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6 Trends Shaping the Automotive Industry 

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The automotive industry, which includes the design, development, production, retailing, and maintenance of motor vehicles, is one of the largest markets on the planet and is widely considered an influential sector—you could even call it a driving force for change.  

With so many moving parts, it’s no wonder the automotive industry is a pioneer of societal development. But what are the trends disrupting the automotive industry? Here are the top automotive industry trends influencing the sector in 2024 and what they mean for current and prospective employees. 

1. The Shift Toward Electric Vehicles 

The world is changing fast, or at least trying to. Amidst emerging environmental concerns, the electric vehicle revolution is beginning to take place. According to the International Energy Agency’s (IEA) 2024 Global EV Outlook, electric vehicle sales accounted for 18% of all cars sold in 2023, a sharp jump from the 2% just five years prior. 

Last year, an estimated 14 million electric vehicles were sold globally, and this trend of increasing sales is predicted to continue through this year. Although China and Europe are leading the way in EV sales growth, the US market is seeing a shift as well with 10% of last year’s new EV registrations were attributed to the United States. 

With the Clean Vehicle Tax Credit along with EV price cuts, electric vehicles are becoming more affordable for consumers—which means that more car manufacturers are pivoting toward electric car production, creating new opportunities for engineers, parts manufacturers, and retailers alike. 

Transitioning to Hydrogen Power: Fuel-Cell EVs 

When you think of electric vehicles, you probably imagine the typical battery-powered car that must be plugged in. But recently, a new player has entered the game. Fuel cell electric vehicles (FCEV) are a newer alternative to the internal combustion engine cars of the past. 

Unlike traditional EVs, FEVS have no need for a battery. Instead, these cars create power from a fuel-cell stack that’s fed hydrogen and oxygen to create electricity through a chemical reaction. This process only has a byproduct of water—these cars don’t emit CO2, making them especially environmentally friendly.  

The market for these new green machines is expected to grow at a compound annual growth rate (CAGR) of 70% through 2026, according to the Hydrogen Fuel Cell Vehicle Market Report conducted by Allied Market Research. As the market grows, so do the means of production, generating more jobs for engineers ready to dip their feet into renewable energy. 


RELATED: Hiring an Automotive Engineer 


2. Introducing Autonomous Vehicles 

As you see, the world’s growing green thumb is clearly having an impact on the automotive industry. But that’s not the only automative trend making an impact—progress in AI technology means cars are getting brainier, too. 

What does AI mean for the automotive industry? Well, it can range from advanced driver assistance systems to fully self-driving cars. Though there are only 1,400 self-driving cars in the US today, it’s estimated that there will be 33 million autonomous vehicles on the road by 2040. 

The Society of Automotive Engineers (SAE) Levels of Driving Automation standard includes 5 levels, from no automation (Level 0) to full automation (Level 5). Though most cars currently fall in the Level 0-2 range, predictions indicate that this number of vehicles with more automated features will continue to grow. 

As car manufacturing giants such as Tesla, Ford, GM, and Volvo make their mark on the autonomous vehicle space, AI and other technology-focused skill sets are becoming more sought after in the automotive industry. If you’re looking to upskill your current automotive engineers or bring AI talent to your team, now is certainly a good time to do it. 

3. Growth in the Automotive Parts Market 

The automotive parts market has been steadily growing over the past two decades due largely to an increase in ecommerce driving sales. In fact, the ecommerce automotive market is worth an estimated $85.28 billion. 

As people continue to buy used cars, the demand for automotive parts continues to grow as older cars require more updated parts to stay up-to-date and run smoothly. This has created a high demand within the automotive industry for parts manufacturers and automotive technicians. 

4. Demand Outpacing Supply: Semiconductor Chip Shortage 

Semiconductor demand is higher than supply, and most available semiconductors are being sold to electronic devices instead of auto manufacturers—ever since auto manufacturers paused production in 2020, semiconductor chip manufacturers found it more lucrative to focus on electronics. 

This shortage has led to longer wait times in vehicle production and less inventory available. To try and fix this shortage, more semiconductor industry professionals are needed to increase supply. 


READ NEXT: The Talent Shortage Crisis in the Semiconductor Industry 


5. IoT Integration for Connected Cars 

Thanks to progression in technology, cars are constantly evolving. What used to be just a way to get you from point A to point B is now a smart, interconnected device that uses the Internet of Things (IoT) to allow features like remote vehicle monitoring and enhanced safety measures. 

This has paved the way for tech companies to partner with the automotive industry to create high-tech, connected cars that can communicate with other software systems and collect data from its surroundings.  

Since the race to integrate groundbreaking technology into the automotive industry is just beginning, now’s the time to get your foot in the door. Start upskilling your team with a focus on tech or expand with new talent that’ll spearhead your automotive tech revolution. 

6. Changes to the Car Shopping Experience 

The car shopping experience has seen changes due to both industry and consumer automotive trends. As cars become more tech-oriented, so do consumers—over 90% of car purchasers perform online research before a transaction, and more car sales are taking place entirely online. 

This is one reason auto retailers must pivot their approach to vehicles sales, but it’s not the only one. Autoworker strikes and less automotive production due to supply chain issues and factory shutdowns have contributed to low car inventory. This, coupled with high prices from inflation and scarcity, means that it’s becoming increasingly difficult for car purchasers to find affordable products even as the industry continues to innovate. 

Consumers are essentially all dressed up with nowhere to go—or at least, no way to get there. So, what does this mean for the industry? Well, there is an opening for companies to cement themselves as a strong competitor by addressing these consumer concerns. Whether you deal with designing, manufacturing, or selling cars, you’ll still have the same end goal: pleasing the customer and building a positive reputation for your brand. 

Looking to Modernize Your Automotive Industry Roles? 

After reading about the current automotive trends, maybe you identified a skills gap in your industry that needs to be filled. As the automotive industry continues to evolve, your company should be looking to keep the pace and modernize your team’s capabilities.  

Well, look no further! At Insight Global, our decades of proven staffing solutions can help you discover top-tier talent that breathes new life into your sector of the automotive industry.  

Contact Insight Global to start staffing automotive professionals equipped for this advancing industry. 

Hiring in the Automotive Industry?

Reach out to Insight Global today. We can find you qualified candidates in as little as 48 hours! Questions? Call us toll-free: 855-485-8853