2021 wrap up: Major disruptions that have shaken the automotive industry

On a number of fronts, the global automobile sector is experiencing a slew of disruptions. Some are causing harm to the traditional automobile industry as we know it, while others are preparing it for the future.

The penetration of new technologies such as artificial intelligence (AI), big data and analytics, as well as the internet of things (IoT), blockchain, and other disruptive developments, has been transforming the automobile sector for the future. These have thrown the automotive vehicle business model and operations into chaos.




Other disruptive technologies penetrating and transforming the face of modern mobility throughout the world include electric powertrain technology, digitalisation, smart mobility, and autonomous driving technology.

Here are some key disruptive factors that shook the automotive industry in 2021.


Self-driving technology

Self-driving vehicles, also known as autonomous vehicles, are a new technology that is revolutionising the automobile industry. This technology has the potential to revolutionise traditional transportation. The fleet of self-driving cars is expanding, with an emphasis on last-mile deliveries, downtime reduction, and safer public transit. By reducing driver fatigue or negligence, this device hopes to decrease accidents. Advanced identification systems, a wide variety of sensors and cameras, and other features are included in self-driving vehicles. In the year 2021, self-driving technologies will have a larger penetration in the automobile industry.



The car industry is thriving for electric automobiles because to decreasing fossil fuel supplies and increased air pollution from automotive emissions. Consumers used to pay the premium for electric automobiles even only a few years ago. However, the initial cost of electric vehicles is rapidly decreasing, closing the gap between electric and fossil fuel vehicles. Electric vehicle adoption increased in 2021. Other developments we've seen include improved battery technology, more charging infrastructure, and fleet electrification, among others.


Artificial intelligence

Artificial intelligence technologies such as machine learning, deep learning, robotic automation, and others are increasingly being used in the automobile industry, as they are in many other industries. Self-driving vehicles are being guided by these technologies, which are also being used to manage fleets, help drivers in enhancing safety, and enhance services such as vehicle inspection and insurance. AI is also seeing increased use in the automobile industry, where it is speeding up production and reducing prices.


Shared mobility

In the automotive sector, connected car technologies are spawning new trends. Some of them promote shared mobility as a viable alternative to traditional car ownership. Mobility-as-a-service (MaaS) is one of them, and it discourages the usage of underutilised automobiles. This business model is designed to meet the needs of a city or a company without the need for additional cars. This lowers downtime for fleets while also reducing air pollution caused by vehicular emissions.



In the automotive industry, blockchain technology is finding an expanding number of uses. Sharing vehicle data via a secure network for connectivity and shared mobility solutions such as ride-hailing, urban transit, and last-mile delivery are among the many automotive industry uses. In these industries, blockchain is enhancing efficiency and lowering the margin of error. Blockchain is bringing more efficiency to the automotive supply chain as well.

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