Automotive Market 2035: Technology and Electrification Are Changing the Rules of the Game - kpmg.com
By Google News Motors ·
Scale of production, operational efficiency and brand strength are no longer enough to secure success in the automotive industry. Increasingly, competitive advantage is determined by the speed of technology adoption, the ability to leverage data, and the capacity to build ecosystems in which vehicle manufacturers collaborate with technology providers and infrastructure operators. The findings of KPMG’s 26th edition of the Global Automotive Executive Survey indicate that the industry is moving away from a business model based on the one-time sale of a vehicle. Services and functions delivered throughout the vehicle lifecycle are becoming increasingly important, driven by developments in artificial intelligence and electrification. The competitive landscape is also being reshaped by Chinese manufacturers, while digital capabilities, battery technologies and new vehicle architectures are emerging as key determinants of competitiveness.
51% of automotive executives surveyed by KPMG believe that software and digital technologies will be the primary source of competitive advantage for their companies by 2035.
52% of respondents state that continuous transformation has become the new industry norm, replacing one-off transformation programs.
Respondents estimate that within three years, 44% of value creation will come from partnerships and business ecosystems, compared with 30% today.
Only 36% of AI and software initiatives have been successfully deployed across entire organizations, highlighting the difficulty of scaling new technologies.
92% of companies require at least one year to deploy a new digital, software-based or AI-powered solution across the organization.
48% of respondents expect that by 2035, six of the world's ten largest automotive manufacturers will be…
Originally published by Google News Motors
