There are 273.6 million vehicles registered in the U.S. — that’s an average of 1.97 cars per household, which could drop to 1.87 post-pandemic. The cumulative effect of people driving less is that the equivalent of 14 million fewer cars will be needed.
Across industries, brands should expect an ongoing process of trial and error as they monitor and predict the ways potential buyers in their sectors renegotiate the nature and terms of their participation — and automotive is no different. Will fear of infection through public transit, ride-sharing, and air travel fuel a shift towards more personal and private forms of mobility?
According to the latest worldwide market study by Berg Insight, the number of active aftermarket car telematics units will grow at a compound annual growth rate (CAGR) of 20.6 percent from 58.7 million at the end of 2018 to 150 million at the end of 2023.
The market for factory simulation software products will grow at a compound annual growth rate of 11 percent to reach $4.1 billion for over 172,000 users in 2030, according to the latest worldwide market study by ABI Research.
Juniper found that the move towards 5G will expedite commercial deployments and interoperability, and predicted that the U.S. will become the leading market for V2V deployments. Besides, over 60 percent of new vehicles sold in the U.S. market will be V2V-capable by 2023.
According to the latest market study by Juniper Research, the IoT payments market will grow at an average of 75 percent per year over the next 5 years, reaching $410 billion by 2023. This is up from an estimated $24.5 billion in 2018 — and the most growth will come from in-vehicle payments.
As a report from the World Economic Forum makes clear, we’re at the start of a mobility revolution. By 2040, more than half of new cars sold in the world will be electric vehicles, with 70 percent of market share in Europe, and over 50 percent in China.
Smartphone mirroring solutions, such as Android Auto and Apple CarPlay, have become key features in hundreds of car models in 2018. Mainstream automotive OEMs, such as Ford, GM, Groupe PSA, Honda and Volkswagen, have the highest percentage of new vehicles sold with the capability, either as a standard or optional feature.
Globally, the U.S. and China are ahead in the self-driving race. Germany and Japan, despite being famous for their autos, are behind. “The key difference is AI,” said Tony Han, co-founder of China-based autonomous vehicle company JingChi. “China and the U.S. are leading in AI.”
Source: Knowledge at Wharton