Digitization is redefining the auto industry, and manufacturers and dealers now face the sector’s most challenging environment in decades due mainly to constant technological advancements and market changes. 

OEMs must respond with increased technology adoption and introduce enhanced makes and models while dealers modify their sales and service processes. Some automakers and dealers are handling these changes successfully, particularly those who can anticipate the 2023 automotive technology trends affecting the market and invest resources accordingly to keep pace. 

However, redirecting some focus away from electric systems and powertrains to information technology and data-driven solutions can be challenging for many, mainly when they are unaware of those advancements influencing the industry. 

This article outlines and discusses five 2023 automotive technology trends that OEMs and dealers should understand to adapt to an ever-evolving digital landscape. 

5 2023 Automotive Technology Trends to Watch 

1. Automakers Will Hire Like Software Companies 

Millions of lines of code already power most car features, including but not limited to: 

• Navigational capabilities 
• Safety  
• Entertainment 

Vehicles have evolved into computers, and automakers acknowledge that more tech adoption requires competing with established IT firms to hire software professionals. 

Competing with newer manufacturers on car advancement and customer service will require drastically updating the systems surrounding the manufacturing, vehicle buying, and servicing processes, all of which need tech-heavy staff. 

2. 3D Printing Will Promote Customization 

As the auto industry expands and adapts to innovation, the impact of additive manufacturing (or 3D printing) will likely rise significantly. 

Increased customer demand for customization presents the potential for automakers and Tier 1 suppliers to use 3D printing to create designs specific to the individual. This personalization may soon go beyond just options and accessories and encompass the entire vehicle. 

3. Physical Inspections Will Become More Digital 

In most circumstances, the days of dispatching a physical inspector to evaluate a vehicle’s condition are long gone. Non-professionals can now undertake these tasks with the aid of data-driven digital technologies and AI, supporting inspections that are: 

• More thorough 
• Faster 
• More efficient 
• Cost-friendly 
• More convenient to the customer 

Also, vehicle inspections are a necessary practice at multiple touchpoints, including: 

• After manufacturing 
• After shipment to the dealership 
• Before the first sale 
• Between leases 
• After service or repair after an accident 
• During the trade-in process 

Conducting several inspections necessitates faster and more efficient digital techniques. 

4. Mobility Services Will Grow 

More and more consumers now limit how often they travel (and use more non-private transportation methods when they do) due in large part to the following: 

• Consumer preferences are evolving to reflect more digital options 
• Transportation regulations are becoming more stringent 
• Technological advancements have fundamentally changed how people move around  
• Owning cars in crowded areas can be prohibitively expensive 

As a result, various on-demand mobility solutions will gradually integrate with the conventional business model of automobile sales, particularly in crowded metropolitan settings that actively discourage the use of private vehicles. 

Additionally, new consumer habits of adopting solutions specifically suited for each function will prompt the manufacturing of specialized cars created for ultra-specific demands. For example, automakers will manufacture vehicles explicitly used for e-hailing services for high usage, added mileage, and increased passenger comfort. 

5. Autonomous Self-Driving Vehicles Will Become More Popular 

Autonomous self-driving vehicles will become more common in the coming years for several reasons, including the following: 

• Lower CO2 emissions 
• Increased safety 
• Enhanced fuel efficiency 
• Increased delivery range 
• Decreased downtime 
• Decreased negligence-related accidents 

Many trucking companies have already installed self-driving technology and tested it countrywide, and soon, self-driving fleets of autonomous commercial trucks might be commonplace. 

Adapting to Technology Trends Requires the Best Data-Driven Software 

Advanced technologies are opening up entirely new possibilities in the auto industry. However, OEMs and dealers must be prepared to handle these advancements and the corresponding operational and production adjustments that come with a new digital age. 

To adapt successfully, industry participants need the industry’s best data-driven solutions suite to reimagine and re-strategize their goals to prioritize technological innovation and adaptation. 

Contact us today and learn how Affinitiv’s proprietary data-driven solutions can help you anticipate the 2023 automotive technology trends disrupting the market and forcing OEMs and dealers to digitize their operations.