Autotmotive industry is a sector of fast development. Technology-driven trends will revolutionize how industry players respond to changing consumer behavior, develop partnerships, and drive transformational change. The forces that are giving rise to four disruptive technology-driven trends in the automotive sector are diverse mobility, autonomous driving, electrification, and connectivity.
The automotive revenue pool will significantly increase and diversify toward on-demand mobility service and data-driven services. This could create up to $1.5 trillion or 30 percent more in additional revenue potential in 2030, compared with about $5.2 trillion from traditional car sales and aftermarket products/services, up by 50 percents from about $3.5 trillion in 2015. Diverse mobility Changing consumer preferences, tightening regulation, and technological breakthroughs add up to fundamental shift in individual mobility behaviour. McKinsey forecasts that in 2030, 1 out of 10 cars sold could be a shared vehicle. There is a sign of declining ownership and this trend is expected to continue and even accelerate in the coming years.
Mobility providers such as Uber and others will enable consumers to simply rent a (shared) car as an on-demand service, specifically for their intended purpose and for a set travel itinerary or period of time. Ownership is expected to be less important, and car customizability will be achieved by modularization and via flexibly configurable software with personal profiles. As a result, the traditional business model of car sales will be complemented by a range of diverse, on-demand mobility solutions. Hence, more automotive OEMs today are rethinking their positioning which is to present themselves as providers of mobility, not merely manufacturers of vehicles. But as automotive expands into mobility, new players are surfacing as competitors: for instance, Apple, one of the mobility leaders, enters the category.
In this context, Automotive OEMs must find ways to add unique value to consumers’ mobility day in and day out. This could be done by becoming a purveyor of mobility at large, from selling cars for purchase to facilitating ride-sharing, or even partnering with public transportation in cities where the resources are underutilized or have no proper transportation facilities at all.