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The Future of the Automotive Industry

Updated: Nov 15, 2023

Technological improvements have changed the way we do just about everything. The way we communicate, the way we work, the way we shop and even the way we drive have all been turned upside down by the changing technology.

Digitalization, increasing automation and new business models have revolutionized other industries. These innovations have always been more crucial for the automotive industry than it has been to most other industries. And of course, the automotive industry is one of the most adapting to these changes among other industries. Staying current and aware of technological improvement are keys in the automotive industry. That's why automakers are constantly trying to stay up to date with innovations.

In 2018, automakers worldwide invested a staggering 125 billion USD in R&D. In Europe, the automotive industry ranks first in terms of R&D expenditure, well ahead of sectors such as pharmaceuticals, biotechnology, aviation, and defense. According to European Automobile Manufacturers' Association (ACEA), the EU is by far the world's largest investor in automotive R&D, spending €62 billion on innovation each year.

Since the first Ford Model T, cars have come a long way. Modern cars have welcomed new technological innovations that now offer improved steering, safety gears and GPS navigators for enhanced luxury and optimized performance.

The total automotive market is expected to hit $6.7 trillion by 2030. Among this, $4.0 will be coming from one-time car sales, whereas in 2015 it was only $2.8 trillion.

How AI is Changing Production Operations in Automotive Industry?

Nowadays, when innovations and advancements are mentioned, of course, AI comes to mind first. Automotive assembly areas and production lines are using artificial intelligence applications in different ways. So how is AI used in the automotive industry?

While AI is being used extensively in vehicle design, automakers also currently use AI and machine learning in their manufacturing processes. With the power of AI, smart robots can work with their human counterparts in a shared assembly environment. AI allows them to identify defects or irregularities in the production lines and adapt the process accordingly.

AI is also being used to track and measure production lines, machines, equipment, and workers to improve the overall throughput of the production process. AI enables analyzing the expanding capabilities of traceability in tandem with technological improvements and shines a light on its immense potential for production and quality enhancements. Traceability will allow manufacturers to determine the root cause of a failure better. This allows manufacturers to help reduce issues and errors, resulting in lower costs and to minimize product recalls effectively.

Digital twin design software providers see AI as a way to accelerate design processes. Because it is possible to plan the entire manufacturing process in a fully virtual environment before physically building production lines or installing automation and controls by using a digital twin in automotive production. This allows manufacturers to monitor the system, create models for adjustments, and make changes to the system. The implementation of a digital twin enables the optimization of each phase of the production process. It enables predictive and prescriptive analytics and minimizes unplanned downtime.

Sum Up

The automotive industry is being flexible, and being flexible is what’s required for a truly disruptive industry in the future. It is beyond doubt that, the future automobile industry will significantly accelerate the industry’s transition to sustainability through its brave new world of AI.

However, there is still much more to be done. Although technology has been integrated into industries for decades, it has never been done at such an advanced and rapidly expanding level. The overall infrastructure is necessary to make the world of autonomous driving our next reality. As Khenda, we are ready to enable you to expand and advance rapidly by digitizing your production processes.

If you have any questions or would like to know how we can help your industry with our AI-powered solutions, please contact us here or email us at



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