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Automotive Digital Transformation Market Outlook – 2027
The automotive digital transformation can be defined as integration of digital technologies like big data, social media, and cloud computing in a vehicle. The introduction of Artificial Intelligence (AI) and Internet of Things (IoT) in vehicle has revolutionized the automotive industry. The improved manufacturing process of vehicle combined with automated customer relationship and digital marketing has transformed the work culture in automotive industry. Besides, the real time data of vehicle has opened new gates for innovation in the automotive landscape. Additionally, the possibility of vehicles driving themselves is becoming a reality due to collaboration of advanced digital transformation in automobile. Moreover, the convenience and ease of traveling is now achievable due to automotive digital transformation.
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Rise in government expenditure on building vehicle to vehicle (V2V) infrastructure is driving the market of automotive digital transformation. Additionally, increase in sales autonomous and semi-autonomous vehicles are boosting the automotive digital transformation market. Besides, rising internet speeds and integration of vehicle features with smartphones are propelling the automotive digital transformation market. Moreover, growth in technological advancement is fueling the demand for automotive digital transformation. However, underdeveloped cloud infrastructure and rising threat from hackers is restraining automotive digital transformation market. Furthermore, integration of advanced safety features and Advanced Driver Assist System (ADAS) due to automotive digital transformation is proliferating the market growth.
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The automotive digital transformation market trends are as follows:
Virtual showrooms triggering the growth
Vehicle buying was a lengthy process without the introduction of digital transformation in the field of automotive. Moreover, the comparison of features among wide variety of vehicle manufacturers, negations, and others was a hectic and time-taking process for consumers. Today, consumers are researching a vehicle online before even stepping foot in a dealership. The information of features and comparison of vehicles along with prices and 360 degrees view of vehicle is now possible with the help of digital transformation. Additionally, consumers could look for user experience of a vehicle from the shared reviews. Moreover, the virtual showrooms growth has benefited the dealerships by reducing the inventory cost. In 2020, Nissan launched virtual showroom in India. Besides, the Audi virtual showroom launched in London is attracting significant customers.
Mobility-as-a-service to nurture the market growth
With technological advancement due to Artificial Intelligence (AI) and Internet of Things (IoT)in vehicles, the connected living has now become a reality. The integration of smartphone with automotive sector have enabled new possibilities in the research and development landscape. Moreover, the continued emergence and dominance of private and public ride sharing services is expected to dominate the growth of automotive sector in next few years. Besides, the launch of autonomous vehicle is developing the ride sharing experience to a greater extent. In 2018, Waymo LLC launched commercial self-driving car service for users in Phoenix metropolitan area.
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