Over the past decades, transforming and the evolving vehicle industries have been remarkable. Economic stability, as well as changes in customer’s sentiments and the digital tech, has hugely influenced the transformation. The key players in the industry have taken notes of the evolution and are planning to invest more in the businesses of manufacturing cars.
Therefore, the global vehicle sector is anticipated to start a better phase after the challenging year of 2019, where EOMs were facing several obstacles globally. The United States market experienced marginal growth in 2019, while China suffered its record decline in twenty years. However, the Brexit deal is expected to cause shock waves across worldwide markets as well as accelerate the China trade war. The difficulty is likely to encroach until half way through 2020.
Just like in other years, trends like the decline of sedan sales, value-added services, alternative-fuel power vehicles, and electrified cars will continue to dominate the vehicle industry. However, alternative, as well as a new form of car ownership, is turning out to be popular. For instance, e-powered ride-hailing and subscription services are hugely embraced across all automobile sectors.
Discover the Top 10 Trends
1. Agility and Innovation
IT departments are integral parts when it comes to strategic processes of decision-making. Furthermore, the experts are vital in the production pipeline, product development, and commercial departments. The application of agile techniques drives all innovations in vehicle sectors. The plans are impactful in listening to understand the needs of consumers. With the pace set, the plan is being adopted by most automobile players, and it’s anticipated that agility will heavily influence the vehicle sector in 2020.
2. Connectivity and data
Connectivity will play a crucial role in the future of cars. For a safer driving experience, vehicles will be fitted with high-speed connections. Therefore, to display 3K to around 4K video, a high bandwidth connection is required. Several companies have embraced the technology for diversity mobility and digitization of the leading drives in automobile sectors. Furthermore, the connectivity will also influence data gathered in public transport, traffic, parking as well as environmental problems. Connectivity will aid through the collection and processing of data. The trend is expected to be seen in 2020 across all departments of the car industry.
3. Electric and autonomous vehicles
To get efficient autonomous and EV cars, it’s anticipated that it shall take a little bit longer. However, the industry is hyped about electric vehicles and autonomous vehicles. Battery tech is developing quickly and expanding to provide efficient EVs. However, so far, no car can compete with the performance of combustion engines. The trend is expected to change in 2020, where the electrified vehicle technology is being developed.
Furthermore, pressure from WAC, where the automotive industry has to focus on the needs of customers of greener vehicles, which do not use fossil fuels, will play a massive part in this trend. The climate crisis is forcing the industry to find a new ecosystem to change the emission cases. Therefore, the project is expected to be accelerated through government legislation and pressure from consumers.
4. Usage-based Insurance package
It’s anticipated that the insurance packages will reach the markets in plenty in 2020. The rise of the sensor has led to the modern vehicle knowing a lot about a driver. For instance, driving patterns, driving incidents and behavior is something cars know about drivers. Thus, vehicle owners who offer insurer access to data will enjoy various personalized packages. Well-behaved users are likely to obtain the packages at better rates. However, chaotic and reckless drivers may experience raised prices for insurance packages. Insurers have the tech of AI and sensor that measures speed, airbag deployment, hard breaking frequencies as well as an area where cars are mostly driven. Therefore, insurance will have a better platform for imposing their prices on packages.
5. Self-driving vehicles
The future of vehicles is built on self-driving, and the future is now. Localization tech such as GPS, Wi-Fi, 5G, and Bluetooth have made self-driving a reality. It’s anticipated that by 2020 such vehicles will be spread all over the globe. Self-driving will be important by6 lowering the number of accidents as well as a fatality caused by errors of drivers. However, although automating driving may be a long path, it’s expected that within a few months, drivers will enjoy automation.
6. Monitoring as well as tracking devices
Presently, vehicle tracking systems are a reality. Large numbers of sensors are incorporated in cars. Besides, the manufacturing industry is implementing software by requesting software developers to provide the best. With this, apps and tools are used by drivers to take good care of the cars. The systems are also equipped such that they can meet emergencies of drivers. For instance, in events of car accidents, the tools help by calling for help and offering coordinates of locations. Therefore, the point is obvious, saving the drivers in an unprecedented manner.
7. Better customer experience in vehicles.
Voice control system and navigations have been a total mess. Nearly everyone has experienced the case where the system asks for customers to make a command which gets implemented after over five minutes. However, the situation is about to change, where companies are adopting better systems like the Apple Car Play that reflects what is in the phone and creates seamless transitions between the iPhones and cars
8. Shorter model cycle
You should realize that digitalizing pressure is much more than including new digital features. The average lifecycle of vehicles also models the lifecycle of technology with drivers advancing with new tech that comes up. As such, it’s anticipated that in 2020 the vehicle industry will experience model cycles transition from the five years to eight moves to around one to two years. Short-term leasing will become the new norm replacing the long-term purchase. Manufacturer’s preparations for blending with the change are reflecting on the potential of transition in 2020.
9. Predictive maintenance
In the past, drivers found it exciting when vehicles alerted them about due oil changes. The possibility of keeping track of mileages was a big deal back then. Nevertheless, cars pull a lot of data, which is sent to the cloud for processing. Besides, the data is used to alert drivers about potential matters like engine trouble or things that are about to happen. The predictive features are anticipated to pick up in 2020, where failures of cars can be predicted a month earlier.
10. Improved vehicle-buying experience
It has been stressful to procure new cars. Customers want to find the exact models they need, to haggle prices, find solid loans as well as doing legal work to make sure the buyer will not spend the huge sum on a lemon property. The process could take several hours, which is not a fun way of spending time. However, in 2020 tech will make the buying easy without even visiting showrooms through apps. The plan also has benefits for a dealership that does not require huge space for customers.
5 Must-Know Statistics About The Commercial Vehicle Industry
1. Digital advertising
Transformation is highly embraced in the digital landscape of advertising to meet the needs of clients. Most consumers are adopting digital ways of shopping and finding vehicle recommendations. Therefore, the 2020 markets and vehicle departments will be impacted by the online presence of brands and customers.
2. Time spent on vehicle shopping drops
Presently, vehicle buyers need little time to shop by making decisions quickly. The customers spend twenty days in the market compared to the average ninety-six days in 2017. Time management has been made possible through online tools as well as accurate data.
3. Consumers feel owing cars is costly
Almost fifty percent of buyers find procurement as an expensive way of acquiring vehicles. This comes with the percentage of cars that cost fifty thousand dollars, growing from six to twenty-three percent from 2012 to the year 2018. The rise in price also led to escalated interest rates.
4. Most buyers who call and don’t get the desired models to have any alternative from dealerships
Dealers fail to get the preference of customers, nearly seventy-five percent when called. However, the trickiest part is that around seventy-two percent of the dealers also fail to ask for appointments. Thirty- five percent of dealers do not suggest alternatives according to Dealix survey.
5. Phone calls are valuable leads
Customers that place inbound phone calls easily convert thirty percent faster compared to others who never call. Realizing phone call is the fastest track when it comes to conversions, marketers should make calls.
Thanks for reading "Trends That Will Transform The Commercial Vehicle Industry Outlook in 2020", by the Linchpin Team in Chicago, Raleigh, and Wake Forest.