Automotive Trends - 2023

 Jan 20 , 2022    |    3 min read

The Auto industry is never dull!

The automotive industry is constantly evolving, with new technologies and trends emerging yearly.

The increasing pace of innovation in the automotive sector gives life to “software-defined vehicles”.

“Software-defined vehicle” (SDVs) is a term that describes a vehicle whose features and functions are primarily enabled through software, a result of the ongoing transformation of the automobile from a product that is mainly hardware-based to a software-centric electronic device on wheels.

The major SDV’s benefits are the “over-the-air updates”, namely the possibility to receive software updates remotely, allowing manufacturers to quickly and easily fix bugs, improve car performance, and add new features without the need for a physical visit to a dealership.

Automotive CASE

CASE: one acronym, countless possibilities

If we had to choose one word to summarize 2023 trends in the automotive industry, we would choose CASE, which stands for Connected, Autonomous, Shared mobility, and Electrified.

Let’s dive the terms deeper:

  • Connected carsequipped with a wide range of sensors and communication systems that enable them to connect to other vehicles, infrastructure, and the internet. 
  • Autonomous vehicles – intuitively drive themselves without the need for human intervention. The self-driving is possible thanks to a variety of sensors and technologies that allow the vehicle to perceive its environment, understand its surroundings, and make decisions based on data. Some relevant outcomes are the safety improvement by reducing the number of accidents and efficiency increasement of transportation.
  • Shared mobility refers to the concept of sharing every type of vehicle rather than owning them. The sharing trend can greatly reduce the number of cars on the road and make transportation more efficient and environmentally-friendly. 
  • Electrified vehicles (EVs) –  powered by electricity, rather than fossil fuels, reducing emissions and improving energy efficiency. Electrification is playing an important role in the transformation of the mobility industry and presents major opportunities in all vehicle segments, although the extent and pace of change will be different. 

It is evident how industry players are accelerating the speed of automotive technology innovation as they develop new concepts of Connected, Autonomous, Shared, and Electrified Mobility.

Pandemic Effects - A quick glance

“After Covid-19, we believe companies will start to localize some of their production. Factories will need to be more digitalized and automated […]. The Industrial Internet of Things, 5G, and industrial software are all key enablers of the transformation to smart manufacturing.”

 – Alexander Stiehle, Analyst, UBS

The COVID-19 pandemic had, at the same time, both negative and positive impact on the automotive industry.

Starting from the negative speed bump for sales, due to the increasing prices, lower vehicle production, and less dealer inventory.

The semiconductor shortages: a global shortage of chips, considering their key use in a wide range of automotive applications. Additionally, other shortages with similar effects on the automotive industry have been the mini controllers, sensors and display panels ones.

Despite the downward effects, the pandemic also had a positive outcome, boosting the pace of innovation in the automotive industry.

The studies report an increased demand for contactless and self-service technologies, a considerable focus on the development of keyless technology, e-vehicle charging, and  self-driving cars. 

Last but not least, the explosion of streamlined operations, virtual services and sales, and higher profits.

In-Vehicle Experience: Cars as extensions of our home

The experience of driving has been, for the most part, linked to the vehicle’s drivetrain, engine, and how it puts power on the road. 

However, in more recent years aesthetic features and infotainment have taken hold in the scenario. From aesthetic features such as more and bigger screens to the integration of infotainment involving voice controls, streaming audio, video, and gaming. 

These are just a few of the several elements that through the implementation of IoT and connectivity make the diver’s experience fully intuitive and totally immersive.

➕ There’s much more!

With the adoption of industry 4.0, we are witnessing the fourth industrial revolution, and enabling entire ecosystems of devices to connect, communicate, diagnose, and solve problems. By receiving the data from these products, manufacturers can enhance the user experience and further improve the products.

Tesla is a great example of this: its owners are always sharing feedback with the manufacturer who then deploys over-the-air updates to the vehicles.

The sheer amount of data collected by cars on the road may also open up new revenue streams: data generated through sensors are sold to other manufacturers to help them to improve their design and production process. This new usage of data creates a market for after-sales add-on products!

About the author


Benedetta Biggi

Sales and Marketing Associate at 2hire

I love running and daydreaming losing count of the distance I’m covering, cooking (and especially eating) and Drake is my spirit guide.