The automotive industry has been around for a couple of decades now. The development of cars has been ever-evolving, with new trends and technologies emerging every year. These changes have been forcing automotive OEMs and Tier suppliers to adapt. Next year won't be any different, let’s see what trends are expected to shape the automotive industry in 2023!
Electric vehicles (EVs) have been around for a few years now. Between 2020 and 2021 the sales of electric vehicles increased by 108%, but in 2023 they are predicted to become even more popular, partially due to the fuel crisis. Several automakers are planning to launch electric vehicles next year, moreover, the price of electric cars is predicted to fall even more in the next couple of years. Proportionately electric vehicles are predicted to make up a significant portion of new car sales in the following years.
Electric vehicles require less maintenance as the battery and motor have far fewer moving parts than conventional ICE vehicles. This could mean that EV drivers are expected to have to spend less time in repair shops and carrying out routine maintenance. Although this is excellent news for the owners, it isn’t such great news for mechanics and aftermarket part suppliers.
The complexity in the development of cars has massively increased and will continue to grow. This is shown by the rise of the software code lines in the car. Nowadays there are about 100 million lines of code in cars, compare to a few years ago this was around 10 million lines of code. These codes are powering features that customers are expecting to have in their new cars, such as driver assistance, safety, entertainment, and map features. Essentially your car will become a computer on wheels, with more self-driving vehicles hitting the roads in the next couple of years. OEMs have recognized this and are trying to compete with traditional tech companies to hire software engineers to fulfill the market's demands.
Automakers are still making money, but they will need to develop a new business model to keep up their revenue. For the future of automotive retail OEMs or vehicle manufacturers (Ford, VW, Toyota, etc.) are looking at the Tesla model of selling direct to consumers. Also, if they want to sell electric vehicles beyond 2023 in the US, they need to adhere to rigorous sales standards.
Data is the new oil in the industry. As vehicles become more giant data centers, there are new ways to make money out of them. OEMs can deliver constantly updated entertainment content to the car and charge for that.
People are willing to give up having private cars. The private car ownership model has existed for a long time now. For many, owning a car is an undeniable logistical necessity and often still represents a status symbol. However, most cars spend their time idle in driveways, and with the rise in fuel cost, this could increase significantly. For instance, the average car in the UK is parked around 90% of the time, and this number has barely changed over the last quarter of a century.
Owning a private car comes with high costs and hassles. Finding parking, having to sit around in traffic during peak hours, and high insurance premiums as well as maintenance costs. Not to mention the environmental impact that making multiple individual trips has. According to research by Accenture, of the 96% of future car owners surveyed, 48% would give up their personal cars if alternative solutions were available.
Hanna Taller is a content creator for PTC’s ALM Marketing team. She is responsible for increasing brand awareness and driving thought leadership for Codebeamer. Hanna is passionate about creating insightful content centered around ALM, life sciences, automotive technology, and avionics.