In 2020, the unpredictable COVID-19 has made it tough for the automotive industry globally. Even under this circumstance, the innovative enterprises in the industry are still proceeding towards positive changes; the automakers, suppliers and other participators are all looking to the opportunities of business model transformation and innovation.
On December 9-12, EqualOcean is holding the World Innovators Meet (WIM) 2020. In the meantime, this year's World Innovation Awards (WIA2020) are being announced, recognizing outstanding public and private technology companies, investment institutions and individuals from all over the world. By introducing WIA2020 winners, EqualOcean strives to make technology inclusive, accessible and transparent.
From the global perspective, as technological innovations such as 5G and blockchain came out, four major areas of the automotive industry are transforming: new energy, intelligent connected vehicles, mobility technology, marketplace and services. Technological innovations motivate the traditional automakers to evolve, and also create the fertile soil for the “new forces” to grow.
In 2020, the unpredictable COVID-19 has made it tough for the automotive industry globally. Even under this circumstance, the innovative enterprises in the industry are still proceeding towards positive changes; the automakers, suppliers and other participators are all looking to the opportunities of business model transformation and innovation.
EqualOcean analyzes the potential segments in the industry: we went through all the funding activities that occurred in the past year, and picked 50 companies that have an outstanding performance in terms of technologies, products or business model transformation, to present “Next 50 in Global Tech: Automotive and Mobility” on December 10th, 2020, during the World Investors Meet 2020.
For lack of space, this article provides a summary of insights of the “Next 50 in Global Tech: Automotive and Mobility” report, and the selected companies.
“Next 50 in Global Tech: Automotive and Mobility” report summary:
Changes and challenges in 2020
In the year of 2018, global sales volume of automobiles dropped for the first time ever. The hundred-year automotive industry is encountering unpredictable crisis. The falling of sale volume continues to the year of 2019, which decreased by 4 million compared with 2018. McKinsey predicts that the global sales volume of automobile will decrease 29% compared with 2019, and does not seem to recover in a short term.
At the beginning of 2020, the automotive industry was severely threatened by COVID-19. Automakers had to shut down some of the factories in order to contain the virus. Despite the OEMs, Tier 1 and Tier 2 suppliers also took some actions. Delay of production leads to significant loss for the companies, and also draws the companies’ attention to their capability of supply chain management.
EqualOcean proposes "G.D.T.L. ©" model to conclude the new features of automotive industry
Based on the well-known “four modernizations” of automotive, EqualOcean observes the new features of the industry, and summarizes the latest trends to form “G.D.T.L.”: Globalization of market, Digitalization of industry, Technological products, Lightened brands. Impacted by "G.D.T.L.", the reform of the automotive industry is being deepened, and entering into the next era.
By observing the global automotive and mobility industry in 2020, we find that there are four subindustries that are the most technologically innovative: Intelligent Connected Vehicles, New Energy, Mobility Technologies, Marketplace and services.
- Intelligent connected vehicles: Cars are carriers of technologies, and meant to be smarter. Intelligent Connected Vehicles (ICV) has become a hit throughout the automotive industry and market, and the related technologies are pursued by enterprises and investors, has become one of the smartest verticals in the automotive industry.
- New energy: Although COVID-19 has severely impacted world’s economy, the market of new energy vehicles tends to grow, and started to recover since mid-year. At the beginning of 2020, BCG predicted that Battery Electric Vehicles (BEV) and Plug-in Hybrid Electric Vehicle (PHEV) will occupy nearly a quarter of global automotive market share by 2030. This area will continue growing as countries issuing policies to support.
- Marketplace and services: The “Auto Market and Services” subindustry defined by Next 50 in Global Tech: Automotive and Mobility contains three areas: auto insurance, marketplace (including rental and selling platforms) and automotive services (including To C services such as car-washing, and To B services such as software provided to aftermarket participants). Among, Auto Insurance shows a trend of growth, and becoming smarter with the application of advanced technologies.
- Mobility technology: In the modern world, Mobility as a Service (MaaS) has become a mainstream way of transportation. Nowadays, the consumers care about more than ‘moving’, but also the customized experience during the process of transporting. Fields that relate to mobility are continuously transforming. Not only the customers’ needs and usage scenarios are diverse, and new transportation methods such as flying cars are developing with the enhanced traffic congestions.
Future trends
From the supply side, the post-epidemic automotive supply chain is transforming into a supply "net" : under the impact of advanced technologies such as IoT and blockchain, the future automotive supply chain tends to be more automated, precise and transparent. Catalyzed by COVID-19, new retail becomes one of the mainstream sales models. The development of digital sales brings more opportunities – purchasing demand of private vehicles was triggered by COVID-19, and leads to potential space for the peak market to grow.
From the demand side, the younger generation is becoming the major purchasing power. Their precise demand and sensitivity of new tech push the companies to change, in order to adapt a flexible target market. Besides, due to the decline of vehicle miles, customers’ demand for aftersales services decreases. However, as the major markets are recovering, the automotive aftermarket might rebound. With customers’ higher requirement of car safety and health, the automotive aftermarket is inspired to innovate.
EqualOcean looks forward to see the 50 companies in the list below to be the pioneers of the automotive industry to innovate and transform in the next ten years.
Next 50 in Global Tech: Automotive and Mobility (WIA2020) selected companies:
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About WIM
Hosted by EqualOcean, the World Innovators Meet (WIM) (click to watch the online event on December 9-11, 2020) is a global event for innovators. It provides limitless opportunities to learn from and connect with the most sought-after technology pioneers.
About WIA
The World Innovation Awards (WIA) are announced at WIM to recognize game-changers across various industries and geographies. Selected by a committee of distinguished experts, entrepreneurs and investors, WIA are designed to acknowledge technology disruptors striving to make a positive impact on a global scale.
See this year's WIA lists and download the research reports in English and Chinese on EqualOcean and 亿欧智库 respectively.