With time, professionals from several industries’ margins are set to get cut due to the ubiquity of automated suites. Chief executives in such a scenario will need to choose between sticking to broad solutions or reestablishing their firms as niche specialists. Mobility for example will be hit hard by self-driving solutions. In fact, a report after much research by business consulting leader PwC confirms that more than a third of kilometres clocked by the year 2030 will be by such self-driving or autonomous cars. At present, the industry is worth over two trillion dollars, but due to high capital expenditure and intense competition, margins are already getting squeezed, but set to reduce further. A lot of carrier firms such as fleet operators will revamp their businesses into design shops. The cost of electric battery will within a decade fall below that of internal combustion engines. Players in the mobility industry are likely to be ones with local solutions, with global players unlikely to dominate. The US and the EU are leading the race for now on autonomous cars, but China will soon enter as a dominant player. Original Equipment Manufacturers (OEMs) in order to survive, will need to work on externally driver innovation, similar innovation in R&D, talent recruitment of people with the relevant skills and the establishment of a services business.

Source:https://www.strategyand.pwc.com/reports/fast-and-furious

Uploaded Date:03 March 2018