14 Apr What Lies Ahead For The Automotive Industry?
Automotive industry trends for 2021 and beyond can pave the way to an optimistic future for the industry in Canada, but a strategic combination of resilience and collaboration must be utilized to get there.
As quickly as you found yourself conducting team meetings from your dining room table on Zoom, the global auto sector saw an approximate $100 billion decline in profits this year alone. For both parties this was a decidedly uncomfortable transition, however, it is the ones that fail to adapt to these modern times that will continue to pay the price.
A digital lifestyle becomes inevitable as we look towards an industry future led by increasing automation in the car industry and advanced technological innovation. We will see growth in mobility as a service, developments in autonomous and connected vehicles – commonly known as artificial intelligence (AI), necessary partnerships with the tech industry, and a supply chain overhaul.
In present-day 2021, certain forward-thinking manufacturers continue to aggressively push digital platforms as online sales, contactless delivery, and digital retail start to become a regular way to shop. This also carves out space for an additional consumer market of value-added services post-purchase. Generally, automotive businesses have been slow to adapt to digital trends, but a multitude of success stories in other industries have proven that it’s possible to overcome being late to the party.
As companies think ahead they must continue to adapt with a progressive mindset. The abundance of on-demand services readily available to us elsewhere must be emulated by original equipment manufacturers (OEMs). We are seeing upward trends amongst younger consumers and their preference for subscription-based services, often due to convenience and affordability.
The timely nature of releasing such products and services will require collaboration and cooperation between OEMs and the tech industry. Partnerships between industry players will take precedence when reimagining core operations because of the significant resources required to make such radical changes. Brands should begin to tailor their products towards becoming leaders in specific-use cases, rather than maintaining focus on an automotive convention. Collaborative innovation will prove to be imperative for the success of tomorrow’s automotive companies.
Automation in the Car Industry
These automotive industry trend developments will bring along even more of the smart features drivers are becoming increasingly more accustomed to. With the ability to process information quicker than the human brain, AI has the ability to create a network of vehicles that can “talk” to one another and the surrounding environment, therefore creating safer roadways, commutes, and a reduction in congestion.
In addition to product and service innovation, suppliers and OEMs must focus on making their supply chains leaner and more robust. Global supply chains are fragile. Companies should look to local sourcing and developing a roster of relationships rather than the familiar vertical supply chain.
The Future of the Canadian Automotive Industry
It’s clear that massive change is ahead for the automotive industry. To keep up, new consumer needs must be met, with the help of new and strategic industry partnerships for fresh ideas. Those unwilling to adapt will soon be stuck in an industry of the past.
Innovative Automation is a leading Canadian provider of automation systems to global manufacturers. We provide cutting-edge solutions with diverse applications to a range of industries including automotive, consumer goods, and medical device manufacturing.
Contact us today to explore how our years of expertise in automated systems design can enable your business to increase efficiency, safety, and quality.