Technological change continues to drive exciting innovations in the auto industry. Here are three trends that we expect to gain steam in 2024.
Subscription-Based Services
Subscription-based revenue models are already a mainstay of tech-driven businesses. It was only a matter of time before they made inroads into the auto industry.
As vehicles become more technology-centered, automakers have begun to explore how they can offer subscriptions for various vehicle features and services. Satellite radio and roadside assistance packages are already common. But in 2024, expect to see the subscription model expand into unlocking technology-heavy vehicle performance features such as driver assist and hands-free modes. Drivers will also have expanded options for subscribing to navigation enhancements, like live traffic and weather alerts.
Subscriptions will also continue to grow in the auto repair business. Dealerships will see growth in subscriptions for routine maintenance and parts upgrades, which lock in repair revenues for dealers and offer convenience for drivers.
Electric Vehicles (EVs)
EVs have been gaining ground for years, but 2024 could bring the moment when fully electric vehicles reach a crucial tipping point in the United States by accounting for more than 5% of new car sales. Experts believe that threshold marks the point where consumers will no longer see EVs as a novelty and a risky purchase and instead accept them as a viable alternative to gas or hybrid gas/electric vehicles. As the trend accelerates, more automakers will offer EVs with faster-charging batteries that have ever-greater ranges.
The EV revolution will also bring about a massive change in auto infrastructure. In 2024, we expect charging station development to become economically attractive to an increasing number of legacy gas station owners, as well as to developers who see opportunities in installing charging stations away from typical service station locations. Growing industry recognition of the need to standardize charging technology promises to fuel this development.
Augmented Reality (AR) in Vehicles
Augmented reality (AR) is a technology that places digital images between a viewer and a real-world object or scene. Rudimentary AR technologies are already common in many vehicles. For example, rear-view cameras show brackets and virtual lanes to help drivers back up and parallel park, and head-up displays (HUDs) project speedometer and odometer readings onto the base of the windshield in a driver's sightline.
In 2024, automotive AR technologies will likely grow in sophistication and become more immersive. We expect them to begin offering real-time information about the driving environment and surrounding area, helping drivers navigate, locate businesses, monitor and adjust vehicle systems, and avoid hazards. The accuracy and reliability of standard AR features like parking assistance and lane-awareness systems will also continue to improve.
Keeping a Finger on the Pulse of Automotive Change
The new year will almost assuredly bring change to the world of automotive. As a dealership, it is important for your store to stay on top of the latest patterns in the industry. Contact us today to learn more.
