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Digitisation to drive auto sales to 98m units this year

LONDON, April 26, 2018

Driven by artificial intelligence (AI), voice recognition, data monetisation, online vehicle retailing, and cybersecurity, the global automotive market will hit 98.6 million unit sales this year, said growth partnership company Frost & Sullivan in a new report.

Data monetisation opportunities will rise to $32 billion by 2025, driven by the ascent of key data services such as GPS vehicle tracking, driver safety, and on-demand and real-time location-based services, said the report titled “Global Automotive Industry Outlook”.

“By 2020, most OEMs will have an online channel to sell their new vehicles, either through their own websites or in partnership with third-party online vehicle aggregators,” said Joe Praveen Vijayakumar, Mobility senior industry analyst at Frost & Sullivan.

“Automotive revenue growth will come from downstream services driven by platforms leveraging data.”

Vijayakumar said that this year’s key new mobility developments will include franchise-based business models, community-based car-sharing programs, and car-sharing vehicles on rent to ride-hailing drivers.

Six trends driving transformational change in the automotive sector include:

1. Big push toward electric vehicles with related manufacturing investments;
2. Launch of future mobility services such as MACE;
3. Dawn of blockchain platforms in automotive;
4. Impending advent of automated taxis;
5. Development of urban lifestyle vehicles; and
6. Rising inventory stock and dealership discounts.

Frost & Sullivan’s analysis identifies growth factors, challenges and barriers to success across key sectors such as connectivity, telematics, retailing, aftermarket, e-mobility, autonomous, powertrain, and mobility. – TradeArabia News Service




Tags: Ai | Frost | Data monetisation |

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