The global automotive industry is undergoing remarkable technological transformation to provide users with more innovative and exciting experiences. With notable technological advancement, the industry is also likely to boost the revenues of vehicle manufacturers.
In 2020, the market size of the global automotive industry was USD 20.3 billion. And the size of the market is projected to increase to USD 25.7 billion by 2025, growing at a CAGR of 4.8 per cent. Technological advancement, providing improved user experience, is one of the drivers of the projected market growth.
So, let us examine the key aspects of the technological change:
Digitalization is the new facet of the automotive industry. Several automobile companies have already adopted digitalization to provide customers with improved vehicle buying experiences.
Using Virtual Reality (VR) and Augmented Reality (AR) models, salespeople can virtually show various aspects of vehicles to their prospective customers.
Self-driving vehicles are also called autonomous vehicles, which reduce the dependence on human drivers and provide a new riding experience. Such vehicles reduce downtime and minimize accidents due to negligence by human drivers. With artificial intelligence (AI) based computer vision, autonomous vehicles can even detect hurdles on the route.
AI-based technologies such as deep learning, machine learning, and computer vision are increasingly playing significant roles in shaping the future of the automotive industry.
AI-based tools can help drivers to drive vehicles safely. The tools also can help transportation companies manage vehicle fleets effectively apart from improving vehicle inspection.
For automotive manufactures, AI has emerged as a significant privilege. It can increase their production and lower their production costs to increase profitability.
Seamless connectivity is another notable advantage of AI implementation in the automotive industry. With AI-based tools, transportation companies can effortlessly track vehicle movement data that can help them to maintain driver safety and elicit predictive maintenance.
Chatbots are other AI-based tools that can help in improving the efficiency of automotive businesses by effectively responding to people’s queries without necessitating human interference.
Internet of Things (IoT)
IoT enables secure communication between vehicles and the infrastructure components. Communication helps in increasing road safety, reducing traffic congestion, and better managing vehicle fleets.
Blockchain can transform the operating processes of vehicle companies. It can increase the security of information by preventing hacking.
Blockchain can help ensure secure connectivity by sharing vehicle data over a secure network. It can also allow shared mobility solutions like urban transportation and deliveries.
Automotive companies can also use Blockchain to improve the efficiency of the verification process and supply chain management.
Data analytics can help automotive companies to make prudent decisions. Transportation companies can predict vehicle maintenance, alert authorities of possible emergencies or accidents, and notify fleet managers of fleet positions by analyzing data from vehicles. And, predictive analysis can help vehicle manufacturers to make prudent decisions on their production and sales targets.
Moreover, data analytics can help automotive companies to improve their supply chain management, increase sales and improve vehicle design.
The automotive market is heading towards a significant makeover due to the implementation of emerging technologies. As a result, end-users will get technically advanced vehicles to fulfil their demands. And, automotive companies are likely to see more vehicle sales to boost their revenues.
© 2022 Indu Bhusan Nath