Automotive market is rapidly developing and changing from time to time. In the past cars were not equipped with technologies. Nowadays cars are not only a mean of transport. They are multifunctional, which means they cannot only be used to transport people from one point to another but also can be used for entertainment purposes, relaxing and so on. Innovations have a significant impact on development of automobiles, which means that the automotive market and technologies influence each other and together they are making perspectives for the future development.
Keywords: Automotive market, Innovations, Technologies, Cars, Transport
Outline
The car market is going through one of the most difficult periods in its development. There have already been a lot of discussions about how it got to this point, but what about the future ahead? What will be the trends that will determine the future of the automotive industry, and what are the prospects for the next evolutionary step in the automotive industry? [1]
The industry continues to face major global disruptions caused not only by COVID-19 but by many other elements of the global economy. Factors such as tensions in the Asia-Pacific region and the war in Ukraine have created an atmosphere of uncertainty and indecision. Then, of course, shortages — from microchips to labor — affect virtually every touchpoint in the automotive supply chain [1].
However, one of the most significant global trends continues to be the industry's focus on electric vehicle (EV) development, whether it's improving battery performance or expanding charging infrastructure. These ambitions are leading to a significant increase in research and development (R&D) by vehicle manufacturers, who seem to be making headway in electric vehicles despite many other challenges they currently face [1].
The breakneck pace of development is a sign that manufacturers remain optimistic about the future of electric vehicles. In fact, each month seems to bring new achievements that bring closer to the stated promise of ‘Vehicles 2.0’. However, there is one aspiration, the realization of which may have to wait a little longer [1].
The development of autonomous vehicle technology has slowed down as manufacturers refocus on improving electric vehicles. This is certainly driven by the regulatory framework, which is currently accelerating the move towards widespread adoption of electric vehicles. Governments in North America, Europe and Asia-Pacific are pursuing their own initiatives, not to mention the UN, and automakers are under pressure to implement them [1].
The staggering number of employees who have recently quit and never returned has been another hurdle affecting the auto industry. Factories suddenly struggled to fill shifts, and original equipment manufacturers (OEMs) were short of manpower at a time when the industry was racing to get its equipment back up and running. In addition to this, there has also been a shift in the skill sets needed to cater for the transition from internal combustion engine (ICE) models to evaluation [1].
As a result of labor shortages, supply-based robotics and automation, as well as other technologies at the OEM level, may continue to grow [1].
While the automotive market has been using robots on its assembly lines for over 50 years, automakers are now exploring the possibilities of using robotics in all aspects of the supply chain. The use of this technology has allowed the automotive industry to remain one of the most automated supply chains in the world and one of the largest users of robots. It will also drive the further development of artificial intelligence (AI) and virtual intelligence (VI) tools to help ensure quality, speed to market, and manufacturer’s ability to meet consumer needs [1].
Today's economy is undergoing dramatic changes driven by the development of emerging markets, the accelerated adoption of new technologies, sustainable development policies and changing consumer preferences for property. Digitization, increasing automation and new business models have revolutionized other industries, and the automotive industry will be no exception. These factors are driving four disruptive technology trends in the automotive sector: diverse mobility, autonomous driving, electrification and internet connectivity [5].
The automotive market serves as a barometer of the state of the manufacturing sector, thanks in large part to its dependence on complex global supply chains. With the recent rise in environmental, social and governance (ESG) initiatives, automakers are under new pressure to monitor and self-audit [1].
Almost all vehicle manufacturers, by the nature of their production, are active internationally, and as such, they constantly face international challenges and are forced to develop a global approach instead of being content with a local approach [1].
With the ESG trend shedding light on processes and equipment around the world, the automotive industry is committed to keeping everything clean and making its investors satisfied. Technology is likely to play a central role in helping auto companies monitor their supply chains and adapt to major disruptions [1].
A comprehensive overview of the automotive industry trends to look forward to in 2023 shows that information-centric technology is central to the future of the industry. The industry is incorporating new technologies into its operations on an unprecedented scale. In addition to technologies such as artificial intelligence (AI) and big data and analytics that have been around for some time, new technologies such as the internet of things (IoT) and blockchain are also finding many applications in the automotive industry [4].
