A modern passenger vehicle is a marvel of design and engineering and an epicenter for technological convergence. It is an example of superior mechanical handling that is also a computer, an Internet of Things (IoT) device, comfortable furniture, and a climate-controlled environment—one that has to keep human beings safe while moving fast through traffic.
To make such a singular product, the automotive industry deploys the latest in artificial intelligence (AI), virtual reality (VR), and other technologies that make vehicle design and production faster, more creative and configurable, more sustainable, efficient, and more software- and data-based. The industry does all this while facing many pressures, as well as opportunities, from multiple angles.
As futurist Maks Giodano noted at the Automotive Innovation Forum 2024 in Darmstadt, Germany, exponential technological growth is making the future harder to predict, and “It’s totally okay to say ‘no’ to a trend.” The following automotive industry trends may not dictate how the future will look, but if automotive firms choose to deny them, they should choose wisely. While not the only way to the future, these trends provide a compass for moving forward.
Trend 1: Electrification of the automotive industry
In response to customer demand and governmental mandates, auto manufacturers are increasing production of fully electric vehicles. Image courtesy of Rivian.
Continuing an ongoing trend, vehicle electrification is still on the rise. More automakers are investing in developing electric vehicles to meet the growing demand for environmentally friendly mobility solutions and to comply with government mandates in certain countries and states.
In 2023, the growth in demand for electric vehicles (EVs) slowed due to high interest rates and higher EV prices, which spiked in part because of inventory shortages brought on by supply chain issues, such as shortages in computer chips. However, in 2024, that demand trend has begun to reverse. Kelley Blue Book estimates that in the first half of 2024, nearly 600,000 EVs were sold in the United States, up 7.3% from the first half of 2023.
Read this article in full here.
