The automotive industry has been experiencing a boost in sales in the last few years. They have seen their largest growth in emerging and developing economies. The auto industry trends are influenced by car buying trends and the growing access to disposable income and credit has allowed customers to make car purchases with ease. Global auto sales will continue to rise and this could also be because of technological advancements and innovative initiatives that have been seen in the industry. Here are the 4 technological trends that have changed and will continue to bring change in the automotive market:
Trend 1: Increase in strategic partnerships with external tech firms
Traditionally, original equipment manufacturers (OEMs) and automotive companies have been extremely involved in developing the innovative features that are required by customers. High tech players such as Uber and Google have now entered the automotive space due to which manufacturers already have and will continue to establish external partnerships for expediting products and software that can be integrated into their product plans.
Automotive manufacturers also partner with test products manufacturing companies such as Cortek Test Solutions. These companies make products that are extremely helpful in testing new automotive designs. Click here to read more about these test products. It is not just manufacturers, but high technology firms and investors have also become quite active in the automotive industry. In the last year alone, firms such as Apple, Amazon, and Ford have invested in the industry.
Trend 2: Increase in R&D spending
The best way to measure innovation across industries is through the number of R&D resources that have been allocated for driving innovative features and products. Considering the future plans of the automotive industry, which also overlaps with the tech sector, it is not surprising to know that R&D figures also follow this trend. As a matter of fact, the third highest spending in terms of research and development has been done in the automotive industry. However, it is important to note that even though there has been an increase in spending, automakers are still struggling to fulfill every component in their production process, especially software.
Trend 3: Changes in hiring needs
The core of the trends in the automotive industry starts and ends with software. It is immensely helpful in powering processors that can be quite useful in controlling GPS radars, sensors and numerous other safety mechanisms. But, the new trends have caused a shortage of qualified workers and they are now learning new skills. In the future, workers will have to apply specific skillsets as new technology continues to surface.
Trend 4: Consumers are demanding digital solutions
Due to the widespread use of the internet, more and more users have begun to opt for online shopping. Shoppers now prefer to start the buying process online instead of going in-store. Digital channels have also become the primary source of information for customers who are interested in buying a vehicle. Dealerships of the past will have to make changes for accommodating the new requests and still have to comply with state laws that can hinder the entire process. It is a fact that consumers have become more well-versed and educated in the buying process so digital solutions have to be offered.