By Bertrand Boisseau, automotive sector lead at software firm Canonical

Bertrand Boisseau, automotive sector lead at Canonical

In 2023, we will see specific trends regarding technology all across the automotive industry. The digital transformation will continue, especially in how customers buy vehicles. There will be more online buying, and vehicle maintenance will rely more on predictive maintenance solutions coming of age.

Vehicles will continue to gain connectivity features and services with over-the-air (OTA) updates. As 5G deploys, cars will see 5G modems included, with some leveraging the mmWave technology. mmWave allows for faster speeds and more bandwidth, which could be used for V2X use cases. With more connectivity, vehicles will continue to become an extension of our homes. Video conference calls will be more present as well as other key applications. Regarding infotainment, we’ll probably see more augmented reality (AR) and virtual reality (VR) applications included in the user experience whether it’s for the driver or the occupants.

OEMs and Tier1s are investing a lot in autonomous driving (AD) and advanced driver-assistance systems (ADAS). With upcoming EU regulations, we might see some level 3 (and why not level 4?) vehicles roaming the roads.

As technology is taking a bigger part in our vehicles every year, key partnerships with big tech players will continue to be announced. OEMs most probably cannot take on these challenges on their own. Moreover, as software is growing in the industry, so are the cybersecurity risks. Having strong partnerships with software companies will help on that front.

Whether it’s due to fewer driver’s licences, rising cost of vehicles or environmental concerns, our relation to cars is changing and so is our use. The habits will continue to shift towards shared mobility services of multiple aspects. All of these evolutions will rely on software. And with huge investments being required, playing on a limited pool of skilled resources, open-source software will be the winning key. With benefits for all contributing companies, from common vulnerability and exposure (CVE) patches to shared components that can be validated and audited in a fast and easy way.

Due to environmental concerns and regulation changes, the impact of electric vehicles will be huge on worldwide sales in 2023. EVs will also have an impact on maintenance as they require different changes (less wear, no oil changes, less brake changes, often more tyre wear, etc). Hopefully, this will also lead to more charging stations worldwide – perhaps powered by green energy. As EVs will spread, one can wonder if hydrogen-powered cars will still have a place in our markets. Pushed by governments, the technology is probably coming at the wrong time (high costs, lower energy efficiency compared to EVs, potential energy crisis, etc) at least for cars.

In 2023, according to analysts and OEMs, the industry will still face microchip shortages. These shortages mean that vehicle prices will continue to rise, even more so with low inventory levels that we are now used to. A parallel effect of this situation is that luxury cars will probably sell more. Indeed, as an OEM, if you have a limited number of common components, you’ll favour the high-end models.

To put it in a nutshell, 2023 will see the first big effects of energetic and environmental concerns on consumers and ownership habits and technological innovations will be all the rage with increasing electrification on top of always-available and connected mobility.