In the near future, software will define vehicles

With new entrants and enlivened incumbents, competition is fierce as automakers tackle the reality of CASE – Connected, Autonomous, Shared and Electric driving.

Disruption is transforming the automotive industry, and the next five years will bring a re-engineering of the competitor landscape. However, it’s the next 12 months that will be a defining period as focus hardens, particularly around electrification, software integration, and digitization of customer journeys.

Automotive industry’s digital transformation journey

Where is the industry today?

The automotive industry is making huge investments in R&D, IT systems and talent. Currently, it’s one of the top ten R&D spenders. Partnerships with Google, Microsoft, AWS, and other IT providers are producing world-leading software that makes this industry a digitalization and product innovation leader. However, approximately just 10% of its coding takes place in-house.

Where does the industry want to go tomorrow?

By 2030, all new vehicles will run on manufacture’s own software and 60% of coding will be in-house. Its ambition is to make their major plants “a flagship for innovative and fully networked production”. This means intelligently networked supply chains, digitized aftersales, and climate neutrality by 2050. This is an industry standard plan for a return to profitable growth.

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From automotive to software-driven mobility

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