Digital Transformation Trends In The Automotive Industry

The automotive industry is the second most data-driven worldwide, heavily relying on technology thanks to the ever-improving and advancements of IoT and mobile technology—allowing manufacturers to collect tons of information about drivers, routes, destinations, traffic patterns, and maintenance. All these are just on the driver’s side, meaning there’s plenty more to come.

Whether it’s affluent oil and gas investment companies handling potential oil and gas projects related to the automotive industry or humble owner-operators looking to achieve more—the following are the top digital transformation trends taking over the sector in 2021.

Digital Sources In The Car-buying Process

The process of buying cars used to be a source of stress and headaches amongst many consumers, especially when dealing with a pervasive salesperson—leading to an overall bad experience. Customers only equipped with a newspaper ad felt ill-informed pressure when purchasing a new car. However, nowadays, nearly everyone has access to a great source of information due to the advent of the internet—providing consumers with ample knowledge about the cars they’re interested in before going to the dealership.

Because of this, customers don’t need to get pressured when facing a pushy salesperson. Additionally, actual showrooms are gradually being transformed into digital marketplaces complete with virtual and augmented reality capabilities. This digital transformation trend enables consumers to open doors and explore a new model virtually and in the convenience of their own homes.

Autonomous Driving

Although self-driving cars may have seemed like an absurd proposition decades ago, thanks to manufacturers, notably Tesla, the possibility of vehicles driving themselves has become a reality. All these are possible due to the collaboration between several advanced technologies developed over the decades. From GPS to more accurate sensors, automated vehicles will ultimately handle all situations and conditions—leaving the human driver to sit back, relax, and enjoy the ride.

Besides providing convenient trips, automatic vehicles will decrease automotive accidents and deaths while providing those restricted the freedom to travel by car and the chance to explore the world. Currently, automobile manufacturers today are making autonomous vehicles more readily available and accessible by the average consumer. Although self-driving technology isn’t as prevalent on the road, it’s being tested worldwide, with various regulations and barriers impeding progress.

Nonetheless, experts have anticipated that this trend will become more efficient in the upcoming years, potentially reducing accidents and insurance costs—saving consumers up to one trillion dollars and nearly a million lives every year.

Big Data

High-tech and advanced cars are often a shared dream amongst everyone, gradually turning into a reality. With the improved connectivity, big data can help consumers find destinations, faster routes, less hectic traffic patterns, nearest gas stations, and even set their preferred music based on their behavior. Because of this digital transformation trend, vehicle manufacturers can inform software developers remotely, allowing them to check and react to engine performance while updating it regularly.

In essence, big data and connected cars streamline the management of an extensive number of vehicles.

electric vehicle

Electric Vehicles

It’s no secret that the environment’s health is declining, and the surrounding air gets polluted every second due to the increased number of vehicles and the smoke they emit. Fortunately, electric cars are becoming easier to manufacture and have been more accessible to common-class individuals, increasing the demand. Plus, people are also becoming more conscious about their surroundings.

3D Printing

3D printing technology has been floating around for years, but this trend has recently proven its worth and assistance to the automotive industry. With the latest progress in additive manufacturing and designing automotive parts with complex geometries that are time-consuming or challenging to achieve, following conventional methods will become more manageable.

Plus, it will reduce the costs and development time of prototyping and building functional and durable parts, paving the way for new ways to conceive and produce vehicles.

Mobility as a Service

Mobility as a service or MaaS is the mobility distribution model where a person’s transportation needs are met over one interface while given by a service provider. Generally, several transportation options, ranging from mass transit to ride-hailing, get bundled. The integrated solution to this is presenting users with a convenient way to pay for services through a single account via a smartphone app.

Thus, this emerging trend under mobility technology dramatically impacts the automotive industry, contributing to reduced demand for parking, pollution, and congestion—providing tremendous energy savings and reduced transportation costs.

The growing digitalization and technological trends in the automotive industry have streamlined operations and swiftly met customers’ demands. These trends efficiently enhance first-time and existing buyers’ experience—transforming the automotive industry for more prominent and profitable opportunities for buyers and sellers alike.


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