For decades, the automobile industry was a tightly controlled environment with well-defined boundaries. Even consumers didn’t have much of a say in what the automakers ruled. With the advancement of digital technologies, all of that began to alter. Consumers increasingly expect smooth, omni-channel, and tailored auto-related experiences based on their digital experiences in other industries.
Non-traditional businesses are offering technologies to assist consumers with driving, such as receiving directions and more, as personal mobility expectations rise. Car sharing and other new business models are posing a threat to the requirement to possess a vehicle. Industry ecosystems are still intersecting and overlapping. As traditional jobs alter and industry borders disappear, this will have an impact on important industry processes in the future.
As automakers move forward, the previous offers specific ideas for interacting with customers, disrupting products and services, embracing mobility, and maximizing the ecosystem.
As is the case with all businesses and industries, certain inescapable external influences must be dealt with. Executives ranked technological growth as the most critical external force they face in both “Auto 2020” and “Auto 2025.” Along with the myriad external pressures that affect many businesses. Traditional industry boundaries are being redrawn or possibly disappearing as a result of these key disruptors, consumers, mobility, and the ecosystem.
Consumers are more involved than ever before; they not only want to utilize vehicles, but they may feel compelled to help design them. Vehicles are becoming more intelligent, which is altering the concept of mobility, as well as consumer-driven developments outside of the vehicle. As the lines between the car industry and other industries blur, such as electronics and telecommunications companies, this increasing ecosystem necessitates learning to flourish in the face of change.
Automobile companies must adapt to new ways for consumers to access vehicles and how cars fit into complex mobility options.
Top 5 Trends in Automotive Industry by 2025
Emerging Markets Will Drive Future Car Demand Growth
Over the period 2016-2025, the global automobile sector is expected to grow at a 5% Compound Annual Growth Rate (CAGR). Over the next five years, emerging nations are expected to lead demand growth for vehicles, while developed economies are expected to remain subdued due to crowded markets for new cars.
Asia Pacific will overtake Europe as the world’s most powerful automobile region
By 2025, Asia Pacific is expected to be the world’s fastest expanding automobile production area, accounting for roughly 60% of global automotive output. In 2025, the value of automotive production is expected to reach USD3.3 trillion, up from USD2 trillion in 2017.
China will be a major contributor to the growth of electric vehicle production
With roughly 700,000 electric vehicles (EVs) sold in 2017, China is the world’s largest EV market. China said in 2017 that ten percent of new automobiles sold in 2019 and twenty percent in 2025 must be electric. By 2030, the benchmark is projected to be raised to 100 percent.
The automotive sector is expected to consolidate
In 2017, the top 20 automotive businesses accounted for 45 percent of worldwide automobile production value.
Manufacturers will place a greater emphasis on revenue from mobility services
The car industry’s business model is projected to be shaken by changing consumer mobility trends. New mobility solutions are likely to reduce private demand for other automobiles, particularly in developed nations, requiring automakers to seek new sources of revenue.