Automotive industry The trends to watch
There are some major shifts that would redefine the global marketplace today and in the future. These are some of the major trends that must be watched diligently within the automotive sector to make strategic moves. These leading trend deciders are bring in big moves in the sector and will define the course of future moves.
Here are key trends that will make the automotive industry shift gears:
Demographic shift in spending power:
North American region was always a leading region in the last few decades. Most of the technological innovations come from the region, and the adoption rate here is notably high. As people in the region had superior buy power, most of the large vendors focused on the North American region as their primary market. However, over the years, there is a tremendous shift in the mind of market leaders, and the emerging nations are the primary focus. Companies are working towards catering to the needs of the emerging economies. The buying power of the people in emerging economies has substantially risen and people are defining the market moves. Shift in demographics will have a tremendous impact on the global markets and many countries will come to the lime light.
Most of the countries are witnessing a renewal in urban population. Most of the crowd is slowly moving into urban areas in almost all the countries. The growing urban population will have tremendous impact on the market as a whole. Most of the market segments will witness huge change in volume of sales. As buying power increases, the negotiation power of the buyers become superior, leading to better market products and tough levels of competition. Automotive industry is already witnessing huge demand for luxury vehicles, which was never the case in the last few decades. Urban population will define the market entries and strategies for the automotive sector.
Every company is now working on increasing the R&D investment. As more and more R&D investments flood in, the potential to innovate news technologies is at hand. Technological breakthroughs are already swamping the market place, and many companies are focusing on bringing in differentiated products into the market to gain competitive edge. Companies such as BMW and Mercedes are working hard to gain large market share in emerging economies. The aforementioned technological trends will shape the future of the automotive market, and customers will have the bargaining power to drive the market in the future.