Several automotive industry trends are impacting its future in 2023 and beyond.
These trends involve how vehicles are powered, driven, shopped for, and
acquired. Plus, there are statistics you must know about if you plan to buy a
vehicle in 2023. Here are the top 10 trends shaping the future of the rapidly
changing auto industry and some critical motor vehicle-related statistics.
Trends Shaping The Auto
Industry In 2023
1. Increased Production Of Electric Cars With
Digital Technology
Automakers continue to integrate more digital technology into their vehicles.
Technology companies like Google and Tesla are also working on electric and
self-driving vehicles. As a result, it’s clear that vehicles produced in 2023 and
beyond with be full of technology to address digital touchpoints. There’s fierce
competition to develop software and digital and electronic operating systems to
power and control the new, innovative zero-emission electric vehicles. These
new vehicles will be filled with digital technology.
2. A Rise In Digital Automobile Sales
Automakers in North America and Europe have started giving consumers the
option to skip the visit to the car dealership and pick and purchase the vehicles
they want online. With a computer or smartphone, buyers can shop at their
convenience, explore and select the features they want on a vehicle and get the
financing they need. In addition, dealerships now offer online sales, let an
online buyer use virtual walk-around technology, facilitate at-home test drives
and do home delivery of vehicles they sell. More dealerships will do so in 2023.
3. Increased Sales Of Pre-Owned Vehicles
There is a boom in used car sales going on. Car industry experts anticipate a 9%
growth rate in used car sales between 2019 and 2025. The demand for used
automobiles is rising, particularly for vehicles four years old or newer. These
vehicles have many of the latest automotive technologies but are not as
expensive as new ones. This includes pre-owned electric and hybrid
automobiles. Dealerships now have inventories full of certified pre-owned autos
that look, feel, and function like new cars but cost much less. Low APR
financing also helps make pre-owned vehicles very attractive
4. More Connected Cars
Connected cars are vehicles connected to the Internet of Things using wireless
means. These vehicles provide a safe, comfortable, convenient multimedia
experience by using on-demand features that allow you to do anything you want
on the web while in your vehicle. Connected cars can communicate
bidirectionally with various other systems outside their local network. The
vehicles can share internet access and data with devices inside and outside the
car. Connected cars now send digital data and remote diagnostics, vehicle health
reports, data-only telematics, access 4G LTE Wi-Fi Hotspots, get turn-by-turn
directions, warn of car health issues and directly intervene to prevent
breakdowns. Over a billion customer requests were processed by 2015, and
connected car technology will explode on the scene in diverse ways in 2023
using predictive intelligence and maintenance technology
5. More Innovative Online Marketing Strategies
In China, automobile dealers use third-party e-commerce platforms to market
cars, schedule visits, and book test drives. Social media influencers will
significantly engage consumers and generate interest in the new vehicles hitting
the market in 2023. Technology enablers like Roadster, G Forces, Digital
Motors, Sophus3, and CitNow power the automotive ecosystem and engage
customers digitally with compelling images, captivating presentations, and
potent pitches. And car buyers can expect much more of it in 2023.
6. The Emergence Of Fuel Cell Electric Vehicles
In 2023, the worldwide emergence of fuel cell electric vehicles is poised. More
and more people embrace fuel cell electric vehicles because they recharge
faster, have up to 5 times the range of other electric vehicles, and only emit
water out of their tailpipes. Many cars, truck, and SUV manufacturers are
investing in fuel cell electric vehicle development. China, Germany, Japan,
South Korea, and the United States are backing fuel cell electric auto
technology. So, 2023 could be the year they break through.
7. Shared Mobility
Shared mobility is a new business model growing in popularity that’s an
alternative to vehicle ownership in the traditional sense. With shared mobility,
two or more people use the exact vehicle with short-term access. It’s mobility-
as-a-service like Uber or using a personal rental. This demand-driven vehicle-
sharing arrangement has become a lot more popular in recent years. New
companies offering shared mobility options are popping up daily, creating a
creative, affordable, convenient alternative to vehicle ownership’s high costs
and many responsibilities. Shared mobility is expected to grow dramatically in
2023.
8. Autonomous Self-Driving Vehicles
Autonomous self-driving vehicles are here and will be more prevalent in 2023
and beyond. Research has shown autonomous vehicles are safer, reduce
downtime, expand the last-mile delivery scope, reduce driver fatigue and
negligence-related accidents, improve fuel efficiency by 10%, and reduce CO2
emissions by 42 million metric tons annually. Several trucking companies have
installed self-driving technology and have tested it at locations nationwide.
Beginning in 2023, it will become commonplace to see a fleet of autonomous
self-driving commercial trucks or a self-driving Tesla in the lane next to you.
9. Truck Platooning
Another automotive industry trend you will see more in 2023 is truck
platooning. This is when multiple trucks use vehicle-to-vehicle connectivity to
drive close behind each other while traveling at high speeds. Truck platooning
will become more common in 2023 and beyond because research has shown
that trucks driving in this type of formation increase their fuel efficiency
exponentially. Truck platooning is particularly effective when used in
combination with autonomous freight transport. As autonomous self-driving
trucks become more commonplace on the road, so will the use of truck
platooning.
10. Automakers And Technology Company
Partnerships
With the rapid rate at which new technological advancements are being added
to cars and other vehicles, it’s not surprising to see automakers and technology
companies forming partnerships. Electric, connected, and autonomous vehicles
require specialized software and advanced technology to function safely and
correctly. Car, truck and SUV manufacturers must either make massive
investments in their technology divisions or partner with tech companies that
can design and produce the new operating systems the next generation of
technologically advanced automobiles will need. In 2023 you will see many
more automobile manufacturers and tech company partnerships.
10 Must-Know Statistics
The emerging automotive trends are caused by and are creating several
significant changes in the habits of consumers. Here are ten must-know
statistics that can help you see those trends’ impact.
1. In the United States, automobile dealerships and auto parts stores make up 20%
of the country’s retail sales. That is the largest sector of the total U.S retail
sales.
2. In 2020, the automotive industry in the United States employed 4.1 million
people and contributed $562.2 billion to the country’s gross domestic product.
That’s 2.5% of the GDP.
3. Electric vehicles release 54% fewer CO2 emissions into the atmosphere than
even the newest gas-powered vehicles.
4. There are 1.2 million electric vehicles in use in the United States today. There
are expected to be 18.7 million by 2030.
5. Under the new NAFTA, 75% or more of the components of American cars
must be manufactured in the United States, Canada, or Mexico.
6. Currently, vehicles assembled in the U.S. are made with about 40% to 50% of
imported parts.
7. Of the auto workers building those cars, 30% or more must earn $16 an hour.
The number will increase to 40% in 2023.
8. Automobile industry experts predict in 2023 and beyond, car subscriptions will
become the most popular alternative to private ownership of autos. They see
the car subscription programs having a 23.9% share, with car-sharing and ride-
hailing making up only 1% each.
9. The self-driving truck market globally is anticipated to be over $1,699 billion
by 2025.
10. About 50% of small businesses say that truck fleets will be completely self-
driving in 20 years. More than 35% of them say it could happen in 10 years.
