Several exciting new trends are transforming the automotive industry. Auto manufacturers are finding new ways to meet the challenges of today’s competitive market. Despite supply-side challenges and the demands of the shifting marketplace, the future is bright. Howard Wilner, an industry expert, explains the changes that have recently taken place in the automotive industry and provides a road map forward.
1. Ride Sharing
Shared mobility will continue to have an outstanding influence on the auto industry. The growing popularity of ride-hailing services may mean that fewer consumers buy new cars, but the ride-hailing industry will need to purchase even more vehicles. These vehicles will experience increased wear and tear compared to family-owned vehicles, meaning that they will need to be replaced more frequently.
This change in auto purpose will most likely affect cities more than suburban and rural areas. In 2030, the automotive landscape in New York City will likely look more like that of Shanghai than of the rural Midwest.
2. Autonomous Vehicles
Industry experts predict that by the year 2030, up to 15 percent of cars sold may be completely autonomous. There are several outstanding regulatory and technical issues that need to be resolved before the fully autonomous vehicle can make its market debut, but in the next 10 years, it is likely that the automotive industry will succeed in bringing these cars to market.
Many different companies, including Google, are involved in developing the self-driving car. The advancements in this technology are exciting. As the years go by, it is predicted that more people will gain confidence in the technology that is needed to buy one of these vehicles.
3. Import Tariffs
The increasing pressures of the trade war between the United States and China will have far-reaching effects on the auto industry. While the system is slow to respond, American manufacturers will take up the slack created by exorbitantly priced imported parts.
When American manufacturers have more stake in the auto industry, they will create jobs and enliven the United States economy. Parts from Mexico and Canada will also become more popular in the auto industry.
4. Electric Vehicles
Electric vehicles are becoming more practical for the everyday consumer. By 2030, it is expected that between 10 and 50 percent of all auto sales will be comprised of electric vehicles. As their battery life grows and prices drop, people are finding that it is easier to buy and maintain an electric car. Adoption of the electric car is more likely in environmentally conscious areas like the East and West Coasts. It is less likely that they will make an impact in the midsection of the country in the next 10 years.
Battery costs are set to drop to between $150 and $200 per kilowatt-hour, making electric vehicles a better choice for the average car buyer. Charging systems are also easier to find, meaning that people have more choices as to their destination when driving for the full length of the charge. This infrastructure will grow over the next 20 years, making owning an electric car as easy as owning a gas-powered vehicle.
Today’s cars have begun to offer such exciting features as smartphone integration, Wi-Fi, and native connectivity. This segment of the auto industry will only grow as the years go by. People are looking for seamless integration with their handheld technology devices. Apple CarPlay and Android Auto will be joined by other car integration systems, and the features will be enhanced.
There will also be a focus on making connected features safer to use. The use of the touch screen to activate these features will be reduced, and drivers will have more options to control the systems fully by the use of their voice. With these safety improvements, driver distractions will be lessened, leading to fewer accidents connected to the use of Bluetooth technology.
6. Safety Technology
Connectivity is only one area where safety is being enhanced. The emphasis on autonomous vehicles means that some of these technologies are being adapted for use with traditionally driven passenger cars. While features like blind spot monitoring, lane change assist, and dynamic cruise control are becoming more popular, in ten years they will be standard among all makes and models of cars sold in the United States.
Partial autonomous drive vehicles will enable drivers to relax and take their mind off the worries of driving in traffic. As these systems grow more trustworthy, accidents will be reduced.
Technology Changes Cars
The growth of automotive technology is the overarching trend affecting the industry. Howard Wilner encourages all consumers to keep a close eye on the changes in the automotive market and to purchase cars with these innovations.