Seven changes and four keys in the automotive industry in the next decade Abstract: with the development of software and other technologies, consumer technology companies are also entering the automotive industry. Although cars may still be different from intelligence, these companies that focus on design, ease of use, automation assistance and battery life may be able to bring new innovations to this field
in the next decade, the automotive industry will undergo a profound change guided by the technology that predicts that the demand for power batteries in 2020 will be about 71.7gwh. Cars, manufacturers and consumers will witness this significant change. And the four key themes will shape the change, that is to say: the car in 2025 will be safer, more convenient, more environmentally friendly, and more affordable
four key themes shape this change
affordable
with the growth of world per capita income, the number of cars owned by developing countries will also increase. These new consumers are more inclined to choose smaller and more affordable models
environmental protection
the concerns of consumers and regulators about climate change have put pressure on automakers to reduce carbon dioxide emissions. The greenhouse gas emissions of the transportation industry account for 22% of the global greenhouse gas emissions. From 1999 to 2035, carbon dioxide emissions will increase by 1.75 times
safety
the priority of the automotive industry has always been to reduce traffic accidents. However, with the aging of the global population, the demand for safety is also increasing. By 2025, the age will be over 65, accounting for 10% of the world population
convenience
the traffic situation in the growing cities is deteriorating. When the car is idle 95% of the time, the cost of owning the car is also increasing. Therefore, it will become a business opportunity to more efficiently match users and cars who need automotive services
seven key trends dominate
trend 1: higher efficiency of automotive engines
concerns about greenhouse gases and pollution are driving the entire automotive industry to change the way vehicles are driven. The regulation of fuel combustion efficiency and carbon dioxide emissions is forcing automotive manufacturers to develop more efficient automotive engines. Although less than 5% of motor vehicles are driven by electric engines at present, 25% of vehicles sold on the market will have electric engines by 2025. The engines of most cars will be in hybrid mode, and 95% of the engines will still rely on fossil fuel supply at least in part. This also means that automobile manufacturers need to produce more efficient internal combustion engines that meet the new use standards
the research and development of other vehicle power supply methods, such as fuel cell, will improve the overall efficiency of the engine, but the premise is that people can afford it. The Japanese government has preset a fuel cell vehicle with a target price of 2.2 million yuan (about 18000 US dollars), which is targeted at fuel cell vehicles before 2025. Although the fuel vehicles in the Japanese market are insignificant to the whole global automobile consumption market, their expected sales price will be their bargaining chip to compete with hybrid electric vehicles
trend 2: lighter
in order to improve engine efficiency, automobile manufacturers have been looking for ways to reduce the total weight of vehicles. However, according to strict automobile safety standards, automobile manufacturers need to use heavier automobile parts. As some companies began to research lightweight and powerful materials - including aluminum, high-strength steel and carbon fiber reinforced plastic (CFRP). However, these materials are much more expensive than those used in current automobile manufacturing. In particular, CFRP is currently only used in the production of professional sports cars. Over time, the demand for energy conservation will increase the use of aluminum and high-strength steel
trend 3: driverless cars
driverless cars are about to become a reality. Driverless cars can reduce road traffic accidents, relieve traffic pressure and provide convenience for more people
the competition on driverless cars is unprecedented fierce. These competitions not only come from companies in the industry, but also from companies outside the industry. Many fully automatic driverless cars are undergoing road tests, and the first commercial semi-automatic car will be on the road in the coming years
however, the innovation of this technology also has risks. The control of the car is completely entrusted to the software system, which may lead to new hacker vulnerabilities and other hazards - automobile companies cannot ignore relevant issues. Allowing drivers to intervene in an emergency is a more likely way in the near future
trend 4: supply chain evolution
the market demand for more energy-efficient vehicles will lead to a sharp increase in the cost of auto parts - the cost of a car can increase by $2500. The suppliers of these auto parts need to keep up with the trend of technology and reduce costs at the same time. Although it is very challenging, it is also an opportunity for parts suppliers
for large companies, reducing risks means increasing R & D budgets and making multiple attempts at technology. Small companies, on the other hand, focus on the in-depth development of their core technologies and form alliances with other suppliers in areas where they do not specialize
trend 5: new competitors
with the development of software and other technologies, consumer technology companies are also entering the automotive industry. Although cars may still be different from intelligence, these companies that focus on design, ease of use, automation assistance and battery life may be able to bring new innovations to this field
a catalyst for investors in the technology industry to enter the automotive industry is that only one third of the components of electric vehicles are the same as those of traditional vehicles, which reduces the entry threshold of the automotive industry
trend 6: the car network
IOT gives us an understanding of how interconnected devices can change the way we use them. The same is true of interconnected cars. For example, car sharing service companies can better connect idle cars with consumers who need cars
connected cars can communicate with each other and with the larger outside world, which can help reduce accidents and relieve traffic pressure. They can not only have a huge impact on the automotive industry, but also affect the insurance industry and other industries. For example, insurance companies can monitor drivers' behavior in new ways, reward good drivers, and distribute costs to drivers who drive badly. Driving sharing service companies can also better connect their cars with consumers who need cars
driving sharing is a mixed blessing for the automotive industry. In the world, however, small and medium-sized projects are still the main objects of utilization. Most cars are used in daily short-distance transportation, and 95% of the time is idle. If the driver decides to give up ownership and use the car only when there is demand, car sales will inevitably suffer
connected cars, especially autonomous vehicle, will change the way people drive. In a 2013 survey that green, low-carbon and environmental protection became the development trend of the industry, more than 75% of respondents said that they were more willing to listen to music, play, watch videos or go on TV when taking cars with 224 sliding stainless steel windows
trend 7: turn to emerging markets
in most economies, when the per capita income increases from $10000 to $20000, the number of car ownership will increase significantly
by 2025, many developing countries will reach this level for the first time, resulting in a huge demand for smaller, cheaper cars. For example, India will become the third largest auto market in the world by 2025, with 74million cars. Car ownership in China has soared and will continue to grow, and car sharing is expected to become more and more popular
the global automotive industry will soon undergo a huge change. Technology is the driving force of this change, but it will also be affected by population, regulation and the environment. By 2025, the automobile and automobile industry will be different:
automobile: Automobile will be safer, cheaper, environmentally friendly, convenient, and use more efficient engines, greener, lighter materials, and auto drive system
automobile industry: the automobile industry will evolve, and there will be competitors from technology companies. The supply chain will also produce high-tech components at a lower price
driver: drivers have different views on cars. Car sharing will become more and more popular, and people will regard cars as a consumer media and playing space. More and more drivers will come from emerging markets
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