In the future of automotive industry, micro markers and new mobility advances will fuel growth. We will observe a rise in autonomous vehicles and ride-sharing over the next decade. However, the trends suggest that there may be a decline in individual dealerships. The auto industry will never stop evolving with exciting and new technologies. It is predicted that there will be an increase in global online car sales. However, the growth is expected to drop by 3.6% compared to the previous five years.
Automotive Industry Overview
You might wonder, what is the future of automotive industry? No worries, we are here to answer all your queries. Before learning What is the future of the automotive industry? Let’s grasp what it really involves. The automotive industry involves activities like manufacturing auto vehicles, including most of the components such as its bodies, and engines. However, it excludes the manufacturing of tires and batteries and the provision of fuel. The auto industry’s main products are passenger automobiles and trucks, including vans, pickup trucks, and sport-utility automobiles.
In the first half of the 20th century, the US was the dominant country in the mass production and invention of techniques in the automobile industry. However, Japan and Western European countries became the major exporters and producers in the second half of the century. The automotive industry involves a wide range of organizations and companies that include innovative designs, marketing, manufacturing, repairing, selling, developing, and modification of auto vehicles. In this blog, we are going to discuss the future of the car industry.
What are the Unlocked Prospects in the Automotive Industry?
The automotive industry is constantly revolutionizing. Vehicle manufacturers are introducing future car technologies, automotive design trends 2030, and features every year. Based on recent developments and trends, we have a few potential trends shaping the future of automotive industry in the world that we can expect to inspect in 2024. As car buyers look for environment-friendly options, there will be an increasing growth in hybrid and electric vehicles. Therefore, because of the huge demand for electric vehicles, we will get to see affordable and accessible hybrid and electric vehicles. Additionally, the battery in future automotive technology would be more advanced for faster charging times and longer driving ranges. We have mentioned some possible trends in the auto futures below:
1) Electric and Hybrid vehicles: By keeping the impact of fossil fuels on the environment, there would be a growth in electric and hybrid vehicles. As there is an increasing demand for electric and hybrid vehicles because them being eco-friendly transports, more car manufacturers will release new models to fulfill their consumer’s demands. Increasing the supply of electric and hybrid vehicles from numerous automotive manufacturers will allow consumers to choose from the various options. Therefore, it will make the selection of vehicles as per their needs and requirements easier.
2) Autonomous driving technology: It is also known as self-driving technology. Autonomous driving technology is rapidly developing in the automotive factory of the future. It aims to enable the vehicles to self-drive without any human input. Therefore, it allows to optimize and utilize the combination of cameras, sensors, and advanced computer systems. Additionally, most of the cars are expected to develop (ADAS) advanced driver assistance systems and self-driving features in them. While the technology improves and makes itself more advanced, it will become more accessible and widely available to car buyers.
3) Connected cars: This feature allow cars to interact with other vehicles, devices, and infrastructures. They are equipped with a variety of sensors, internet connectivity, and communication technology. Therefore, it unlocks new possibilities of convenience, safety, and efficiency. To allow drivers and passengers to access features and a range of services with their cars, manufacturers build more in-vehicle connectivity for the future of automotive industry features such as Bluetooth, Wi-FIm, and 5G.
4) Augmented reality: To enhance the driving experience of car owners, manufacturers are building and experimenting with augmented reality features. It includes features like a virtual assistant and heads-up displays. Therefore, this trend will continue to grow, to provide a smooth experience for drivers.
5) Sustainability: Most car manufacturers use environment-friendly materials and a sustainable production process. By focusing on sustainability concerns, manufacturers are using materials such as natural fibers, recycled plastics, and even vegan leather. By implementing these materials in their production manufacturers are able to reduce the carbon footprint which helps to create a sustainable supply chain.
6) Design: Manufacturers are creating automobiles more efficient, stylish, and advanced in technology. We will examine more creative car designs with new features, focusing on aerodynamic, and futuristic designs. Additionally, manufacturers will create cars with sharper angles sleeker profiles, and streamlined features as per the trending demand of car buyers.
The Appearance of Automotive Industry in the Future
We often think, what does the future of the automotive industry look like?
