5 Trends That Will Shape The Automotive Sector In 2022


Post pandemic Automotive is all set to get back into a growth trajectory in 2022. Automakers made use of the slowdown to rediscover themselves by adopting digital transformation in line with a consumer shift towards safety, convenience, environment-friendly personal Mobility over public or shared mobility. 2022 and beyond are the years of resurrection for Automotive.

Future of Connectivity:

As 4G and the internet of things (IoT) continue their growth, more connected services and features are made available in vehicles. In the eco-system of connected mobility, the cars can communicate bidirectionally with a range of other systems outside their local area network to send digital data to enable remote diagnostics, vehicle health reports, data-only telematics, access Wi-Fi Hotspots, get turn-by-turn directions, warn of car health, and directly intervene to prevent breakdowns and also avert accidents.

India’s connected car market is in nascent stages, yet it is expected to grow by over 20% in the next few years. To get the customers familiarise with connected features, many OEMs are offering customers with 3 years free subscription. 

Electrification – Blue is the new green:

A total of 6,261 electric passenger vehicles (PVs) were sold in the April-September 2021 period, marking a 234 percent year-on-year (YoY) growth. Increasing battery efficiency as well as EV charging infrastructure can speed up its adoption. Lithium-ion battery prices have fallen by 89% over the last decade, reaching a price of $137/kWh in 2020. The increasing range of EVs should also help alleviate concerns. Central and several state EV policies, the FAME subsidy and also a new interest from car buyer will see this segment grow in 2022.

ADAS (Advanced Driver Assist Systems):

Currently, the Indian ADAS market is in its infancy stage and just a small percentage of premium vehicles is fitted with ADAS features like adaptive cruise control, lane-keeping assistance, and emergency braking, which fall within the lower levels (1-2) of driving autonomy classification. 

Looking at the large potential and the need to reduce accident fatalities, many tier 1 have embarked on developing cost-effective sensors, Radar, cameras for ADAS application. Ministry of Road Transport & Highways is deliberating on making a few safety-related ADAS features mandatory. For this purpose, regulations regarding ADAS needs to be set up. From 2022 to 2027, we can see ADAS making major inroads in Indian vehicles.

Softwarization-thinking digitally first:

With more technology companies entering the automotive landscape, bringing in advanced connected features, electrification, and autonomous driving, the traditional automakers are fast getting their digital acts together. Today’s high-end cars are some of the most digitally complex, requiring around 100 million lines of code. Automakers will make some tough decisions to bring software development in-house or partner with technology companies. Some will even start building their own operating systems. More than ever, automakers will be thinking digitally first.

Semiconductor Shortage-could chip away the party:

The automotive semiconductor market is expected to reach USD 48.78 Billion by 2022. The rising trend of vehicle electrification and the growing demand for advanced safety, convenience, and comfort systems are the other factors driving the growth of semiconductor content in automobiles. The three fastest-growing applications are telematics and infotainment, powertrain, and safety. The strict standards and regulations are generating more demand for semiconductor components in safety and powertrain applications. This was further exacerbated by unexpected supply-chain disruptions in 2020 & 2021. Indian OEMs and Tier 1 will also get affected impacting growth projections and implementing some of the above trends.

Disclaimer: 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 noted, the author is writing in his/her personal capacity. They are not intended and should not be thought to represent official ideas, attitudes, or policies of any agency or institution.






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