Transportation Industry Trends

The auto industry is one of the largest and most influential markets on the planet. The industry itself, however, has remained relatively stable over the last decade.

What is Changing?

Rapid technological and environmental innovations have forced incumbents to adapt to new challenges. And have to new startups coming out of nowhere. Probably the most important trend in the automotive industry is the worldwide shift to electric vehicles (EVS). After a disappointing 2019 in terms of EV sales, 2020 sales surpassed expectations, growing over 40% year-over-year. Over the last five years, China and Europe have been leading the way in EV sales growth. The U.S. lost some ground after the poor 2019 results. But it’s impressive growth rate in 2020 should increase its share of the global EV market. Sales for BEV and PHEV in Europe increased by 137% in 2020 compared with the previous year (despite a 20% year-over-year decrease in the total car market).

Prediction to Take Place in The 2030s

By the end of that decade, it’s predicted that over 30% of the cars on the road will be EVs. Much of this growth will be driven by regulatory requirements. Several countries have set out to achieve net-zero emissions by 2050.

Net Zero

Searches for “net zero” have increased by 270% in five years. Some countries (and California) have even committed to phasing out all new sales of combustion engine vehicles over the next few decades. It’s estimated that to meet many of these net-zero emission goals, EVs will have to climb to at least half of all new car sales by 2050. This is faster growth than predicted by many authorities, but other initiatives may help.

EV Charging

Increasing battery efficiency as well as EV charging infrastructure can both speed up adoption. Lithium-ion battery prices have fallen by 89% over the last decade, reaching a price of $137/kWh in 2020. In China, it was even reported that lithium-ion battery pack prices fell below $100/kWh for the first time. However, it is estimated that over 60% of all Americans have garages that will allow for electric vehicle charging. The 2020 Tesla Model S Long Range Plus has completely changed the perception of EV range. It can go over 400 miles on a single charge. Tesla scrapped plans for a Model S Plaid+ after the success of the current version.

Tesla

Searches for “Tesla” have risen 151% over the last five years. It’s expected to have a range of over 500 miles. Additionally, Chevrolet, Hyundai, Kia, Nissan, and Jaguar have all released more affordable EVs that have a range of anywhere from 200 miles to 250 miles.

Autonomous Vehicles Change The Face Of The Auto Industry

Autonomous vehicles (AVs) are set to disrupt the auto industry. The AV industry itself is just in its infancy, as there are only 1,400 self-driving cars on the road in the U.S. today. it’s estimated that there will be 33 million autonomous vehicles on the road by 2040. The Society of Automotive Engineers (SAE) “Levels of Driving Automation” standard shows how stages of vehicle automation progress.

The Automotive Parts Market Continues To Grow

The global automotive parts market has been steadily growing for the past twenty years. And it’s this space achieved roughly $723 billion in sales in 2021. Now, 94% of consumers check the manufacturer’s website for product information before purchasing a part. In addition, the auto parts ecommerce industry is projected to be worth $19 billion in 2022. The parts industry is benefiting from the ever-increasing average age of vehicles on the road. The demand for parts is also being diminished by the increasing quality of newly manufactured vehicle parts.

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