Automotive sector

5 trends that will shape the automotive sector in 2022 -Rajesh Kosalram

Post-pandemic automotive is poised to return to a growth trajectory in 2022. Automakers have used the downturn to rediscover themselves by embracing digital transformation in line with a shift in consumers towards safety, convenience, respectful personal mobility environment rather than public or shared mobility. . 2022 and beyond are the years of automotive resurrection.

The future of connectivity:

As 4G and the Internet of Things (IoT) continue to grow, more connected services and features are being made available in vehicles. In the connected mobility ecosystem, cars can communicate bidirectionally with a range of other systems outside their local network to send digital data to enable remote diagnostics, vehicle health reporting, data-only telematics, access Wi-Fi hotspots, get detailed instructions, warn about the status of the car and intervene directly to prevent breakdowns and also avoid accidents.

India’s connected car market is in its infancy, but is expected to grow by more than 20% in the next few years. To familiarize customers with connected features, many OEMs offer customers a free 3-year subscription.

Electrification – Blue is the new green:

A total of 6,261 electric passenger (PV) vehicles were sold during the April-September 2021 period, marking a 234% year-on-year growth. Increasing battery efficiency as well as electric vehicle charging infrastructure can accelerate adoption. Lithium-ion battery prices have fallen 89% over the past decade, reaching a price of $137/kWh in 2020. The growing range of electric vehicles should also help ease concerns. Central and multi-state EV policies, the FAME grant as well as new interest from car buyers will see this segment grow in 2022.

ADAS (advanced driver assistance systems):

Currently, the Indian ADAS market is in its infancy and only a small percentage of high-end vehicles are equipped with ADAS features such as adaptive cruise control, lane keeping assist and emergency braking, which are in the lower levels (1-2) of the driving range classification.

Given the great potential and the need to reduce accidental fatalities, many Level 1s have embarked on the development of cost-effective sensors, radars and cameras for ADAS application. The Ministry of Road Transport and Highways is considering making certain safety-related ADAS features mandatory. To this end, regulations relating to ADAS must be put in place. From 2022 to 2027, we can see ADAS making major inroads in Indian vehicles.

Softwarization – think digitally first:

As more tech companies enter the automotive landscape, bringing advanced connected features, electrification and autonomous driving, traditional automakers are rapidly assembling their digital acts. Today’s high-end cars are among the most digitally complex, requiring around 100 million lines of code. Automakers will make tough decisions about bringing software development in-house or partnering with technology companies. Some will even start building their own operating systems. More than ever, automakers will think digital first.

Shortage of semiconductors could shake the party:

The automotive semiconductor market is expected to reach $48.78 billion by 2022. Rising trend of vehicle electrification and increasing demand for advanced safety, convenience and comfort systems are the other factors driving growth in semiconductor content in automobiles. The three fastest growing applications are telematics and infotainment, powertrain and security. Strict standards and regulations are generating increased demand for semiconductor components in security and transmission applications. This has been further exacerbated by unexpected supply chain disruptions in 2020 and 2021. Indian OEMs and Tier 1 will also be affected, impacting growth projections and implementation of some of the trends. above.

Warning: The views expressed in the article above are those of the authors and do not necessarily represent or reflect the views of this publishing house. Unless otherwise indicated, the author writes in a personal capacity. They are not intended and should not be taken to represent the official ideas, attitudes or policies of any agency or institution.