Three major technological changes that will redefine the automotive sector
Who will own the future of transportation? What trends can already be seen now within the automotive sector? In what way should we shape it?
Today we see that the leading car manufacturers like Volvo, Volkswagen, or Tesla make much effort to electrify their product lines quickly. It’s clear now, more than ever: we no longer wonder when a shift to electrified vehicles (EVs) is going to take place, but at what speed it does. See for yourself: Volvo has just unveiled the all-electric XC40 Recharge with a rich set of fresh features, including Google’s built-in automotive system on the Android Automotive platform. Last month Volkswagen introduced the first model in its new all-electric ID brand, ID.3, and announced its plans to sell 1 000 000 EVs annually by 2025. Ford stated it would invest $11.5 billion to manufacture more than a dozen models of EVs and hybrids in three years. Mercedes-Benz will make half of its car sales to be EVs by 2030. The trend for building sustainability is evident.
One more industry’s change touches upon vehicle ownership. It’s clear that for the majority of people, it makes no sense to own an EV in the emerging cities where public transportation, bicycles, electric kick scooters, and pedestrians are a priority. Modern urban planning and pure economic efficiency will discourage more and more people from owning a personal vehicle, meaning that car makers will be forced to enter the car-sharing market.
And, finally, self-driving cars entering the game. Some see it as transportation of a far future. In practice, however, they’re there. Waymo states it will soon be offering fully autonomous taxis. Ford invested $1 billion into autonomous vehicle startup Argo AI in 2017. This year VW Group announced a partnership with Ford that covers several areas, including autonomy (via a new investment by VW in Argo AI) and collaboration on the development of electric vehicles. The potential of the transportation business with its high cost, where a driver is removed from the equation, is excellent. It’s not a question of if driverless transport will be available, but when. All that’s needed is a player who sees the potential and is prepared to invest.
All in all, the automotive industry is about to enter one of the most exciting technological transitions we will have seen for a long time, and it’s an excellent time to bring innovations to the market. Contact us in case you want to collaborate in automotive electronics projects.