Driven by government mandates on safety and emission regulations, original equipment manufacturers (OEMs) are investing billions of dollars in the research and development (R&D) of advanced vehicle technology features, according to Frost & Sullivan.
This is fueling rapid growth in autonomous, artificial intelligence (AI), safety, in-vehicle connectivity, comfort, and electric vehicle (EV) technologies. Major automotive OEMs, suppliers, as well as small technology start-ups are expected to partner or collaborate with the aim of reducing the price point of top features, offering new business models such as connectivity through the cloud and data-based services to end users.
Frost & Sullivan's Analysis of Top 30 Features of Mass Market and Luxury OEMs in North America, 2016-2025 reveals government mandates on emission and safety drive innovation in automotive technology is driving OEMs to make major investments in technology development across six clusters including powertrain, chassis, safety, comfort, connectivity, and EV technology within the mass and luxury OEMs market in North America.
“While the majority of features identified are currently available only across select vehicle models owing to high technology costs, they have significant potential through R&D, collaboration, and knowledge sharing to reach peak performance, adoption and penetration across multiple vehicle models,” said Frost & Sullivan Mobility Research Analyst Ajay Natteri Mangadu.
“In-car connectivity features are set to boom within the luxury vehicle market, while mass-market segment vehicles are expected to adopt features such as autonomous emergency braking to improve safety,” noted Natteri. “EV technologies will witness low adoption rates owing to high technology costs.”