Market Research Reports - Ken Research Technology Trends in the Global Car Manufacturing

Technology Trends in the Global Car Manufacturing Industry: Ken Research
The automotive industry is one of the largest manufacturing industries in the terms of value not
just on USA but many other countries and regions. The trend of consolidation has been
witnessed in the regions where automotive industry is well established. Major production is
met by large corporations and enterprises that have virtually eliminated the small players in the
industry and thus rendering the competition stiff. The reason for this trend is the requirement
of heavy investment for mass production. Small corporations lack funds whereas on the other
hand large enterprises over decades of their operations have accumulated large resources
which are now being put to use to manufacture cars in mass numbers thereby achieving
economies of scale as well. Since the large enterprises can produce these goods at
competitively lower prices which gives them a commanding edge over small players. Market
shares consist of groups of brands rather than individual groups. For instance – Volkswagen
group consists of various brands such as Volkswagen, Audi and Skoda.
According to the study, ‘New Cars Global Industry Almanac 2 2013-2022’, the new car
manufacturing industry includes sales or registration of new passenger cars. The passenger cars
market is divides in different segments. This includes hatchbacks, saloons, SUVs, 4X4 and other
related vehicles. The future of this industry holds many opportunities for the companies. The
first is the gaining influence of crossover vehicles. People currently prefer to have the comfort
of SUVs coupled with the fuel efficiency. Hence, companies are focusing on producing crossover
vehicles which requires huge amount of investment especially in the R&D segment. Internet of
Things and connected devices have made their way into the automotive car market segment,
while the technology is still new however, its adoption rate shall be high during the coming 5
years. Cloud technology has been incorporated recently in the car manufacturing market. This
has allowed the designs, planning, operations to be comparatively higher. The 3D printing
technology has changed the entire landscape of this industry. This technology was first
deployed by Urbee which was later perfected by local motors when it launched strati. Some
other trends that have come up are the increasing production of electric vehicles as well as the
autonomous vehicles which are being perfected by technology giants as well as car
manufacturers. The companies that have a stronghold in the market are Suzuki, PSA groupe,
Fiat Chrysler Automobiles, Honda, Ford, General Motors, Hyundai, Renault-Nissan, Toyota, and
Volkswagen. All of these companies are functioning for decades long while some have operated
for over a century. These companies have the most of the entire market segment under their
hood.
The growth of this industry is expected to be significantly high in the coming 5 years because of
the rising need for quicker and efficient mobility. Although many companies are dominant in
this sphere however few recent companies like Tesla have been able to gain significance in the