Automotive and Transportation: Technological Advancements and New Models of Mobility to Revolutionize the Sector in Q2 2024

In the past few years, the automotive and transportation domain has done well to overcome the pandemic-induced slump and register a V-shaped recovery. According to many multinational automobile manufacturers, the surge in sales of different types of vehicles increased the growth rate of the sector. Furthermore, the opening up of economies in the post-pandemic period led to the restarting of global trade and tourism activities. This, in turn, helped transportation companies register a significant growth in recent times. Apart from these factors, experts have pointed out that certain trends in the automotive and transportation domain have brought in new opportunities and are expected to continue in the second quarter of 2024. To elaborate these trends, Allied Market Research has compiled a detailed study of the major trends that are estimated to reshape the sector in Q2 2024.

Car-as-a-Service: A new transportation model set to transform the automotive sector

Car-as-a-Service, also called CaaS, is a novel transportation model wherein the service-providing company and the vehicle end-user sign a contract that permits the end-user to use the vehicle for a specific period with pre-defined benefits. The concept of CaaS has expanded over time to include different modes of transport including car rental, car leasing, and car subscription services. CaaS has become extremely popular, especially in urban areas, due to advantages such as flexibility, cost efficiency, and convenience for the end-user. This model allows the user to enjoy the benefits of mobility without any long-term commitments. Due to these advantages, the car-as-a-service market is expected to garner a revenue of $225.65 billion by 2030, thus rising at a CAGR of 6.8% in the 2021-2030 timeframe.

Innovations and advancements in EV technology to be the biggest factor in the expansion of the automotive and transportation sector

The rising environmental awareness across the globe and the joint efforts from governments and private companies to reduce vehicular carbon emissions have made the EV revolution a huge success. At the same time, automobile manufacturers are continually engaged in R&D activities to enhance the performance of EV technology. Most of these R&D activities are focused on improving the electric vehicle battery technology. In recent times, the development of solid-state batteries, advanced lithium-ion battery designs, high-quality electric vehicle charging cables, and wireless charging technologies have completely transformed the electric vehicle market. Owing to these technological advancements, the electric vehicle market, which accounted for $163.01 billion in 2020, is set to register a revenue of $823.75 billion by 2030, thereby growing at a CAGR of 18.2% in the 2021-2030 timeframe.

Adoption of autonomous vehicles to offer lucrative opportunities to the automotive and transportation sector

The integration of automotive engineering and advanced digital electronics has led to the advent of autonomous vehicles which has led to an overhaul of the automotive and transportation domain. A detailed analysis of the autonomous vehicles market shows that this industry is anticipated to witness major growth in the 2025-2035 period and garner a revenue of $448.6 billion by 2035, with a CAGR of 22.2% in this timeframe. The increasing integration of advanced technologies such as artificial intelligence, machine learning, robotics, and data analytics in automotive engineering is expected to increase the sophistication of autonomous vehicles and make them ‘smarter’. At the same time, governmental authorities are coming up with regulatory mechanisms to facilitate a smooth transition to autonomous vehicles. These factors are predicted to influence the automotive and transportation domain in the second quarter of 2024.

Growing focus on connectivity and smart cars to aid in achieving the goal of smart cities

As major metropolitan cities increasingly invest in advanced technologies to improve the quality of public infrastructure, automobile manufacturing companies are focusing on enhancing the quality of connectivity features in their products to make them compatible with modern cities. For this, technologies like the Internet of Things and advanced sensing devices are being integrated into smart cars so that they can efficiently communicate with other vehicles and public infrastructure. Furthermore, AI-based tools are also being used for predictive maintenance and performance optimization for offering personalized experiences to the user. Advanced in-car infotainment systems, smartphone integration, and over-the-air update systems are expected to become a common feature in automobiles in the years to come.

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