The innovation map shows the top 10 trends in the automotive industry. For this in-depth study of the leading trends and startups in the automotive industry, we analyzed a sample of 4859 global startups and large companies. The result of this research is innovative data-driven analytics that improves strategic decision making by providing you with an overview of new technologies and startups in the automotive industry. This data comes from our Startups Insights Discovery platform, powered by big data and AI, spanning over 2500000 startups and scalable companies worldwide. The platform quickly provides a comprehensive overview of new technologies in a particular field and also identifies relevant startups and scalable projects at an early stage [4].
Trends in Development
Top 10 Automotive Industry Trends & Innovations [4]:
1. Autonomous Vehicles (AVs) [4]
Self-driving or autonomous vehicles minimize the need for human drivers and seem poised to transform everyday transportation. AVs fleets are expanding last-mile delivery options, reducing downtime and aiming to make public transport relatively safer. For example, by reducing the number of accidents caused by driver fatigue or negligence. The drones are equipped with advanced recognition technologies, such as AI-enhanced computer vision, to identify obstacles along the route.
American startup Intvo is developing technology to predict pedestrian behavior. Unlike two-dimensional (2D) and three-dimensional (3D) object detection technologies, which take into account limited parameters, their solution checks the head position, eye contact and foot movements of pedestrians, weather conditions and assigns a risk level. This reduces false positives when detecting pedestrians and improves the safety of autonomous vehicles.
American startup Udelv provides autonomous vehicles for the last mile delivery of goods. It combines advanced AI algorithms and ultra-fast telecontrols for human-assisted control in unique situations. The startup's vans have a payload capacity of around 360kg (800+ pounds) and reach speeds of around 100km/h (60mph). Vans deliver groceries from nearby stores and send a push notification when an order arrives.
2. Vehicle Connectivity [4]
Vehicles currently come with a tamper-proof digital ID that distinguishes them from other vehicles on the network. This makes it easy to track vehicle data for various purposes such as insurance, driver safety, preventive maintenance, and fleet management. Sharing vehicle data not only helps an individual customer, but also rebuilds the entire mobile ecosystem. Startups and scalable companies are developing vehicle connectivity solutions that enable them to connect and share data with other vehicles (V2V), electric vehicle network (V2G), public infrastructure (V2I), and new and emerging ways to use vehicle data (V2X).
British startup V2X Network offers a vehicle-to-everything (V2X) platform for offline transactions that combines geo-networking and caching to enable low-latency, real-time communication. The platform is based on distributed ledger technology (DLTS) and provides a high degree of scalability. The startup uses enterprise-grade encryption to give users control over their data to improve security and privacy measures.
Israeli startup NoTraffic is developing an AI-powered traffic light platform that digitizes road infrastructure management and connects drivers to city roads to solve various traffic-related problems. Data from all road users is streamed and processed in real time to enhance smart mobility. The solution also serves as the basis for additional services such as micropayments and micromobility.
3. Electrification [4]
The dwindling supply of fossil fuels and the environmental damage caused by their use requires the encouragement of the use of solutions for electric vehicles. For wider adoption of electric vehicles, problems such as high price, poor battery, inadequate charging infrastructure, fleet electrification, and the connection of charging networks based on renewable energy sources need to be addressed. These challenges, along with the need to tackle rising greenhouse gas emissions around the world, are forcing startups to work on electrification solutions.
American startup Lordstown Motors Corps makes an all-electric pickup truck. The EnduranceTM Truck is designed to be a reliable work vehicle with fewer moving parts than traditional commercial vehicles, making maintenance easier. It is equipped with 4-wheel electric motors providing all-wheel drive and is capable of driving over 250 miles (400 km) on a single charge.
German startup ChargeX offers a modular electric vehicle charging solution that turns parking spaces into charging stations. The Aqueduct startup platform is easy to install, has 4 charging modules up to 22kW, provides monthly reports, and uses a Typ2 charging cable. The solution recognizes the power requirements of each vehicle and automatically adjusts the charging rate for each vehicle.
