The pace of technological change in today’s globalised world is disrupting established industries, forcing firms to innovate and look at new ways to serve the ever-evolving demands of their consumers. The automotive industry is no different. Long gone are the days where innovation consisted of Henry Ford’s mass production lines, instead we are seeing the rise of automation, electrification, and digitalisation – and with it new players, new geographical epicentres (think China and Silicon Valley), and new challenges.
For the businesses that can successfully navigate these complexities, there are great rewards to be had. PwC estimate that revenue in the automotive sector will grow from $5 trillion to $7.8 trillion by 2030, with profits up by 150% to an estimated $600bn in the same time period. Revenues in the connected car market specifically will nearly quadruple between 2015 and 2020, led by driver assistance and safety technologies.
Interestingly, it is the new entrants that seem to have the upper hand, with anticipated market share addressable by the traditional OEM model declining from around 70% now to less than 50% by 2030. Concurrently, growth is being driven by emerging economies rather than the traditional American, British and German heartlands of the automotive business, with some conservative estimates even predicting negative growth in Western markets…Download PDF