LAS VEGAS — Despite fears of a 2023 recession and tight capital markets, the global automotive and mobility sectors are embracing a rapidly evolving digital transformation, said Steve Koenig, Chief Economist at the Consumer Technology Association. says so. CES on tuesday.
The transformation will be spearheaded by the development of the electrification ecosystem. Advances in autonomous vehicles and the continued emergence of subscription-based service business models for electric vehicle capabilities are the key developments that will shape the automotive and mobility sectors over the next decade, Koenig said. .
As consumer and business use of EVs is expected to increase over the next decade, much larger and more complex infrastructure will be required to ensure the viability of the electric transport sector, Koenig said. .
“I’m talking about advances in battery chemistry, battery design, and charging systems,” Koenig said. “Having more electric cars is one thing, because that’s how we grow the market.”
Koenig said advances in battery technology that allow consumers and businesses to drive farther with fast charging will be central to the development of the electrification ecosystem.
While the nationwide transition to EVs is well underway, the automotive industry faces other hurdles that affect technology development.
In addition to the conflict between Russia and Ukraine, Federal Reserve rate hikes have taken place in the past year, and the impact of the COVID-19 pandemic on global supply chains has weakened the prospects for the self-driving vehicle subsector. increase.
But self-driving technology companies at CES want to show investors how they will deliver value in 2023.
“We’ve been talking about self-driving cars for years, and now we’re starting to see self-driving cars really move beyond passenger cars.
Self-driving heavy trucks are leading the development of self-driving technology, he said.
A global labor shortage of truck drivers and other logistics workers will force companies to turn to technology to address these issues, Koenig said.
The American Trucking Association estimates that the United States will be short of 160,000 truck drivers by 2030, Koenig said.
“How can we bridge that gap? Technology has to be the solution. That’s why self-driving trucks are so important. there is,” says Koenig.
The emergence of personal vehicles as a market for services unlocks recurring revenue potential for automakers. Koenig described this as the “screenification” of the automobile.
These new applications will be supported by the 5G broadband internet infrastructure and offer services beyond entertainment.
“Cars are now becoming a market not only for passengers, but also for drivers,” Koenig said.
Koenig used voice control as an example to illustrate how vehicles will come to market.
“We’re thinking about voice control. The old-fashioned way is to order a latte from Starbucks on the app. They’re working on it. I’m going to go get it,” he said. “The new way is to use voice control and service to order a latte while driving.”
Koenig also cites BMW’s infamous 2022 announcement, as an example of where the auto industry is headed for continued revenue streams, offering drivers $18 a month to use heated seats in new models. said it would offer a subscription to
“I’ve heard about paying a subscription for heated seats. Is that the tip of the iceberg? I don’t know,” Koenig said. “We’ll find out. Perhaps some auto OEMs at CES 2023 have something to say about it.”