4. Shared Mobility [4]
With the advent of connected vehicles, new business models have emerged that focus on shared mobility as an alternative to traditional vehicle ownership. This enables mobility as a service (MaaS) and discourages the use of unused vehicles. Such solutions meet the requirements of a city or business without adding new vehicles, thereby reducing fleet waiting times and environmental pollution caused by the use of gasoline or diesel vehicles.
American startup Launch Mobility is developing a platform for a range of collaborative mobility solutions. The LM Mission ControlTM platform offers free-float or station-based car sharing, enhanced transfer services, shared keyless scooters, keyless rental programs, and peer-to-peer mobility. The LM Misszon ControlTM control panel allows business users to manage their fleet. In addition, their drivers use off-the-shelf or white-labeled apps to manage bookings or remotely access vehicles.
Singapore-based startup Beam specializes in e-scooters to promote shared mobility in the Asia-Pacific region. Their scooters use an aircraft-grade aluminum frame and are built to be shared, safe, reliable and durable. Users find the nearest Beam scooter in the app and park it in visible public places after their ride. In addition, the micromobility platform offers a sustainable alternative to short-distance travel and helps to regulate traffic flow in cities.
5. Artificial Intelligence [4]
Artificial intelligence technologies such as machine learning, deep learning and computer vision are finding applications in robotic automation in the automotive industry. They guide self-driving cars, manage fleets, help drivers improve safety and improve services such as vehicle inspections or insurance. Artificial intelligence is also finding applications in the automotive industry, where it speeds up production and reduces costs.
Indian startup RevitsOne offers AI-powered fleet management software that is suitable for fleets of various sizes. The startup's vehicle management system provides speed, vitals and health information. Drivers benefit from Voicera ID, a voice-assisted virtual assistant that helps them keep track of the information they need. In addition, the built-in speed recorder limits the speed to prevent dangerous driving behavior.
American startup Apex AI allows automotive companies to implement complex solutions using artificial intelligence. The operating system runs on automotive electronic control units (ECUs) and offers robust and secure APIs for developing autonomous mobility solutions. ApexAutonomy offers modules for creating 3D perception, localization and control of autonomous vehicles. Finally, MARV.Automotive is a customizable and extensible data management platform that securely transfers vehicle data to the cloud.
6. Big Data & Analytics [4]
In the era of big data and advanced analytics, various decisions are made throughout the life cycle of a vehicle. Data collected from vehicles enables predictive maintenance, informs managers about their fleet and alerts the relevant authorities in the event of an accident. What's more, customer automotive data is being used to drive sales, optimize supply chains, and improve product design for new vehicles. Startups and emerging companies are developing big data solutions to help automakers and ancillary industries streamline their operations and maximize profits.
American startup Procon Analytics is using big data to offer a solution to finance the automotive industry. The solution collects millions of data points in real time and analyzes them so that lenders can instantly assess and mitigate risk. This allows Buy Here Pay Here (BHPH) dealers to expand their business and provide loans to high-risk customers. In addition, it also offers fleet and asset tracking software solutions as well as connected vehicles.
Swiss startup Unit8 uses big data and analytics to offer digital solutions for various industries. For the automotive sector, the startup develops predictive models that encourage automotive companies to improve their marketing or operations and increase their revenues. These models give insight into product assembly, price as well as after-sales service.
7. Human-Machine Interfaces (HMI) [4]
As self-driving cars and connected cars transform the automotive landscape, it will fundamentally change how drivers interact with vehicles. Human-machine interfaces use voice or tactile feedback to control vehicles. They expand the scope of how and what aspects of the vehicle are controlled by users. Therefore, such interfaces make driving safer and more enjoyable. Another form of HMI includes intelligent virtual assistants that help drivers interact with vehicles and other service providers.
American startup Awayr develops human-machine interfaces for vehicles, unmanned aerial vehicles (UAVs) and robots. The startup is working with original automotive equipment manufacturers (OEMs) to reduce HMI development cycle times and improve interface security. Awayr also develops solutions to manage driver attention in non-traditional situations, such as autonomous vehicles, which may sometimes require human intervention.
