OPPORTUNITIES FOR GROWTH
A major market move! Software will drive the transformation of the automotive industry.
The transformation of the automotive industry is accelerating and software is firmly in the driver’s seat. From enhanced customer experience, new revenue generation, reduced operating costs, to improved regulatory compliance, software is delivering significant benefits to automotive OEMs.
Software-driven transformation will redefine the global automotive industry, and it is changing vehicles, organizational structure, processes, methods, and tools to be primarily defined, designed, and operated around software.
- Automotive OEMs’ software-based revenue is set to more than triple in the next 10 years and drive significant benefits.
- Software-based features and services will be a $640 billion market by 2031, growing from about 8% of OEMs’ current annual revenue ($181 billion) to 22% (more than three times in terms of value).
- A key driver of this new revenue will be OEMs’ share of new vehicles based on a unified/common software platform, which will reach 35% by 2031, up from nearly 7% currently.
Source: Capgemini Research Institute – NEXT DESTINATION: SOFTWARE – How automotive OEMs can harness the potential of software-driven transformation.
An engineering race
The automotive industry has moved from mechanical engineering, where Original Equipment Manufacturers needed to master initially systems as Chassis, Body, or Powertrain to Software Defined Vehicle. This has created a consolidation of automotive players a century ago. From 90’s, the automotive market experienced a first move to Software until 2010 with more electronics, automation, and higher expectations of comfort. This has created some crucial changes in the ecosystem with Software oriented Tiers 1, and first consolidation moves. In today’s automotive market, 30% of Car Value depends on software, forcing automotive players to enter into transformation to master software.
We Talk Software with Alexandre Audoin
Capgemini interviewed a series of 10 experts around the topic of software-defined transformation and how this is revolutionizing the Automotive industry. Hear Alexandre Audoin talk about what this means for them and their clients.
The Software Defined Vehicle has completely shifted the paradigm for the automotive industry. This requires Organisations to transform the current way of doing business, creating new challenges:
- New architecture – platforming approach enabling to capitalize, enhance all cars remotely, improve security, manage complexity, cost, and time to market.
- New engineering – to accelerate innovation to product evolutions in Research & Development phase and all along the Mobility life cycle.
- New models to consume mobility & services from the ecosystem transparently.
Software pure player for Automotive Industry
Capgemini Engineering enables its clients develop the core software platform of future vehicles. We bring together our deep automotive industry expertise, leading skills in embedded and digital native development, engineering tools and best practice and transformative operation models to scale software driven transformation for automotive.
Software Value share evolution inside the Car engineering
To help our clients realize the transformation, we have created Software Driven Transformation (SDT) framework, a set of transformational services to achieve rapid software transformation, from the initial vision to the deployment at scale. Our Engineering-as-a-Service approach consists as well in leveraging our SDT framework, assets and automotive engineering capabilities to establish and operate a software engineering factory for our customers.
We bring our customers the best of capabilities from System to Cloud, to accelerate our clients’ journey towards the Intelligent Industry, making the bridge between strong industry knowledge with Digital capabilities and assets.