The automotive industry is growing at an unprecedented rate that’s not about to stop. The radical digital evolution that started in other industries finally found its way into the industry not long ago. Using advanced technologies has become standard practice. It helps auto manufacturers engage better with customers and provide better services globally. 

Auto companies are now collaborating with tech giants, augmented reality experts, and audio moguls to transform the industry. Technological advancements and consumer demand have created opportunities to make futuristic concepts a reality. These 3 trends will shape the industry in 2021 and beyond. 

1. More Connected Automobiles 

The connectivity of cars is a key factor in 2021 and beyond. And it will only increase with time because of ubiquitous internet availability and the advancement of over-the-air updates (OTA). Smart, connected vehicles are transcending traditional boundaries and unlocking newer capabilities that were previously unimaginable in the manufacturing sector. 

Soon, 90% of all new vehicles in the US and 70% of light-duty trucks and vehicles will have connectivity capabilities. More vehicles will be permanently online, receiving and sending information over the internet. To stay ahead of the competition, car manufacturers must reimagine product design and manufacturing. 

Soon, customers will access cloud-powered apps from their smartphones to view or control certain features of connected vehicles. And those shopping for cars will only need to look at a car stock photo online to find the best choice. This will improve customer satisfaction and help companies maintain a competitive edge. 

1. Surge of Pay-as-You-Go Services 

We're living in an era of amazing service. To survive, the automotive sector needs to adopt pay-as-you-go services. Some companies are already carving out a niche in the mobility-as-a-service space with monthly subscription plans.

We also expect insurance providers to soon start offering usage-based insurance. These days, insurers are leveraging technology such as telematics and AI to collect driver data like hard-braking frequency, speed, overall distance traveled, and the areas often driven in. 

Telematics is used together with telecommunications, informatics, and technology sciences to monitor vehicles using onboard diagnostics and GPS technology. The information collected is useful for calculating accurate insurance rates based on driving habits and mileage, instead of fixed premiums. Research predicts usage-based insurance will grow to over $149 billion by 2027.

1. “Smart” Manufacturing

Manufacturers of the future will apply advanced technologies like Artificial Intelligence (AI) and the Internet of Things (IoT) to transform standard practices like planning, production, and stakeholder relationship management. Auto companies will use real-time data to make data-driven decisions about products, assets, resources, and processes. They will also use the insights gained to optimize cross-functional efficiency.

Smart manufacturing solutions reduce downtime and save companies precious time and resources, increasing profits. Companies can use analytics and sensors to analyze critical parameters, apply predictive asset monitoring, and minimize maintenance costs. Smart manufacturing also helps manufacturers have tighter control on quality as they modernize production processes. 

Innovation is something every business must embrace. Auto companies must adopt an agile approach to both product and service development. They should keep up with changing trends and amplify their digital investments. Those that fail to embrace ever-changing automotive technologies, shifting consumer preferences, and new business trends will not survive.