The automotive industry will shift its gears in upcoming times. The future of the automotive industry will allow car buyers to observe hydrogen fuel cells, fully electric engines, and autonomous driving. Automobile manufacturers will focus on creating specialized vehicles for specific individual needs and their imagined car designs. Additionally, individuals’ preferences are shifting to self-driving cars and electric vehicles. Whereas, some of them are looking for more convenient and affordable options to rent a car for specific needs instead of owning one.
Car Manufacturers will install music apps, that will allow users to connect their phones to their cars so they can commute time more efficiently. It will allow them to check emails, make calls, work with the passengers work on the presentations inside the vehicles for entertainment purposes, and more. Additionally, they will also focus on the preventive maintenance of the vehicle which will warn the drivers about the potential faults in the car.
Top 10 Future Trends of the Automotive Industry
The automotive industry is considered one of the largest, most prestigious, and influential markets worldwide. Whereas, the industry has remained stable over the past few decades. However, it will bring some changes and future trends in automobile industry to shake up the market. We will get to see environmental innovations and rapid technologies to tackle new challenges. Therefore we have mentioned some top automotive future trends below:
1) Autonomous driving: Autonomous driving technology is continuously revolutionizing. Although you probably won’t see self-driving cars on every road everywhere you go. However, we can expect ADAS to range from simple features like parking sensors to more complex ones like adaptive cruise control that automatically adjusts speed based on traffic. Additionally, ADAS features will likely be included as a regular part of new cars.
In the future, we will get to see more autonomous vehicles with Level 3 and Level 4, that have minimal human intervention or may not require any in certain conditions. Therefore, these technologies will enhance safety and decrease car accidents.
2) Electric vehicles: Electric vehicle demand is increasing and we can expect to see a huge number of EVs on the road by the end of this year 2024. Car manufacturers understand the EVS demands and they are making them more affordable, so each individual can opt for an EV. Additionally, the government is also providing incentives for manufacturers to encourage them in the production and adoption of electric vehicles.
3) Connected cars: Connected car technology allows cars to communicate with each other and infrastructure. Therefore it helps to make driving safe and improve traffic flow. In the future, we will see more adoption of connected cars, that allow car drivers to share information about accidents, traffic, and road conditions.
4) Artificial Intelligence: The future of AI in automotive industry will allow car buyers to look for smarter vehicles, that have features like predictive maintenance and voice recognition. Car manufacturers can utilize Artificial Intelligence to change buyer’s preferences by offering them advanced features. AI can leverage and improve the car driving experience for vehicle owners, by letting them know of any mechanical faults before any major issue happens. Additionally, AI can help offer an extraordinary navigation experience and reduce fuel consumption, which ultimately improves the driving experience.
5) Shared mobility: Shared mobility and ride-share services have become popular in urban areas these days. Shared mobility contributes to cost-effective transportation, and also changes consumers’ preferences for owning a vehicle. Auto manufacturers are partnering with companies that offer shared mobile services to adapt and stay up with the trend. The new solution ride share services changes the preferences of individuals and discourages them from taking ownership of a personal vehicle.
6) Augmented reality: Augmented reality cars use dashboard computers to give drivers real-time information: They overlay digital information onto the real world. Additionally, this information is displayed on the windshield or a transparent screen near the driver’s line of sight. Therefore, this can include directions, speed, and hazard warnings. It also helps drivers stay focused on the road while accessing important information and leveraging the future of automotive industry.
The system can identify objects like pedestrians or oncoming traffic and highlight them for the driver, increasing awareness and helping avoid accidents. Therefore, investment in AR technology for the global automotive industry forecast for 2025 will boost.
7) Blockchain: Blockchain can track the origin of raw materials and parts used in the car future of automotive industry manufacturing. Additionally, it ensures they come from legal and trusted sources. Therefore these cars collect a lot of data, like location and sensor information. Blockchain can store this data securely and privately.
8) Sustainability: Car buyers are concerned about the environment which leads to an increase in demand for vehicles made from sustainable materials. To sustain in the market and give a competitive edge to the players in the auto manufacturing industry. Manufacturers need to develop strategies for creating vehicles that are made from recycled materials.
9) 3D Printing: Car buyers want their desired vehicle to be designed and customized as per their preferences. The future of 3d printing in automotive industry can help manufacturers to produce car parts directly. Additionally, 3D printing will be very useful for creating quick and easy prototypes to test new car designs. Therefore, 3D printing focuses on early design and development stages.
