Car Insurance
7 Automotive Industry Trends to Watch in 2024
As we step into 2024, the auto industry continues to be at the forefront of technological innovation and consumer trends. The industry has not only recuperated from the challenges posed by the global pandemic but has also embraced new opportunities for growth and transformation. This year, we're witnessing some groundbreaking trends that are reshaping the way we think about vehicles, from the way they are powered and driven to how they are purchased and owned.
These trends are not just influencing global markets but are also having a profound impact in Ireland, where changes in consumer preferences and technological advancements are driving a significant shift in the automotive sector. This article delves into the top seven trends in the automotive industry in 2024, highlighting how each is playing a pivotal role in the evolution of this dynamic industry.
1. Resilient Recovery and Growth
The automotive industry, having navigated the challenges of the pandemic, continues its robust recovery. In 2024 we’re due to see the market bouncing back vigorously from the challenges of the past years.
The sector has shown remarkable adaptability, with vehicle sales in Ireland seeing a significant upturn, reflecting a renewed consumer confidence and a robust economic rebound.
This resurgence is particularly notable in the electrification segment, with electric and hybrid vehicle registrations reaching new heights, driven by increased environmental awareness and government incentives.
The market's growth is also fuelled by innovative financing and ownership models, such as flexible leasing and subscription services, which are gaining popularity among Irish consumers.
2. Advancements in Connected Cars
Connected cars have transitioned from a novel concept to a standard feature in many new vehicles. These cars offer enhanced safety, convenience, and entertainment options, boasting advanced Internet of Things (IoT) connectivity.
The latest models provide improved remote diagnostics, vehicle health monitoring, and integrated 5G connectivity. Manufacturers are leveraging these technologies to offer new services and business models, enhancing the overall user experience and opening avenues for recurring revenue.
Tip: Read our article to learn more about Essential Car Safety Features You Should Know
3. Evolving Vehicle Ownership Models
Ireland is witnessing a significant evolution in vehicle ownership models, reflecting a broader shift in consumer preferences and technological advancements. Traditional models of buying and leasing are being supplemented, if not replaced, by more flexible and innovative alternatives.
Subscription services have emerged as a popular choice, offering Irish consumers the ability to access a range of vehicles with shorter commitments and the convenience of switching models to suit changing needs. This trend is particularly appealing to those seeking the latest electric and hybrid vehicles without the long-term financial commitment of outright purchase.
Additionally, the Irish market is seeing a rise in car-sharing schemes, especially in urban areas, where the demand for occasional vehicle use is complemented by a growing environmental consciousness.
These changes signify a move towards a more dynamic, user-focused, and sustainable approach to vehicle ownership in Ireland, aligning with global trends and the country's commitment to reducing its carbon footprint.
4. The Electric Car Shift
The competition between Fuel Cell Electric Vehicles (FCEVs) and Battery Electric Vehicles (BEVs) is becoming more pronounced, with each technology vying for dominance in the market.
FCEVs are gaining attention for their longer range and faster refuelling times. This technology is seeing increased investment from manufacturers, backed by supportive policies from various governments. However, in the Irish context, the current EV market is primarily dominated by BEVs, as evidenced by the diverse and advanced range of BEVs available to consumers.
Popular models like the Audi e-tron and Hyundai Kona Electric offer features such as fast charging capabilities, luxury interiors, and eco-friendly technologies, tailored to Ireland's varied climatic conditions and terrains.
Despite the appeal of BEVs, there are challenges to widespread EV adoption in Ireland. These include concerns over charging infrastructure, the high initial cost of EVs, and range anxiety.
However, initiatives like the development of public charging points by ESB, which include fast charge points located every 50km on major routes, are addressing these challenges. Additionally, financial incentives like reduced SEAI grants and lower motor tax for BEVs are making EVs more attractive to Irish consumers.
For example, Zero Emission Vehicles Ireland is working with stakeholders to improve solutions and build trust among consumers. Innovative approaches to charging infrastructure, such as community charging schemes and smart charging technologies, are also being explored.
Tip: Discover 7 Benefits of Driving an Electric Car in Ireland
5. Progress in Autonomous Driving
Autonomous self-driving vehicles are already here and will become even more prevalent in 2024 and beyond. And that is great news, because research has shown autonomous vehicles are safer, reduce downtime, expand the last-mile delivery scope, reduce driver stress and driver negligence-related accidents. It will become much more common to see autonomous vehicles on our roads, whether it’s a fleet of trucks or one of the many new brands looking to enter the market.
The biggest challenges facing a faster market introduction are pricing, consumer understanding, safety/security concerns and regulatory issues. Regarding technological readiness, tech players and start-ups will likely also play an important role in the development of autonomous vehicles.
Regulation and consumer acceptance currently represent the biggest hurdles for autonomous vehicles. However, it seems that addressing and overcoming these challenges is only a matter of time, and afterwards autonomous vehicles will offer tremendous value for consumers. A progressive scenario could see fully autonomous cars accounting for up to 15 percent of passenger vehicles sold worldwide by the year 2030.
6. 3D Printing Innovations
The automotive industry's adoption of 3D printing continues to evolve, offering rapid prototyping, production of end-use parts, and manufacturing of lightweight, durable components. These advancements are leading to more efficient production processes and enhanced vehicle performance.
7. Digitalisation of Car Sales
Digital sales platforms are becoming the norm, with consumers enjoying the convenience of online car shopping. This shift extends beyond North America and Europe, with virtual showrooms, online financing, and home delivery becoming standard features of the car buying experience.
The market for pre-owned vehicles, especially those less than four years old, remains strong. These vehicles offer modern features at lower price points, including electric and hybrid models. The rise in demand is shaping the second-hand car market, with dealerships offering a wide array of certified pre-owned vehicles.
Conclusion
The automotive industry in 2024 is a testament to the incredible pace of change and innovation that characterizes our era. From the resilient recovery and growth post-pandemic to the exciting advancements in connected cars and autonomous driving, the industry is at the cusp of a new era. Together, these trends are not just shaping the automotive industry of today but are paving the way for a more advanced, efficient, and consumer-centric automotive future.
No matter what you choose, comprehensive or third party policies, insuring your car with AIG offers you the best protection with many benefits such as 24/7 breakdown assistance, No Claims Discount and also windscreen cover. And you can save 10% on your premium if you get a car insurance quote online.
Tip: Read the article on Automotive Industry Trends in 2022 and see how the industry has evolved!
How to buy the best new car
- Are you a new driver in Ireland looking to buy your first car? Our comprehensive guide outlines the steps to make your car-buying journey as smooth as possible. Check it out!
- Timing is Key! Read our comprehensive guide to discover best time of the year to buy a car in Ireland. From registration plates to seasonal promotions, we cover it all.
- Explore the best-selling cars in Ireland in 2023, spotlighting the top performers across various categories, from compact to family vehicles.
- Driving a new car can be exciting yet daunting. Our article provides practical tips on how to get used to a new car, ensuring your journey is smooth, safe, and satisfying