The race for connected mobility is on! Disruptive trends and a market forecast for the auto industry
Digital transformation is delivering a spectacular race in the connected mobility sector. Great changes are coming up – and even greater ones lay still ahead. Their main drivers are: new high-tech entrants, low prices for new technology and the shift in zeitgeist. Seeing the rapid and intriguing changes in the connected mobility sector, it was clear that CODE_n had to make it one of the major topics of the CODE_n CONTEST `16. Our finalists of the connected mobility cluster inspired us with innovative solutions for the future of mobility. They are all promising competitors in the race for disrupting mobility technologies. But where does this race take us? We will take a closer look at the next stages and give a market forecast for the automotive industry. Ready, set, go!
Where will the race for connective mobility take us?
Disruption in connected mobility – trend #1: digital services
Future cars will offer the full-service package: driving-unrelated services like entertainment or healthcare, as well as driving-related, so-called smart mobility services including car sharing, navigation or technical services. HPE presented a new solution for implementing these services making use of experiences of the telecommunications industry and the internet of things. Find out more about their proof of concept with BMW i3!
Disruption in connected mobility – trend #2: shared and electric cars
We are all witnesses of the shifting zeitgeist towards an increased environmental awareness. This also affects the way we will be driving in the future: electric cars will make 35% of global new cars by 2040, according to Bloomberg New Energy Finance. Plus, in 2030 more than 30% of the miles driven by new cars could be from shared mobility, as said by McKinsey. Mother earth will be thankful!
Disruption in connected mobility – trend #3: autonomous driving
It is coming. And it might not even be far away! Just at this very moment, engineers at Audi, Ford, Volvo and even Uber and Google are going into a huddle over self-driving cars. Prototypes are already being tested. We are thrilled to see the results!
How will the market for automotive industry change?
PwCs “Connected car report 2016” gives deep insights into the market development for the automotive industry. Let’s take a closer look at their prognosis of revenue and profit in 2030 compared to 2015. One eye-catching fact is the huge growth of revenue and especially profit in shared mobility: from 0 to 10% and from 0 up to 20% respectively! Also striking are the increasing revenues and profits for digital services and software suppliers – accompanied by the decrease in hardware suppliers and aftermarket as well as vehicle sales. This prognosis reflects and confirms the overall trend towards new user behaviors and expectations for mobility.
So, what´s the bottom line? “The mobility market is becoming a digital ecosystem.” This quote of our connected mobility cluster patron gets to the heart of the matter. Innovative startups will be the pace makers of this development, or as HPE drafts it on our blog: “Until now the vehicle industry was dominated by a few influential manufacturers and their distributors. In the future, it will become an ecosystem of micro services brokered via online platforms.”