Have you ever imagined a world where cars are no longer just machines to help us move from one point to another? That is exactly where the future of the car industry is heading. Cars are now evolving into mini tech hubs where they can drive themselves, charge up in a few minutes, learn your favourite route, and even communicate with each other.
With governments trying to curb emissions and tech giants investing heavily in artificial intelligence (AI) and advanced batteries, the industry is moving toward a smarter and more automated future. Major car manufacturers and startups alike are making bold promises to deliver cars that are far more intelligent. Here are some future trends in the automotive industry that you can look forward to:
1. Connected Cars and IoT
Even though autonomous driving technology is still in development, it has the potential to change transportation entirely. Autonomous vehicles (AVs) use advanced sensors, machine learning, and AI to navigate roads with little to no human input.
While fully self-driving cars are not yet available for mass consumption, various levels of autonomous driving like Advanced Driver Assistance Systems (ADAS) and remote-sensing technology including radar, GPS, cameras, and lidar, are already available.
More than 90% of car accidents are caused due to human error, a big problem that AVs promise to solve. These vehicles may also be able to relieve drivers of mundane tasks. This will lead to a big change in how people commute and travel.
Tesla, Waymo, and Cruise are leading the way in autonomous technology adoption. Waymo, Google’s self-driving car subsidiary, already operates a limited autonomous taxi service in parts of the U.S. with SAE Level 4 autonomy.
2. Connected Cars and IoT
The Internet of Things (IoT) transforms cars into connected devices that communicate with other vehicles, infrastructure, and even homes. Vehicles can access live traffic data, allowing them to adjust routes in real time. Cars can also communicate with each other via dedicated short-range communications (DSRC) at 5.9GHz up to 300m, and the surrounding environment, providing information to improve road safety and traffic flow such as accidents and congestion.
Owners of these vehicles can also remotely check fuel levels, start their engines, locate their vehicles, or even perform predictive maintenance to avoid unexpected equipment downtime. Integrating 5G technology will enhance connectivity, allowing cars to process data faster and improve communication. This will be crucial for autonomous driving, as vehicles need to make quick decisions based on real-time data.
3. Shared Mobility and Subscription Models
In Singapore, car-sharing users are expected to increase to 560,000 by 2029, and user penetration to rise from 7.9% in 2024 to 9% by 2029, according to Statista. The younger generation are starting to see cars as a service rather than a possession. This shift in perspective has given rise to car-sharing services and subscription models. These services allow users to access vehicles without the long-term commitment of ownership.
Companies like Grab and Gojek are offering more convenient and cost-effective ride-hailing options for city dwellers. Another option for drivers who don’t own cars are car-sharing, and in recent years companies such as GetGo, BlueSG, TribeCar, Drive Lah, Car Club and Car Lite have mushroomed. Automakers like Volvo and BMW are experimenting with subscription services that allow customers to ‘rent’ cars every month, often covering insurance and maintenance costs as well.
This trend is relevant in urban areas, where parking is limited and public transportation options makes travelling around easy and convenient. It also aligns with environmental goals by reducing the number of vehicles on the road, which could lower emissions.
4. AI and Enhanced In-Vehicle Experiences
AI is transforming the in-car experience by creating personalised and intuitive interactions. Cars are now produced with smart systems that analyse data from various sensors and can understand driver preferences like seat position, climate control, and infotainment, improving overall comfort and safety.
Integrated voice assistants like Amazon Alexa and Google Assistant will help drivers control navigation, entertainment, and even home devices hands-free. By using cameras and sensors, driver monitor systems can also monitor drivers’ eye movements, head position and facial expressions for signs of fatigue or distraction and even take control to avoid accidents.
More vehicles will use augmented reality displays such as Head-up Display on windshields to easily provide drivers with navigation information and real-time guidance.
5. Supply Chain and Semiconductors
The global semiconductor supply is currently limited, leading the car industry to rely heavily on chips. Automakers are already investing in local manufacturing and partnering with tech companies to secure chip supplies.
Companies like Tesla and General Motors are exploring in-house semiconductor production. This will help to reduce dependency on external suppliers and ensure control over critical components.
Automotive Future in the Trends
Autonomous driving, connected technologies, and sustainable practices are all trends we can look forward to in the future of the car industry. However, there are challenges such as the development of infrastructure for EVs and regulations around AVs. These future trends offer a glimpse into what a cleaner, safer, and more connected world would look like.
