The Hidden Role of Transforming Mobility Ecosystem in Creating Opportunities for Different Industries
Trends in the automotive industry are shifting gears faster than ever. Continuous upgrades in technology and evolving customer demands are driving the swift transformations in the automotive industry. Principally, the changes will be driven by electrification, digitization, and automation.
Possible Impacts of the Changing Automotive Trends on Different Sectors
The unprecedented shift in the automotive landscape is expected to unleash waves of ripples across different industries. As such, several opportunities will emerge for firms belonging to various sectors.
Businesses in various segments will be able to capitalize on the opportunities in the new mobility ecosystem to be dominated by advanced technologies.
Automotive
The expected transformation in the mobility ecosystem is expected to disintegrate the automotive segments into two divisions.
The first category will comprise of companies that will manufacture sophisticated vehicles. But they will sell their produce to the mobility fleets. As such, the category of will lose the end-customer interface.
Companies in the second category will not only manufacture vehicles but also build platforms for providing mobility services. Furthermore, the performance of a vehicle and its brand will no longer be the sole purchasing criteria. In addition, a intuitive user interface and vehicle utility are expected to drive vehicle purchasing decisions. Remarkably, that will render technology companies becoming the first layer of customers for the category of automotive companies.
Financial Services
Tremendous changes are expected to redefine the financial services segment because of the transformations in the automotive industry.
With vehicles becoming autonomous, ruling out the need for a driver, insurance coverage may no longer be necessary. As such, financial services companies are likely to be constrained to develop product liability solutions, targeting the mobility fleet services providers.
Again, the payment methods are expected to change as the need for innovative payment solutions, such as charge point payments and mobility services contracts, are likely to arise.
At the same time, the demand for financing will strengthen substantially. As there will be a transition to new business models, automotive companies are expected to rely on borrowing financing to fund their businesses. Notably, financial services companies are likely to focus more on mobility fleet companies, instead of individuals, for financing.
Infrastructure
Many factors are expected to arise due to the transformation of the automotive industry. And the factors could bring in substantial demands for the infrastructure sector.
Infrastructure companies should install more and more EV charging points, as there will be more electric vehicles. Again, infrastructure players should change their practices of managing car parking places due to the expected changes in the driving behaviour. For example, autonomous cars will onboard and drop off riders instead of parking. Besides, urban landscapes could evolve as the prime real-estate will be used for uses, such as last-mile delivery, vehicle charging, data centres, etc.
Furthermore, the practices of the local transportation infrastructure companies will also undergo a radical shift. Such companies should manage the physical infrastructure apart from data centres and transport services. Besides, the practice of smart traffic management will arise due to the running of automated vehicles.
Telecommunications
Data will play the key role in the future mobility systems. And that will bring immense opportunities for the telecom companies, providing services to the interconnected automotive systems.
Telecommunication firms will manage the massive streams of data connected and autonomous vehicles will generate. Moreover, mobility services providers will depend on the services of telecom companies in managing digital platforms and databases.
Moreover, telecom enterprises will provide the communication infrastructure for vehicle-to-vehicle and vehicle-to-grid communications.
Conclusion
Startups can leverage on the transformation of the automotive industry to reap a slice of the pie. We, at Motornex Mobility, are driven by the mission of providing essential support to newbie entrants to the automotive space. Our support predominantly comprises investments and hand-holding.