Disruption in the Car Industry: 7 Exciting Trends Predicted for 2022
With new automotive startups springing up every day and car tech advancing at an unprecedented pace, disruption within the car industry is on overdrive, leading to the development of greener, safer, more efficient, and more desirable cars. In this article, we look at seven automotive trends that are set to cause a stir in 2022.
- Electrification
Staged in November 2021 in the Scottish city of Glasgow, COP26 was the latest in a series of UN Climate Change Conferences staged to tackle the interrelated issues of greenhouse gas emissions, climate change, and global warming.
With policymakers debating into the night, the outcome saw world leaders ultimately agreeing to a global transition from fossil fuels to sustainable, green energy. To this end, governments all over the world will be encouraging the uptake of electric vehicles.
To facilitate this, electric car manufacturers will need to address issues such as poor battery life, high cost, and inadequate charging infrastructure. By 2020, there were more than 10 million electric cars on the roads globally, and Europe overtook China as the world’s biggest market. In the United States, while the overall car market declined by 23 percent that year, electric car sales nudged up by 2 percent compared with 2019.
- Automation of Production
Complete assembly line automation is rapidly becoming the norm in the automotive industry. Many of the world’s biggest carmakers have embraced automation in a variety of different aspects of the manufacturing process, sparking a major boom in car production rates.
In years to come, it will become increasingly important for automakers to integrate innovative technologies in their vehicles to make offerings more appealing for a younger demographic. To achieve this, increasing numbers of car manufacturers are expected to collaborate with tech firms to upgrade operating systems and add more tech to both their offerings and production lines.
- Internet of Things (IoT)
In the car industry, IoT allows vehicles to communicate with each other as well as infrastructure components. IoT solves traffic congestion and improves road safety, reducing energy expenditure and pollution through improved fleet management.
- E-Commerce Sales
COVID-19-related social distancing policies, stay-at-home orders, and lockdowns spurred unprecedented numbers of consumers to take their spending power online throughout 2020 and 2021. A noticeable rise in online car sales has been recorded in recent years, with e-commerce sites presenting a convenient, hassle-free way to shop for a vehicle.
When the pandemic hit in 2020, it sparked a global shift from in-person to online shopping. Consumers began to seek out all manner of goods and services online, including motor vehicles, resulting in a steady decline in physical car dealerships worldwide.
The automotive sector saw an even greater spike in online sales than many other industries during the pandemic. Thanks to innovations like at-home test driving and virtual stores, the need for consumers to be physically present when purchasing a car has diminished considerably. As we move forward, more and more dealerships are realizing the opportunities created by embracing a digital sales model. While many will maintain real-world showrooms, industry experts predict that increasing numbers of dealerships will invest in expanding their digital presence.
- Artificial Intelligence (AI)
AI technologies such as deep learning, machine learning, and computer vision have a myriad of different applications in the automotive industry, including the potential to reduce cost, improve efficiency, and accelerate the rate of production. Additionally, AI powers driver safety systems, self-driving cars, and fleet management while improving services such as insurance and vehicle inspection.
- Autonomous Vehicles
There is no doubt that autonomous vehicles show potential to revolutionize transportation, though precisely when they will enter the mainstream is a matter of intense debate. Companies like Waymo, an arm of Google, insist that fully autonomous cars are not as far off as many people think. Waymo’s self-driving cars have already covered more than 10 million miles, and Uber and Tesla are also testing their driverless cars. This new breed of vehicles could transform our daily lives by reducing traffic congestion, pollution, and accidents. In interacting with each other, exchanging data on road conditions and traffic flow, they can make road networks safer and more efficient.
7. Smart Cars
Cars of the future are touted to become more than just a means of traveling from A to B. Investment in new technologies and incumbent infrastructure is in overdrive, with Tesla and others leading the charge. Industry experts suggest that these technological advancements may be good not just for sustainability, but for the future of the automotive industry, as they will spark the development of a new generation of smarter cars.
Chipmakers Nvidia, Qualcomm, Mobileye, and Luminar have each been developing the concept of the software-defined vehicle, looking to improve car safety and enhance the driving experience through the integration of driver assistance systems. In September 2021, Luminar unveiled L4 technology capable of “seeing” a child in the road and halting the vehicle before an accident occurred. This is just one of many groundbreaking new technologies that are working to make driving safer and more enjoyable for all.
