In the automotive industry, time to market and time to revenue is critical. This is why automotive companies have turned their development focus toward adding technology into their vehicles, including navigation systems, lane departure warning systems, adaptive headlights, Bluetooth connectivity, and emergency braking systems. These connected technologies contribute significantly to safety and convenience in our vehicles but also act as a stepping stone to the Internet of Things (IoT). As connected vehicle technology evolves and accelerates, new opportunities are created for suppliers of hardware components, software applications, and services that connect vehicles to people, places, and things in the IoT.
Young consumers
There are many factors contributing to the growth of automotive electronic control units. One factor is that younger consumers now carry more electronic devices than they used to, and these devices need charging regularly.
The electric car industry has also seen an increase in business because car batteries often include electronics that require replacing. Additionally, e-bikes have increased in popularity, so some electric bike components also use automotive electronic control units.
New technology
By implementing innovative technology, automakers are looking to maximize performance, reduce CO2 emissions and save gas. Innovative control units in automotive vehicles control the engine, power steering, and brakes, among other functions.
Research has shown that if all cars manufactured in 2030 had just half of these innovations, they would decrease oil consumption by 30 million barrels a day (comparable to Kuwait’s oil production) and reduce CO2 emissions by 15 billion tonnes per year in 2030. Automotive Electronic Control Units are new technologies that have the potential to become commonplace over time.
Strong economy
The Auto Retailing sub-industry has grown by 5.2% from 2015 to 2016. These growth rates are even more drastic in the sub-facet’s New Cars and Trucks subsection at a 7.5% increase over the same timeframe. This data reflects trends seen worldwide, as automobile sales have been climbing for years, largely due to various factors such as increased purchasing power from low gas prices, decreased unemployment rates, and increased mobility, among other things.
The main reason for this recent change in pace is that a robust economy typically makes up for any financial losses incurred by lower fuel efficiency and stronger investment in manufacturing plants with capacities larger than before, thus saving workers’ jobs in the long run.
Affordable vehicles
Automotive companies are riding a wave of popularity and growth for many reasons. The first reason for this growth is the affordability of the vehicles. In recent years, automotive companies have provided consumers with more affordable options than ever, thanks to the booming economy. We have more models available at every price point, from $10,000 to over $100,000.
The next wave of growth we’ve seen recently is in SUVs and trucks. For example, we currently have fewer fuel-efficient sedans than gas-guzzling muscle cars and sports cars available on the market in most manufacturers’ portfolios…
Market expansion
The automotive market has been experiencing growth for the past few years. The traditional perception of this industry has changed from being only interested in trucks and SUVs to including high-end luxury cars. Automotive engineers work tirelessly to bring innovations, designs, and technologies that make driving a joy.
One such innovation is the introduction of the solid-state transistor, which aids in fuel efficiency, power output, and control systems to increase torque and horsepower. The New Generation Vehicles have smart brakes that can slow down vehicles automatically when coming up on a stopped car.
Vehicle safety
Road accidents happen every day and for various reasons. Data suggests that 93% of fatal car crashes in the United States have been caused by human error. That’s a staggering statistic, and the more we invest in vehicle safety technologies, the less likely these types of accidents will be. From airbags to automated breaking, today’s vehicles are on their way to becoming self-driving and much safer.
Is the automotive industry growing?
The transportation revolution has been in progress for a long time. In 2000, GM’s share of the new car market was around 30%. Today it has fallen to less than 18%. You can get the automotive solution from embedded one if you need help in automotive electronics.
There are many reasons the automotive industry is growing, and here are a few major factors.Â
- Improved public transportation and free wifi on buses or trains; changing lifestyle habits and tastes, such as millennials’ preference for urban living, which means they want to own fewer cars;Â
- Millennials are also delaying marriage and having kids, which means they will also delay buying cars.Â
- Automakers like General Motors, who invested heavily in solar panels and other electric vehicle technologies, are driving growth.
Which factors lead to the growth of the automobile industry?
The growth of the auto industry can be attributed to multiple factors. The first one is population growth. For every country in the world, whether developing or developed. A larger population leads to more cars on the road, which fuels the demand for auto production.
Next comes GDP per capita (or individual income), which influences how much people can afford to spend on expensive items like new cars. Increasing household incomes mean more disposable income and more demand for autos. Along with that are urbanization rates; as cities grow their populations, so do their car requirements, and auto production increases because there’s just no other way to get around those cities.
Why is the automotive industry important?
The Automotive industry is the world’s largest employer and has the most recognized name in international trade. It has more than 170,000 production facilities and sells to customers in more than 150 countries. Jobs are expected to increase by 14% by 2027.
- The Auto Industry has impacted America’s economy by producing approximately 3 trillion dollars annually.
- The auto manufacturing sector creates $215 billion worth of exports for the United States, which means that about 5% of America’s GDP comes from the Auto Manufacturing Sector.
- Manufacturers are looking for skilled individuals with a solid mechanical knowledge foundation and shop skills because they have no product liability if a worker hurts themselves.
Final Thoughts
The automotive industry has become a pillar of the United States economy, accounting for more than a million jobs. In 2016, total U.S. sales were approximately 17.6 million units, generating $2 trillion in sales revenue. More than one-third of the country’s GDP that year. A key driver in the success of our automotive industry is its openness to change and technological advances that have made cars safer, faster, and more accessible to consumers across all economic levels.
