Some auto reports have been predicting the peak in auto tech owing to lack of drastic innovations in the industry. The predicted “Carmageddon” is certainly not there yet, but undoubtedly, one can witness most tech innovations in the industry getting closer to a tipping point.
Here are some key trends that will impact car manufacturers (OEMs).
● Increased regulations have led to the demand for sustainability owing to the dictum of ‘purpose beyond profit.’ Automotive brands have migrated towards electric innovation and their strategies are keen on leveraging the sustainable outlook. Advertisers regularly highlight sustainability credentials, with the use of eco-billboards, to bus shelters to green spaces and the like.
● Prevailing opinion is that the technology has reached a decline in the evolution of internal combustion engine and will lead to an emergence of electric cars. More stringent regulations with regards to vehicular emissions will lead to falling battery costs, increase in charging points and more consumer acceptance for electric-powered future. Even luxury brands are migrating towards electric vehicles in the next five years. Tesla is already at the forefront to target mass market with its new Model 3.
Autonomous vehicles leading the “peak”
A key trend in the sector has been evolution of semi-autonomous vehicles. Many cars now feature collision avoidance detection and high driver assistance, with connected cars ultimately leading the world to fully-autonomous vehicles. One can witness the building blocks in place for the implementation and rollout.
Is the peak yet? It is hard to fathom that connected cars or autonomous vehicles are hitting the peak in auto-tech. The cars are expected to use real-time data, just like Toyota cars communicate with traffic lights and other sensors leading to accumulation of data and insights to ‘fuel’ future automotive business models and strategies.
Brands now bank on relevant content for their audience and are keen on targeted advertising through digital and TV. The roadside setup of OOH perfectly targets a relevant and engaged audience. Data integration and image recognition have propelled brands beyond contextual and personalized advertising, connecting directly towards the target consumer.
The target roadside environment was recently explored in BMW’s mini campaign too.
Tech giants controlling the automotive industry
Relationships between motorists and vehicles are skewed to be complicated especially in the autonomous era. OEMs are now adapting to evolving needs of consumers and taking charge of revenue streams, generated outside vehicle production.
57% of consumers are keen on changing their brand affiliations if tech companies like Apple or Google developed cars.
The younger generation is not keen on car ownership; since they depend on services like Uber for transportation and travel. The self-driving market is already prevalent with Waymo, and Amazon is sure to follow suit to the proceedings. These data-rich motors entrants ensure that strong traditional brands are running on the best business data models.
On the other hand, the emission legislations have ensured that the world around obeys them sooner than later. The automotive industry is actually nearing a tipping point and the evolution of new vehicles and concepts have been on the grounds at rapid rate. Focus on smarter consumer needs, green inclinations and changing regulations are the catalyst to this drive.
The automotive ad market and the auto-tech industry are keen on implementing the high ad spend growth to ensure seamless path-to-purchase transactions and insights to improve the next exposure. The boost in electronics, sensors and software is expected to elevate the value of electric drive, autonomous and connected vehicles systems.
Recently, a TechCrunch report made it clear that venture investors believe that independent startups working on autonomous vehicle technologies in Silicon Valley are worth pouring money into. The fund Manager are more confident of ‘change’ than the automakers themselves, it seems. Our money too is on the Venture Capitalists, literally.