3 automotive trends to be excited about in 2024

3 automotive
trends to be
excited about
in 2024


The past year has been tumultuous for the automotive industry. The recession has had a dramatic impact on the market, as have the ongoing issues of chip shortages, rising interest rates, and an overall economic uncertainty. Chip shortages, stemming from supply chain disruptions, have persisted since the pandemic and are now further compounded by various geopolitical factors. As a result, we’ve witnessed a substantial reduction in vehicle availability over the last year as well as inflated prices. It is also worth mentioning that in an effort to combat inflation, central banks have increased interest rates which are negatively impacting loan affordability. All this has deterred buyers and resulted in lower car sales across the US and Europe.

While many companies may not want to acknowledge it publicly, they have had to discontinue numerous promising projects. However, despite these challenges, there have been quite a few positive developments and a great deal of technological advancement. Certain trends have become more firmly established, and we fully anticipate them to become even more prevalent in 2024. Today, we will highlight 3 of those trends.

Trend #1: ADAS advancement and more L3 cars

Last year, we saw an increasing number of manufacturers intensifying efforts to build L3 capabilities. Consequently, we anticipate exciting advancements in advanced driver-assistance system [ADAS] technologies in 2024.

For instance, BMW is evidently on the verge of releasing an L3 vehicle with autonomous features that is not limited to specific highways (as was the case previously), but extends to other types of roads, provided specific conditions are met. Following this, we expect close competitors such as Mercedes-Benz and Volkswagen AG to follow suit.

What technologies should we be ready for in L3 vehicles?

First of all, it’s the high-definition maps (HD Maps). Going beyond traditional GPS, these maps offer centimeter-level precision with lane markings, traffic lights, and obstacles. This year, we are likely to see a deeper integration of this tech with ADAS and autonomous driving systems that will enhance localization, route planning, etc.

LiDARs and camera sensors are both extensively used already. While still expensive, LiDAR sensors offer advanced 3D imaging capabilities, making them a compelling choice for L3 car manufacturers, especially since they are able to handle challenging weather conditions and complex environments. In 2024, we might finally see more affordable solid-state LiDAR solutions entering the market.

On the other hand, there’s also a growing interest in just using stereo cameras with neural networks for L3 cars. Avenga conducted a feasibility study and developed a Proof of Concept (PoC) demonstrating that, despite computation limitations in runtime environments on embedded devices, it is possible for auto manufacturers to integrate sophisticated ADAS and autonomous driving functionalities into their vehicles while only using relatively inexpensive camera sensors and neural nets. Wide-mounted stereo cameras are effective in producing high-resolution depth maps and are comparable to those obtained with LiDARs.

In line with this trend, we also anticipate significant innovations in human-machine interfaces (HMI), which will probably include advancements in natural language interfaces (NLIs) with AI.

This would enable a more intuitive experience and allow users to adjust ADAS settings with voice commands for a smoother and more natural experience, thus being less reliant on menus.

Augmented Reality (AR) Displays are worth mentioning too. The futuristic displays overlayed on windshields that provide relevant information about traffic signals, lane changes, and surrounding objects may finally become available in some relatively affordable vehicles and not just exist in concept cars.

L3 for the people

In 2024, we might finally witness the democratization of L3. 

Initially exclusive to luxury cars, L3 functionality is expected to gradually trickle down to more affordable models as costs decrease and production scales up. This could accelerate a broader adoption. And once adoption becomes widespread enough, commercial vehicles like trucks and buses will also benefit greatly from L3’s efficiency and safety gains. As a result, we might see pilot L3 fleet programs emerging with early deployments in controlled environments such as highways or dedicated routes.

However, certain issues need to be dealt with before that can happen. While there is a United Nations Economic Commission for Europe (UNECE) framework for L3, countries are still developing their own regulations, which is creating inconsistencies and delays for manufacturers targeting global markets. Additionally, ethical dilemmas surrounding the responsibility in an L3 accident need addressing before we can anticipate broader public acceptance.

Trend #2: lots of AI, with GenAI leading the way

In 2023, numerous Western and Asian car companies embraced advanced AI technologies for both internal operations and customer-facing applications, a trend that is likely to strengthen further this year.

Internal applications

  • Design and engineering. AI analyzes vast datasets of design parameters and simulations in order to optimize aerodynamics, fuel efficiency, and safety features. GenAI can generate innovative lightweight material designs and prototype ideas.
  • Manufacturing and supply chain. AI-powered robots automate paint application, welding, and assembly tasks, enhancing efficiency and accuracy. Predictive analytics optimize inventory management and prevent production line disruptions.
  • Quality control and maintenance. AI analyzes real-time sensor data to detect potential malfunctions and predict component failures, preventing costly breakdowns and repairs.
  • Cybersecurity. AI monitors vehicle networks for suspicious activity, protecting against cyberattacks, and ensuring data and passenger safety.
  • Employee training and optimization. AI-powered training platforms tailor learning programs to individual technicians’ needs, upskilling the workforce and optimizing performance.

