Did you know that 74 million and 78 million vehicles are sold annually in the automotive industry in the United States? If so, did you know that almost half of the cars sold in the U.S. are imported from five countries, namely Japan, Germany, Mexico, Canada, and Korea?
While lockdowns caused by the COVID-19 pandemic contributed to the chip shortage in the automotive industry, a turnaround is predicted for either later this year or sometime next year.
Are you interested in finding out some more industry trends and car buying statistics to look out for?
Keep reading to learn about 5 intriguing automotive industry trends for 2022.
1. 6 Million EV Sales in the Automotive Industry in 2022
Gartner forecasts that 6 million electric vehicles will be shipped this year, compared to only 4 million EVs shipped in 2021.
The research firm adds that EVs will account for 95% of total EV shipments this year, while the rest will be divvied up among buses, heavy trucks, and vans. So, the EV trend appears to have a lot of roadways ahead. It’s certainly no fad.
While Tesla has popularized EVs, many automakers are in the EV space. Whether offering fully electric vehicles or hybrid vehicles that run on gas and electricity, car manufacturers are tapping into the growing customer demand.
Issues like range anxiety have concerned would-he EV buyers in the past. But EVs today offer greater range than they did in yesteryear, and the network of EV charging stations is growing.
2. Online Vehicle Sales Increasing in Popularity
Do you want to buy car online? The online car dealers industry in the U.S. is worth $45.1 billion. According to IBISWorld, the industry has grown an average of 6.4% annually between 2017 and 2022.
While people have been able to buy vehicles online for years, the trend really took off early in the coronavirus pandemic. As governments implemented lockdowns to stem the virus’s spread, the auto industry had to adapt.
One of the ways they did so is by heavily promoting online buying. It made things easier for consumers who were understandably hesitant about going about business as usual when the virus was spreading like wildfire.
Without leaving their homes, consumers could look at inventories, have one-on-one talks with sales reps, have vehicles delivered to their homes for test drives, and then have purchased vehicles delivered.
For consumers who have never liked the process of physically visiting car dealerships, negotiating on terms, and signing financing documents, the trend toward more online car buying and car shipping is a welcome development.
3. Autonomous Vehicle Capabilities Take Big Step Forward
While the dream of fully autonomous vehicles hasn’t reached fruition yet, that doesn’t mean that vehicle makers aren’t getting closer to that goal.
According to one source, Elon Musk, CEO of Tesla, could have EVs capable of Level 4 self-driving by the end of this year.
Autonomous car levels go from Level 0 to Level 5, with Level 0 referring to cars with zero self-driving capabilities and Level 5 referring to cars with full self-driving capabilities.
Are you in the market for an EV this year but don’t want to play the wait-and-see game as far as Tesla goes? Some good EVs are coming out that have pretty impressive levels of autonomous self-driving features.
For instance, Mercedes-Benz will reportedly roll out the initial mass-production Level 3 vehicle this year, leveraging its Drive Pilot tech. The Level 3 feature will enable motorists to sit back and allow the vehicles to drive.
In other news, the trucking industry, worth $800 billion, could see a reduction in the almost 5,000 trucking-related deaths that happen annually if Level 3 or Level 4 autonomous technology were widely used.
4. Cars Becoming Increasingly Connected
The connected car segment in the automotive industry is valued at about $75.7 billion worldwide this year, and it’s projected to climb to a whopping $191.8 billion by 2028.
Another source notes that about 47.5 billion connected cars were sold in 2020.
Connected vehicles allow for remote diagnostics, vehicle condition notifications, turn-by-turn alerts, and more. So, it’s no surprise that consumers are interested in this type of technology. And automakers are happy to oblige.
As the internet of things (IoT) and 5G technology continue increasing in popularity, the trend toward more connected vehicles is expected to climb.
McKinsey, in fact, says that around 95% of new vehicles sold around the world will be connected by 2030. This compares to about 50% early last year. If your current can isn’t connected, your next vehicle will likely be.
5. Automakers Reviewing Hardware Outsourcing
Another trend in the automotive industry this year is seeing vehicle makers reconsidering their traditional inventory strategy. This strategy has left many original equipment manufacturers and Tier 1 suppliers high and dry during chip shortages.
According to Gartner, car manufacturers are reviewing how they deal with chip makers and are pondering whether to make their own chips.
The research firm predicts that by 2025 half of the top 10 OEMs in the automotive space will create their own chips and create working arrangements with chip businesses.
These Automotive Industry Trends Will Shape 2022
These are 5 automotive industry trends you need to be aware of this year. It’s an industry that has faced many challenges over the year (including the COVID-19 pandemic), but there’s still lots of good news.
For instance, you’ll want to keep your eyes on the EV space as things heat up. Whether you want a car, truck, or SUV, you’ll find plenty of options.
If you buy a car and need it shipped to your address, Nexus Auto Transport can help. It serves online car sellers, military members, college students, and auto auctions. Get in touch today to learn more.