German startup Apostera offers an advanced driver assistance system (ADAS). The startup's platform combines augmented reality (AR), a smart camera, and 3D monitoring to illuminate the route around curves, curves, slopes, and complex intersections. This helps drivers keep their lane, prevents collisions and enables autonomous driving. In addition, the solution is customizable to any car model or manufacturer's specific requirements.
8. Blockchain [4]
Blockchain enables many applications in the automotive market. These include sharing vehicle data over a secure network for connectivity and general mobility solutions such as taxi hailing, public transport and delivery. Moreover, blockchain has applications in verifying the supply chain of spare parts or ensuring that raw materials and spare parts come only from legal and reliable sources.
British startup Cube Intelligence is developing a blockchain-based security platform for autonomous vehicles. The startup's technology uses hash codes to block malicious attacks or hacking attempts on autonomous cars and connected cars. The equipment used collects real-time mobility and emissions data. In addition, Cube Intelligence offers taxi call and valet services for AVs, as well as intelligent parking management systems.
Israeli startup DAV offers a decentralized autonomous vehicle platform based on blockchain technology. The platform allows autonomous vehicles to detect AVS, service providers or customers around them. Vehicle-to-vehicle (V2V) communication takes place either on the blockchain using smart contracts or off-chain using DAV protocols. Startup develops protocols for drone charging networks, drone flight planning and open mobility.
9. 3D Printing [4]
3D printing is helping the automotive industry in three main ways. First, it allows rapid prototyping with 3D printed models, which speeds up the design and testing phases of production. Secondly, it allows manufacturers to print spare parts according to their requirements. Finally, additive manufacturing of composite materials results in automotive parts that are lighter, stronger and more durable.
Swiss startup 9T Labs is using additive manufacturing to produce carbon composites for use in the automotive industry. Startup Fibrify's design software optimizes fiber placement and automates machine manufacturing using additive synthesis technology to mass-produce carbon fiber products. 3D printed composites are more affordable, lightweight, dimensionally stable, corrosion resistant, and have increased strength and stiffness.
Italian startup Moi combines thermosetting composite materials and 3D printing to produce high-performance parts for the automotive industry. Moi uses continuous fiber manufacturing (CFM) technology, robotic intelligence and digital manufacturing to lay down fibers. As a result, the solution is easily scalable for the production of composite materials for panels, frames and internal components. The startup also serves other industries such as aerospace, construction and biomedical.
10. Internet of Things [4]
In the automotive market, the Internet of Things enables secure communication between vehicles as well as vehicles and infrastructure components. The technology improves road safety, eliminates traffic congestion and reduces pollution and energy costs through better fleet management. Startups and emerging companies are developing advanced sensor technologies to collect more vehicle data and also enable the vehicle to understand its surroundings. The technology also automates fuel and toll payments.
Based in Germany and the US, the EcoG startup offers an IoT-based operating system and an electric vehicle charging platform. The startup provides manufacturers with the tools to make developing and maintaining EV charging infrastructure simple, fast and scalable. It also allows operators to integrate services and microservices into chargers to make the charging process profitable. In addition, the solution works with any EV charger and allows new features to be distributed throughout the network.
Canadian startup KonnectShift provides IoT solutions for fleet optimization and asset management. The startup is developing the Konnect-GS01, an automatic electronic data logger (ELD) for continuous vehicle health monitoring. The solution includes route planning and optimization for real-time dispatching, advanced analytics to provide driving, vehicle and fuel alerts, predictive maintenance alerts to reduce downtime, and development of driver management applications.
Motivation Factors
There are three main drivers driving sustainability in the automotive industry. Some of the most important factors include [3]:
1. Government Interventions [3]
Government institutions are playing an influential role in the growing push for sustainable practices. New directives such as the European Green Deal and the Paris Agreement are forcing car companies to look for more sustainable solutions to meet stringent carbon neutral targets.
For example, the European Commission is proposing to reduce vehicle CO2 emissions by 55 % by 2030 and 100 % by 2035, making it almost impossible to sell fossil fuel vehicles in the European Union. These agreements are in addition to various carbon taxes, incentives and subsidies offered by various levels of government to encourage the use of electric vehicles.
