The 2020 Strategy& Digital Auto Report Series

Navigating through a post-pandemic world

Post pandemic market dynamics

The ninth annual global Digital Auto Report offers a quantitative market outlook to 2035 based on detailed survey research and interviews with a number of industry executives at OEMs and suppliers, leading academics and industry analysts. The survey has a consumer focus covering the US, EU and Asia, and the findings will be published as a series. We are proud to launch our first volume in the series, on understanding post-pandemic market dynamics.

Volume 1 covers:

  • Market outlook – the penetration of technologies and mobility types
  • Technology – shifting gears in connected, electric, and automated vehicles
  • Customers – changing mobility preferences
  • Regulation – slowdown or acceleration of key policies

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Regulatory changes, changing expectations and smart mobility

  • With adjusted technology expectations and changing post-pandemic customer preferences, CASE evolves. Data shows that consumers do not expect fully automated cars before early 2030s and shared mobility growth is slowing down.
  • The total vehicle parc is expected to shrink in Europe while growing in the US and China by 2035, driven by regional differences in: 1) mobility demand growth; 2) customer preferences of shared mobility; and 3) vehicle disposal rate.  
  • Due to regulatory requirements in the EU and US, basic connectivity is now incorporated in over 85% of new cars sold in these regions this year, while China is still at 44%. 
  • In electric mobility, the EU and China are leading the transformation, with battery electric vehicles (BEVs) expected to account for 17% and 19% of new vehicle sales by 2025. The US will have a lower penetration of 5% by 2025 due to lower government support.
  • Shifts in individual mobility patterns require a new segmentation approach along private-versus-shared and active-versus-passive driving – each with multiple use cases at different levels of automation.
  • Given the increasing proliferation of use cases and business models, many players will have to reevaluate their CASE strategies with a fact-based view on available technology, value pool sizes and unit economics, as well as investment requirements and their right-to-win.

Contact us

Felix Kuhnert

Felix Kuhnert

Partner, Strategy& Germany

Jörg Krings

Jörg Krings

Partner, Strategy& Germany

Jonas Seyfferth

Jonas Seyfferth

Director, Strategy& Germany

Anil Khurana

Anil Khurana

Global Industrial Manufacturing & Automotive Leader, Principal, PwC United States

Tel: +1 (734) 773 8902

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