Forecast 10 Trends of Global Automobile Industry in 2021

2021-02-09 11:15

The severe trend of the global epidemic in 2020 not only severely damages the global automobile industry, but also brings a kind of "power" by the way. It also makes major institutions make some surprising predictions when they look forward to the global automobile industry in 2021. Forbes website publishes research articles on the top ten trends of the global automobile industry in 2021, and you can clearly understand this "driving force".

According to reports, the article comes from savant Sinha, a senior analyst at Frost & Sullivan, a market consultancy. In his prediction of the top ten development trends of the automobile industry in 2021, the analyst believes that the epidemic of cowid-19 will become a "growth power" this year. He forecasts that the global sales of light vehicles in 2021 will be increased from 73.6 million to 77 million. Although the sales will drop by 15.1% year on year, the overall global sales are expected to grow by 8% year on year, and the global automobile industry is expected to grow by 2023 Above the level of 2019.

In fact, for two consecutive years in 2018 and 2019, the automotive industry was affected by shrinking economic activity, intensifying competition, slowing BRIC economies and tightening credit terms, which inhibited global demand. Then, in the first half of 2020, due to the impact of the new coronavirus, car sales fell to a historical low. Due to the impact of the epidemic, consumers have reduced the frequency of public travel and are more inclined to use private cars. As a result, the auto industry is recovering faster than expected.

Sawant Sinha pointed out that in the post epidemic era, the main task of the world's major markets is how to recover from the pandemic, and China's automobile market has always been the fastest growing market, followed by the United States. Although the growth rate of European market is slow, it also shows signs of steady recovery. Therefore, the main tone of the global auto market forecast in 2021 is "optimistic".

Finally, the conclusion is: Although the whole market will certainly recover, the recovery pace of key markets will not be coordinated.

The following are the top 10 trends of the global auto market in the future:

The first prediction: from "horsepower" to "computing power"

In 2021, every automobile manufacturer will re-examine itself, and it is the trend to transform into an intelligent company.

With more and more technology driven enterprises joining the automotive market, and the emergence of electric vehicles and networked vehicle services, the use of intelligent vehicles has increased dramatically, and self driving vehicles have followed closely the development of intelligent environment. As a result, those car companies that cannot be digitized in 2021 will be more outdated and will be eliminated from the market. Auto companies will make some difficult decisions to introduce software development into internal production lines. Some auto companies will even start to build their own intelligent car operating systems, or cooperate with Silicon Valley companies to develop the next generation of car operating systems. It can be expected that 2021 will be a year for auto companies to work hard on their own operating systems.

Second prediction: online sales and online car watching are becoming more and more popular

One of the highlights of 2021 will be auto online retail. Although online retail has made significant progress in the North American and Western European markets, COVID-19's raging has added a lot of momentum to the booming online shopping mall. The epidemic has taught consumers that it is very convenient and easy to buy anything online, even expensive goods like cars. Of course, another attraction is that the online digital mall is not as expensive as the physical exhibition hall. It will provide more competitive prices. This is something that even the veteran who is used to choosing cars from the online 4S stores can not resist.

Consumers can see the automobile manufacturers turn to innovative marketing strategies, including using the influence of social media to get more interested customers, or accepting bookings from third-party e-commerce platforms as we see in China. The biggest factor to promote the digital sales and customer contact of automobile ecosystem is the development of science and technology. Tesla Roadster, Dyson's digital motors, Mercedes Benz's G forces and other products have shown the world how to help dealers in various channels, how to work better and strive for more profit opportunities.

Third prediction: connected vehicles will be everywhere

The development trend of networked vehicles is related to vehicles and technology. The Internet of things (IOT) platform of connected vehicles will be upgraded several levels this year. Personal customization will improve the convenience, comfort, multimedia, performance and safety of vehicles. Together, they will completely change the user experience, promote the development of car personalization, and open up innovative business models and lasting revenue sources for automobile manufacturers.

