Automobile Revolution: Industry Gears Up for Smart, Self-Driving Future by 2030

The automobile industry is set for transformative changes by 2030, propelled by the surge in electric vehicles, smart technologies, and safety features. A NITI Aayog report highlights the growing adoption of Advanced Driver-Assistance Systems and anticipates a significant rise in autonomous driving capabilities, stressing innovation and collaboration to thrive.

The automobile industry is on the brink of a significant transformation by 2030, influenced by escalating demands for safety features, electric vehicles, and smart technologies, as detailed in a recent report by NITI Aayog. A major highlight of the report is the increasing adoption of Advanced Driver-Assistance Systems (ADAS).

The report reveals that by 2030, ADAS features, which aid drivers in maintaining road safety, are expected to be present in 90 percent of new vehicles, up from 42 percent in 2020, driven by consumer demand and regulatory standards. Additionally, self-driving technologies are predicted to see an uptick, with more than 30 percent of vehicles anticipated to feature some autonomous capabilities by 2030, compared to less than 1 percent in 2020.

With these advancements, demand for high-tech components such as sensors, artificial intelligence, and robust computing systems will rise. Software, currently accounting for about 2 percent of a vehicle's total value, is projected to double its share by 2030. Consequently, the automotive software market is poised to reach USD 80 billion, driven by the evolution of electric vehicles (EVs) and their specific parts like electric motors and lithium-ion batteries. NITI Aayog emphasizes that manufacturers must innovate and collaborate with tech firms to adapt to these shifts and remain competitive.

(With inputs from agencies.)