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Technology Trends in the Automotive Industry

Aug, 2022

Major technology trends in the automotive industry are starting to take shape in software development by digital transformation. According to a study, 76 percent of businesses are investing in new technologies. Furthermore, Gartner predicts that by 2023, AI will manage 20% of all customer service transactions, up 500% from 2017. They are forced to integrate technological offerings due to the constant demand for a more digitized experience.


The automotive industry is undergoing a transformative transition as a result of global digital change and technological advances. Customers today expect full connectivity. Manufacturers face a difficult task in meeting their rapidly changing needs and demands.

There is no exception in the automobile industry. Today’s consumer needs seamless integration and the most comfortable driving experience possible. As a result, technologies such as the Internet of Things and Artificial Intelligence will impact the automotive industry in 2021, emphasizing connected vehicles.

Car manufacturing has progressed beyond automation to a whole new digitized factory, with each connected vehicle producing more than 100 million lines of code.

This alters how the industry works by necessitating a different worker and, more broadly, new business models.

Every year, new transformative developments emerge in the automotive industry as a result of all of this. So, without further ado, let’s take a peek at some of the most important ones for 2021.

The ability to connect in technology trends in the automotive industry


That is the term that best describes the mood of 2021. It’s been discussed for a while, but this year, connectivity is no longer just nice to have but a requirement requested by users due to the pandemic.

Today’s drivers want unrestricted access to social media, music, and applications when driving. They want to use these features in the same way they would on the sofa. As a result, vehicles are no longer a constraint on production.

Manufacturers are now producing cars that allow us to continue with our social or business lives or do whatever we want while driving to meet these needs and wishes. You’ve always fantasized about having WIFI in your car. That’s right, and it’s finally open. The constant need for connectivity has also led to the creation of WIFI-equipped vehicles.

Automobile manufacturers realize that they can no longer market their goods without these networking features, prompting them to spend more. The factory floor has been digitized to meet customer environments, which contributes to the next revolutionary trend.

Improved Manufacturing and A Connected Supply Chain

Digital transformation patterns are being used to personalize a consumer’s experience and tailor it to his needs, as we’ve already discussed and seen in other industries. It’s the same for the automotive industry.

Digitization of the linked supply chain lowers prices, improves customer engagement, and gathers and uses data for improved service. The industry appears to be shifting away from regional development and toward a more decentralized approach. In reality, 74 percent of executives expect Western Europe’s output to be less than 5% by 2030. This not only lowers prices but also improves supply chain transparency. It also speeds up the production, design, and distribution processes.

The Internet of Things’ communication capabilities allows for immediate input to an intelligent factory. On the other hand, this sort of factory uses sophisticated algorithms and Artificial Intelligence to perform scheduling and workflow management tasks. On assembly lines, it also has robots operating alongside humans. These game-changing innovations boost efficiency while also lowering defect rates.

The enormous changes in efficiency, versatility, and performance are expected to transcend the obvious financial barriers to intelligent factory construction.

Maintenance that is planned ahead of time

Predictive maintenance focuses on using IoT communication tools that collect data on a vehicle’s results, send it to the cloud, and assess any risks of possible hardware or software malfunctions. Following the data processing, the driver is informed and advised of any required services to avoid accidents. This means no more guesswork and last-minute car repairs because today’s vehicles warn us when they need maintenance or replacement. Even before an issue arises, you’ll be aware of it.

Vehicle maintenance has also gone digital. Maintaining and updating software now necessitates not just mechanical attention but also the expertise of a tech-savvy technician. This translates to better vehicle efficiency over a more extended period.

Remote service is another choice that is becoming more prevalent. Over-the-air updates are possible thanks to a digital interface. Imagine having to go to an Apple store any time your iPhone needs to be updated. Isn’t it aggravating? It’s the same with your car’s software now, but remote service would allow you to upgrade it over the air, allowing you to do so whenever and wherever you want.

