The automotive industry is becoming majorly digitized and controversial. According to IDC Worldwide Digital Transformation Spending Guide, money spent on digital transformation worldwide will exceed $2.1 billion by 2021. If this be so, the automotive market will grow by 17.9% compound annual growth rate. Let’s see what the digitized auto industry can bring…
Automotive Industry is Participating the Digitalization Trend
New research shows that by 2020, growing digitalization and advancements in technology will have increased the automotive industry investments to $82 billion (Forbes). Automotive dealers have understood that they must digitally enhance the experiences of customers. Because customer behavior in researching, purchasing and operating cars have changed substantially. They are more likely to research and buy online. This situation affected the market very quick; dealers and producers have already started to find solutions to meet their customers’ demands. There are 6 major categories of digital transformation trend in automotive:
- Digital sources in car buying process
- Autonomous driving
- Predictive maintenance
- Connected supply chain and improved manufacturing
- Data security and protection
- Mobility-as-a-service (MaaS)
Car Buying Process is Becoming More Digital
The process of buying a car and car parts was stressful and time-consuming for customers. Because they would go to different showrooms and negotiate with the dealers one by one. Knowing the necessity of digitalization, the process is soon to change. 11Sight can help at this point. 11Sight allows customers to start instant 1-1 video chat with the dealer representative. a simple link or QR code. The best part is there’s no need for any download or subscription. So when they are searching online, they will also have completed the negotiation step.
The US automotive industry affects the people both inside and outside the US.
If the auto industry in the USA downfalls, it will have a great impact on people and sectors which depend on American auto technologies.
“The US auto market is becoming more digital. Analysts predict that over $7.4 billion worth of car parts and accessories will be sold using mobile phones in 2019. The figure reported in 2018 was just $5.8 billion. By 2022, smartphone sales are projected to hit the $13-billion mark.” (Carsurance)
The path to transformation will vary in different markets. But one thing is consistent: Those able to install new business models based on consumer input will benefit the most of talent, partners and resources. Once companies implement this kind of strategy, they will be able to go far ahead from their competitors and become industry leaders.