Analysis of Automotive Industry Trends, Opportunities, and Innovation

This report provides an in-depth analysis of the automotive industry, focusing on the impact of mega and emerging trends. It explores how automation, car sharing, electric vehicles, connectivity, and car health monitoring are reshaping the sector. The report examines the effects of these trends on customer preferences, competition, and the demand for tailor-made and autonomous cars. Furthermore, it identifies key opportunities for entrepreneurs, such as launching tailor-made car businesses and introducing autonomous vehicles. The conclusion highlights the importance of adapting to these trends to succeed in the automotive market. The report also includes references to relevant literature and online resources, providing a comprehensive overview of the subject matter.

Opportunity Innovation and
Entrepreneurship

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Impact of mega and emerging trends in automotive industry......................................................1
Opportunities that are taking place due to emerging and mega trends........................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................5

INTRODUCTION
Opportunity innovation can be defined as the process of analysing market situations and
trends and then identifying entrepreneurial options available in the market. In order to attain
competitive advantage, it is vital for business entities to take mega and emerging trends in to
consideration while formulating strategic decisions (Caneque and Hart, 2017). It can help to find
different growth opportunities available in the marketplace. The sector which is selected for this
report is automotive industry which is involved in manufacturing and designing procedures of
cars and other auto-mobile items. This report covers various topics such as mega and emerging
trends in the industry and their impacts. Along with this, different opportunities that are taking
place due to impacts are also covered under this project.
MAIN BODY
Impact of mega and emerging trends in automotive industry
There are various companies that are concerned with designing and manufacturing
activities of different motor vehicles. All of them are considered as the part of auto mobile
sector. It is considered as world's largest economic sectors according to revenues. There are
various new trends are taking place in the market and affecting the whole automotive industry.
Some of the major trends are described below:
Automation: It is one of the major trend which is affecting auto mobile sector because
all the manufacturing companies under this sector are planning to launch fully automatic cars and
motor vehicles. With the help of it higher profits can be generated by all the organisations and a
positive market image can be established. It helps to provide new driving experience to the
customers as they just have to put their location in the software. Now drivers are not required to
look at the roads as their vehicle is capable to move itself and assess surroundings. There are
various benefits of autonomous vehicles such as decreased accidents, enhanced passenger
comfort and better traffic management (Trends in automotive sector, 2018).
Car sharing: It is also a mega trend which is related to automotive industry in which
various car sharing services such as zoom car, Uber are launched by organisations. It allows to
share ownership with other and people are taking more and more interest in the innovative ways
of using the cars with the option of car sharing as it is becoming more and more convenient. It is
continuously increasing due to interconnection through smart phones, social networks etc.
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Electric vehicles: Currently this trend is affecting the automotive sector because
organisations are focused with electric vehicles as it helps to save the environment as fuel such
as petrol and diesel are not required to operate them. Due to continuous development in the
demand of electric vehicle the business of automotive sector is increasing rapidly.
Connectivity: It is also a mega trend which has affected automotive sector and also
increased demand of different vehicles that are connected with a local area network with the help
of internet. With the help of it owner can track the location of car and it also reduces the threat of
theft. It can help to check the status of vehicle by checking its location in mobile application. In
order to follow this trend users have to install a mobile application to connect their smart phone
with the server (Mega trends in automotive sector, 2019).
Car health monitor: Now a days automotive biometric identification systems are in
initial phase and in future these are going to be launched in the market in order to measure health
of the vehicles. Technology is advancing with time and different types of features are being used
for the purpose of monitoring that car is working properly or not. For this purpose, different
sensors are used which are incorporated in engine, seat belts and steering. With the help of it, it
is analysed that the vehicles is fine or not, or there is a requirement of servicing. It is one of the