Customer-facing applications

  • Personalized driver assistance. AI personalizes ADAS features based on individual driving styles and preferences, enhancing safety and comfort. GenAI can generate contextual recommendations for route optimization and real-time alerts for hazards.
  • Predictive maintenance and service scheduling. AI analyzes vehicle data to predict maintenance needs and automatically schedules appointments, ensuring optimal vehicle performance and customer convenience.
  • Virtual showrooms and test drives. GenAI creates immersive virtual showrooms where customers can explore and configure vehicles, even taking virtual test drives through various scenarios.
  • Personalized after-sales support. AI-powered chatbots answer customer questions, schedule appointments, and diagnose minor issues remotely.

The use of AI for infotainment deserves special attention, being as it is one of the most popular AI applications in the automotive industry. Here’s how AI algorithms are being used:

Personalized experiences

  • Virtual assistants like Amazon’s Alexa and Google Assistant understand natural language commands, allowing drivers to control car functions without taking their hands off the wheel or their eyes off the road.
  • AI analyzes the driver’s data to personalize the infotainment experience, suggesting specific music playlists or preferred routes based on past driving habits.

Optimized navigation and routing

  • AI-powered navigation systems analyze real-time traffic data, weather conditions, and road closures to provide efficient and up-to-date routes.
  • AI predicts traffic patterns and congestion, suggesting alternative routes to save time and reduce frustration.

Enhanced safety features

  • AI-powered cameras and sensors detect signs of drowsiness or distraction, alerting the driver or activating safety features to prevent accidents.
  • AI analyzes sensor data to identify potential hazards, providing real-time alerts or taking evasive action to prevent collisions.

Examples of AI-powered infotainment systems

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Trend #3: Efforts to resolve EV challenges

In 2024, EVs (electric vehicles) are poised to become one of the key trends shaping the industry, with several automakers introducing new EV models and expanding their EV lineups. As demand for EVs increases, the need for a robust charging infrastructure becomes much more critical. While the number of public charging stations is growing, the distribution is often uneven, with some areas lacking adequate coverage. We expect that substantial efforts will be made this year to address these issues.

The current charging infrastructure challenges can be broadly categorized into three main areas:

  1. Variety and availability of chargers. The diversity of charging technologies, including AC (Alternating Current) Level 2, DC Fast Charging (DCFC), and wireless charging, creates complexity for EV owners and can limit the convenience of charging. Additionally, the uneven distribution of public charging stations, particularly in rural areas and along major highways, hinders long-distance travel and makes EV ownership less appealing in certain regions.
  2. Charging speed and time. The charging speed of EVs varies depending upon the power output of the charger and the battery capacity of the vehicle. While DCFC can significantly reduce charging times, slower AC chargers can take hours to fully charge an EV. This can be a major inconvenience for drivers who need to recharge quickly for short trips or during emergencies.
  3. User experience and accessibility. The user experience of charging infrastructure needs to be streamlined and accessible for all drivers, regardless of their familiarity with EVs. Clear signage, user-friendly payment systems, and well-maintained chargers are essential to encourage EV adoption and reduce frustration among drivers.

To address these challenges and accelerate EV adoption, several initiatives are being carried out:

  • Governments worldwide are implementing incentives and subsidies to promote EV sales and investment in charging infrastructure. These measures lower the upfront cost of EVs and encourage businesses to install more chargers, making EV ownership more attractive.
  • Private companies, including energy providers, automakers, and charging network operators, are investing in expanding and improving the charging infrastructure network. This includes developing new charger technologies, enhancing the user experience, and expanding the coverage to underserved areas.
  • Projects are being launched to standardize charging protocols and technologies to ensure compatibility and interoperability across different EV models and charging networks. This will simplify the charging experience for drivers and encourage wider adoption of EVs.
  • Innovative technologies like AI-powered navigation systems and real-time charger availability maps are being promoted as they help drivers find and utilize charging stations efficiently. These tools are improving the accessibility and reliability of the charging infrastructure.
  • Smart charging strategies, such as load balancing and demand response, are being employed to optimize the use of charging stations and manage energy consumption efficiently. This can alleviate congestion and ensure that chargers are available when needed.

Final words

The automotive industry is quite dynamic and, at times, unpredictable. Nowadays, as vehicle manufacturers are rushing into the world of AI and autonomous driving, the industry is being reshaped at a very fast pace. Avenga helps both automakers and technology companies navigate the turbulent automotive market, develops and enacts comprehensive innovation strategies, and engineers custom software solutions to support their initiatives.

If you’d like to learn how we can help your organization build a competitive edge – reach out to our experts right now for a free consultation. Contact us

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