Technological Advancements Disrupting the Automotive Industry

The automotive industry offers a wide range of benefits like building at scale, cutting costs, managing inventories, etc., which have now been added with tech companies transforming the industry and providing software benefits.

FREMONT, CA: As technology transforms every aspect of human life, from payments to entertainment, analysts believe that the next represents one of the biggest and rapidly evolving disruptions in the automotive industry, or CASE (connected, autonomous, shared, and electric).

In today's automotive market, car companies are not just assembling mechanical parts but developing sophisticated and complicated computers on wheels. The next-generation automobile ecosystem will comprise OEMs, software and service suppliers, systems integrators, device manufacturers, online players, and telecom operators.

There will be dramatic growth in the global market by 2025. Advancements are very visible in the auto market with the introduction of advanced features such as advanced driver assistance systems (ADAS), mobile app-based controls, etc. The inevitable component to developing momentum toward connected cars is fast internet connectivity, which 5G networks will power.

Companies have collaborated with firms to move automated guided vehicles (AGVs) safely and wirelessly around the workspace, partnering harmoniously with human workers. This also worked in a trial utilising 5G connectivity to ensure that maps were constantly updated with the latest real-time information to support future autonomous driving operations. Therefore, technology will be a significant factor for next-gen automotive industry success and will impact the transition in car value.

In the future, hardware's share will be reduced to 40 per cent from the current 90 per cent, and the remaining will be divided into software and content. Auto experts believe that collaboration will be critical because it is difficult for automakers to survive in the current disruptive environment, and companies do not believe they will face shrinkage or extinction. Connected cars and software will be the automotive sector's primary revenue growth drivers towards the end of this decade. Thus, companies must upgrade to such a system to avoid the risk of not obtaining profits.

Auto companies have already started recruiting people with tech backgrounds to future-proof themselves. However, hiring tech talent alone will not solve the puzzle. The company itself should think like a tech company, which traditional automakers could not achieve due to a lack of digital maturity. Therefore, automotive and tech companies see the potential for partnerships for new business opportunities. Technologies such as natural language processing, augmented reality, multi-screen environments powered by sensor-rich environments using 5G, and edge computing are likely to disrupt the industry. This will allow care manufacturers and their partner ecosystem to invent new business models.

Tech companies' moving into automobile segments is critical for the industry to evolve technologically. Several complicated and configurable innovations will continue in the future with the rise in the processing capability of the chips. The partnership has become the only way to keep up with the growing mobility-as-a-service market.