How does the future of automotive industry look like? - Want to know?
Innovation and advancement in technology touched and disrupted almost all industries including the automotive industry. 2020 is expected to follow suit in enhancing the development further and adopting more disruption.
The automotive industry, in particular, is experiencing a slowdown in the economy. Such an economic crisis has led to deep structural changes in the industry. Big data, artificial intelligence, and cloud computing are setting trends for the automotive industry. In fact, the industry experts opined that by 2020, the automotive industry will display certain trends that will create a platform for sustainable growth. Development in the arena of software management tools added advantage to companies, to handle their operation.
Uninterrupted growth of electrification
The automobile manufacturers are concentrating on Corporate Average Fuel Economy (CAFE) standards to utilize electrification strategies in the expansion of both hybrid and fully electric vehicle (EV). Thus, the year 2020 will witness many new EVs flooding the market. According to secondary market research, the vehicles that will be launched next year are:
- The Tesla Model Y: It is a small crossover, manufactured on previous model.
- The Mini Electric: This vehicle shares similar technology with that of BMW i3.
- The Volkswagen: This vehicle ranges from small hatchback to standard crossover vehicles and even an electrified version of the Microbus.
Startup car companies
Considering the prospect of the automobile industry, many new companies are trying to follow the footstep of the legacy automakers. Hence, the focus is on electric propulsion. For example, a California-based company secured $700 million worth fund from Amazon to launch next-generation electric vehicles. By end of 2020, this company is planning to launch a fully electric pickup truck. Another company, Fisker Ocean is also planning to launch a fully electric SUV. With the roof equipped with solar panels, and the interior made of recycled materials. This car is expected to make it big in the automobile market.
Upgraded digital platform
The zeal of creating electric vehicles also demanded upgradation of digital platforms due to involvement of complex technologies. Such advanced vehicle platforms will require software updates regularly to stay connected and upgraded with the latest technologies. The new platform based on which the new electric vehicles will be launched can process 4.5 terabytes of data per hour. Also, with 5G technology, the speed increased even more, reducing response time for vehicle to vehicle communications.
Automation at its best
Conditional automation or level 3 automation is applicable only in selected vehicles. Automobile giants are investing approximately $35 billion in future automobility technologies to initiate automation in future vehicles along with safety measures.
Vehicles with carbon fiber
Considering the concept of light weight, automakers are trying to replace both exterior and interior component of the car with carbon fiber. Carbon fiber not only reduce weight but also enhance rigidity. This will improve the quality of the vehicle.
Varied insurance packages
Usage-based car insurance policy is a relatively new term where driver’s behavior, driving pattern and many other variables are considered before the rates of the insurance is quoted. Hence car insurance has become customized lately with AI powered sensors that can accumulate considerable knowledge on driving pattern and other details in the form of raw data.
The trends discussed here implies transformation in the automotive industry. This process of transformation is complex since it involves all the phases of manufacturing such as designing, choosing material, ensuring security and reliability and finally customer satisfaction.
- Kathakali Basu