The Rapid Evolution of Automotive Technology
The automotive sector has transformed significantly from its origins as a simple business-to-consumer (B2C) model focused on vehicle manufacture and sale. This increasing complexity reflects market demands, developments in other sectors, and, like all industries, technological advancements. These advances make new scenarios not only plausible but also increasingly realistic.
The automotive technology market is projected to exceed US$100 billion by 2028, with an anticipated compound annual growth rate (CAGR) of 8.21% between 2023 and 2028. This growth is fueled by the increasing integration of technology in all aspects of the automotive experience. Tech giants like Google and Tesla have actively expressed their interest in the sector and have been integrating more technology into their vehicles. Where resources are limited, automakers and tech companies are forming partnerships to drive innovation.
Air-Connected Mobility anticipates that the following technology-powered trends will dominate the automotive scene in 2024.
Enhanced Safety Technology
European safety regulations are driving significant changes in vehicle safety features. The European Commission updated the General Safety Regulation (GSR), establishing mandatory safety requirements for cars sold in the EU. These measures aim to protect passengers, pedestrians, and cyclists, with the potential to save over 25,000 lives and prevent at least 140,000 serious injuries by 2038.
From 2024, new cars will be required to include:
- Advanced Driver-Assistance Systems (ADAS) such as autonomous emergency braking, lane departure warning, and driver monitoring systems.
- Data recorders to monitor vehicle performance, provide information in case of an accident, and improve future safety design.
- Digital speed assistance based on real-time GPS and data mapping.
- More rigorous crash test standards.
- Advanced sensors and cameras to protect pedestrians and cyclists.
Consumer Demand for Intelligent Infotainment
Consumers are increasingly demanding sophisticated infotainment systems that seamlessly integrate with their driving experience. The rise of in-vehicle entertainment expands beyond connectivity with ADAS, smartphones, apps, and sensors. It will also begin to connect with other vehicles and urban environments in an IoT-integrated world.
Many car manufacturers, including Jeep, Tesla, Nissan, and Kia, are planning to upgrade their infotainment systems and incorporate IoT features in their new models.
Consumer demand focuses on more comfort and functionality as well as ease in purchasing options.
Advancements in Vehicle Purchasing and Connectivity
Consumers want more informed purchasing decisions. Auto dealers will begin selling vehicles on Amazon’s US store in 2024, with Hyundai being the first brand available for purchase through this channel.
This expansion is made possible by improved connectivity, especially the increasing availability of 5G. 5G facilitates faster data transmission, greater network capacity and enhanced security for Vehicle-to-Everything (V2X) communication, leading to networks of interconnected cars that communicate with each other and their surroundings. This integration is crucial for the development of smart cities and enhanced transportation infrastructure.
The Growing Adoption of EVs and Hydrogen-Driven Cars
Fuel-cell electric cars are expected to drive an increase in electric vehicle (EV) adoption. Their faster recharge times and extended range are attractive to consumers previously hesitant about EVs. One German start-up, ChargeX, has developed a modular EV charging solution to transform parking spaces into charging stations, aiming to address concerns about charging infrastructure.
Eco-friendly models are also becoming more common, and a growing number of consumers are making ethical choices, whether by selecting greener models, opting for car-pooling, or choosing subscription-based services for flexible ownership.
Developments in Autonomous Vehicles
Autonomous vehicles (AVs) are capturing significant media attention, playing a key role in public imagination. Aside from autonomous transportation, AVs have a large potential in logistics and public transportation.
AVs will improve last-mile deliveries, assist in those that are suddenly unwell or suffering from fatigue, and reduce downtime, making urban travel safer and more efficient. Reports suggest that autonomous vehicles could cover as much as 40% of the mileage driven in Europe by 2030.
Connected Cars Enhance Safety and Convenience
More and more manufacturers are ensuring their new models connect to the Internet of Things (IoT) using wireless technology. When direct connectivity isn’t possible, they partner with technology providers providing the tools for vehicles to interact with the city, other cars and improve overall vehicle safety.
Connected devices also greatly improve geolocation accuracy to recover stolen vehicles. Other popular functionalities include:
- Digital data and remote diagnostics
- Full vehicle health reports
- Data-only telematics
- Access to 4G LTE Wi-Fi Hotspots
- Live directions and integrated assistance
Accessing health reports, updates, and diagnostics can improve safety for car owners while integrating with insurance providers for more tailored solutions.
Conclusion: The Digital Future of the Automotive Industry
Technology is rapidly reshaping how people drive, purchase, and build cars. With looming 2030 targets, innovation is playing a key role in the sustainability agenda. This technological revolution has created changes from improved safety to more integrated infotainment, as well as support for intelligent car alarms and personalized insurance. The future is undeniably digital, with the automotive industry leading the way.
Igor Valandro is Chief Executive of Air-Connected Mobility