10) Sourcing models are changing: The market consumer trends in automotive industry are shifting towards regional suppliers to diversify their mitigate risks and supply chains. This trend is driven by increasing demand and supply chain disruptions. Additionally, OEMs seek alternative sources to improve sourcing flexibility and bring products to market faster.
The Automotive Industry is Expanding or Diminishing?
According to Forbes, the global pre-owned vehicle market experienced significant growth. In the previous year 2023, there was a growth of 3-5% with sales of over 69 million vehicles and it was expected that the growth would increase by about 5-6% in 2024.
As per the predictions of WordAuto, the automotive industry is shrinking in the regions like Western Europe, North America, and Japan. The sales of automotive results are lesser than in the last decade. Additionally, the six largest OEMs haven’t grown much, or even decreased, after considering inflation. This lack of growth will likely lead to intense competition between the OEMs. They might reduce prices to attract more customers or have to fight aggressively to gain a larger portion of the market.
10 years back, the future of auto industry looked brighter. Additionally, auto industry forecasters predicted that the sales of new vehicles will reach up to 100 million new vehicles by the year 2020. However, it never happened. In the US year 2019 global sales peaked at up to 17 million vehicles and 92 million vehicles globally. However, after the pandemic demand for new vehicles decreased. Additionally, there was a shortage of computer chips, which are essential components in modern cars.
According to Cox Automotive reports the economy will experience slow growth in automotive industry trends in 2024. However, there won’t be any recession in the market. An increase in inflation will change the consumers’ spending preference for the future of automobile sector. Additionally, there could be fewer job openings or slower hiring compared to recent times. Therefore, the job market might not be booming. However, it won’t be bad enough to significantly hurt car sales. It’s predicted, that there is a chance that auto loan interest rates might increase in the future. Therefore, it’s more likely that interest rates will decrease compared to the current record. Car buyers won’t be borrowing large amounts of money in 2024. Therefore, It might be hard to get loans. However, access to the credit will not disappear completely.
Reason Behind the Ongoing Supply Chain Shortage
There is a major shortage of supply chains in the automotive industry, and it is expected that it will continue throughout this year 2024. This shortage has been caused by a combination of various factors, including, disruptions in the global rate, an increase in the demand for cars, and supply chain bottlenecks.
1) Increase in demand: As the economy is recovering from the COVID-19 pandemic, a large number of buyers are looking to purchase new wheels for themselves. Therefore, it leads manufacturers to struggle to keep up and fulfill the order of the potential consumers.
2) Disruption in global trade: Because of the pandemic majority of the shipping lanes, and trade routes have been disrupted. Disruption in trade routes leads to creating barriers for the vehicle manufacturers to get the auto parts and materials. Additionally, the invasion between Russia and Ukraine has increased the difficulties in trading and importing the materials and parts required by auto manufacturers.
3) Supply chain bottlenecks: These bottlenecks supply chain are creating a shortage of cars. Additionally, it includes everything from shortages of raw materials to problems with logistics and transportation. Therefore, the shortage in the supply of cars is because of several reasons at different stages like from getting the car from parts to the finished product. Therefore, it leads to barriers in the supply chain of the future of automotive industry.
To sum up, the shortage in the supply chain of vehicles is affecting the entire industry. Vehicle manufacturers struggle to fulfill the huge demand of potential consumers, because of the cutback on their output and delays in production. Therefore, it leads to an increase in the prices of vehicles and a shortage of automobiles in the market.
What are the Expectations from the Used Car Market?
As per the reports of Edmunds data, the typical final price people pay to buy a used car in the last three months of 2023 went down to $28,371. Comparatively, the average price in the same period of 2022 was $29,690. However, it fell to 4.4% and reached $28,371 in 2023.
Additionally, Coxautoinc confirmed that the pre-owned vehicle market is expected to grow in 2024 by less than 1%. Therefore, the total number of used vehicles being sold prediction is expected to reach 36.2 million. All in all 19.2 million vehicles are expected to be sold through retail channels. Additionally, if we talk about certified pre-owned (CPO) vehicles sales are expected to reach 2.7 million units in 2024. That is 3% more than the previous year 2023.
