How disruptive innovations is bringing a massive change in automotive industry

Auto industry is fast adopting an array of disruptive technologies inline with other manufacturing industries. The concept of driverless cars and car health is knocking the next level of digital disruption in the automotive market.


  1. Vehicle edit for Danny Sanchez.
    Vehicle edit for Danny Sanchez.
  2. Majority of the car consumers and service providers have started adopting periodic maintenance for their automobiles. Customer retention is prioritized by incorporating breakthrough technologies and forging strategic alliances with those who accelerate adoption of autonomous technologies and facilitate better connectivity. Car owners are making a habit to take their cars for service and maintenance at certain interval or distance covered. Sometimes, it happens that the car needs to be taken for emergency service at the time of malfunctioning of any part in the vehicle.
  3. Disruptive trends that are expediting transformation of the automotive management services are many. However, the prominent trends have been outlined over here for you to wonder at the fascinating things that are slated to overhaul the auto segment.
  4. Heightened connectivity and shared mobility

    While other industries, such as telecommunications, have already been disrupted, the automotive industry has seen very little change and consolidation so far. For example, only two new players have appeared on the list of the top-15 automotive OEMs in the last 15 years, compared with ten new players in the handset industry.

    Autonomous techniques are allowing data to drive better mobility on demand. Heightened connectivity allows passengers to engage in personal pursuits through optimum utilization of media. Innovative advances will make cars intuitively detect other vehicles in vicinity and facilitate riders to exchange meaningful communication among them.
  5. Automotive IT Consulting and Solutions, Automotive Product Development from Idea to Launch
  6. Autonomous driving

    Human drivers would gradually give way for ADAS (Advanced Driver AssistanceSystems) to take over. Prices are being re-worked to make the technology safer and accessible to average consumers. Technological upgrading and regulatory liaising are in full swing. As per research carried out by mckinsey, by 2030,15% of cars launched in market would have autonomous systems inbuilt. This would promote customer stickiness as car buyers can use their time more productively by attending to other important jobs.
  7. Connected car and autonomous technology will increasingly optimize the car's performance so as drivers and passengers can utilize their time from constant focus on car to other personal activities during the drive. The increasing speed of innovation will require cars to be upgradable.
  8. Electrification of automobiles

    Electricity operated vehicles are just around the corner. With development of vehicles that don’t rely on non-renewable fuels, more economic value would be offered to customers riding on the back of advanced circuits.Relaxed norms due to zero toxic emissions, plummeting battery expenses, widespread availability of charging outlets, and heightened comfort factor would contribute to faster adoption of hybrid cars. Cost competitiveness is being stressed upon by market players. Loyalty programs like tax incentives, discounts on parking charges, specially priced electricity bills, driving relaxations would allow faster penetration of new vehicles.
  9. Higher percentage of shared services would drive more sales

  10. As vehicle pooling and e-hailing services would gain momentum, sale of privately owned vehicles may drop. Alternately, shared cars would experience a surge in sales due to higher utilization and consequent wear and tear. Densely populated areas would be ideal venues for more use of shared mobility options. On demand service would be facilitated through smartphone apps. Slight decrease in the number of young people holding driver’s license is testimony to increased inclination of newer generation to avail of car sharing options. To promote e-hailing, the basic structure of the car is modified to make it more robust for withstanding the impact of intensive utilization. Further, fuel economy and comfort level are also being boosted.
  11. Focus on making vehicles in rural areas more technologically robust

    Appeal for privately owned cars is fast declining in megacities. This is because of lack of parking space, high congestion charges, frequently getting snarled up in traffic jams, and expensive ticket fees for availing public parking options. However, in rural regions, demand for cars with contemporary technologies is sharply rising. Regulations related to emissions and other aspects are comparatively lax. New technology models are evolved to attract the attention of new generation of provincial hip driver.

    Overall, the evolution of technology and digitisation of products and services in our society have given companies the opportunity to create digital business models that allow them to increase inventories as well as the demand for their products with little or no additional cost per unit. Companies likeUber and AirBNB use online interfaces to provide consumers with services provided by their peers, which has allowed for the viral loop effect to create a number of million-dollar companies in a matter of weeks.
  12. Furthermore, the process of disruptive innovation is allowing these same companies to revolutionise markets by developing technology to a point where they can replace existing products and services with better ones, all for a lower cost. Apple is the true master of this concept as they topple industry after industry with their computers, music, phones, tablets, and now, their pursuit of automobile systems.