Connect with us

Technology

The Future of Automotive Innovation

Published

on

The Future of Automotive Innovation

The Future of Automotive Innovation

Since the invention of the internal combustion engine, there have been many incredible innovations made in the auto industry.

Manufacturers created new body styles and market segments, automatic transmissions and power steering were introduced, and safety features such as airbags made passengers much safer. Computers were even added into cars to optimize performance and provide GPS for navigation purposes.

In short, vehicles got cheaper, lighter, stronger, safer, cleaner, faster, and more luxurious.

But despite this, there is a strong case that the biggest innovations in the auto industry are yet to come.

A New Era of Automotive Innovation

Today’s infographic comes to us from Evolve ETFs and it explains the many forces shaping the future of automotive innovation.

Unlike past periods of innovation in the industry, the coming years will be particularly interesting because many of the changes will come from outside of the traditional workings of a car.
Automation and the shared economy will change how the entire commuting model works. Meanwhile, an increased penetration of EVs will have an impact well beyond the engine, as charging infrastructure needs to be added, battery supply chains need to be created, and as legacy auto parts become obsolete.

While these transitional changes take place, the auto market is expected to jump from $3.5 trillion (2015) to $6.7 trillion (2030) in total size – and a whopping 30% of the revenue will come from new services that don’t even exist today.

The ACES Framework

The future of automotive innovation will hinge on four major technologies: automation, connectivity, electric power, and the shared economy.

This can be simplified into the acronym “ACES”:

A: Automation
Perhaps the most obvious and fundamental change facing the auto sector is the rise of autonomous cars.
Not only does this technology have implications on major manufacturers and suppliers to the auto sector, but giving the cars the ability to self-drive will have an impact that extends well beyond it, as well.

The passenger economy, which will come from relieving people from the driver’s seat, is expected to be a $7 trillion industry alone by 2050.

C: Connected
New cars are already taking advantage of increased connectivity today, and it will soon be the norm even in lower-end vehicles. This added networking unlocks new features such as infotainment, enhanced safety features, and diagnostics and analytical tools.

E: Electric
In just seven years since its IPO, Tesla was able to leapfrog Ford in market valuation. Yet, this is still the very beginning of the EV revolution.

Many countries have announced regulations to curb gas or diesel fueled vehicles, and EVs are expected to hit 41 million global sales by 2040.

S: Shared
The shared economy is the result of technological factors, but also societal ones. However, when combined with automation, sharing presents a fundamental shift to how commuting and transportation will work in the future.

With autonomous and shared cars, current commuter inconveniences such as traffic and parking will be reduced considerably – and it’ll make catching a ride to your destination far cheaper, as well.

Click for Comments

Markets

Ranked: The 20 Biggest Tech Companies by Market Cap

In total, the 20 biggest tech companies are worth over $20 trillion—nearly 18% of the stock market value globally.

Published

on

A portion of the top 20 biggest tech companies visualized as bubbles sized by market cap with Apple as the biggest.

Ranked: The 20 Biggest Tech Companies by Market Cap

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

The world’s 20 biggest tech companies are worth over $20 trillion in total. To put this in perspective, this is nearly 18% of the stock market value globally.

This graphic shows which companies top the ranks, using data from Companiesmarketcap.com.

A Closer Look at The Top 20

Market capitalization (market cap) measures what a company is worth by taking the current share price and multiplying it by the number of shares outstanding. Here are the biggest tech companies according to their market cap on June 13, 2024.

RankCompanyCountry/RegionMarket Cap
1AppleU.S.$3.3T
2MicrosoftU.S.$3.3T
3NvidiaU.S.$3.2T
4AlphabetU.S.$2.2T
5AmazonU.S.$1.9T
6MetaU.S.$1.3T
7TSMCTaiwan$897B
8BroadcomU.S.$778B
9TeslaU.S.$582B
10TencentChina$453B
11ASMLNetherlands$415B
12OracleU.S.$384B
13SamsungSouth Korea$379B
14NetflixU.S.$281B
15AMDU.S.$258B
16QualcommU.S.$243B
17SAPGermany$225B
18SalesforceU.S.$222B
19PDD Holdings (owns Pinduoduo)China$212B
20AdobeU.S.$206B

Note: PDD Holdings says its headquarters remain in Shanghai, China, and Ireland is used for legal registration for its overseas business.

 

Apple is the largest tech company at the moment, having competed with Microsoft for the top of the leaderboard for many years. The company saw its market cap soar after announcing its generative AI, Apple Intelligence. Analysts believe people will upgrade their devices over the next few years, since the new features are only available on the iPhone 15 Pro or newer.

Microsoft is in second place in the rankings, partly thanks to enthusiasm for its AI software which is already generating revenue. Rising profits also contributed to the company’s value. For the quarter ended March 31, 2024, Microsoft increased its net income by 20% compared to the same quarter last year.

Nvidia follows closely behind with the third-highest market cap, rising more than eight times higher compared to its value at the start of 2023. The company has recently announced higher profits, introduced a higher dividend, and reported that its next-generation GPU chip will start generating revenue later this year.

AI a Driver of the Biggest Tech Companies

It’s clear from the biggest tech companies that involvement in AI can contribute to investor confidence.

Among S&P 500 companies, AI has certainly become a focus topic. In fact, 199 companies cited the term “AI” during their first quarter earnings calls, the highest on record. The companies who mentioned AI the most were Meta (95 times), Nvidia (86 times), and Microsoft (74 times).

Continue Reading
World Risk Poll 2024 How safe is today's world? Dive into the data

Subscribe

Popular