What to Expect for the Auto Industry in 2022
What will the auto industry look like in 2022? That’s a difficult question to answer. Car companies are releasing new technologies daily, and while some are more than just hype, it’s hard to know which ones will make an impact. However, what is clear is that car ownership rates will continue to decline. The days of people paying hefty monthly payments for depreciation-heavy vehicles are numbered. Whether you buy your next car or not, there’s no denying that the auto industry will be drastically different by 2022. Here’s what you can expect from the auto industry in 2022.
Car Ownership Rates Will Decline
Car ownership rates will decline, partly because millennials are waiting longer to get their driver’s licenses. In the United States, only 26 percent of 18-year-olds had licenses in 2016, down from 46 percent in 1983. Even if you own a car, you might not be driving it yourself. By 2022, ride-sharing and autonomous vehicles will likely account for 80 percent of passenger miles traveled in the United States. These technologies could save people $1 trillion annually by reducing congestion and accidents.
The Market Rules Will Change
With the advent of self-driving cars and electric vehicles, the market will change significantly. To meet these demands, car companies will need to ramp up production, but because of globalization, they will be competing against each other for the same customers.
Drivers are also evolving. It’s no secret that millennials are less inclined to buy cars right now, and it seems like this trend will only continue in the future.
Tech Companies Push into The Auto Industry
The auto industry is one of the most fiercely competitive industries on earth. Companies are always competing to release the latest and greatest new car, and they’re always trying to stay ahead. This means that car companies will likely continue to invest heavily in tech for their cars – after all, it’s an area where they can distinguish themselves from each other. They will also invest in offering transport services. For instance, a company like Montway offers auto transport in Michigan and other US states, which has helped it grow tremendously.
You can expect some major players in tech to enter the auto industry as well. Google has already begun working on self-driving cars with partnerships between Fiat Chrysler Automobiles and Toyota Motors, so you can probably expect more in this vein over the next few years. And while Apple hasn’t made much noise about this, you know that they’re interested in cars in general. Apple invested $1 billion in Chinese ride-sharing company Didi Chuxing earlier this year and is rumored to be developing a car under Project Titan.
Electric Vehicles Will Be a Major Player
You’ve already seen companies like Tesla Motors and Nissan catch on to electric car technology, and you can expect that trend to continue. Electric cars are cleaner and more efficient than gas-powered vehicles, so as oil prices rise, you can expect more companies to invest in these types of vehicles.
But don’t count out the traditional car companies yet. In recent years, you’ve seen how important innovation is for them, so you can expect them to keep their heads down and continue working on new technology. If you want proof that this isn’t going away anytime soon, look at how quickly Tesla has been able to grow since its inception.
Connected Cars Will Dominate
The global car market is poised to shift from ownership to shared usage. The days of people paying hefty monthly payments for depreciation-heavy vehicles are numbered. Whether you buy your next car or not, there’s no denying that the auto industry will be drastically different by 2022.
Cars Will be Autonomous
If there’s one thing you know about the future, it will be different from today. And when it comes to the auto industry in 2022, the biggest transformation will be cars: they’ll be self-driving.
With Google and Apple both producing their autonomous vehicles, it seems like only a matter of time before we start seeing these vehicles on the roads. These vehicles will likely eliminate accidents because they’ll never get distracted or drive drunk. They’ll also lead to less traffic and congested roadways because human drivers won’t need to waste so much time driving themselves around anymore.
The future of the auto industry is bright. The industry will get transformed by many new technologies, including autonomous cars, connected cars, and new powertrain technologies. These changes will lead to a less congested road network and more efficient use of limited fossil fuels.