How tech is disrupting the automotive industry

We know technology is quickly changing the way we do business – and that’s increasingly true for the automotive industry.

Early in 2016, McKinsey & Company released eight predictions about how technology will continue to disrupt the automotive industry by 2030:

• • On-demand services and autonomous vehicles will change the way we use cars.

• • People will still buy vehicles, but fewer people will purchase them.

• • Almost 10 percent of cars sold in 2030 will be shared vehicles.

• • City type will be one of the most-important factors to determine mobility behavior.

• • Almost 15 percent of new cars sold in 2030 will be autonomous.

• • Electric vehicle adoption will vary based on local infrastructure.

• • As we shift to more shared vehicle use, car manufacturers will need to create new partnerships.

• • More new players – like Google – can be expected to join the market.

To remain competitive, automotive companies need to engage nimble startup organizations. Manufacturers that work with disruptive tech startups will better understand the coming trends – and potentially even get ahead of those trends.

As the industry changes, Greater Cincinnati continues to be a viable choice for growing automotive companies. While we still have advantages for traditional manufacturing needs – proximity to OEMs, skilled workforce, etc. – the region is also becoming a startup hotspot. In 2016, Cintrifuse led the efforts to host FounderCon, a three-day startup conference that connects entrepreneurs with their peers and with BigCos.

What tech trends are you seeing in the automotive industry? Can we help you grow in the space? Share your insights with me at KDonnelly@REDICincinnati.com.