Automotive is one of the most profitable and promising industries. The market will grow even bigger in 2023.
FREMONT, CA: The automobile business is today one of the most innovative and dynamic industries, with more innovations and changes in the last 5-10 years than in the previous 100 years combined. Amid the electric revolution, it is a very exciting period for automobile transport and a challenging time for automobile shipping.
From hard metal to software
Scale economies, manufacturing knowledge, internal combustion engines, and fuel have long been defining features of the industry. Innovative and aesthetically pleasing works of engineering, sculpted and engineered to make automobiles faster, more efficient, and more durable.
The car business nearly shifted to a lifestyle industry due to the ability to attract new, younger audiences with software capabilities comparable to mobile applications. In the past decade, however, the emphasis has shifted from the hardware to the software of automobiles, making them smarter. Additionally, software usage aims to provide new connectivity methods between automobiles and their digital networks. In addition to using technology to identify the presence of other vehicles (and to read horizontal street signals), cars will be able to exchange data with nearby vehicles.
Even though manufacturing is still robust, a younger buyer demographic has altered automobiles' everyday functions. Rapidly escalating concerns about global warming have pushed buyers to reconsider their automobile usage. Younger generations are utilizing automobiles less frequently in their daily lives (figures indicate that vehicles are parked 70 percent of the time) and prefer car-sharing services to save the hassle and expense of parking, insurance, and upkeep.
With the rise of electric vehicles, we are witnessing for the first time an automobile component, the battery, accounting for roughly 40 percent of the vehicle's worth. This is altering and rebalancing the capabilities of manufacturing and transport, requiring players in the supply chain to reconsider how components are assembled.
The odd duo
Automotive and technology are learning each other's modes of operation and collaboration tactics. Suppliers of batteries and automakers are becoming accustomed to working together despite their diverse backgrounds. However, the beauty of this new combination is the emergence of a unique cooperation inside the industry. Collaborations forged in the diversity of knowledge and their supply chain must integrate from beginning to end so that all the pieces match this new puzzle.