Sales of vehicles bounced back after the recovery from the pandemic crisis and are gaining pace as was during the period of 2013 to 2017. Looking at the past 5 years in the automotive industry, we can say that dynamics are drastically changing with the emergence of innovative and new technologies. Industries were once stable and traditional domain over the past 100 years, whereas the sector is going through a major shift in recent years especially from 2023 and 2024 and is further expected to observe many dynamic shifts over the coming few years. The automotive industry is witnessing a rise in complexity with the exercise of technological advancements, evolving consumer preferences, rise in environmental concerns, and among others.
With more and more integration of AI, ML, IoT, sensors and other different software based features in vehicles, automotive software and advanced features market is projected to witness a CAGR of around 10% in the coming 5 years as per the reports published by Mckinsey. Autonomous driving technology and ADAS are expected to account for around half of the demand for automotive software in the automotive industry.
Coming towards recent trends in the industry, increasing sales of electric vehicles all over the globe is becoming the new normal with higher adaptation observed from European regions and China dominating in the production of EVs. OEM companies all over the globe are entering into the market of EV including Tata Motors, General Motors, Volkswagen, Volvo, Mahindra & Mahindra and many others.
Digitalization in the automotive industry is also becoming a common exercise by key players and is driving user experience. Implementation of 3D printing in the manufacturing of vehicles is being adopted by many companies to reduce cost, error and time for prototyping and shortening of design and testing phases of vehicle manufacturing. The mobility sector is also witnessing some major trends, point out what are your highlights on the likes of autonomous vehicles, big data & predictive analytics, online sales channel preference, and hydrogen powered vehicles which are expected to provide a major change in the automotive sector in the coming years.