As a result, the automotive industry is working closely with the oil and gas industry to build a sustainable future as oil and gas companies transform into energy companies specializing in the development of car charging stations and other alternative fuels to support the growing mobility sector.
2. Changing Expectations [3]
The expectations of customers, investors and even employees are changing, which makes a huge impact on the industry. Tech-savvy and environmentally conscious consumers are increasingly demanding intuitive technology in cars, while putting pressure on automakers to focus on green practices and alternative fuel models such as electric vehicles.
In addition to external pressure from customers and investors, many auto companies also face internal pressure from their rotating employees. Longtime employees retire with their traditional methods and mindset. They are often replaced by a new generation of tech-savvy, environmentally conscious employees who are challenging traditional practices.
Consequently, a growing number of employees are now asking their own employers if they produce vehicles in the most environmentally friendly way possible and suggesting alternative ways to save energy and reduce material use. As a result, the drivers of sustainable change are strengthened both from outside and within the organizations themselves.
3. Megatrends [3]
Several megatrends in the automotive market are powerful drivers of innovative change. These include the development of autonomous vehicles and fleets, the use of data from connected vehicles, car-sharing programs, on-demand alternative transportation initiatives, and, of course, the industry’s paradigm shift towards electric vehicles.
The increased use of advanced technology and the expansion of electric vehicle production have completely changed the traditional way of producing cars. The move to electric vehicles has led to some job losses, as well as the obsolescence of traditional assembly line manufacturing.
Employees are being retrained to acquire advanced technical skills, and in-line manufacturing operations are being replaced by modular production methods, in which the vehicle stays in one place, while specialized, highly trained teams come to the vehicle to work on it at different stages of the process. This has a positive impact on sustainable measures as it reduces the amount of space, energy and labor needed in the production process.
Conclusion
The digital transformation is affecting the industry in several ways. Whether it's high-tech product design and development, mass customization, automated manufacturing, or digital sales channels, automakers and suppliers have been forced to expand their software capabilities and adapt to rampant digitalization. The growing number of technologies used in cars is itself forcing developers to modernize the way they create new products [2].
In such a fast-paced, software-intensive environment, the use of agile (iterative and incremental) processes is becoming a priority both in mobile software development and how organizations behave in the marketplace. Business agility, the use of cloud solutions, and agile development methods are increasingly seen as key to providing the flexibility and on-demand scalability needed to thrive in today's (and tomorrow's) automotive market. They enable automakers to respond to change and new opportunities, launch new business models and adopt new technologies as they become available [2].
All things considered there is a huge tendency for implementing innovations into the automotive market. Nowadays it is almost impossible to pretend any vehicle without modern technologies. Despite the fact that although not all of innovations might be useful, they are still attending moderations for being implemented in appropriate way of using them.
References:
- Assuring, Tax and Consulting Services RSM Global: https://www.rsm.global/insights/2023-outlook-rising-trends-automotive-industry
- Integrated Platform for Enterprises INTLAND Software: https://content.intland.com/blog/the-top-6-automotive-technology-trends-in-2022-and-beyond
- Research Online Journal FORBES: https://www.forbes.com/sites/sap/2021/12/01/how-the-automotive-industry-is-driving-toward-a-sustainable-future/?sh=6ff2927f8f1b
- Research database StartUs Insights: https://www.startus-insights.com/innovators-guide/automotive-industry-trends-10-innovations-that-will-impact-automotive-companies-in-2020-beyond/#:~:text=Top %2010 %20Automotive %20Industry %20Trends %20 %26 %20Innovations %201,Human-Machine %20Interfaces %20 %28HMI %29 %208 %208. %20Blockchain %20 %D0 %94 %D1 %80 %D1 %83 %D0 %B3 %D0 %B8 %D0 %B5 %20 %D1 %8D %D0 %BB %D0 %B5 %D0 %BC %D0 %B5 %D0 %BD %D1 %82 %D1 %8B
- Global Management Consulting Company McKinsey&Company: https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/disruptive-trends-that-will-transform-the-auto-industry/de-de
