How the Automotive Industry is transforming itself for the next decade

Electric cars are inevitable thanks to companies like Tesla leading the industry, showing them the way and also making investors very happy with a record-breaking valuation in the process.

Legacy R&D centres of auto companies in Detroit and Japan are now working intently with machine learning, analytics, artificial intelligence startups to gain a competitive advantage. There were over $11.9 billion of M&A deals only in 2020 most of which were in pursuit of CASE technologies i.e. Connected, Autonomous, Shared, Electrified solutions that will drive the future of the auto industry

Electric cars that are connected to the cloud and are autonomous can open up a plethora of opportunities to serve consumers by leveraging a robust infrastructure of hardware and software. 

So what are the key technological trends that will build this robust foundation for the auto industry? Let’s take a look at three such trends:

LIDAR and why it is likely to become the driving force behind Self-driving cars:

LIDAR is a short-range form of radar that allows self-driving cars to get a 360-degree view of the environment around them on a real-time basis utilizing lasers. This technology is at the centre of making autonomous vehicles safer and therefore critical to the success of bringing autonomous vehicles to the masses.

Although, there have been a lot of debates about the effectiveness of LIDAR compared to the use of cameras with computer vision capabilities (read: Tesla; more auto companies are choosing LIDAR due to its effectiveness when leveraged effectively with neural networks and artificial intelligence. 

Currently, hardware and software solutions based on LIDAR are being adopted by major car manufacturers across the world including Audi, Toyota, Volvo and even Google’s Waymo project. LIDAR is heavily supported by developers and although the sensors are expensive, likely, the cost would only decrease as more and more manufacturers are entering the space.

How Blockchain will elevate Customer Experience in the auto industry

Blockchain and its impact on the auto industry are underrated. Right from the time of manufacturing, to car delivery and even when the driver is in his vehicle, data is being shared at each stage. With stringent regulation on data privacy, there is an ever-increasing liability of tech companies when it comes to the security of this data. Blockchain is the answer to these challenges.

Recently, BMW iVentures invested in a blockchain startup that allows tracking and tracing of their vehicles across the supply chain and that allows them to save hundreds if not millions of dollars in vehicle recalls. This is an excellent example of the power of blockchain.

More and more blockchain startups are exploring ways to deliver powerful solutions such as transaction processing for carpooling and similar such monetary applications in commercial vehicles.

How Digital Twins will help manufacturers and consumers:

Digital twins are being used heavily by the auto industry to hasten the design, testing and manufacturing process. Auto companies have been using these for quite a few years; however, the future of digital twins is even more versatile. The digital twin will not only emulate the aerodynamics of the vehicle to ensure a more effective design on the factory floor but also will help consumers save money on maintenance by providing visual feedback on their vehicle’s engine’s status. 

In conclusion, it’s pertinent to note that the automotive industry is not only innovating how their cars function but also how the overall customer experience changes to be relevant to their overall mobility requirements.