The automotive industry is undergoing a significant transformation, driven by various technological advancements. The convergence of autonomous driving, electric vehicles, connected vehicles, and software-defined vehicles is reshaping the future of automobiles. A recent report by IDTechEx, titled “Future Automotive Technologies 2024-2034: Applications, Megatrends, Forecasts,” highlights the potential of these technologies, projecting a NZ$2.6 trillion (US$1.6 trillion) market opportunity by 2034.
While the report identifies electrification and automation as key drivers of market revenue, it emphasizes the potential growth of services offered by autonomous and connected vehicles. Autonomous cars are still in the early stages, with testing scaling up in the United States and China. However, recent incidents involving Cruise, a prominent autonomous vehicle company, serve as a reminder of the industry’s cautious approach.
Waymo, a leader in autonomous driving technology, has already surpassed 11 million driverless kilometers, showcasing remarkable safety performance compared to human drivers. According to the report, Waymo’s vehicles are 6.7 times less likely to be involved in an injury-causing accident.
Connected vehicles have already become a reality, with original equipment manufacturers (OEMs) introducing new revenue models based on a feature-as-a-service (FaaS) plan. This allows customers to subscribe to specific features of their vehicles, such as a heated steering wheel, as they need them. IDTechEx predicts that these models and features will become more comprehensive and complex over the next decade.
In terms of revenue generation, connected and software-defined vehicles (SDVs) are expected to surpass NZ$1.1 trillion (US$700 billion) annually. The report forecasts a compound annual growth rate (CAGR) of 44.4% for revenue generated through future automotive technology services between 2023 and 2033.
Additionally, the report highlights the growing market for electric vehicles (EVs), specifically the motor, battery, and power electronics segments, which are projected to see a CAGR of 9.8% between 2023 and 2033. The market for advanced driver-assistance systems (ADAS) and automated vehicle sensors is also expected to grow significantly, with a CAGR of 13.7% during the same period. Furthermore, in-cabin monitoring sensors are anticipated to experience a CAGR of 14.7%.
To further delve into these emerging trends, IDTechEx is hosting a free-to-attend webinar on January 30, 2024. Visit their website for more information.
With the automotive landscape rapidly evolving, it is clear that the industry is on the brink of a transformative era. As autonomous driving, electric vehicles, connected vehicles, and software-defined vehicles gain momentum, the potential for growth and innovation in the automotive sector is immense.
The source of the article is from the blog maestropasta.cz