Some big changes are coming in 2020! With each new year, we seem to be faced with a new set of changes in the automotive industry, far surpassing trends experienced over the past few decades. 2020 appears poised to be a pivotal year for both the furtherance of development already in place and fresh forces of disruption. Technology is at the core of all these changes, as you would have guessed. And the automotive industry is no exception from these changes and developments. Some of the trends that we predict will be especially important to pay attention to, include:
Autonomous / Self-Driving Cars
As the public starts to embrace the idea of assisted-driving and self-driving cars, new opportunities are being created for suppliers who can offer this type of technology. This new type of vehicle will require collaboration between multiple partners to integrate the GPS, cameras, sensors, big data and other technology.
Internet of Things (IoT) devices are being used by automotive suppliers on the shop floor – and being embedded into consumer vehicles – to indicate when preventative maintenance is needed. Rather than recommending oil changes or tire rotations by mileage, IoT sensors can provide more accurate indications about when maintenance is needed.
Variety of Fuel Cell Options
We’ve seen it begin and it will continue growing over the next few years. Increased demand is prevalent for alternative fuel sources like electricity, hydrogen and bio diesel fuels. Automotive suppliers will have to consider how to innovate and service these new niches and be able to handle the compliance requirements.
Rather than looking through the newspapers for available cars, today’s car buyers turn to the web to custom build the car they want. Sophisticated technology enables buyers to pick out the exact paint and packages they want. Personalization continues into the driving experience. Newer “intelligent” cars are collecting information about driving habits and patterns to provide a better driving experience for customers and more marketing insight for car sellers.
These new internet-connected technologies are requiring more vigilance from a data security standpoint. Information relayed over the internet poses a risk, and manufacturers must be mindful of preventing cyberattacks.
The above trends are all great opportunities for the automotive industry. If one (or all) of these trends are relevant to your company as an automotive supplier, you’ll need to consider the following in order to capitalize on these trends:
- How will your supply chain be impacted?
- How will your ERP systems and business processes need to change?
- Where will you find the skilled workers you need?
- Are the margins and risk levels reasonable for your company?
These are only some of the ways the automotive industry is expected to change in the following months. Although these trends will not be brand new in 2020, they will be embraced by a larger number of automotive players and their clients. Keep your eyes peeled for the above trends to gain momentum in the near future and make sure your company keeps up instead of falling behind. Want to know more about how you can embrace these trends? Contact us and one of our automotive experts would be glad to help.
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