Automotive Tech Trends 2024

When looking back at what happened in the last five years in the automotive industry, one thing is clear - things will never be the same again. What once seemed to be a stable, predictable, and traditional domain with over a hundred years of existence, has transformed significantly, with 2023 being only the beginning of change.

It’s not a secret that we live in a world that is becoming more complex, with the automotive industry not being an exception. The increasing complexity in the automotive world comes as a result of several factors exercising power over it, such as technological advancements, shifting regulations, evolving consumer preferences, globalization, rising environmental concerns, economic and health crises, etc. 

In this article, we will dive deep into how the need for continuous innovation and advanced technology integration into modern cars is reshaping the automotive industry, and transforming dreams of flying cars and ACES (Autonomous, Connected, Electric, Shared) vehicles into realistic scenarios, and based on this, what will be the top tech trends in automotive in 2024. 

According to the 2023 McKinsey report, the automotive software market is projected to reach $80 billion by 2030, growing at a nearly CAGR of 10% per year. ADAS and autonomous driving technologies are set to account for almost half of the automotive software market with infotainment, connectivity, security, and connected technologies becoming the second-largest software market by 2030. 

It all started with the pandemic that urged almost all the players in the automotive ecosystem (and not only) to shut down their factories. Until now many companies in this sector still deal with disruptions and consequences of Covid-19, trying to reach their pre-pandemic level. But guess what, things have been happening behind closed doors, and for some players in this game, the lockdown has been a huge opportunity. 

In addition, our perception of a car has transformed significantly in the last few years. We are more and more speaking of cars as independent, multifunctional devices similar to our phones, that are connected not only technically but also digitally. With car companies more and more turning into software, or software companies building cars (Tesla, etc), we are witnessing the evolution of our own need for cars which goes beyond mobility. 

Before jumping into projections for 2024, let’s take a look at the current market stats: 

• Global automakers race for EV segment, a price war
• ICE ban regulations adopted in many countries a particular pressure on the EU carmakers 
• Slow consumer demand for EVs, mainly due to the lack of EV public charging infrastructure
• Increasing consumer demand for intelligent car applications, displays, and advanced infotainment systems
• More connected vehicles increase the risk of cyberattacks 
• Growing demand for energy-efficient and sustainable batteries for new vehicles, with battery market size projected to reach $65 billion by 2028, growing at a CAGR of 5.5% each year, and China leading the way
• More and more car manufacturers are intensifying their efforts to build self-driving vehicles and ADAS features 
• Safety and sustainability regulations imposed for new cars sold
• More and more partnerships between automotive & tech companies and M&A procedures

Based on these, these are the automotive tech trends that I expect to dominate the 2024:

#1 Technology for ADAS (Levels 2 and 3) and autonomous driving (AD)

Driven by evolving customer demand for AD features in their cars, and regulations that require new vehicles to have safety technology and L2 ADAS, this is a key trend that we’re going to see in 2024. 

The General Safety Regulation Act in Europe, updated last year, mandates advanced safety features in new cars sold within the EU. This includes essential ADAS features like autonomous emergency braking, lane departure warning, and driver monitoring systems (DMS) to enhance automotive safety. The Act also requires Event Data Recorders (EDR), similar to flight recorders, in all new cars to monitor vehicle performance, provide crucial accident information, and contribute to safety improvements. Furthermore, the integration of digital speed assistance based on real-time GPS and data mapping is aimed at promoting safer driving practices. Stringent crash test standards and the incorporation of advanced sensors and cameras prioritize pedestrian and cyclist protection, necessitating compliance from Original Equipment Manufacturers (OEMs).

In addition, last year many manufacturers ramped up efforts to develop Level 3 (L3) autonomous driving capabilities. BMW is set to release an L3 vehicle with extended autonomous features, prompting rivals like Mercedes-Benz and Volkswagen AG to follow suit.  Tesla announced recently an investment of  $500 million to build a Dojo supercomputer aiming to advance self-driving technology through AI. 

Key technologies for L3 vehicles include High-Definition Maps (HD Maps) for precise localization and route planning, LiDARs, and camera sensors, with the potential for more affordable solid-state LiDAR solutions in 2024, stereo cameras with neural networks offering sophisticated ADAS and autonomous driving functionalities at a lower cost.

#2 Rising consumer demand for intelligent infotainment and personalized in-car experience

Today's drivers demand more than just a way of transportation; they seek an immersive and intelligent driving experience. The surge in consumer demand for advanced infotainment systems is driving innovation in in-car entertainment. From AI-powered voice assistants to seamlessly integrated connectivity features, infotainment systems are evolving to keep drivers and passengers engaged, informed, and entertained during their journeys.

In the second half of the last year up until now, many car manufacturers announced the integration of AI-powered infotainment systems into their cars. Even though voice assistants have been present in car systems long before AI bloomed last year, now these will need to be integrated into car systems and perform advanced tasks based on natural language interaction as common sense. 

#3 Technology for EVs with the accent on charging infrastructure

Even though the rise of electrification and EVs is the trend that is topping most of the online expert predictions for 2024, I see it as a slowdown compared to 2023 for multiple reasons, for example, seeing some EV native manufacturers changing their focus from vehicle to battery manufacturing signaling a slowdown.  Yet, it’s going to remain an important trend, only not for the electric vehicle manufacturing technologies but for the charging infrastructure technology, including geolocalization and AI-powered navigation systems, battery management systems, etc. 

Even though 2023 saw exponential growth in EV sales, the adoption is still low. A US study involving 4000 people across the US, UK, Germany, and Singapore states that the top three concerns that discourage most buyers from purchasing an EV include "limited driving range," "lack of charging infrastructure," and "high purchase cost."

In 2024, I anticipate the emergence of smarter, more efficient, and standardized EV charging solutions. This includes advancements in fast-charging technologies like DCFC, smart grid integration, and increased accessibility to charging stations thanks to both public and private efforts. As an example, the European Union aims for 1 million public charging points by 2025 (one every 60 km on highways) and 3 million by 2030. 

On the other hand, advancements in battery management technology are crucial for the widespread adoption of electric vehicles. In 2024, I expect to see innovations in battery management efficiency tools, battery health monitoring, and optimization. 

#4 Automotive cybersecurity technology

The increasing presence of software and connectivity features makes vehicles susceptible to cyber threats. In response, the automotive industry is investing heavily in cybersecurity measures. From secure software development practices to real-time threat detection systems, manufacturers are working to fortify vehicles against potential cyber-attacks, ensuring drivers' and their vehicles' safety and privacy.

Technology is transforming the way we build, buy, drive, and use cars, and enables us to do so in a sustainable way, or sustainability and technology will be a constant in the future advancements in the automotive and mobility sector. The future is most certainly digital and sustainable. 

I personally believe in the success of automotive and technology partnerships and I think that we’re not so far away from flying cars we’ve seen only in the movies. With Oneest, we help automotive companies build high-quality, user-centric, and sustainable technology solutions to meet consumer demands and maintain their competitive advantage. If you’re interested to learn more about our capabilities and case studies, visit our website or get in touch with us. 

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