Top Digital Transformation Trends in Automotive Industry

digital transformation trends in automotive industry

Top Digital Transformation Trends in Automotive Industry

The automotive industry has long been a transformative industry with creative solutions. Automotive Industry is one of the trendsetters and customer-centric industries among manufacturing industries. The technology trends in the Automotive sector account for the changing consumer behavior, develop partnerships and drive transformational change. Technologies like Artificial Intelligence (AI), Big Data & Analytics have been embraced for a while, while more recent technologies like the IoT and blockchain find various applications in the automotive industry as well. The automotive industry is planning for a major shift in 2021 with the rapid digitalization of the planet. In the last ten years, the industry has seen unimaginable twists and turns. They have become smarter, safer and higher speeds capable.

1. Electrification of Vehicles
The rise of fossil fuels and their use have turned the car industry's viewpoint into electric vehicles (EVs). Cars contribute to 15% of CO2 emissions that deplete valuable reserves of fossil fuel and cause potential irreversible damage to the environment. Electrical vehicles, by using higher energy efficiency and less fuel consumption, are on the contrary addressing the challenges. More than 1.6 million electric trucks were on the United States road in August 2020. By 2024, this is exponentially above the projected 1.4 million.

Electric vehicles do need high price solutions, bad batteries, insufficient charge infrastructure, electric fleets and renewable power-based charging networks to gain greater acceptance and acceptance by the public.

2. AI based Unmanned Automobile
This word instantly reminds us of the world's richest person. Oh God!! what an amazing person he is, never mind, Elon Musk predicts that the AV "can only become normal. Much like a lift. They had lift operators and then we built a few easy circuits to just get lifts to the floor you are at, just push the button. The lift is not appropriate for anyone. The car would just be like that." Thanks to cooperation between many advanced technologies, vehicles can be driven themselves. AV (Autonomous Vehicles) essentially addresses all circumstances and all environments from GPS to sensors to cameras to networking and algorithms. Overall, it is an amazing example of digital transformation in the automotive industry.

AV is expected to lower car accidents and fatalities, and offer travel freedom to those previously limited. Another facet of independent driving is helped-driving, which is more and more prevalent every day. The aim is to make this feature easier to use in the cheaper versions. The support technology is projected to be so effective in minimizing injury and cost of insurance that it will save upwards of one trillion dollars and, most importantly, more than 900.00 lives for customers in the next 10 years.

Self-driving technology is being experimented with all over the world, but not as widespread on the road. Different laws and barriers inhibit growth as the threat to cyber security increases exponentially, as with any information that is digitized and associated with the Internet.

3. Blockchain
The second generation of the Internet was aligned to Blockchain. It is capable of changing the structures of an enterprise. This includes the transmission of vehicle data through a secure communication network and common mobility solutions, such as road hailing, urban transport and deliveries.

Blockchain is used to maximize efficiency over supply chain and back office jobs in the verification process. It can be used to enhance knowledge about vehicles and utilization data in business in management and incentives. In the coming year, the disturbance in car blockchain is expected to increase.

4. Connected Supply-Chain and Strengthened Production
As we have seen in other sectors, digital processing patterns are used to tailor the experience of a customer and respond to their needs. There is no distinction between the automotive industry. By digitizing the linked supply chain, it lowers costs, involves the customer more efficiently and gathers and utilizes information to serve customers better. The industry recently switched to a decentralized approach to both manufacturing and the supply chain, leaving domestic and regional production. This allowed more transparency, accelerated design, manufacture and distribution in the supply chain, in addition to lower costs.

Social networking and the Internet of Things allow communication to provide instant feedback to the smart factory. An intelligent plant utilizes advanced algorithms and AIs in order to perform tasks like scheduling and working flow control, and has robots working on assembly lines along with people. These integrated technologies improve efficiency and minimize defect rates as demonstrated in the German small electronics factory. The plant was automated 25% in 1990, compared to the 75% automation currently available. Additional digitalization lowered the defect rates down to less than 12 per million with 8.5 times the output.

Despite obvious financial barriers to the development of these intelligent factories, this barrier will probably be overcome by huge changes in production, flexibility and efficiency.

5. 3D Printing
There is still a request for new cars and replacement goods in the automobile industry. The need to maximize production and streamline supply chains and logistics is also spiking the hunger for modern, better efficient vehicles. 3D printing is one technology that leads to these challenges. In all automotive manufacturing areas, 3D printing technology is being explored. In addition to its broad use for quick prototyping, the technology is often used to manufacture tools and finished components.

6. Advanced Data Security and Protection
Being the second most databased sector in the world , this industry and manufacturers are collaborating with software companies.

Modern intelligent automobiles collect traffic pattern information, drivers, their frequent destinations, etc. This knowledge is useful in conjunction with drivers and communications. However, to protect driver information, connected systems must be safe. That is why manufacturers are in the continuous search for new defense and safety advances.

7. Manufacturing of Digitized Vehicles
2021 will be another year of challenges and transformations that move the world closer to a technologically advanced future in many steps.

As soon as most people assume, innovation in the industry will be checked and/or used. Often beneficial to the world and also to drivers is digital transformation. Manufacturers still have many obstacles to overcome; however, the automotive industry shifts for the best and the better.

8. Predictive Maintenance
It collects vehicle performance information, loads it into the cloud, and assesses any danger that the software and/or hardware of a vehicle will malfunction. The driver will receive a notification and advice on any maintenance or service required to prevent accidents or incidents after processing the details. In general, the need for guessing removes predictive maintenance technology, which is likely to be a step closer to digital transformation in the automotive industry.

9. Digital Transformation in the Car Buying Process
The process of buying a car was frustrating and the angry salesperson's stereotype proved true. Buyers have also been misinformed and stressed the most when they purchased a new vehicle. Buyers can, however, check their favorite car online before visiting a dealership with new digital technology.

2021 could be an exciting year for customers because other sectors are already waves of IoT, artificial intelligence, Blockchain, and other emerging innovations. Such innovations are also intended to affect the "digital automotive" industry, thereby understanding the need for digitization in the automotive industry.

Bottom Line
Well, the question lies how many years down the lane we would be completely digitized..? As for now, the digital transformation is the long way and cannot be achieved in a short period of time. At Aximind , we encourage you to begin with the appropriate digital trend which will help your company the most. But don't ever miss something important, keep your finger on your pulse.

Do you want to work with us?

Developing a plan that is custom-built for your business.