Skip to content

Three Transformative Trends in the Automotive Industry

When it comes to looking at industries in detail, few are as influential as those in the automotive sector. The automotive market is one of the largest globally, and plays a huge part in the countless industries. It supports and nourishes, from courier services to part manufacturers. The supply chain includes so many different facets, from engine manufacturers, semiconductor suppliers, and everything from tyres, lights, mirrors – the list is endless. The reach of the automotive industry is vast. 
Despite the influence the industry has, it has remained stable throughout the past ten years or so. Manufacture, production and distribution have been level and predictable, which has meant many things including security and confidence in the industry. The stability the sector has had, however, is changing.  
This could be due to a number of contributing factors. The global pandemic certainly played a part, with the drop off in automotive production, followed by a recovery surge. Which businesses had not predicted. New challenges have presented themselves and while more established businesses. Struggled to adapt at speed, smaller start-ups took their place in a market desperate for answers to these new issues. Technological and environmental innovation has also increased in availability, popularity and affordability, which have also forced all automotive players to evolve.  
With the rapidity of changes, it can be hard to foresee what comes next. We have put together a list bringing together three of the most important trends that are likely to affect the automotive industry over the next few years. 

#1. Electric vehicle adoption

Arguably the most important trend likely to hit the automotive industry is the worldwide shift toward the use of electric vehicles. This is expected to be a slightly slower growth over the longer term: online searches for electric vehicles (EVs) have increased 257% in the last five years. The International Energy Agency estimates that EV sales make up more than 4% of all vehicle sales, with China and Europe leading the way. By 2025, 10% of all vehicles are expected to be EVs, and 58% by 2040. 

Manufacturers entering the EV space must pioneer more sustainable practices than they are accustomed to. They need to understand and adapt to new manufacturing processes and possibly an entirely new supply chain. They must consider everything, including engaging trustworthy new suppliers and reliable logistics partners.

This shift into EVs is a critical time for the automotive industry, so the elements that make up their supply chain must be trustworthy and reputable. As failing at this first hurdle could result in a damaged reputation on the EV scene. Forging good relationships with reliable suppliers, partners, and logistics providers will be necessary to secure the business’s future as a leading player.

#2. Autonomous vehicles

One trend set to disrupt the automotive industry is the rise in autonomous driving. Although the autonomous vehicle industry is currently in its infancy with an estimated 1,400 self-driving cars on the road. Experts expect the number of autonomous vehicles to reach 33 million by 2040. The industry, valued at US$54 billion globally, is also projected to grow tenfold in the next five years.

The expected boom in autonomous vehicles is partly due to many well-known automotive manufacturers already investing in the business, with even more likely to join as the technology advances.

Even more so than EVs, the move into autonomous, self-driving cars will mean new technology and even more new suppliers. This addition of elements to the supply chain poses its own challenges. All automotive parts are valuable, and when it comes to autonomous vehicle parts. Such as brake elements, speed sensors, universal joints and cooling rings, this is even more so the case. Choosing suppliers and technology providers is a critical aspect, for obvious reasons. In the same way, partnering with the right logistics provider to deliver the valuable and potentially fragile parts this trend requires is vital.

#3. Connected cars

‘Connected cars’ or vehicle connectivity is a trend that has come about as a result of the increased availability and reliability of 5G. 5G infrastructure is on the rise, and automotive manufacturers are doing their best to keep pace.  

This technological advancement should allow drivers to stay connected at all times. With the top-tier tech companies all vying to offer the best connection technology. The trend of connectivity within the automotive industry is likely to take off quickly. Rapid advancements are prompting automotive manufacturers to source hardware that is unprecedented in this space. The vehicle connectivity element of the automotive sector will continue to change and improve as technology evolves. This trend necessitates a more adaptable supply chain and the selection of a reliable logistics partner. It will be key for all automotive companies who wish to remain current in the 21st-Century market. That they together with their suppliers and delivery partners, work to ensure a constantly improving system. 
These three trends are causing a major ‘shake up’ of the automotive industry, and will continue, to do so in the future. As automotive manufacturing businesses adapt to keep up with the rapid advances in environmental concerns and technological innovation, so too must their partners. These trends impact every facet of the automotive sector. Most notably logistic providers and ever-changing supply chains as they grapple with a more complex journey from A to B. Choosing the right Time Critical delivery partner is more important than ever. 
Royale International is a prime example of an ideal logistic partner for businesses working in the automotive space. With over 25 years’ experience, Royale International is able to adapt and evolve within an ever-changing industry. The global pandemic has also helped us to understand the difficulties that broken supply chains can bring, and how to navigate around difficult situations and unforeseen changes. With a series of account managers from a number of industrial spaces, including both the automotive and technology sectors. They are perfectly placed to help your business navigate these trends. With a global distribution network, Royale international is an ideal Time Critical logistics company to partner with for all your logistic needs. 
Find out more here: 

Want to talk to us about our services or get a quote?

Contact us

Get in touch.

    We only focus on commercial shipments, please provide business email address

    Please refer to the Time Critical quote form here for quotations within 30 minutes