Automotive Technology Trends To Look Out For In 2022
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Automotive Technology Trends To Look Out For In 2022

By CIOReview | Thursday, May 19, 2022

Automakers are required to make frequent updates to software and hardware for their optimal profits of them.

FREMONT, CA: Chief information officers need to pursue a better preparation of the software, hardware, and digital transformations that are taking place in the automotive sector, as the software will be the primary driver of profitability for automakers. Below are some automotive technology trends for 2022 that the automakers need to endure for prolonged periods.

• OEMs and Tier1 suppliers do not have buffer inventory to depend on during chip shortages. Automakers are reanalyzing their long-head inventory plan by following the JIT (just-in-time) principle. In a way, the automakers are re-evaluating the partnerships with chip manufacturers.

• In 2022, many digital giants such as Google, AWS, or Amazon Web Services will continue to expand their technology footprint. As software development technology is complex, car companies either make partnerships with digital giants to be successful in making software as a principal moneymaker, or they can create substantial in-house assets to accomplish it on their own.

• Open data and open source collaboration models are gaining momentum, and these will expand in 2022. In this way, automotive industries will increasingly look at data similar to the tech world. The purpose of the automotive industry is to create an ecosystem that will allow them to receive more varied data that can help them develop more appealing digital functions and services.

• OTA can become the primary digital revenue channel by ramping up over-the-air software. Significant transformations in the automotive software OTA  market have been seen as several automakers started offering software updates in the past few years. Since most automakers have updated their vehicle's hardware to be able to update the software, they will now intend to move to a service-based revenue model.

• Automakers are announcing level 3 driving cars and are also working on deploying level 4 autonomous trucks and commercial robots. However, the demonstration of the safety and effectiveness of autonomous technology has been relatively slow-paced. Moreover, extensive simulations and real-world testing make the market slow and expensive.