Innovations in the automotive industry are not only helping to open up new revenue channels but might be the only way to survive in a challenging time for a lot of automotive companies, notes Mobility Team at Frost & Sullivan
Innovations are impacting every single space of the automotive and mobility industry. Almost nothing is left unchanged - Starting from the way vehicles are being designed using additive manufacturing, to light-weight and eco-friendly materials being used in car manufacturing, to Big Data applications, to a better understanding of customers, aftermarket and end of life of vehicles. However, the question is: Will GCC mobility industry players be able to employ innovations to secure long-term growth and sustainability?
GCC Automotive Industry: Innovations as the Engine of Future Growth, a recent white paper from Frost & Sullivan’s Mobility practice discusses the main innovations impacting the global mobility / automotive industry nowadays, the best practices of applying innovations in GCC mobility industry, future opportunities for innovation-driven business models in GCC and more.
Click here for complimentary access the whitepaper and for more information on this analysis.
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"We see much more effort from companies active in the mobility space to become leaner, customer-focused and more innovative than ever before in the GCC,” said Frost & Sullivan Mobility Principal Consultant Vitali Bielski. “Connectivity is the main enabler for innovative mobility solutions and GCC customers are incredibly connected, so it's just a matter of time until companies start to fully realize the potential available to them.”
Some of the disruptive innovations impacting the GCC mobility industry include blockchain technology, and Dubai's RTA end-to-end vehicle lifecycle management initiatives powered by blockchain might be just the beginning of a wider implementation of this technology in the mobility area. Car sharing, ride-hailing business models are already firmly present in GCC and are likely to become even more widespread in the future.
A few key opportunities opening up in an increasingly digitalized and connected mobility space in the GCC are Crowd-sourced delivery, B2B e-commerce in the spare parts and accessories space, and subscription-based business models. From a regional perspective, the Dubai government going paperless from 2021 is creating an incredible example for companies which are considering digitalization of their activities, and that is, not only from GCC, but also from a global perspective.
GCC countries' economies (some more than others) are being challenged by continuous instability, especially in the automotive domain. This means, most companies and Government bodies are utilizing the opportunities to streamline their operations and focus on leaner business models. Customers, on the other hand, are starting to make more balanced decisions and increasing their focus on the value of the products or services delivered to them. This creates opportunities for both existing companies which can adjust their offer to better address needs of the customers, and for new companies which disrupt the way the business has been doing in the mobility space in the GCC.
While current unfavorable economic situation challenges the way companies and individuals approach mobility in GCC, most of the changes can be utilized to bring positive impact in the long run. Getting ahead of global trends and exploring new revenue channels like shared mobility, on-demand transit, e-retail for parts and accessories can boost the region’s global attractiveness and support growth in the long term.
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