The rapid evolution of sustainability policies and technologies, new business models, changing consumer behavior, and so on have transformed the automotive industry on many levels. These forces have paved the way for disruptive technology-driven trends in the sector.
The traditional business model of planning, designing, creating, selling, financing, and servicing is still the same. But, new technologies, including sustainability encompassing electric vehicles, mobility fleet sharing, connected cars, etc., are now integral to the growth of the automotive sector.
Every year, technologies evolve and become more ingrained in driving the mobility sector. Of course, adapting to these forces is essential to accommodate growth and innovation. To that end, this article sheds light on the automotive trends for 2023. But before that, let’s understand the challenges facing the future of mobility.
Challenges for the Conventional Mobility Industry
In the first half of 2022, around 4.3 million battery-powered electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) were delivered. The modern-day market is indicative of the fact that the world is moving towards electric transportation as the primary means of local transit. National agendas worldwide have outlined protecting the environment as a top priority, and the auto industry is right at the center of this challenge.
But the technological revolution has made it harder for companies and governments to ensure that vehicles and their networks will last. Here are the challenges faced by the mobility industry.
- Electrification: In different developing countries, electrification and power production are inadequate and inefficient.
- Cybersecurity: The risk of cybersecurity and data breaches looms large in such a connected world.
- Lack of scalability: Scalability is difficult due to a lack of capital, investment, and resources.
- Poor demand and awareness: The demand for and awareness of sustainable mobility solutions still leaves a lot to be desired.
Surely, governmental institutions and multinational corporations (MNCs) should speed up and test possible solutions, giving innovators and startups a chance to improve their ideas.
Impact of AI on the Mobility Industry
The role of AI in the automotive industry will indisputably be tied up with the development of smart cities. Both facets will be critical in 2023 as the urban population grows and consumer needs constantly change.
When AI and enormous data collaborate, the outcomes can be more promising. AI-powered data analytics can efficiently look through big data and help in making predictions and affordable solutions to drive innovative city technology.
Regarding public transit, urban areas with large transit infrastructures have realized the need to begin coordinating their passengers’ experiences. Thanks to AI, IoT, and data analytics, urban institutions can gather and analyze public transit data and make proper decisions when optimizing the infrastructure and accurately distributing infrastructure budgets.
The Mobility Industry Trends in 2023
Various exciting changes await pertaining to how the vehicle is driven, powered, acquired, and shopped for.
Electric Vehicles Will Gain More Ground
Many automakers are planning to launch new electric vehicle models in the upcoming years, and the price of these vehicles is expected to be relatively lower, which means these vehicles will make up a significant portion of new automotive sales by 2023.
Automakers are constantly integrating advanced digital technology into their products to match the digital shift. As a result, electric vehicles today need less maintenance as the motor and battery have far fewer moving parts. So, electric vehicle drivers are more likely to spend less time in maintenance shops and worrying about it in the first place. These benefits are directly linked with sales. No surprise, then, that 26 million electric vehicles are expected to be active in the US by 2030.
An Increase in Shared Mobility
There will be cheaper and more practical options for traveling from one place to another – termed mobility as a service (MaaS). Here, mobility becomes a vital service that is paid for and rented if desired. As the costly maintenance of one’s vehicle is no longer required and sharing can recoup its cost in a day, global mobility costs can also fall.
Mobility as a service allows users to access an integrated package of transportation that is reachable through a single payment channel. The growth of mobility services will be important for solving city problems, like greenhouse gas emissions, traffic, and access issues. Automotive manufacturers and suppliers can innovate and rethink their products in this manner.
In fact, automotive companies are offering affordable shared mobility options, nurturing a creative, convenient alternative to vehicle ownership’s high costs and many liabilities. This demand-driven vehicle-sharing solution has become much more favorable in recent years, such as sharing an Uber or a personal rental with two or more people. According to a survey, the global shared mobility market was valued at more than $166 billion in 2021. It is expected to grow at a CAGR of 16.9% until 2030.
Self-driving cars have now been gaining popularity for some time. They seem to reduce driver fatigue, downtime, and negligence-related accidents. These vehicles also reduce fuel consumption by 40%. According to Statista’s research, the autonomous vehicle market penetration will reach 12% by 2030, up from 0.17% in 2022.
Steady Decline in Traditional Car Ownership
As per Accenture’s analysis, about 96% of the car owners affirmed to stay put with owning a car in the future. However, 48% of them agreed that they would give up their private vehicle if better alternative solutions were available. With the viability of shared mobility discussed above, this certainly seems a possibility in 2023. After all, buying a private vehicle means more complications and financial obligations. Many people would certainly see it as troublesome and look for alternatives.
Like different industries, the mobility industry is progressing to become more efficient and better. Recent technology trends in the automotive industry, such as rising mobility services, autonomous vehicles, shared mobility, and the decline of traditional car ownership, seem to be increasing this sector’s penetration, and rightly so.
Automotive businesses must enable enterprise intelligence to tap into the capabilities of the tech-driven landscape. For more information, get in touch with us today!