Connectivity and Security to be Vital Features in Vehicles
Global Automotive Industry Outlook identifies connectivity, security and women as notable trends within the car industry.
Car sales are expected to peak in 2015, as the average age of the car parc crosses 13 years in the US and 10 years in Europe. Global sales are projected to grow by more than 5 per cent to reach 91.5 million vehicles, of which the US market will account for 17 million units and China, more than 26 million units. The most important trends influencing the market in 2015 will be ridesharing, intelligent mobility, and big data analytics.
New analysis from Frost & Sullivan, Outlook of the Global Automotive Industry in 2015, finds that the vitality of the US and European markets is expected to offset the slowdown in the emerging markets.
As technology continues to evolve at an astonishing rate, over-the-air updates are becoming critical to enhance the value of the vehicle and provide a seamless experience to the user. The trend also highlights the importance of security. The focus of automotive original equipment manufacturers (OEMs) is not just protecting the vehicle from malwares, viruses, and remote hacking into crucial vehicle control systems but also protecting the back end of all the connected services.
‘The value of electronics is set to soar well over 70 percent of the vehicle’s value due to vehicle automation and connected car features,’ said Frost & Sullivan Automotive & Transportation Program Manager Shwetha Surender. ‘Protecting the car and its back end is a priority for OEMs to prevent any brand dilution.’
Another notable trend is the rise of women as a vital target market. OEMs such as Fiat, Renault, Jaguar and Porsche are aiming key vehicle models at women. Smaller city cars had already adopted this strategy but now, traditionally ‘male’ categories such as luxury vehicles and SUVs are following suit. The top 10 OEMs are forecast to launch four to five vehicle models specifically for women by the end of 2015.