Five Trends That Will Shape the Global Automotive Market in the Next Few Years
Global automotive growth is set to outpace the progress of established markets. Currently accounting for nearly 60 percent of total automotive profit, emerging markets are projected to grow at more than three times the rate of the established markets. By 2020, emerging markets will account for two-thirds of all automotive profit. China is the driving force behind this transformation. The following are six trends that are likely to shape the global automotive market in the next few years. This is a good time to invest in global automotive research and development.
Globalization has accelerated the process of globalization in the automotive industry, leading to more complex production networks and value creation structures. In addition to the complexity of supply chains, some vehicle models are produced at one location and sold throughout the world. However, demand structures have changed enormously in recent years. For example, Asian demand for large SUVs has increased significantly, but North American production capacities have remained the same. This means that there is less room for differentiation among premium OEMs.
The automobile has evolved from simply being a mode of transport to a sophisticated device that caters to a plethora of consumer needs. Automobiles can now sense road rage and react with a “Mood Burst,” while improving fuel efficiency and passenger safety are just as pressing issues. Ultimately, the automobile must be sustainable, and the innovation industry must adapt. But what does the future hold for the automotive industry?
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