×

Global Automotive and Transportation Industry Analysis: Trend of Self-driving Automobiles to Rise in Future

 Published Date: 2019-05-31   |   Views: 96   |  Automation & Transportation  

The automotive and transportation industry is expected to show decent growth in the next few years. The automotive industry could be mainly driven by electrification and autonomous trends. In the near future, key segments such as ride-hailing service and autonomous vehicles are anticipated to grow at a telling rate. Technology is predicted to play a critical role in the development of the automotive and transportation industry. Automotive dealers are expected to focus on recapturing their lost service business by offering personalization, flexibility, improved customer experience, and other enhancements.

According to PwC’s Transport and Logistics Trends 2019: Five Forces Transforming the Industry in Central and Eastern Europe report, there are five primary forces transforming the transportation and logistics industry. These are machine-driven process changes, changes in domestic commerce of markets, software-driven process changes, shifts in international trade, and digitalization.

Automotive Players to Focus on Digitalization and Mergers in Future

German multinational automotive corporation, Daimler AG is one of the top automotive companies in the world. In May 2019, it announced that Daimler Kamaz Rus has opened a new truck cabin production facility in Naberezhnye Chelny located in Russian federal subject Tatarstan. America’s General Motors, another leading automotive player, debuted a digital vehicle platform for its EVs and next-gen vehicles in May 2019. Clearly, the company is investing in digitalization and moving ahead in its vision to ensure zero congestion, zero emissions, and zero crashes in the world, according to its press release.

The automotive industry could also witness companies adopting mergers as a strategy to gain a foothold in the global market. In May 2019, the world’s eighth largest automaker FCA announced its 50/50 merger proposal sent to Groupe Renault. UPS, a US multinational package delivery and supply chain management company, made its largest-ever purchase of renewable natural gas from Clean Energy Fuels Corp in May 2019. According to the company, the seven-year purchase will reduce greenhouse gas emissions by over one million metric tons.

FedEx, an American multinational courier delivery services company, is quite popular in the US. In May 2019, it introduced a new Historically Black College and University Employment program to provide job opportunities for students at the Mississippi Valley State University. The program is also designed to identify the best talent to support its customs brokerage services.

Transportation and Supply Chain Outlook

Shippers and carriers are expected to largely use on-demand load-matching freight apps as technology continues to develop. As observed in 2018, truck rates are projected to continue to increase in the near future. Availability of less number of drivers and inadequate truck supply are foretold to create capacity crunch in the trucking industry. Substantial decrease in miles traveled per day reported by small truck fleets due to non-compliance with driver hours-of-service regulations is foreseen to impact supply chains and planning of shippers. Companies could face losses due to damage to transportation infrastructures in the events of snowstorms, floods, and hurricanes.

The supply chain could be positively impacted by technological innovation including automated and autonomous equipment solutions, on-demand logistics, big data, IoT, AI, and robotics. Logistics service providers, carriers, and retailers are expected to become more competitive and bring fundamental changes to warehouse location and design to meet high consumer expectations related to package shipping and delivery. China’s investment in the Belt and Road Initiative and development of infrastructures including bridges, ports, and roads is anticipated to expand its global reach. Supply chain professionals are predicted to adopt advanced data analytics software to interpret, analyze, and examine data related to manufacturing and logistics costs, tariff risks, and supplier risks.

Trade compliance and supply chain professionals are foretold to adopt an organization-wide, more holistic approach to deal with higher global supply chain costs and ongoing business uncertainty, understand role of tariffs on company financials, and manage global operations risk.

High Use of Advanced Safety Systems to Boost Automotive Electronics Demand

Tires, automotive electronics, automotive services, interior and exterior, safety, powertrain, manufacturing, and seating are all important sectors of the automotive and transportation industry. The demand for automotive electronics is prophesied to increase on the back of the rising adoption of advanced safety systems such as lane departure warning, automatic emergency braking, and airbags. Growing vehicle production is anticipated to support the rise of the global automotive seats market. The demand for bucket seats with sophisticated technologies is predicted to grow with increasing popularity of premium cars offering greater comfort and luxury.

Installation of advanced tires in modern vehicles is foreseen to increase with growing focus on autonomous models, 3D printing, and latest technologies. Development of connected car technologies and high demand for premium automobiles could also benefit the global advanced tires market. The demand for environment-friendly powertrain is prognosticated to increase due to the global need to reduce pollution.

Europe to Achieve Higher New Car Sales than America and China by 2030

According to PwC’s Five Trends Transforming the Automotive Industry report that mainly concentrates on the China, US, and Europe markets, autonomous and shared mobility will significantly increase by 2030. In Europe, 55% of all new car sales may be fully electrified by 2030. The region is also expected to see a 23% increase in personal mileage by 2030. Interestingly, during the same year, 40% of the personal mileage driven in the region will be accounted by autonomous vehicles.

 

In the US, autonomous vehicles will account for 36% of personal mileage by 2030. In the same year, China is forecast to witness 50% of all miles covered using autonomous vehicles. In China, personal mileage is expected to increase 183% by 2030. In the US, it is projected to rise 24% by the same year.

Vehicle inventory is foreseen to reduce by more than 25% in Europe and 22% in the US by 2030. However, China is expected to see vehicle inventory growing by nearly 50% by the same year because of differences in market situation. On the other hand, new car sales are forecast to increase by 34% in Europe in 2030. In the same year, China is expected to achieve growth of more than 30% and the US is projected to have 20% growth in new car sales.

Top 4 Automotive and Transportation Industry Trends

     Self-driving Vehicles: With advancement in technology, automakers are coming up with autonomous and near-autonomous models as part of their innovation strategy and plan to strengthen their consumer base. The popularity of self-driving cars is prophesied to increase in the coming years.

      Digital Connectivity in Cars: Tech giants such as Google, Microsoft, and Apple are prognosticated to strongly compete against each other to become a top digital intelligence provider for major automotive players.

  Smart Manufacture: The use of environment-friendly, energy-efficient, and smart materials in automobile manufacture is expected to increase in the next few years. Today, automakers use smart engines that are smaller but give higher performance with enhanced stability.

  Green Initiatives: Environment-friendliness is one of the main focuses of automakers due to the increasing pressure to reduce carbon footprint and emissions. As environmental regulations continue to evolve, there could be more development of novel automotive sensors for managing various factors such as positioning, temperature, and pressure.

Customize Your Research

Request for data as per your requirement

Get specifications suitable to your business

Receive an in-depth and unique understanding of the subject matter

Acquire insight into specific area of the industry