Among the Automobile market, there are global macro trends that are greatly disrupting traditional market boundaries. One of these major trends is urbanization. As city populations flourish, these urban areas are, for the first time, containing more than half of the world’s population. This creates a higher demand among automobile consumers to be more digitally engaged in how they live and communicate. This desire for connection generates a demand for various digital service channels and information which will dominate the vastly growing automotive industry. Many cities across the world are seeking better management among the rapidly growing population by regulating movement through dense urban settings, thus having significant effects on the automotive industry and the consumers who travel through these compressed environments every day. It’s important to understand the changing population demographics that greatly influence the automotive market across the world as older consumers are becoming predominant buyers in the automotive market. Human population is ever changing, growing and evolving every day, and it is crucial the automobile market evolves with them.
Each day the world becomes more connected, and the world economy is converting into a digital economy through cloud computing, data and analytics, e-commerce, social media, mobility and broadband connectivity. Today, there are more phones than people with 7.2 billion gadgets connected, and this number is predicted to quadruple to 28.1 billion connected devices by the year 2020. It is vital and a challenge for the automotive industry to adapt and stay relevant in the rapidly changing world of technology. Over the next 20 years, digitalization of the automotive industry will be more innovative than it ever has in the past 100 years.
Nowadays, consumers are increasingly demanding that their vehicles provide them the same level of digital capability they are now accustomed to in their electronic devices. In a world of consumers who want instant gratification, they expect products and services to be available when and where they want them, 24/7. Players in the automotive industry must also respond to consumer expectations involving security and data privacy. Meeting these consumer demands can be particularly challenging as it has been an industry dominated and focused on hardware products, rather than creating and distributing software solutions. By moving from just selling a vehicle to providing individualized smart mobility services, it is forcing the automotive industry out of its comfort zone and into an automotive industry digital revolution.
Source: World Economic Forum White Paper: Digital Transformation of Industries- Automotive Industry