With the world gradually limping back to normalcy as the Covid-19 pandemic shows signs of slowing down, the automobile industry is all set to explore a rapid growth trajectory in the year 2022. Automakers made use of the lull to rediscover themselves by adopting digital transformation in line with a consumer shift towards safety, convenience, environment-friendly personal mobility over shared/public mobility.
Here are some of the automotive tech trends to expect in 2022 – take a look:
1. More electric vehicles (EVs)
Companies like Tesla have proven that EVs can gradually replace conventional fossil fuel-driven vehicles in the coming decades. Other factors aiding growth of EVs are:
- Narrowing gap between upfront cost of EVs and traditional Internal Combustion Engine (ICE) vehicles.
- Reducing battery prices.
- Rising fuel costs.
- Low cost of ownership of zero-emission vehicles compared to their ICE counterparts.
Apart from dedicated EV startups, all major players are also launching a slew of e-cars. It is speculated that EVs are likely to outnumber traditional ICE vehicles by 2030.
2. Online car buying
With the boost in digitalization, consumers have got used to getting almost everything delivered at their doorstep. The auto industry is also accepting this trend. Starting from virtual test drives and completing all the required paperwork online, to delivering the vehicle at the customer’s doorstep, the entire process of car buying is occurring in the digital medium. Some automobile dealerships are following a hybrid model, where some aspects like paperwork and test drives are being conducted online, but the customer is visiting the dealership to collect the vehicle.
3. Connected vehicles
As 4G and Internet of Things (IoT) continue to grow, more connected services and features can be found in vehicles. Thanks to connected mobility, these vehicles can communicate bi-directionally with a wide range of other systems outside their local area network to send digital data. It helps to enable vehicle health reports and remote diagnostics, access to data-only telematics and Wi-Fi Hotspots, turn-by-turn directions, warnings of car health, and direct intervention to prevent breakdowns and in turn, avert accidents.
For instance, you might be a safe driver, but it can be tough to anticipate actions of other drivers around you. Connected cars allow vehicle to vehicle communication so the vehicle can react without your input, and prevent incidents on the road, thus keeping you safe. Connected cars share data like location, speed, and the direction they are heading, then exchange messages, and deploy safety alerts as required.
4. Self-driving tech
Self-driving tech involves radar, sonar, and lidar, along with odometry measurements to detect environmental changes and maintain safe speed. Driverless or autonomous cars use self-driving tech and there are six automation levels, as per TWI Global. The higher the level, the more advanced is the automation tech. For instance, at level 2 automation, the vehicle has automated braking and accelerating, but the driver still needs to perform a majority of tasks. At level 5, the vehicle can perform all driving tasks, and no human intervention is required. Self-driving technology is steadily finding growing importance in the auto industry. Numerous legacy auto manufacturers, mobility startups and tech companies are diligently working on self-driving technology.
5. Automotive cybersecurity
As is evident from the name, it means protecting digital systems inside a vehicle, which prevents hackers from gaining unauthorized access and eventually taking control of the car. Advanced auto cybersecurity will prevent criminals from stealing data, manipulating the vehicle, or causing physical damage. New vehicles in 2022 will have security systems with cutting-edge cybersecurity features, in response to increased threat levels.
6. Use of blockchain in vehicles
Several automotive organizations are using blockchain tech to share data. The process enables mobility services and connectivity, such as urban transport, ride sharing and deliveries. Businesses can also use blockchain to verify their supply chain. Industry experts have stated that blockchain will be used to support autonomous vehicles. Using blockchains ledger, self-driving cars could get access to critical traffic data with improved accuracy. Blockchain tech could simplify various driving related payment tasks from tolls to repairs and insurance.
7. Use of vegan-friendly cars
According to Car Magazine, some of the best vegan-friendly cars in the market include the Tesla Model S, the Range Rover Velar and the Ford Mustang Mach-e. These vehicles have incorporated seats made of recycled materials, instead of conventional leather interiors. A growing number of consumers are looking for ethical and green options when purchasing their vehicles.
8. Insurance premium and risk detection
Estimating premiums is a crucial aspect of auto insurance businesses, which are based on data analytics and predictive models. Telematics data from sensors in vehicles is used to monitor and analyze driving behavior. Based on this data, it can be established if the driver poses a great risk or adheres to safe habits. Thus, insurance premiums can be decided accordingly. Some auto insurance companies offer good discounts on premiums if the telematics data proves that the drivers are following road safety rules without engaging in dangerous behavior.
When there is ample information to analyze, it becomes convenient for organizations to set policy premiums. In auto insurance, the insurance company can pore over information about most traveled areas, while determining the likelihood of the vehicle being damaged or discovering how prone that area is to road accidents. It lets them decide on the amount of premium to be charged to avoid losses.
Exciting developments and trends are coming up in the automotive industry in 2022 – be it connectivity and self-driving cars, or robust cybersecurity features and telematics-based insurance premiums. Just wait and watch!
Be sure to check out more trends, news, tips & tricks for your car dealership from our blog.