Automotive

Throughout the decade the automotive industry will experience an immense changes subject to consumer demand, smart cities, impact of technology, regulation and market competition. New business models based on shared mobility, trait upgrades and facilitation of connectivity hold the potential of creating vast industry revenue streams. A competitive landscape driven primarily by technology, mobility adequacy and consumer comfort.

Connectivity and in essence autonomous technology offers an opportunity for both drivers and passengers to utilize their journey time differently. This may include working journey or consumption of media or services through software systems and also car upgrades. As shared mobility and connectivity takes place, it is clear that vehicle sales per unit will continue to grow but at a slower pace. The gradual decline in sales is expected in later years leading and successive to 2030. Largely driven by an increase in shared mobility; a fit-for-purpose mobility solution that is similar to what is being utilized within the current e-hail model. However, this shared solution and fit-for-purpose is expected to expand, and as an example one may refer to the changing nature of shopping deliveries as opposed to in store purchase. Additionally regulatory challenges such as congestion charges and restriction on parking will continue to influence reduction in demand.

Smart cities are a highly apparent advantageous point for the automotive industry as a drilling point into segmentation; where dimensions of mobility behavior are engaged for deploying fit-for-purpose products. Our market analysis offers a realistic 10% estimation of cars to be fully autonomous by 2030, this perhaps a relegate to the optimistic 15% appraisal offered by companies such as Mackenzie. Our study however, takes the potential risk of the current decade’s major macro-economic turbulence and the potential of global or major regional conflict as a given. While current advanced driver-assistance systems (ADAS) will play an essential role in laying the foundation for consumers, regulators and market players both incumbent and new entrants. One may reference Google, Apple and Tesla’s interest as potential review of interest in autonomous vehicles solutions. While several Chinese car manufacturers have shown remarkable sales growth within current markets, their levels of investment and interest in ADAS cannot be ignored. Wevents predicts a highly competitive landscape as we move across the decade where technology and consumer comfort play a major role in winning. Forcing original equipment manufacturers (OEMs) to either share or partner up to ensure a unique value proposition. Solution providers from warehousing, to spare parts and IoT/IIoT will engage to create a highly technology driven landscape in order to cater for connectivity, autonomous driving, electrification and diversification of mobility.  All geared toward greater consumer journey comfort.