The present decade is a particularly interesting time for automotive technology, where a number of changes may be conspiring to turn the industry upside down, creating risks for incumbents and opportunities for new comers? They may also bring investment opportunities for us, if we can get it right.
A series of megatrends is affecting not just the automotive Technology, but all industries and society as a whole. They include the rise of China and other Asian economies, the growth of digital technology, the declining cost of energy storage, and the increasing impact of climate change.
The automotive industry is particularly vulnerable to these megatrends because it is a highly capital-intensive business with long product cycles. It is also an industry that has been slow to embrace change. But change it must, if it is to survive and thrive in the years ahead.
The drive towards electric and autonomous vehicles
Vehicles are one manifestation of this need for change. Electric vehicles are more environmentally friendly and autonomous vehicles have the potential to improve safety and reduce congestion. But the transition to electric and autonomous vehicles will not be easy, and it will require significant investment in new technology.
Traditional automakers are aware of the need for change and are investing heavily in new technology, but they face a number of challenges. They are burdened with legacy systems and processes, they are lagging behind in terms of innovation, and are vulnerable to disruption by new entrants.
Electric Drive Trains
Drive Trains startup based in Silicon Valley, is one of the companies that is taking advantage of the opportunities created by the transition to electric and autonomous vehicles. It has developed a modular electric drive train that can be used in a variety of applications, from cars and trucks to buses and boats. The company has already secured several large contracts and it is poised for rapid growth.
The automotive industry is undergoing a major transformation and there are significant opportunities for investors who understand the dynamics of the market. Electric Drive Trains is a company that is well-positioned to take advantage of the changes that are happening and it represents an attractive investment opportunity.
Moore’s Law and Cars
One of the most important drivers of change in the automotive industry is Moore’s Law, which states that the number of transistors on a chip doubles approximately every two years. This law has driven the rapid growth of the semiconductor industry and it is now starting to have a major impact on the automotive industry.
The rise of autonomous vehicles is one example of how Moore’s Law is affecting the automotive industry. The sensors and processors that are needed to power autonomous vehicles are becoming more powerful and less expensive at an exponential rate. This is making autonomous vehicles increasingly viable and it is likely that they will become mainstream in the next decade.
ADAS vs. Autonomous Cars
Autonomous cars are often described as the ultimate goal of the automotive industry, but there is a lot of confusion about what they are and what they will do. ADAS, or Advanced Driver Assistance Systems, are a type of autonomous car. They are not fully autonomous, but they do automate certain tasks, such as lane keeping and collision avoidance.
Autonomous cars are different from ADAS in that they are completely autonomous and can be used for transportation applications. They have the potential to revolutionize transportation, making it safer, more efficient, and more environmentally friendly.
Investment Implications
The rise of electric and autonomous vehicles is already having a major impact on the automotive industry and this is likely to continue in the years ahead. This will create opportunities for investors who understand the market dynamics. Electric Drive Trains is one company that is well-positioned to take advantage of these changes and it represents an attractive investment opportunity.