The fourth prediction: the rise of subscription based innovative car model (non ownership)

Audi and Mercedes Benz have expanded their subscription services, followed by BMW, despite mixed market reviews. However, this highly flexible car rental contract model has a bright future, as evidenced by the expansion of its subscription service in the North American market. But there is also a bottleneck in this trend, which is the high subscription cost. Therefore, the success of auto subscription service needs a business model, which not only covers the high-end demand of the market, but also can successfully provide a reasonable price, so that those price sensitive groups and the public can easily use it. So as to ensure that it can not only meet the needs of customers, but also meet the needs of new and used car fleets. For rental providers, leasing will be a quick and easy solution, which can monetize a large number of used car assets (especially rental cars).

The fifth prediction: second hand car market will be better

For 2021, new car sales may be in trouble. But for the second-hand car market in 2021 will usher in a boom period. The increasing attractiveness of online used car retail will promote the growth of market sales. It is estimated that the annual compound growth rate of global used car market sales will reach 9% between 2019 and 2025.

Sixth prediction: the epidemic will make car purchase more personalized

Under the influence of the global epidemic, because consumers are worried about the risk of infection, they generally choose sharing and public transport when they travel, and more consumers choose electric and hybrid cars. At the same time, they are gradually developing towards miniaturization and minicars. It can be predicted that in emerging markets such as China and India where small cars and mini cars are popular, the market revenue of such models will continue to increase. It also reflects a more general global trend, in which consumers worried about the risk of infection will prefer personalized travel modes, which will stimulate the sales of electric vehicles and hybrid vehicles. In Germany, for example, government subsidies and incentives will facilitate the sale of electric and hybrid vehicles as part of a post epidemic recovery plan.

The seventh prediction: pink will become the new green

The aging of population, the aggravation of air pollution and the increase of road traffic accidents are common problems all over the world. This time, the popularity of cowid-19 will highlight the importance of the "health, care and wellbeing" (hww) function in cars. As a result, more automobile manufacturers are seeking advanced technology to keep vehicle occupants healthy. For example, the functions of detecting the alcohol content of the people in the car, purifying the air in the car and analyzing the pollution level of the street emerge in endlessly. And massage seat and other functions, even become the standard of some models. It is expected that the number of connected vehicles with these "hww" functions will grow rapidly at a compound annual growth rate of 25% between 2019 and 2025.

The eighth prediction is: circular economy and automobile industry "return to zero"

With the end-of-life vehicles becoming a major environmental problem, automobile companies will no longer be limited to the work of carbon neutralization, but more comprehensively accept the concept of circular economy and the concept of reuse and recycling. In the global scope, the strict requirements for environmental protection have promoted the continuous development of the commitment of the automotive industry. In the early stage of automobile development, the automobile industry must adopt the "design and disassembly principle", reduce the follow-up waste, and gradually achieve the goal of "returning to zero". This goal will be the goal of the global automobile industry. Whether it is "zero emission" or "zero casualties", we must find a new way to achieve the goal of "returning to zero" in the circular economy Bid.

The ninth prediction is that electric vehicles will have their own dedicated platform

Driven by increasingly stringent emission regulations and consumer preferences, electric vehicles will continue to be launched in large numbers in 2021. Major automobile manufacturers will be keen to seize this huge opportunity to achieve economies of scale by building a modular and scalable platform architecture for special purpose electric vehicles.

The tenth prediction is: more intense and white hot regional market competition

Compared with Federer and Nadal's Grand Slam finals, the battle between fuel cell electric vehicles (FCEV) and pure electric vehicles (Bev) will be more fierce in 2021. 2021 may be the year when FCEV starts to lead: its endurance is 3-5 times that of BEV, its charging speed is faster, and its biggest advantage is that its emissions are only water. Under the guidance of this advantage, automobile manufacturers are investing more money in the development of FCEV, and the governments of the United States, Germany, China, South Korea and Japan have also increased their support for FCEV.

The new year will bring new vitality. After a tough year, the auto industry will hope to return to growth in 2021.

Source: Sina Auto