The disruption of the automotive industry will be one of the biggest that has ever happened in any industry. The automotive and transportation industries touch almost everything in our everyday lives! Automated Driving Technologies will completely transform transportation. It will change tens of millions of people's lives, and bankrupt hundreds, if not thousands, of companies, and create thousands of millionaires and tens of thousands of jobs, while destroying just as many.
Hundreds of billions of dollars will be invested. There will be winners and losers along with VERY BIG winners and VERY BIG losers. New businesses, industries, and business models will be created while old ones disappear.
So, if you are interested in how one of our country's most important industries is being disrupted, you need to read this book! If you are one of the almost 10 million people who work for a company or are supporting the automotive industry, want to work for a company in the automotive industry, or are simply interested in the trends and technologies that are disrupting the automotive industry, you need to read this book!
So who and what will be disrupted? It is my belief every aspect of the automotive industry value-chain will be disrupted in one way, shape, or form. I also believe that there will be a small percentage of existing businesses that will figure out how to be a disrupter, a large percentage of existing businesses that will be disrupted, and last but not least, there will be new companies that enter the automotive market as disrupters.
Like most new markets driven by technology, a large percentage of these new entrants will fail or be acquired while a small percentage will experience great success. Let's take a look at how some of the industry players could be a disrupter or be disrupted, as well as a few new disruptive companies.
Let's start with OEM manufacturers and their suppliers. They can and will be disrupted by sales and volume declines, value-chain disruption and vehicle content, and technologies. They also have the opportunity to be a disrupter with big data and the Internet of Things.
Another sector that will be disrupted are new car dealerships. They will experience disruption due to car sharing, e-hailing, ownership subscriptions, online vehicle purchasing, vehicle electrification, and the increase of autonomous vehicle fleets!
Next up, insurance industry disruption. This industry will be disrupted by the entry of new insuretech companies, increased use of telematics or usage-based insurance (UBI), TaaS (Transportation as a Service), reduction in claims due to ADAS technologies, new claims automation, technologies and processes, and more...
Auto repair and auto body shops will experience disruption on several fronts. The first being how to repair vehicles that are turning into computers on wheels. Right behind that is implementing new customer service and communication technologies and finding and retaining talent! Last but not least, these highly-fragmented industries will continue to experience consolidation.
Another industry segment that will be affected by disruption are aftermarket parts and materials suppliers. This segment will feel disruption due to less parts found on electric vehicles, more consumers purchasing parts and materials online, as well as consolidation.
One thing is for sure, it won't be boring.......buckle up!
