The article “The four global forces breaking all the trends”
by McKinsey amazes me at how fast the world is evolving and the industries are revolutionizing to sustain growth
with the changing trends.
The industry that I could think of which has shown a huge transformation from the 18th century to the present is the automotive industry. In 2020,Autonomous Vehicles(AVs) have changed the entire landscape of this industry. The race towards developing AVs have taken a big leap as many automotive conglomerates and tech companies are investing huge capital in it. AVs have shown that they are market disrupters and trend setters by satisfying their strategic positions in all of these four global segments which are the key forces in breaking the current trends.
Emerging Markets-Towards Urbanization
There is a paradigm shift in the approach where companies are moving towards emerging markets from the developed ones. With the growth potential in these new markets we can see tremendous opportunities for AVs. For example, Even though Google first started experimenting with AVs in the USA, Baidu ( Internet giant in China) owned Apollo, is doing extremely well in AVs when it comes to testing miles driven and collaborating with global partner adoptions[1]. According to McKinsey, China could potentially become the largest market of AVs with faster implementation of Robo- taxis and self-driving initiatives[2]. We can attribute this to the rise of urbanization with more city dwellers having higher purchasing power to invest and take advantage of the AVs.
Accelerating Technological change
As rightly quoted in the article “Accelerated adoption invites accelerated innovation”. Car manufacturers that invest in innovation welcome advanced technology implementation to change their approach with the current trends. With the advent of serious technological advances one can be sure that the trends are volatile and cut throat. AVs technology needs have spearheaded best of the organizations to change their inherent strategy to survive this tide. Daimler, Tesla, Uber, Waymo, Ford, General Motors, Audi, Nissan ,Toyota and Honda all are rigorously working to develop AVs to disrupt this new trend.
Responding to the challenges of an aging world
Severe pressure on the government to cater to a large number of aging populations financially and by creating platforms to provide them services is a serious concern among all nations. With the advent of new autonomous passenger and delivery vehicles we can expect to improve the lifestyles of people aged above 50. People who are too old to drive or those with disabilities can also benefit with this initiative and won’t be restricted to move around without help[3]. Mobility will no longer be a hindrance for these people provided companies are mindful of catering to the needs of this segment judiciously.
Trade ,People, Finance and data : Global connections
The AVs advances will change people’s perception of mobility in urban environments with the greatest impact seen on public transportation use. With markets becoming global, flow of people across different parts of the country and world will increase and with AVs, it would facilitate ease of travel and transportation of people and goods.
[3]https://www.aarp.org/auto/trends-lifestyle/info-2019/self-driving-car-benefits.html
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