major trend which will affect demand of auto-mobiles in future.
Tailor made cars: Various business entities in automotive sector are planning to launch
tailor made cars in the market which are going to be manufactured according to demand of
customers. With the help of it, large number of customers can be attracted toward the company
as they will have a choice to design their own car. They can alter colour, seating, model etc.
according to their choice in this option (Drucker, 2014).
There are various impacts of all the above described mega and emerging trends in
automotive sector. All the impacts are as follows:
Changes in customer's preferences: All the trends that are taking place in automotive
industry leave impact upon choices and preferences of customers. In order to sustain in the
market it is very important for all the organisations to follow latest trends that are emerging in
the industry. With the help of it negative impacts of them can be reduced and higher profits could
be generated.
Increased competition: Due to various trends of automotive industry, competition gets
increased and affect ability of an organisation to execute business in the market (Sahut and Peris-
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Ortiz, 2014). In order to deal with this issue it is very important for all the companies operating
under automotive sector to focus on the trends taking place in the market. It can help to deal with
it and helps to enhance profitability.
Enhanced demand of tailor made and autonomous cars: Now a days demand for
tailor made and autonomous cars is being increased which is impacting automotive sector
because all the companies are not able to manufacture such cars. For all the organisations under
auto-mobile sector it is vital to focus on mega and emerging trends in order to decrease their
negative impacts (Hechavarría and Welter, 2015).
Opportunities that are taking place due to emerging and mega trends
There are various opportunities that are taking place due to mega and emerging trends. In
order to establish a new business venture in same sector it is very important for entrepreneurs to
take all of them in to consideration. It can help to attain growth and competitive advantage in the
market. All the opportunities are as follows:
Launching tailor made cars: As demand of tailor made cars in the market is increasing
so it will be a great opportunity to develop a new car which will be fully tailor made. It will
attract large number of customers as they will have a chance to design their car themselves.
Introducing autonomous cars: Fully autonomous cars are also in trend as it helps to
provide new driving experience to the customers. It helps to reduce accidents and manage traffic
in a better way. Hence, it is also a great opportunity which could be adapted by entrepreneurs to
develop a new product (Marcotte, 2014).
Featuring vehicles with new and innovative services: One of the main opportunity
which is taking place due to trends in the market is featuring the vehicles with innovative
services. With the help of it new venture can be launched by entrepreneurs by taking all the
trends in to consideration (Turner and Pennington, 2015).
CONCLUSION
From the above project report it has been concluded that in all the sector different trends
take place and leave impacts upon whole sector. In automotive industry various such types of
trends are introducing continuously which includes autonomous cars, tailor made vehicles, health
monitoring, car sharing and electric vehicles. All of them creates different opportunities for
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entrepreneurs to launch new venture in the market. These are launching tailor made or
autonomous cars in market and featuring vehicles with innovative services.
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REFERENCES
Books and journals:
Caneque, F. C. and Hart, S. L. eds., 2017. Base of the pyramid 3.0: sustainable development
through innovation and entrepreneurship. Routledge.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Hechavarría, D. M. and Welter, C., 2015. Opportunity types, social entrepreneurship and
innovation: Evidence from the panel study of entrepreneurial dynamics. The
International Journal of Entrepreneurship and Innovation. 16(4). pp.237-251.
Marcotte, C., 2014. Entrepreneurship and innovation in emerging economies: Conceptual,
methodological and contextual issues. International Journal of Entrepreneurial
Behavior & Research. 20(1). pp.42-65.
Sahut, J. M. and Peris-Ortiz, M., 2014. Small business, innovation, and entrepreneurship. Small
Business Economics. 42(4). pp.663-668.
Turner, T. and Pennington, W. W., 2015. Organizational networks and the process of corporate
entrepreneurship: how the motivation, opportunity, and ability to act affect firm
knowledge, learning, and innovation. Small Business Economics. 45(2). pp.447-463.
Online
Mega trends in automotive sector. 2019. [Online]. Available through:
<https://www.consultancy.uk/news/2609/4-megatrends-shaping-the-automotive-and-
car-market>
Trends in automotive sector. 2018. [Online]. Available through:
<https://blog.marketresearch.com/6-major-automotive-industry-trends-that-may-
surprise-you>
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