The automotive industry is projected to be worth approximately $9 trillion by 2030. With continuous advancements in technology, both small and large manufacturers are looking for innovative ways to have a competitive edge over their rivals.
These technological breakthroughs, coupled with changes in consumer habits and environmental concerns, have led to trends appearing worldwide. Below, we’ve compiled a list of five of the biggest automotive industry trends in 2020.
Automotive industry trends in 2020
- Electric cars
According to a 2020 report by the European Commission, “passenger cars and vans are responsible for around 12% and 2.5%, respectively, of total EU emission of carbon dioxide.” Many countries have begun to implement plans to lower fossil fuel emissions by promoting electric vehicles (EVs). The UK, for example, has a target for its cars and vans to become “effectively zero emission by 2040”.
On a global level, it is estimated that, by 2030, EVs will account for 18% of car sales worldwide. It’s no wonder; then, those car manufacturers are increasingly turning their attention to EV production, making it one of the largest automotive industry trends of 2020.
- Artificial Intelligence (AI)
AI isn’t exactly a new concept, but its incorporation into vehicles is becoming increasingly commonplace and is, at times, controversial. Machine learning and deep learning assist in enhancing safety services, helping drivers, and in creating and programming autonomous vehicles.
Many autonomous vehicles have achieved high levels of success. However, accidents have occurred, including a fatal crash in Arizona in 2018, meaning that stringent testing rules are in place in many areas. Even so, a recent survey found that participants showed higher levels of positive emotions than negative emotions when asked about autonomous vehicles.
- Big data and data analytics
Big data refers to vast data sets that are analyzed by computers. Recently, companies have also started to use the term to refer to the technologies that capture and analyze the data (data analytics).
Big data is, undoubtedly, one of the largest automotive industry trends in 2020 that consumers may not even be aware of. One obvious advantage of using big data is that it can merge information between software providers and manufacturers on an enormous scale. Its uses include:
- Creating predictive models
- Informing companies about the state of their fleets
- Enhancing vehicle maintenance and insurance
- Analyzing consumer trends
- Enhancing product design
- Logging accidents and even alerting the necessary authorities
- Shared mobility
Shared mobility refers to the consumer sharing of vehicles, including (but not limited to) bikes, cars, scooters, shuttles, and vans. Sharing could be commercial or personal, including peer-to-peer, ride-hailing, car-sharing and more. The benefits of shared mobility are both personal and environmental; the system reduces the number of vehicles on the road while simultaneously increasing access to cars for those who need it.
Companies like Uber and BlaBlaCar already have a monopoly in certain countries but, as the sharing economy grows, more options are becoming available. Indeed, a study by Mkinsky in 2017 found that China and the United States were the two biggest markets for shared mobility, valued at between $24 billion and $23 billion, respectively.
- The Internet of Things (IoT)
IoT is a network of objects that are connected to the internet and exchange data. It is another huge yet somewhat controversial, automotive industry trend in 2020.
In 2014, Forbes predicted that, in the future, “anything that can be connected, will be connected”. So far, they appear to have hit the nail on the head. Vehicles, in particular, are becoming intricately connected, covering vehicle-to-vehicle, vehicle-to-infrastructure, and vehicle-to-device.
The benefits of this connectivity include safety enhancements, entertainment improvements, greater functionality, and more. However, there are concerns over hacking, surveillance, and industry standards.
Looking at the automotive industry 2020 trends as a whole
It is clear that current automotive trends advance as technology changes and that they extend worldwide. Each new part that is manufactured and sold will have to adhere to complex, country-specific practices to reach the desired markets successfully.
This process cannot be undertaken without the aid of automotive translation services to facilitate communication between manufacturers, software providers, regulatory bodies, legal companies, and more. Automotive translation can help with everything from technical database files, to service manuals, to legal documents.
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