Holistic Insights on CASES Megatrends for Automotive Industry Leaders 

In recent years, the automotive industry has seen major advancements driven by technology. This includes cost-effective electric powertrains, AI integration for smarter vehicles, and progress in digital techs such as the Internet of Things (IoT), versatile mobile devices and 5G network. These advancements, for the most part, have created the acronym CASES which is regularly used to describe the 5 main strategic areas of focus for the industry – Connected, Autonomous, Shared, Electrified and Sustainable.  

What do CASES megatrends bring to the table? 

The cars of the future, which are connected, electrified, autonomous, shared and sustainable, are poised to yield numerous advantages: 

• Emit less exhaust fumes and noise into the environment because it is electric.
• Take up less personal time and space because it moves autonomously.
• Be more accessible because users will not need a driving license to use it.
• Be more affordable because it can be paid for in small amounts per use. 

From the customer’s point of view, the five dimensions are associated with numerous benefits. All predictions suggest that driving will become easier, safer, cheaper, and more comfortable. At the same time, the revolution in individual mobility will force the automotive sector to reinvent itself to a certain extent.  

A deep understanding of C.A.S.E.S 

Latent strengths underlie each element 

We will scrutinize each element of C.A.S.E.S, examining their definitions and diverse manifestations, unraveling the intricate fabric of innovation that guides the automotive landscape. 

The prospective markets 

The automotive sector, recognized as one of the swiftly advancing industries, is anticipated to achieve a market valuation of USD 3,817,171.94 million by 2030, exhibiting a CAGR of 3.01%. The substantial market value is predominantly influenced by the transformative impact of the C.A.S.E.S megatrends. 

Connected Vehicle Market 

A connected car offers comfort, performance, safety, and security. Factors such as an increase in the need for constant connectivity, the surge in consumer demand for connectivity solutions, and high technology dependency have contributed to the growth of the global connected car market. 

According to Mordor Intelligence, the Connected Vehicle Market size is estimated at USD 63.39 billion in 2023, and is expected to reach USD 141.06 billion by 2028, growing at a CAGR of 17.35% during the forecast period (2023-2028). Region-wise, Asia Pacific is expected to lead the highest growth rate for the connected car market worldwide, with Japan, China and India playing a major role. 

Autonomous Vehicle Market 

An average self-driving vehicle uses a combination of cameras, sensors, LIDAR, and RADAR. Such developments in the technological field are reducing traffic congestion, improving safety, and increasing connected infrastructure. These advancements have contributed to the autonomous vehicle industry’s market growth, which was valued at $106 billion in 2021 according to Statista. 

Due to consumer behavioral changes and the rapidly evolving tech field, the global autonomous vehicle market was projected to grow to $2.3 trillion in 2030. This report can be further backed by a study by McKinsey which states that by 2030, 45% of global new car sales could be at level 3 or above. It is also reported that by 2030, the Asia-Pacific region will have the largest autonomous vehicle market share, followed by Europe and North America. 

By 2030, 45% of global new car sales could be at level 3 or above. 

Shared Mobility Market 

Globally, shared mobility, or commuters’ shared use of vehicles, is becoming more popular. It offers consumers a cost-effective and accessible transportation solution without the need for vehicle ownership. In 2019, the shared-mobility market reached a substantial $130 billion to $140 billion in global consumer spending, with e-hailing contributing the largest share of over 90%, as reported by McKinsey & Company. 

McKinsey anticipates continuous growth in the market, projecting a consumer-spending potential of $300 to $500 billion globally by 2030. This represents three to four times the current size of the ride-for-hire or e-hailing market. Also, according to Statista, the Asia Pacific region is expected to lead in shared mobility market size by 2028, followed by North America. 

Electric Vehicle Market 

EVs have gained widespread interest because of their ability to reduce energy consumption and emissions. The International Council of Clean Transportation reported that various governments worldwide continue to make new policies and commitments for EV sales. Due to these supportive policies, the electric vehicle market continues to grow globally. A market report by Fortune Business Insight states that the EV market size was valued at $287.36 billion in 2021 and is expected to reach $1,318.22 billion by 2028, at a CAGR of 24.3%. Countries like China, Japan, and South Korea enable Asia Pacific as the region to lead the electric vehicle market. China, being the world’s top EV producer and user, has a stronghold on the EV market worldwide. 

470 million connected vehicles are estimated to be on highways around the world by 2025.  

Sustainable Mobility 

The estimated value of the Global Green Mobility Market was USD 3 billion in 2022 and is projected to reach approximately USD 33 billion by 2030, exhibiting a compound annual growth rate (CAGR) of around 11% from 2023 to 2030. 

Industry experts anticipate that by 2040, approximately 60% of emissions in the automotive sector will stem from materials used in production. Consequently, there is a growing interest among car manufacturers in recycled and sustainable materials, including bamboo fibers. Additionally, there is exploration into animal-free leather alternatives based on cactus and mushroom mycelia, as well as substitutes for plastic. The adoption of bio-based materials is noteworthy for its potential to reduce weight and enhance both energy and emissions savings. 

Mobility Future beyond C.A.S.E.S 

The C.A.S.E.S elements undergo substantial evolution not only within individual markets but also interweave with one another to forge a cohesive trajectory for the automotive industry’s integrated future. 

Autonomous and Shared 

Combining the dimensions of autonomous and shared mobility results in four distinct forms of transportation:  

source: PwC

While the predominant mode of transportation remains the individually operated private car (classified as “unshared and not autonomous”), the popularity of the self-driven shared car (“already shared but not yet autonomous”) is steadily increasing. Although the self-driven private car (“still unshared, but already autonomous”) is not currently available, it may become a reality in the coming years, paving the way for the self-driving shared car (“already shared and already autonomous”), representing the complete integration of autonomous and shared dimensions. 

