Every industry sector sustained significant challenges during the last few years. For example, it’s no surprise that 71% of small business owners said the pandemic negatively impacted them. Yet, the transportation industry experienced ripple effects from various sources.
One of the hardest-hit industries, auto transport, felt massive pressure from supply chain disruptions and labor shortages. Despite the many pandemic challenges to businesses, auto transporters continue to learn from the experience. Auto transport companies have taken to new trends for a brighter future.
Innovation is often a result of facing significant issues head-on. So check out some auto transport industry trends that keep moving the sector forward.
Auto Transport Market Statistics
In 2022, the market size for the auto transport industry is $10.8 billion despite an annual reduction of 1.9% over the last five years. The auto transport sector suffered faster declines than consumer goods and the overall economy during the same period. But now, as the pandemic effects begin to wane, auto transporting expects to grow by 3.4% this year.
Of course, sales of new vehicles have an enormous impact on revenue for an auto transport company. In addition, many manufacturers faced inventory shortages for car components due to global supply chain disruptions. So as the supply chain begins to make corrections, auto transport companies expect to become much busier with increased vehicle production.
Yet, the transportation industry has undergone significant changes for more efficient car shipping. Several new trends involve technology to help the auto transport industry stay positive.
Auto Industry Changes
Several factors besides pandemic-related have changed the auto industry’s outlook in the United States. But as supply chains regulate again, two elements that affect revenue will help growth. First, parts inventory will increase with the normal flow of global logistics.
Automakers struggled with shortages in electronics like semi-conductors and had to strip vehicles of smart technology. Production of advanced vehicles will increase to over 2 million units in the United States. Vehicles will begin to feature more software components above design.
With more new cars on the market, used car prices expect to fall back to levels seen before the pandemic. Yet, the way people buy vehicles has also changed since the beginning of COVID. Online car sales increased, and dealerships have bought into the trend.
Consumers have more options for mobility with rideshare and other modes of transport. A vehicle that sits parked for 70% of the average person’s day is less attractive to consumers.
As a result, the style of vehicle ownership has changed recently. In addition, climate change has caused younger generations to adjust their car-buying habits.
There is a growing trend toward subscription-based deals for consumers. Customers benefit from these new financing models with greater access to choice. This year, the industry expects to offer more than one hundred EV models in a broad range of sizes.
The Electric Revolution
Rising fuel prices have recently impacted the switch to EV technology in vehicles. Governments adopting new environmental standards have also made electric vehicles more attractive to consumers. In addition, younger buyers are attracted to software that integrates with other devices.
Not only will software connect people with cars. New software capabilities will connect groups of vehicles. Data sharing between vehicles will create better efficiencies for fleet services.
Then, advances in artificial intelligence propel the growing trend toward autonomous vehicles. As more regions accept these vehicles on roads, there will be more changes in the auto transport industry. As a result, auto transport companies must develop strategies for relocating vehicles where demand is most prominent.
Effects On Logistics and the Transportation Industry
The shifts in sales and production trends will significantly impact the auto transport industry. In addition, new logistics technology using artificial intelligence will help auto transporters become more efficient. Even more essential, auto transport companies are forming partnerships with suppliers to share vital information.
Increased data helps auto transporting discover new efficient movement methods and saves costs. Auto transport vehicles also benefit from cloud connectivity. For example, an auto transport company can predict better routes by receiving weather alerts and changing road conditions.
Getting information in real-time allows auto transport companies to communicate with manufacturers for increased efficiency.
Automakers can schedule production better with updated arrival times. Sales teams get more precise data for vehicle delivery to customers. As a result, consumers receive a better experience with dealers.
Auto Transport At The Center of the Supply Chain
The combination of connectivity and automation gives auto transport companies new tools to make the job more efficient. The results will trickle down to every element of the supply chain, making them shorter. Better routing for fewer car components in electric vehicles will produce positive effects.
The auto transport companies will design routes with fewer interruptions and better communication. More visibility throughout the supply chain works in unison to help car makers plan production.
Yet, the visibility also helps auto transporters predict future global disruptions before they happen. Dealerships can shorten the last-mile delivery process by using the same rea-time data to provide efficient service. Consumers will receive delivery from closer locations without having to involve dealerships.
A Work In Progress
As technology advances, every facet of the automotive industry will continue to adjust. As a result, auto transporters must remain agile to changes in vehicle production and delivery. Yet, with the free flow of information between all aspects of the supply chain, auto transport companies will always be an integral part of the process.
Leaders in the transportation industry have made enormous strides toward improving the savings and efficiency of auto transport. Keeping all parties connected at every step of the journey is paramount to its success. Contact us today to learn how these new technologies will improve your auto transporting experience,