Automotive Innovation in the U.S.

Automotive Innovation in the U.S.

Automotive Innovation in the U.S.

Since 1913, the U.S. automotive industry has seen tremendous innovations, from the combustion engine to power steering. Key long-term trends are underway in the automotive industry and there will be a major transformation over the next decade.

The automotive industry accounts for nearly 3.5% of the U.S's GDP. In 2018, the motor vehicles and parts dealers industry contributed approximately $256.2 billion to the U.S economic growth and the automotive market is predicted to hit 6.7 trillion US dollars by 2030.

Automotive Industry in the U.S

  • The United States has one of the largest automotive markets in the world.
  • The U.S.A is presently the world's second-largest manufacturer by volume, producing around 8-10 million autos annually.
  • By 2021, American automotive production is anticipated to surpass 11.5 million autos annually and reach 12 million by 2025.
  • In 2019 Q1, the revenue per utility vehicle auto brands skyrocketed from $800 to $33,100 compared to the same time last year.
  • In 2018, the U.S exported 1.8 million new light vehicles and 131,200 medium and heavy trucks (valued over 60 billion US dollars) to more than 200 markets around the world with additional exports of automotive parts valued at $88.5 billion.
  • It is anticipated that vehicle sales for all of 2019 will slightly drop to 16.9 million units from 17.3 million units last year.

The Future of Automotive Industry is CASE

CASE - Connected, Autonomous, Shared, Electrified.

Over the next decade, the automotive industry will undergo a major transformation and the combination of CASE alone will boost the automotive market to $1.5 trillion by 2030.

  • Connected - Connected-car technologies will become standard by 2020, as the industry will bring more autos with safety features, info-tainment, diagnostics, advanced driver assistance systems, real-time traffic updates, dynamic routing, and other analytical tools to the market.
  • Autonomous - Autonomous/Self-driving cars can save 250mh to commute from one place to another and can avoid accidents. By 2030, up to 70% of new cars sold could have self-driving features & 15% could be fully autonomous and the market share of Autonomous Vehicles is projected to reach 80% by 2035.
  • Shared - Shared mobility solutions with shorter life cycles will become more common, as the cost per mile of a shared ride can be 40% cheaper than driving their own car. It is predicted that up to 1 out of 10 new cars sold in 2030 may likely be a shared vehicle, which could reduce sales of private-use vehicles.
  • Electrified - Many countries aim to put an end to gas & diesel automobiles on the road, due to tightened environmental disturbance. Currently, more than a million plug-in electric vehicles roam the U.S. highways. The Electric Vehicles (EV) adoption rate will grow steadily, with world sales of 41 million by 2040 - 25% of total market share.

Automobiles with CASE innovations work in tandem as the industry's potential will steadily rise in upcoming years.

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