As we enter a new year, many of us are still busy reviewing what we’ve done during the previous 12 months. From closing the books on 2024, to analyzing profitability and leveraging missed opportunities to increase those profits in the coming months, this is a busy time of year behind the scenes of any automotive business. Looking back is certainly important for gaining perspective on where we’ve been, but the upcoming year has the potential to bring a wide array of changes for consumers and business owners alike.
Consumer buying trends are expected to continue shifting toward even more online purchasing as we navigate through 2025 and beyond. In the automotive aftermarket, we’ve already embraced the concept of providing an online shopping experience for our customers, but that experience is changing as consumers adopt new habits and more providers enter the marketplace. The increasing use of mobile devices (and the increasing variety of these devices) will continue to change the methods we use to connect with consumers. Not only are buyers using mobile devices for roughly 65% of their automotive e-commerce inquiries, they are accessing an increasing amount of entertainment and information content. The number of eyes on the traditional advertising mediums of broadcast television, local radio and print media have steadily declined, with more people turning to subscription services like streaming platforms and satellite radio. With fewer advertising opportunities, finding new ways to engage our customers on their preferred devices becomes ever more important in the digital marketplace.
Software also is increasingly important to the vehicle itself. Connected cars have become part of a virtual network in recent years, commonly known as the “internet of things.” With onboard hardware and software capable of sending and receiving data, and the ability to interface with other connected devices, the automobile has officially joined the ranks of “mobile devices.” More than 70% of new vehicles are “connected,” with tech companies like Microsoft, Apple and Google often partnering with the OEMs to offer in-car infotainment, communications and vehicle health/maintenance data through a wireless 5G network infrastructure. For better or worse, this also has led to the ability of OEMs to offer “subscription” services for many features found in their SDVs (software defined vehicles). A monthly charge for access to your heated seats or remote start might rub some vehicle buyers the wrong way, but the acceptance rate for on-demand features like these is increasing as more people begin to view their vehicle in the same way they have come to utilize their other connected devices.
The bi-directional transfer and analysis of vehicle data is one key to utilizing the AI technologies behind ADAS and autonomous vehicle capabilities. SAE International recognizes six varying levels of “self-driving” vehicle automation, from emergency braking and blind spot warning (Level 0) all the way to fully-autonomous control under all driving conditions (Level 5). AI has a critical role in these vehicles “learning” their environment and then responding to changes in their surroundings, all in real time. For these systems to work efficiently (and safely), data from cameras, RADAR and LIDAR sensors must be collected and transmitted, analyzed and used by the AI program to make “educated” decisions to mimic a human operator. Like EVs, autonomous vehicles require a level of networked infrastructure that still does not exist on the scale necessary for mass adoption.
Data, in its many forms, is the cornerstone to improved technology. No matter if it takes the form of daily reports we generate to track sales, inventory and other KPIs, or a series of over-the-air communications that help keep a connected vehicle in its lane, the network of information that surrounds us is critical to our success in 2025 and beyond.