Covid-19 has led to a deep negative impact at socio-economic as well as psychological level leading to a lot of uncertainty and fear of the unknown in humankind. Financial losses have become viral, impacting the world markets, hitting business services and manufacturing industries due to disruption of supply chain, especially in the automotive manufacturing area.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

With Covid-19 becoming contagious, and spreading through human contact, working from home, nationwide to cluster lockdowns and social distancing has become part of the ‘New Normal’. The new age interactions have to be contactless and more digitally connected powered with innovation and technological advancements. 

Rise of IoT

The global impact of COVID-19 on Internet of Things (IoT) market size is expected to grow from USD 150 billion in 2019 to USD 243 billion by 2021, at a CAGR of 13.7% during the forecast period (Markets&Markets). The major factors driving the market growth include increasing focus on remote monitoring for the work from home initiative, growing adoption of smart payment technologies with e-Wallets in mobile phones than credit cards to minimize human contact, and, rise in the demand for wearable devices. 

WATCH Zee Business TV LIVE Streaming Online

During Covid-19 itself, we saw a surge in the investments in digital technologies by the auto manufacturers and post Covid-19, they will be forced to invest in complete automation leading to rapid rise of smart factories, smart fleets and smart assets and connected workforce. 

New Business Models in Auto Industry

New and redefined business and commercial models in the automotive industry will also surface. The ride sharing and car rental business are disrupted the most during Covid-19. Frequent disinfection during the business hours and separation of co-passengers is going to be part of the commutation business.  

The auto finance, leasing, aftersales market and insurance sector will also adopt technologies which have vehicle assurance capabilities using IoT Technology. Financiers and insurers would prefer financing connected vehicles which can produce data related to vehicle daily usage and optimum utilization, driver behavior and vehicle health and decide on EMIs and premiums.

In nutshell, the Covid-19 world has changed the magnitude of digitization needed to run business as usual. In automotive industry, this time, IoT is going to disrupt the whole value chain and not just the manufacturing units. It will propel the advanced automation across departments, breaking silos across functions, transforming manufacturing shop floors to supply chain to asset and fleet management.

(By Ranjeet Koul, Vice President and Country Manager, Aeris- APAC & MEA Region)