Custom Automotive Market Research

Custom Automotive Market Research 1

The future of auto industry will dictated by four major global trends, viz connectivity, electrification, autonomous driving and mobility as a service. The automotive industry as of today looks in a much better shape than what it was a few years earlier with revenues touching close to $7 trillion, and earnings as much as~ $580 billion. This is one of the major reasons why OEMs, tier-1 suppliers, and various tech companies have ploughed in billions of dollars in developing new technologies and services that might differentiate their offerings. The top five auto OEMs spent ~$30 billion on R&D in 2017, an 8% year-over-year increase during 2013-2017 period. The race to build the fully connected car, and ultimately the completely autonomous vehicle, is already under way, more than 350 start-ups worldwide, including 75 in Silicon Valley, attempting to design software, hardware components and systems for future self-driving cars. About 68% of global connected service sales come from premium brands. By 2022, that number will fall to 50% at the expense of falling margins. Although connected services will generate sales of US$150 billion by 2022, these trends will contribute to a squeeze in profits for OEMs and suppliers. Going further, we believe higher R&D expenses will not result in proportionally higher overall sales for auto OEMs. Beyond 2025, the profits of auto OEMs might drop to less than 50% of what it is right now. The only way the OEMs could compensate for that loss is by tapping into digital service offerings via connected and autonomous cars. With so much happening in the auto industry, the auto industry stakeholders need quality custom automotive market research where Mobility Foresights can leverage its industry expertise to help everyone understand the disruptive change.

    Your Cart
    Your cart is emptyReturn to Shop