The automotive industry is experiencing a major change, with autonomous driving, electric vehicles, connected and software-defined vehicles, and in-cabin monitoring being the main focus. These advancements are expected to create a market worth US$1.6 trillion by 2034, which is almost ten times more than in 2023.
The factors that are fueling growth in the industry are –
The increased use of electrification and automation- The expected market surge will be driven by the need for components for electrification and automation. However, the services provided by autonomous and connected vehicles are predicted to experience the most significant growth.
The growth of self-driving and connected vehicle services- Although autonomous cars are still in the early stages of development, they are showing promise with commercial testing increasing in countries like the US and China. However, the industry still needs to overcome challenges like gaining public trust and complying with regulations.
Connected vehicles are now a reality in the automotive industry, with new revenue models based on feature subscription plans being introduced. This is expected to generate significant annual revenue from software-defined vehicles.
The component market is full of potential opportunities- The shift towards electric vehicles and increased vehicle automation is leading to the emergence of lucrative component markets. The market for electric vehicle parts, such as motors, batteries, and power electronics, is projected to experience significant expansion.
Additionally, there is a growing need for sensors in cars, as new technologies necessitate the use of sensors for various purposes such as monitoring the surroundings and the occupants. These sensors play a crucial role in ensuring the safety of autonomous vehicles and are predicted to be a significant factor contributing to the growth of the automotive component market.
The automotive industry is changing quickly and creating new ways to make money. The move towards a more connected and automated future will greatly change the automotive technology industry.
The story is based on an article published in EVANNEX; edited by Clean-Future Team