By Igor Valandro, CEO at Air-Connected Mobility

Igor Valandro, CEO at Air-Connected Mobility

The automotive technology market is poised to reach over US$100bn by 2028, with a compound annual growth rate (CAGR) of 8.21% anticipated between 2023 and 2028.

This is a strong indicator of the central role technology has in the evolution of the automotive sector. In the fleet market, for example, the fleet management systems market size was valued at US$22,307m in 2021 and is expected to expand at a CAGR of 10.77% during the forecast period, reaching US$41,214m by 2027. At the same time, tech giants such as Google and Tesla have expressed their interest in the sector, integrating more advanced technology into their vehicles. Where skills and resources are limited, collaborations between automakers and technology companies have emerged.

As we approach 2024, we’ve gathered insights from our team and extensive international network to identify the primary tech-driven trends expected to dominate the automotive landscape in the coming year, from a surge in demand for EV and hydrogen-driven cars, to the advent of autonomous vehicles, connected cars, intelligent infotainment and a strong focus on safety.

Within the spectrum of cars powered with alternative fuels, it is important to note that fuel-cell electric cars recharge faster and have up to five times the range of other electric vehicles, consequently we can expect an increase in demand for these vehicles. Many consumers were still sitting on the fence about electric due to concerns regarding the availability of charge points and the distance they are able to run on a single charge. German start-up ChargeX, has actually developed a modular EV charging solution that converts parking spaces into charging stations specifically to target drivers undecided about making the switch.

Overall, consumers are making ethical choices when it comes to cars, from selecting greener models, to car-pooling, to relying on subscription-based services for flexible ownership. New EV models also address environmental concerns, as they only emit water from their tailpipes and release 54% fewer CO2 emissions into the atmosphere than petrol-powered models and even some heavier model makers in China, Japan, South Korea, and United States are opting for this technology on their SUVs and trucks.

Another trend dominating the 2024 scene is related to autonomous vehicles. AVs have been playing a key role in collective imagination for decades, but no longer belong only in sci-fi films: reports suggest that a full 40% of the mileage driven in Europe could be covered by autonomous vehicles in 2030.

AVs are now reality and will play a key role in logistics and public transportation, improving last-mile deliveries and reducing downtime, but also improving public safety thanks to the sophisticated sensors and algorithms they rely on. Where there is partial automation, recognition systems and AI can in fact promptly detect if the driver is suddenly unwell or suffering from fatigue, reducing the risk of accidents.

As tech-driven innovation redefines the automotive sector, manufacturers are ensuring their new models are natively connected to the IoT via wireless technology or, if this is not possible, they are partnering with technology providers that can support them with tools to interact with the city around them, with other vehicles and improve vehicle safety.

Connected devices allow to hugely improve the accuracy of geolocalisation, helping to retrieve stolen cars, which are typically stored deep underground where traditional GIS signals lose their reach. Other connected car functionalities showing appeal for consumers are: digital data and remote diagnostics, full vehicle health reports, data-only telematics, access to 4G LTE Wi-Fi Hotspots, live directions and integrated assistance. In particular, access to vehicle health information, updates and diagnostics can help improve safety for car owners and integrate with insurance providers for more tailored products.

Improved connectivity is without any doubt a key driver of this digital transformation. The increasing availability of 5G, facilitating faster data transmission, higher network and bandwidth capacity and security, is finally enabling V2X and networks of interconnected cars that communicate with each other and the environment around them.

Connectivity is also reshaping in-car entertainment, with advanced infotainment tools that integrate seamlessly with the driving experience becoming in high demand. Already, in-vehicle entertainment connects with ADAS, smartphones, apps and sensors, but in an IoT-integrated world, these should start to connect with other vehicles and urban architecture.

Technology and digital innovation also play a key role in ensuring a higher level of safety for all parties involved. Highlighting this, last year the European Commission updated the General Safety Regulation (GSR), establishing mandatory safety requirements for cars sold in the EU. The new safety measures are aimed at better protecting passengers, pedestrians and cyclists across the EU, expectedly saving over 25,000 lives and avoiding at least 140,000 serious injuries by 2038.

The transformative impact of technology on the automotive industry is undeniable, reshaping the processes of driving, purchasing, and manufacturing cars in a profound and enduring manner. As we approach the year 2030 and the ambitious carbon goals set by Europe, innovation also emerges as a crucial driver for advancing sustainability. However, this automotive revolution extends beyond sustainability, encompassing enhanced safety measures, seamlessly integrated infotainment systems, and the facilitation of intelligent features such as advanced car alarms and personalised insurance.