Auto Industry Trends To Look Out For In 2023

Innovative technology and changing consumer tastes are fueling an automotive evolution. These factors will impact the vehicles we’ll buy and how we’ll buy them for years to come. The question on every car lover’s lips is, “What’s next?” These automobile industry trends provide a glimpse into the future.

Fuel-Cell Electric Vehicles Go Mainstream

General Motors pioneered fuel-cell technology for road vehicles when it released the Chevrolet Electrovan way back in 1966. Fuel-cell electric vehicles make sense, as their batteries can charge in mere minutes, their range is five times greater than standard electric vehicles, they emit clean water vapor, and can be charged at home. While car makers have explored fuel-cell electric vehicles in small markets over the years, we may see the technology go mainstream on a global scale in the near future.

According to Linchpin SEO, that breakthrough may occur as early as 2023. This may sound ambitious, considering the lack of serious hydrogen infrastructure around the world. However, BMW chairman Oliver Zipse told Bloomberg that hydrogen fuel-cell electric vehicles will be the next trend after electric cars, once the technology is more scalable. BMW will soon enter into small-scale production of its iX5 FCEV. While Rolls-Royce isn’t actively creating a fuel-cell vehicle, its CEO Torsten Müller-Ötvös says the auto group believes fuel-cell batteries may be the “long-term future” of automotive technology.

Autonomous Self-Driving Vehicles Becoming More Commonplace

Autonomous self-driving vehicles have long been the stuff of science fiction, but we’re inching closer to their mainstream acceptance. Cadillac Super Cruise, Tesla Autopilot, and Nissan/INFINITI ProPILOT Assist systems make cars partially self-driving. They’re autonomous, but laws still require users to focus and keep their hands on the wheel. For the third consecutive year, Tesla CEO Elon Musk claims the brand’s fully autonomous vehicles will be on American roads by year’s end. The 2023 Genesis G90, due in South Korean dealerships later this year, has a Level 3 autonomous driving system that lets motorists go hands-free on certain freeways.

There are only 1,400 autonomous vehicles on U.S. roads today. However, in the next four to six years, the global market for autonomous vehicles should increase tenfold. By 2025, annual sales of autonomous vehicles may top 1 million. By 2040, forecasters expect autonomous vehicles will account for more than 30 million annual car sales. By that time, we should all feel more comfortable with the intelligent technology that promises to reduce accidents related to negligence and driver fatigue, minimize vehicle downtime, boost fuel efficiency by around 10%, and cut yearly carbon-dioxide emissions by 42 million metric tons.

More Connected Cars on the Road

The Internet of Things has exploded, with an estimated 43 billion connected devices expected to be in use by 2023—nearly triple the number of connected devices than we saw in 2018. Connected cars will account for much of that growth, with this market expected to grow from $55.6 billion in 2020 to $191.8 billion by 2028.

Demand for vehicles that are safer and more convenient will fuel the growth. For example, a connected car allows people to use their mobile phones in remote locations, ensuring they can communicate with loved ones or seek roadside assistance when required. Connected cars can also monitor a car’s health and either warn the motorist of issues or act independently to prevent a breakdown.

Increase in Online Sales

Online sales have steadily gained traction in recent years, rising from $3.4 trillion in 2019 to $5.4 trillion this year. By 2023, online sales should hit $5.9 trillion, or roughly 22% of all retail sales. The automotive industry has been a little slow to embrace the online shopping revolution, but it’s about to make up for lost time. Last year, people spent $261.2 billion purchasing cars online. By 2027, forecasters predict the global online car-buying market will almost double to $515.6 billion.

Some automakers are already selling to consumers directly online, while many dealerships are also offering online sales. Other online tools, such as digital finance applications, virtual walk-around technology, and at-home test drive scheduling, are giving consumers the freedom to customize their car-buying experience. We’re likely to see more automakers and dealerships offering online shopping tools to meet demand in the coming years.

Used Vehicle Sales on the Rise

Automobile makers may constantly be searching for the next innovation, but contemporary consumers aren’t always clamoring for the latest models. The country is experiencing a used-car boom, with sales of pre-loved vehicles expected to rise by 9% between 2019 and 2025. Demand for vehicles four years old and newer is especially high, suggesting consumers want modern technology without the steep depreciation associated with new-model vehicles. There’s also strong demand for pre-loved electric and hybrid vehicles among eco-conscious consumers.

Luxury Car Sales on the Up

With used-car sales on the rise, you may assume motorists are becoming more frugal. However, an increase in high-end luxury car sales suggests the opposite is true. Perhaps the global pandemic has encouraged more of us to understand that life is too short to make compromises, so people are indulging in the kinds of cars they’ve always dreamed of. While the market for cars priced below $80,000 should flatline through to 2031, experts predict the luxury car market will grow by up to 14% each year.

This trend is already here, with three times more cars worth more than $100,000 sold in 2022’s first quarter than lower-priced options. Rolls-Royce, Bentley, Lamborghini, and Tesla all broke sales records last year and may continue to do so if the predictions are any indication.

No matter what the future of the automotive industry holds, you can feel confident #1 Cochran will be at the cutting edge. We’ve proudly offered the best new and used vehicles to the people of Youngstown, Ohio, for more than 100 years, and we plan on continuing to serve the community for at least the next 100. Come and see us at our Youngstown showroom to discover the current automotive trends for yourself.

2014 Honda FCEV Fuel-Cell Electric Vehicle Concept by qJake is licensed with CC BY 2.0