Member Article

What Will Happen To The Automotive Sector?

When it comes to technical analysis in regards to a specific business sector, the automotive industry is definitely something which should be taken into consideration. To start off, companies like TESLA and Audi are setting the bar high in regards to pieces of technologies being applied to their vehicles, a clear indication of how the entire automotive sector is highly valuing technology in regards to its development routes. Let’s analyse the matter in more detail.

Artificial Intelligence in Cars: Is It Becoming an Industry Standard?

Artificial intelligence and machine learning have been two topics which dominated the entire technological segment in 2017/18 and 19. With examples like TESLA’s autopilot and Audi’s (not yet released) autonomous driving system, we can safely say that these two technological applications have become quite relevant in the automotive industry. Generally related to safety and “accidents prevention”, autonomously driving systems are becoming quite big in an industry which is moving more and more towards what’s known today as “the driverless experience”. Audi’s analysts have stated multiple times how they are planning on making their driverless system a standard on each vehicle in their production line by 2030.

The Market Value

The fact that artificial intelligence and machine learning-related applications are approaching the automotive sector will automatically lead to a slight (but yet still considerable) increase in prices for buying and leasing vehicles. It’s safe to say that, before 2025, commercial van leasing or business van leasing plans will be slightly higher in prices compared to what they’re at now. This is mainly due to the fact that, in the future, vehicles’ prices will be related to their technology, instead of their raw power. In simpler terms, we can safely say that, in the nearest future, the entire automotive sector will be mainly focused on technology on and off-board.

Timeframes

As said above, Audi’s analysts have stated how artificial intelligence-driven vehicles will become an “industry standard” by 2030, but this is definitely going to be confirmed once TESLA’s Model 3 production line is fully into place (as Elon Musk stated, before 2021). Given the extremely competitive price, TESLA could dominate the entire segment in the next couple of years, making the above mentioned Audi’s assumption completely false. In general, we should wait a couple of years before being able to see how tangibly the entire artificial intelligence sector/applications will tackle the “mainstream market”.

This was posted in Bdaily's Members' News section by All Van Leasing .