There is no doubt that the auto industry is one of the largest and most influential sectors on Earth. Rapid technological and environmental innovations have forced to adapt to new challenges and trends ahead, whose most relevant can be seen as follows:
1) The electric vehicle adoption increases globally. This is probably the most important trend in the industry. The IEA estimates that global EV sales exceeded 3 million units in 2020. That’s over 4% of global vehicle sales. In 2023, that figure has climbed to 14 million. China and Europe have been leading the way in EV sales growth.
2) Autonomous vehicles change the face of the car industry. The AV industry itself is just in its start, as there are only 1,400 self-driving cars on the road in the US today. However, it’s estimated that there will be 33 million autonomous vehicles on the road by 2040.
3) Vehicles become even more connected. As 5G and the Internet of Things (IoT) continue their growth, vehicles are becoming more and more connected. It’s estimated that there were roughly 47.5 million connected cars sold in 2020 with a y-o-y rise by 20% in 2021.
4) Car purchases shift online. The internet is affecting every part of the car-buying process. Over 90% of car purchasers perform online research before a transaction.
5) The automotive parts business continues to grow. The global automotive parts market has been steadily growing for the past twenty years and it is expected to keep on going: its global volume achieved roughly $723 billion in sales in 2021 of which $85.28 billion related to the e-commerce. The parts industry is benefiting from the ever-increasing average age of vehicles on the road.
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6) Chip shortage continues to plague car makes. The CEO of semiconductor company Marvell Technology estimated that relief wasn’t coming until end of 2024.
7) Car sales are impacted by low inventory and high prices. Low inventory is the main reason for the new car’s sales slump in many global markets. The chip shortage is one-factor holding cars back from getting to the dealership lots. But, there are other various supply chain issues and factory closures that have led to low inventory, too. With low inventory comes high prices!
8) Micromobility represents a potential change among consumers. As individuals become more aware of the environmental impacts of their vehicles and more annoyed by traffic congestion, some analysts believe people will ditch their cars and Micromobility will become more and more popular. Micromobility involves using small, low-speed transportation devices. Examples are bikes, scooters, and mopeds, as well as the electric versions of these vehicles.
9) Hydrogen is expected to be the fuel of the future. Along with battery-powered electric vehicles, fuel cell electric vehicles (FCEV) are another alternative to internal combustion engines. The market for fuel cell electric vehicles (FCEVs) is expected to grow at a remarkable CAGR of nearly 70%, through 2026.
10) Luxury car brands see growth. While the market for cars valued below $80k is expected to remain flat through 2031, the luxury car market is predicted to grow at up to 14% CAGR. Several car industry experts say that sales of cars worth more than $100k were outselling lower-priced cars 3 to 1 in the first quarter of 2022. They predict that sales gains of this magnitude will continue through the end of 2025.
In such context, MarketingPRO, the International competitive intelligence and pricing consulting company, provides valuable insights and comparative analysis on the automotive aftersales sectors to make our Customers tracking in advance the disruptive changes ahead! So, let’s get in touch with us today at info@marketingpro.it