The trucking industry, too, benefits significantly from this predictive capability. Sensor technologies and the Internet of Things enable businesses to monitor data, ensure truck protection, optimize fuel use, and even track cargo. According to statistics, this approach has a high success rate, with gains of over 30% in truck uptime and a 90% accuracy rate in predicting failures 30 days in advance.

Technology trends in the automotive industry Data Security and Protection

The automobile industry is the world’s second-most data-driven industry. Drivers, destinations, directions, traffic conditions, and other information are collected by the new intelligent vehicles. Customers are at the forefront of all efforts as automotive manufacturers, and tech developers continue to focus on creating standards of consumer loyalty. Drivers are communicated with and engaged using data. However, to protect customer data, the linked software systems must be protected.


Manufacturers recognize the value of security and safety, and they are constantly looking for innovations. It’s also why many existing business experts and specialists have made digital transformation a hot topic. Any industry faces challenges as a result of such widespread changes, especially in terms of protection. However, the automotive industry’s digital revolution will be able to overcome any obstacles.

Mobility-as-a-Service photo (MaaS)

Vehicles have become another part of connected living, thanks to the dominance of private and public ridesharing. Uber, for example, has had tremendous success in its industry. It marked the beginning of the transition from privately operated vehicles to service-oriented modes of transportation. Consumers profit from such startups because they provide financial relief. They’ve cut out significant costs, including vehicle acquisition, repair, and licensing. Consumers benefit from MaaS because it offers substantial savings and benefits. As a result, the automotive industry has decided to participate. Through its ride-sharing service, Volkswagen, for example, is leading the way. Indeed, Uber and Lyft were just the beginning of Mobility-as-a-Service, and new platforms will emerge shortly.

Steve Jobs was too good to train customers, says Porsche Cars North America Inc. President and CEO Kjell Gruner. And now automotive businesses have a lot to catch up to meet Apple Inc.’s user interface requirements.

Gruner says of Apple: “They have influenced consumer expectations with their ecosystems and their seamless customer experience. That directly affects how people feel about getting into—or shopping for—a technology that is as large as a car. “It’s because we’re an extremely physical commodity that we have to combine [digital] with physical experience. You’re not on the radar screen if you don’t have digital interactions. You don’t matter.”

Digital experience encompasses everything from a motor vehicle that turns and automatically syncs with your phone when you enter to an app that allows you to create your own car’s “dream garage” so that you can directly download performance-related apps.

Turbos, Move Over. Tech prioritizes New Strategy for Porsche CEO

Kjell Gruner, CEO for North America, says the digital product provision and upgrade interface are now the top challenge after decades of automakers concentrating on engineering, strength, and luxury. In the digital experiment, everything from an electric vehicle that turns on and syncs immediately to your phone when you walk on to an app that allows you to create your own “dream car workshop” for cars and download software performing in the vehicle directly.

Move Over, Turbo. Move Over, Turbo. The new strategy takes priority of Porsche CEO Says Tech

North America’s CEO, Kjell Gruner, has said that supplier and upgrade interface is now the highest task after decades of auto manufacturing centered on engineering, strength, and luxury.

Technology trends in the automotive Industry Has Been Digitized

The use of technological advances in the automotive industry would become even more popular than you would expect. Digital transformation has a positive effect on both consumers and the community.

In 2021, the automotive industry underwent a significant transformation. Many hurdles remain for manufacturers to tackle to keep up with the digital transformation process. However, the aforementioned developments are still in the early stages of growth, but they are expected to alter how the industry works and how we use vehicles. Another year of improvements and challenges awaits us in 2022 as we inch closer to a digital future.

If you are thinking of developing custom software for making your business digitalize, Hombolt is the way to go. Hombolt offers complete cycle custom software development services from IT strategy consultation, and extensive technology road maps to end-to-end developing flexible solutions that conform to the project requirements and business needs without hesitation. Contact Hombolt today at hombolttech.com

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