Gartner unveils five key technology trends in the automotive industry, citing “software” as a key driver of profit growth for automakers.
Pedro Pacheco, senior research director at Gartner, said: Over the past century, automakers have focused on engine development. by letting someone else develop the software instead As digital technology becomes a differentiator in cars And software will become the main profit growth driver for manufacturers. The auto parts makers will eventually transform into a technology company or a software development company.
Gartner unveils five key technology trends for 2022 that IT executives should consider as they prepare for the software, hardware and digital transformation that is taking place in the automotive industry.
Trend 1: Automakers will rethink their parts procurement practices. (Hardware) Automakers are considering a long-term inventory strategy based on Just-In-Time (JIT) inventory management principles. Tier 1 suppliers do not have stock during chip shortages. Forcing automakers to rethink how to deal with chipmakers. including considering the development of their own chips
Gartner estimates that by 2025, half (50%) of the top 10 auto parts and equipment manufacturers will will produce their own chips and establishing strategies and long-term relationships directly with chip manufacturers and abolishing just-in-time manufacturing (JIT) systems
Trend 2: Tech giants will play a key role in the automotive ecosystem. 2022 will see digital giants such as Amazon Web Services (AWS), Google, Alibaba or Tencent expand their business in technology-related. continually related to automobiles These tech companies are increasingly bringing cars into their own business-related ecosystems. which will eventually open as a service to connect technology to cars in new ways
Gartner estimates that by 2028, about 70 percent of vehicles sold will run Android in their cars, up less than 1% today, as self-developing technology and software is a concern. Difficult, so auto companies partner with big digital companies to turn their software into a key revenue stream. Or create a large number of internal resources to achieve organizational goals on their own.
Trend 3: Open Data and Open-Source Collaboration: Continuous Success Last year, tech companies built open-source operating systems and open electric vehicle (EV) platforms, which have spurred new forms of collaboration. in the automotive industry more and more this year
In addition, automotive companies are increasingly focusing on data in the same way that the tech world sees it. “The goal of the company is not to sell information. but to bring data to create or integrate an ecosystem that will allow access to more diverse data Its purpose is to develop more attractive digital features or services.
Trend #4: Automakers Add Over-The-Air (OTA) Software Updates as Their Major Digital Revenue Channel Last year there was a big change in the Over-The-Air automotive software market. Air (OTA) when many manufacturers started offering software updates in such a way.
Most automakers update their car’s hardware to enable software updates. They are now starting to shift to a service-based revenue model rather than product sales.
Gartner analysts expect that by 2023, half (50%) of the top 10 automakers will offer the ability to Unlock and upgrade through software updates that can be purchased after the sale of the vehicle.
And Trend 5: Driverless Vehicles, with additional regulations and commercial barriers that have not yet disappeared. Although the detection technology (Sensing Technology) has improved. But the recognition algorithm has become more complex, and rules and standards have been developed in various fields. is progressing as well Driverless vehicle developers continue to face the challenge of expanding their footprint to new cities or areas. continuously
The automaker has begun rolling out Level 3 self-driving cars and is working on deploying Level 4 autonomous trucks as well as a taxi (or robotaxis) shuttle service system for commercial use. However, testing the safety and effectiveness of automated technology still takes time. and a comprehensive driving simulation model, including real road testing This makes commercial production slow and costly. There are also issues such as liability in the event of an accident. Relevant laws and social considerations such as how human-powered cars interact and AI-powered cars are raising the challenge.
The high cost of R&D in robotaxis, or Level 4 automation in heavy trucks, has also hindered the speed of widespread automation. It also includes delivering a return on investment (ROI), which is completely contradictory. This is because one of the main advantages of autonomous driving is the reduction in operating costs in the transport sector.
Gartner analysts predict that by 2030 the number of commercial autonomous vehicles will be available globally. (Robotaxis) Level 4 operates 4 times higher than current taxis.