Data monetization, artificial intelligence, and voice recognition to fuel automotive industry growth
In the coming months, artificial intelligence (AI), voice recognition, data monetization, online vehicle retailing, and cybersecurity will propel rapid growth opportunities in the automotive sector. Frost & Sullivan expects the global automotive market to hit 98.6 million unit sales this year. Data monetization opportunities will rise to $32 billion by 2025, driven by the ascent of key data services such as GPS vehicle tracking, driver safety, and on-demand and real-time location-based services.
"By 2020, most OEMs will have an online channel to sell their new vehicles, either through their own websites or in partnership with third-party online vehicle aggregators," said Joe Praveen Vijayakumar, Mobility Senior Industry Analyst at Frost & Sullivan. "Automotive revenue growth will come from downstream services driven by platforms leveraging data."
Frost & Sullivan's recent analysis, Global Automotive Industry Outlook, 2018, identifies growth factors, challenges, and barriers to success across key sectors such as connectivity, telematics, retailing, aftermarket, e-mobility, autonomous, powertrain, and mobility. Predictions for 2018, regional analysis, and critical success factors are also provided.
Vijayakumar predicts that this year's key new mobility developments will include franchise-based business models, community-based car-sharing programs, and car-sharing vehicles on rent to ride-hailing drivers.
Six trends driving transformational change in the automotive sector include:
- Big push toward electric vehicles with related manufacturing investments
- Launch of future mobility services such as MACE
- Dawn of blockchain platforms in automotive
- Impending advent of automated taxis
- Development of urban lifestyle vehicles
- Rising inventory stock and dealership discounts
"Due to a decline in electric vehicle (EV) battery prices, EV sales are booming. However, in most countries, charge stations and supporting infrastructures are inadequate," noted Joe Praveen. "OEMs need to work with partners and government agencies to establish universal charging standards and set up more charging stations."
Global Automotive Industry Outlook, 2018 is part of Frost & Sullivan's Automotive & Transportation Growth Partnership Service program.