like leasing and subscription services seem to have a promising future. Consumers will profit greatly from very flexible contract terms, shorter car commitments, and simple vehicle changing, but this may come at the expense of expensive membership costs, which may not be as appealing. Automakers will consequently need to put in place a business plan that successfully offers inexpensive, price-sensitive, and competitive variations that can be easily accessed by customers in addition to covering the premium needs of the market. Include young used automobiles at a reasonable price range as another thing to think about. This will guarantee a fleet mix of both new and used cars that can satisfy both sides of the client spectrum.
The Electric Battery Battle
The competition between conventional battery electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs) will heat up. With 3-5 times the range of BEVs, faster charging, and no exhaust emissions other than clean water, this could be the year when FCEVs start to gain ground. Automobile makers are investing more money in FCEV research and development, and governments in Germany, China, South Korea, Japan, and the USA are supporting FCEVs as well. If you’re thinking about switching to an electric vehicle, we’ve previously discussed the primary benefits of owning one and addressed whether insuring an electric vehicle is more affordable.
Autonomous Self-Driving Vehicles
In 2022 and beyond, autonomous self-driving vehicles will proliferate even more than they do now. And that’s wonderful news because studies have shown that autonomous vehicles are safer, have less downtime, can deliver goods farther than before, are less stressful for drivers, and have fewer accidents caused by driver irresponsibility. Whether it’s a fleet of trucks or one of the many new brands trying to join the market, like Cruise, Alphabet Inc’s (GOOGL.O) Waymo, or Aurora Innovation Inc., autonomous cars will start to appear on our roads considerably more frequently starting in 2022.
Pricing, customer comprehension, safety/security concerns, and regulatory constraints are the major obstacles to a quicker market introduction. When it comes to technological readiness, IT companies and start-ups will probably be crucial to the development of autonomous vehicles. The biggest challenges facing autonomous vehicles right now are regulation and consumer acceptance. However, it appears that dealing with and overcoming these difficulties will only take a short while, and after that, consumers will be able to benefit greatly from autonomous vehicles. By 2030, up to 15% of passenger vehicles sold worldwide could be fully driverless, according to a progressive scenario.
The car sector will continue to gain a lot from 3D printing. The auto sector has so far been impacted in three key ways. The design and testing steps in the pre-manufacturing stage can be sped up by using 3D printed models for fast prototyping. Second, stronger 3D printing materials, such fused filament fabrication (FFF), now enable manufacturers to build spare parts that are suitable for final use and quickly and readily adhere to manufacturing specifications. Last but not least, composite material additive manufacturing produces lighter, tougher, and longer-lasting vehicle parts. For consumers, this is all excellent news.
A Rise In Digital Automobile Sales
Automakers in both North America and Europe have begun giving customers the option to choose and buy the vehicles they desire online rather than going to a car dealership showroom. Customers may now browse and choose the characteristics they want in a vehicle at their convenience while shopping on a laptop or smartphone. They also have the option of locating the financing they require. Additionally, dealerships now provide online sales, allow online shoppers to use virtual walk-around technology, enable at-home test drives, and transport vehicles to customers’ homes. It appears that it won’t be long before we can buy a brand-new car without leaving our houses, even though this isn’t currently possible in Ireland.