What to expect for the Automotive Industry in 2024 - CLM

What to expect for the Automotive Industry in 2024

Throughout 2024 we will see global competition between automakers and consumer demands for advanced features, see the effects of the rise in technology and pressures of upcoming automotive industry regulations.

Shorter Automotive Development Cycles

It’s hardly new news that the race is on for automakers, as they rush to keep up with Chinese manufacturers who are setting the pace of development at levels previously unseen in the traditional market. Due to complex safety standards and testing needs, the technology in a brand-new car is likely to be five to seven years old. Chinese manufacturers are closing that gap to be closer to three to five years.

Emerging Technology

Vehicles are evolving and this transformation is prompting a shift in the overall vehicle experience, as manufacturers increasingly incorporate comprehensive software suites to facilitate integration with other smart devices. This digital shift is fostering personalised user experiences and the development of more sophisticated infotainment systems.

Pressure for Cybersecurity

The laws are changing as of July 2024, the UN 155 regulation on cybersecurity will require the entire automotive value chain from OEMs to suppliers and sub-suppliers to implement a cybersecurity management system. This and other regulatory changes will have a direct impact on the Cybersecurity landscape.

The plastics market is on the rise

The global automotive plastics market size is expected to reach USD 43.44 billion by 2030, registering a CAGR of 5.4% from 2024 to 2030, according to a report by researchandmarkets. A rising preference for high-performance plastics to substitute conventional metals and rubber is expected to increase the market growth.

EVs and Hybrid

The shift towards electrification looks to continue advancements into 2024. In 2023, in the US, EVs sales increased by 55% compared to the same period in the previous year. [source: Automotive News]. These increases have been echoed in other regions of the world, in China and across Europe. However, the shift hasn’t been the smoothest for consumers, with reports of higher than anticipated upfront costs, home charging, and the availability of free or for-fee charging stations proving to bring some challenges. Next year’s focus will be on how all parties in the value chain can work together to alleviate these issues.

The Automotive landscape is set for an exciting year and to navigate through these advancements and potential challenges, it is key to have the right leadership and management talent in place. At CLM, we have vast experience in placing top-tier talent in the automotive industry. Get in touch today to discuss how we can support you with your hiring needs.

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