Urban vs. rural  

It is likely that the two shared mobility forms will primarily find application in urban areas, with the Robotaxi (“already shared and already autonomous”) being especially well-suited for urban use. Autonomous vehicles have the potential to prevent accidents and alleviate congestion, enhancing the efficiency of transport infrastructure to accommodate increased traffic. The primary use case for private vehicles, whether autonomous or self-driven, continues to be in rural areas. The widespread adoption of a Robotaxi network is expected to decrease the reliance on autonomous private vehicles in urban environments. Autonomous private vehicles may become more of a status symbol for customers who still value ownership of their vehicles. 

Progressive vehicle differentiation  

Despite changes in motorized mobility, it is still assumed that there will be progressive vehicle differentiation in terms of size and segment. Shared vehicles are expected in both premium and volume segments, with their primarily urban application suggesting they will likely be smaller vehicles with fewer seats. In contrast, autonomous private vehicles are expected to be larger cars, especially from the premium sector. The car of the future will not just involve the shared and autonomous dimensions but will also incorporate connected and electrified features. Due to the rapid development of electric drive systems, it can be assumed that the majority of Level 4 and 5 autonomous vehicles will be e-cars, showcasing an increasing degree of connectivity, which is considered a prerequisite for widespread autonomous driving. Additionally, the connected car dimension encompasses various vehicles and connected services. 

Critical factors demanding OEM consideration 

As Connected, Autonomous, Shared, Electrified and Sustainable technologies continue to shape the future of mobility, it is imperative for OEMs to navigate this transformative terrain strategically. 

Connectivity 

Companies at the forefront of connectivity are already experiencing positive outcomes from their investments in enhanced connectivity, manifesting as increased revenues and improved profit margins. In particular, OEMs are exploring various options for monetizing data from connected cars, including: 

Autonomous 

Before self-driving cars hit the road in the 2030s, the driving ecosystem will need to undergo an array of transformations: 

• City infrastructure must adapt to autonomous vehicles, requiring urban planners to establish dedicated lanes, charging stations, and updated traffic regulations. Leading OEMs are actively negotiating with authorities, driving the broader adoption of C-V2X technology as the primary standard for vehicle connectivity and sensor data exchanges. 
• Identify the applications for autonomous vehicles. According to a KPMG survey, both OEM leaders (84%) and consumers (74%) concur that the adoption of autonomous vehicles hinges on utilization. This implies that self-driving cars will not immediately dominate the entire country but will organically coexist with various transportation modes, addressing specific needs for both goods and services. 

KPMG suggests that driver-related costs constitute half of on-demand private vehicle expenses. Utilizing connected autonomous vehicles in fleets is more cost-effective for both OEMs and customers. The survey indicates a potential 40% cost reduction in autonomous Mobility as a Service (MaaS) compared to private car ownership. Ignoring the MaaS space could put OEMs at risk of losing customers to tech-savvy players like Uber, Lyft, and Alphabet, especially amid declining car ownership. 

Shared 

According to Accenture projections, the revenue generated by new mobility services for OEMs is anticipated to exceed €1.2 trillion by the year 2030. The ensuing illustration showcases the various mobility services available for OEMs to capitalize on: 

For example, ShareNow, a joint car-sharing offering launched by BMW and Daimler, already has over 4 million registered users. In the next several years, the OEMs will spend $1.13 billion on additional mobility offerings, spanning over autonomous vehicles, ride-hailing, e-scooters, car-sharing, and electric car charging. 

Electrified 

The electric vehicle (EV) industry’s capital-intensive nature has led to collaborations and mergers among automakers.  

Small players, like Aston Martin, partner with larger counterparts such as Mercedes, while midsize OEMs, exemplified by PSA and FCA, are merging to enhance competitiveness. Major OEMs, recognizing the evolving EV landscape, hedge their bets through alliances with startups—GM with Nikola and Ford with Rivian.  

The market’s rapid evolution has disrupted traditional strategies, particularly the “compliance” approach, challenged by Tesla’s success. 

Sustainable 

Many OEMs are working on ideas and solutions for CO2 footprint reduction and use of recycled or renewable materials to make vehicles more sustainable: 

Moreover, BMW has set forth an ambitious strategic objective to position itself as the epitome of eco-friendliness in the automotive industry by 2023: 

• Reduce the Carbon Footprint in the Supply Chain by 20%  
• Cut their CO2 emissions by 80% 

In conclusion, 

As we delve into the intricacies of the CASES megatrend revolutionizing the automotive industry, it’s clear that the future of mobility demands innovative solutions and tech-savvy expertise. If you’re seeking a reliable partner to navigate this transformative journey, look no further than Vietsol, your key collaborator in automotive engineering services. 

Vietsol, with a vision firmly rooted in innovation, is at the forefront of shaping the automotive landscape through Connectivity, Autonomous driving, Sharing economy, Electrification, and Sustainability. Whether you’re an established automotive player or a startup, Vietsol’s commitment to cutting-edge solutions aligns seamlessly with the demands of the evolving industry. Connect with Vietsol and be part of the future of mobility innovation! 

References 

• PwC: Five trends transforming the Automotive Industry 
• Why Automotive Leaders Cannot Ignore the CASE Megatrend
• CASE (Connected, Autonomous, Shared and Electric): An Insight