Pre-owned vehicle prices are likely to stay higher. Because the production of new vehicles was very few, the reason being shutdowns due to the pandemic and chip shortage. Therefore, it results in most individuals stuck to their previous vehicles, so there are only a few used vehicles available in the auto market.
Drive the Top 10 Strategies for Your Auto Industry Success
The future of automotive industry will transform and revolutionize tremendously. However, there are a few challenges the players in the auto industry face like disruption in the supply chain and a rapidly evolving technological landscape. To achieve success, the future of automotive engineering needs to adopt innovative strategies, as it is crucial to sustaining itself in this competitive market. No worries, we have mentioned some top innovative strategies for your automotive business success below:
1) Social media marketing: Players in the automotive industry can utilize platforms like Instagram, Facebook, Linkedin, Twitter, etc. Utilization of these social media platforms can help automotive dealership to spread awareness about their brand, engage a wider audience, and increase traffic on their websites.
2) Build trust with customers: Individuals in the auto market need to establish trust with their customers. They should be transparent, and honest, and have excellent delivery of customer services. Additionally, to win consumers’ trust, individuals need to listen and provide exceptional solutions to their consumers’ requirements. One should also be reliable, and consistent, and should fulfill the commitment made.
3) Online presence management: Before starting the car buying journey, consumers often research the vehicles and the brands online. Create an appealing online presence to grab the attention of your potential clients. It will surely boost the traffic and ultimately will increase the revenue for your company. Automobile engineering future marketers can also promote their brands on different platforms to attract a wider audience.
4) Optimize SEO: Individuals from the automotive industry can optimize their content to rank well in the search results on search engines. Additionally, to navigate the future of automotive industry, individuals can use relevant and trending keywords, descriptive titles, and meta tags to improve their visibility online. Therefore, it will help to improve your brand’s online presence and increase the organic traffic to your website.
5) Remarketing: Remarketing is essential for any auto marketing strategy. Additionally, there are a lot of competitors available in the market which allows consumers to compare. However, keeping your customers engaged is important, to not lose any potential leads. Therefore, to keep the consumers in the sales funnel, booking them up with remarketing vehicle listing ads can improve the chance of maintaining leads. Therefore, this helps to remind the interested consumers, that you are there to lead them with their car purchasing journey.
6) Content marketing: To attract and engage a wider targeted audience. You can create relevant and informative content for your visitors. Provide disruptive value and exceptional information in the form of car dealership videos, blogs, ebooks, infographics, and more. This will also help increase your brand visibility and reputation in the automotive market.
7) Email marketing: Text or email marketing can be a great way to get in touch with your existing clients. It helps automotive companies to bring their clients back for a new trade, vehicle maintenance, and many more. Additionally, this also helps to collect consumers’ information which can later help in remarketing as well. Therefore, you can also provide them with attractive offers to boost your company’s sales.
8) Video marketing: Video marketing can drive more consumers because potential buyers find the informative videos much more appealing. Additionally, the automotive industry can create a video of the test drive, and car features covering and highlighting all the details of the particular vehicle. Posting this video content on various platforms will attract a wider audience.
9) Offer something unique: From a car buyer’s perspective, all the automotive marketing seems the same, almost all the dealerships offer the same kind of services. Therefore, to stand out from your competitors and to drive the future of automotive industry. Additionally, you can add unique values to your brand. For example, you can partner with popular musicians to hold popular autograph signing sessions at your company, this will engage buyers and they will visit your dealerships.
10) Customer reviews: Most car buyers research a lot before making their purchase decision. Showcasing your previous satisfied clients will help your new consumers to gain trust in your brand. It will also boost your automotive industry’s reputation. You can highlight past consumer testimonials on your websites and other platforms. Additionally, customer reviews are becoming a top choice for affordable marketing strategies.
Conclusion
The future of automotive industry is about to go through a major transformation. The automotive industry’s appearance in the future looks promising with electric vehicles, and autonomous cars. It is leading to provide a personalized and futuristic experience to each individual. The auto industry has faced some challenges like supply chain disruption and a decrease in the sale of new vehicles. However, we have mentioned some top successful strategies and future trends to boost the track of the automotive industry in the future.
