Other factors include changes in global supply chains, shorter technology cycles and of course pressure from environmental regulations. It all makes for a complex mix of challenges that auto industry players are learning to adapt to.

Automotive trends to shape the industry in 2020 and beyond

Adapting to today’s automotive industry challenges implies several technology trends that affect how the car industry goes about its day to day business in the next decade, modifying the way consumers use and experience autos. We think these are five key trends to keep an eye on in 2020:

1. Electric cars

The internal combustion engine has been the building block of the auto industry for over a century, but environmental regulation and consumer concerns is driving a shift to hybrid and battery-powered cars. The growing adoption of electric cars is also supported by expanding charging infrastructure and improvements in battery technology.

In 2030, the share of electrified vehicles could range from 10 percent to 50 percent of new-vehicle sales, according to Mckinsey.

2. Fast-moving industry entrants

Brand-new auto brands are a rare occurrence and are usually backed by established manufacturers. Yet the emergence of Tesla as a car brand points to a future roster of novel brands, brands that take advantage of automotive industry disruption such as electrification. At the same time tech firms and consumer electronics players are gaining prominence in the automotive industry via in-car tech.

15% of new cars sold could be fully autonomous by 2030, according to IBM.

3. Shared mobility

Ride-hailing apps like Uber, Lyft and Bolt are incredibly popular but are a relatively recent phenomenon. The popularity of ride-hailing and other types of shared mobility (including car-pooling apps like BlaBlaCar) is set to increase in the 2020s as technology continues to support these trends while consumers seek ways to save money. Indeed, shared mobility is changing the expectations of car ownership – and the purpose of an automobile.