Since the introduction of cars to the world, the automotive industry has been the most responsive to emerging technologies. Technology has played an instrumental role in shaping automobiles over decades, such that today vehicles are not only used for driving from one point to another, but are also becoming large smart devices that provide mapping technology, connectivity, improved fuel efficiency, and many more infotainment features.
The advancement of digital technology is, in fact, making it possible for automobiles to integrate high-tech features, like autonomous driving and accident prevention among others.
Let’s delve deeper into the ways technology is altering the face of the automotive industry.
Reducing Environmental Impact of Vehicles
The heightening awareness of the rising carbon emissions from vehicles has led to the emergence of sustainable transportation solutions in the auto sector driven by technological motivation. Also, the tightening government regulations on CO2 emissions has led to the introduction of electric cars as more environmentally-friendly alternatives to fuel-powered vehicles.
Globally, governments are providing subsidies & tax rebates for installing electric vehicle charging stations and working in collaboration with OEMs to accelerate growth of EV charging networks. Per a report by Research and Markets, the global electric vehicle charging station market size is projected to reach 30,758 thousand units by 2027, growing at a CAGR of 46.6% over a period of seven years.
The first name that pops into our heads when we talk about EVs is Tesla TSLA, which has garnered the most attention as the leader of zero-emission transportation provider. This Zacks Rank 3 (Hold) company’s Model 3 is one of the best-selling electric vehicles in the United States, which is single-handedly propelling EV sales in the country.
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Apart from Tesla, other auto biggies, like General Motors GM, Ford F, Volkswagen VWAGY, have been taking considerable strides to incorporate sustainable transportation solutions in their fleet, thus bringing an era of green revolution in the auto sector.
Development of Autonomous Vehicles
Self-driving cars or autonomous vehicles (AV) are a breakthrough technology in the automotive industry. AVs are no longer a figment of imagination in the era of artificial intelligence (AI) and are radically transforming what it’s like to travel from one point to another. The AV technology is based on advanced driver-assistance systems (ADAS) — including emergency braking, back-up cameras, adaptive cruise control, and self-parking systems. These robot-driven vehicles use AI to enable the cars to navigate through the traffic and handle complex situations.
The AV market’s growth is estimated to gather momentum on the rising investments in digital infrastructure and surging disposable income among consumers in developed countries. Per a report by Research and Markets, the global autonomous vehicle market is estimated to value $2,044.9 billion by 2030, expanding at a CAGR of 39.1% from 2020 through 2030.
The race to bring self-driving vehicles on the road has been gearing up for the past couple of years, with multiple auto giants making remarkable progress in this genre.
Some noteworthy names making considerable progress in the AV market are — China-based multinational technology company Baidu Inc. BIDU, Tesla, Cruise — the self-driving car start-up, majority-owned by General Motors, and Alphabet GOOGL-owned self-driving car pioneer — Waymo, among others.
With automotive manufacturers increasingly understanding the benefits of AV technology, including improved traffic management and increased passenger comfort, AVs will undoubtedly usher in a new era for transportation in the coming years.
Evolution of Flying Cars
Driverless cars and electric vehicles have been making headlines, of late, but with technological revolution in full swing, flying robo-taxis are the next big thing in the automotive sector. Companies worldwide are making state-of-the-art inventions in this landscape, from personal jet packs to drone taxi services. With major brands like Toyota, Uber, Airbus and Boeing promising to sweep riders through the sky in flying taxis, it seems it is only a matter of time that this science-fiction transport becomes a reality.
Per a Morgan Stanley Research study, the market for flying cars, known as electric air taxis, will surge to $1.5 trillion globally by 2040. This nascent business has the potential to significantly disrupt the urban mobility sector, and is a very lucrative bet for investors currently.
In fact, Australia-based Alauda Aeronautics recently tested the Alauda Mk3 flying car in Southern Australia. This flying racecar was introduced to the world this February, and will be equally capable on racing tracks and in the air.
Making Vehicles Interactive & Safe
In today’s digital age, every car produced has some kind of onboard computer that controls a wide range of functions, including GPS, cruise control, vehicle-to-vehicle (V2V) communication and vehicle temperature. These onboard systems have increased the level of user interactivity available to drivers around the world. A number of cars have built-in Wi-Fi, along with Bluetooth and car connectivity in the form of Apple CarPlay or Android Auto, enabling the vehicle to be one giant media centre. These digitally-advanced cars are also equipped with augmented reality dashboards which transform the entire windshield as a screen for displaying information to the user.
Further, the use of tiny cameras all over the vehicle and other features like tire pressure sensors, lane change sensors, and collision control sensors help prevent accidents, thus enhancing vehicle safety.
Tech Galore at its Peak
With cars being not just a means of transportation any more but turning more into computers, the lines between technology and car companies are blurring. The spurring demand for vehicle electrification and autonomy is disrupting the automobile industry. With future cars incorporating electric combined with autonomous, combined with connectivity, one can expect Tech companies to dominate the automotive landscape. Nevertheless, these developments come at a cost. Given the large amounts of R&D investments needed to keep at par with the technological uproar, to what extent automakers are able to cope up with the same is yet to be seen.
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Ford Motor Company (F): Free Stock Analysis Report
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