The Global Automotive & Transportation industry has been witnessing dramatic changes in recent times. There is a slowdown in the sale of automobiles due to changes in government regulations, economic slowdown, etc. This resulted in a drop of 30% in global trade in 2018. In the year 2019, global vehicle sales dropped by around 4.6%. However, the development of smart city projects in developing countries is expected to boost the overall automotive and transportation industry in future.
Changes in regulations regarding fuel prices and emission standards, as well as new regulations on ADAS & other safety systems will increase the cost of newly added components for manufacturers and will have a negative impact on the overall automotive industry. The Coronavirus outbreak is also exerting a negative impact on the overall auto sales. Automotive sales would witness a decline, especially in China, Europe, and the U.S. These are some of the factors that are causing a slowdown in the automotive and transportation industry.
Apart from these, there are changing demands from consumers’ end that put additional pressure on automotive manufacturers. Growing digital demands, development in vehicle’s active passive safety specifications, and development of electric vehicles are some other factors that are increasing the competition among automotive manufacturers.
In the US, most people prefer alternative powertrain technology such as hybrid electric vehicle, battery electric vehicle, and others. Audi’s E-tron, BMW’s i3, Honda Clarity Electric, Hyundai Kona electric, Mini Cooper SE Electric, and Nissan Leaf are a few of the notable EVs that are available in the U.S. This trend will further boost the automotive and transportation industry in the U.S.
Advancement in technology is expected to revolutionize the overall automotive industry. Automated cars are gaining more attention in developed economies such as the U.S. Waymo, one of the automotive driving technology development companies, has announced that the company has driven more than 20 million miles over 25 cities in the U.S. The advent of technologies such as Artificial Intelligence, Internet of Things, etc., has led to this development.
Artificial Intelligence has the capability to improve various manufacturing processes, such as rapid prototyping, marketing and sales, quality control, etc., in the automotive industry. General Motors has deployed machine learning in their design operation that has helped speed up their initial designing process. Volkswagen has deployed machine learning to predict the sale of cars using historical data that include economic, political, and meteorological data. Audi and Hyundai are using computer vision for enhancing the quality control in the manufacturing process. These developments due to AI technology are contributing to the growth of the automotive industry.
The AR VR technology is also contributing to the dramatic change taking place in the navigation system in cars. Mercedes is one of the early adopters of AR navigation systems in its “A Class” variants. Companies such as WayRay AG, Blue Vision Labs, etc., are adding value to the automotive industry by their immersive applications. Jaguar Land Rover has been developing an immersive HUD that displays navigation and other safety related information in cars. This AR VR technology will add competitiveness to the premium car segment.
In the current scenario, both consumers and automotive players are expecting a tech-savvy driving experience. Economic slowdown, technology integration, powertrain technology changes, etc., have posed challenges for automotive players and for consumers in their purchasing decisions. However, this temporary slowdown is expected to come to an end in the coming years, while developments in technology will continue to drive the automotive and transportation industry.