The growth in the automotive industry has shifted to markets like the US, Western Europe, and China, while their growth rate in emerging markets seems to have cooled off in recent times. At this pace, we can expect the sales in the global vehicle market to slow down over the next few years. Furthermore, at the current pace of evolution and technological advancement in the automotive industry, we believe the automotive industry is likely to witness more changes in the next decade than it has in the last 20 years. Here’s our take on some of the key automotive industry trends revolutionizing this sector:
Automotive industry trends 2019
Usage-based insurance
Almost every industry in the world is greatly influenced by the Internet of Things (IoT). IoT has established a wave of connectivity even in industries such as insurance and fintech. For instance, insurance companies are increasingly using IoT data to improve their precision in assessing risk, pricing policies, and estimating a necessary reserve. It has also created significant opportunities in the automotive insurance sector such as usage-based insurance (UBI). Usage-based insurance (UBI) for the automotive industry is a category of motor insurance that takes into account several factors while calculating the premium. This includes factors such as the type of vehicle used, distance traveled, and the behavior of the driver. Usage-based insurance encourages safe driving behavior that consequently leads to fewer accidents, which in turn helps insurance companies to reduce claims payout and improve the bottom line.
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Car health monitor
Biometric identification systems are in the initial stages of development in the automotive industry. Although none of such technologies have matured enough to be commercialized to a level that can be implemented in economic or mid-segment cars, they are expected to grow by the end of 2022 and will have a significant market share by the end of 2025. Furthermore, technological advancements such as iris and facial recognition technologies are expected to gain market acceptance as well as market share. Manufacturers in the automotive industry are striving to improve the in-vehicle health state of drivers by detecting drivers’ fatigue, heart rate monitoring, and sleep deprivation and notified with warning systems. Sensors are equipped with steering and seat belts to help in health monitoring. Thus, with the integration of semiconductors, in-vehicle health monitoring would emerge as the new trend in the coming years.
Application of telematics
Applying telematics in the automotive industry provides assistance including intelligent traffic systems, collision avoidance, parking management systems, emergency vehicle notifications, and remote monitoring and diagnostics, among other sub-applications. Vehicles can receive warnings regarding real-time traffic and alerts related to accidents or other hurdles.
Market intelligence in the Automotive Industry
In today’s highly dynamic market landscape it is imperative for businesses to rely on market intelligence solutions in order to stay informed and excel beyond the capabilities of their peers in the market. Infiniti Research’s market intelligence solutions are designed to help stakeholders understand the pulse of the market and equip them with information on key market drivers, restraints, challenges, and opportunities.
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