Software dominates automotive industry as primary driver of growth, according to survey findings
In a significant development, the automotive industry is undergoing a transformative period, with 85% of respondents seeing artificial intelligence (AI) as critical in their industry's software strategy. This shift is further underscored by the fact that 86% of organizations believe in the need for a complete overhaul to adopt a software-driven mobility strategy.
This transformation may require the automotive industry to reinvent itself, as it moves towards a future where code is king. AI is expected to cut costs, boost efficiency, and shape new mobility services in the industry.
The survey highlights that most organizations believe a software-driven mobility strategy demands a complete organizational overhaul. For carmakers, the shift towards machine learning models as a competitive advantage is a cultural shock.
In terms of sourcing hubs, India, Southeast Asia, and Eastern Europe are emerging as new players in the industry. The industry is also working on reworking supply chains for geopolitical resilience.
The race in the automotive industry is no longer about who makes the fastest car, but who builds the smartest system. Nearly two in five carmakers are already working with big tech and hyperscalers for cloud and data capabilities. However, there are no specific mentions about automobile-industry-specific companies planning joint ventures with major tech and hyperscaler companies within the next three years.
The New-Space start-up UNIO, a consortium including German aerospace startups, is working on satellite-based connectivity solutions that could support autonomous driving and mobility technologies, hinting at future collaborations between mobility and tech sectors.
70% of companies are building software capabilities in-house to maintain control over brand-defining technologies. A third of automotive firms have only partially scaled their SDM initiatives, while only 14% of automotive firms have achieved full-scale deployment of software-driven mobility (SDM) initiatives in 2025.
The gap between ambition and execution remains wide in the automotive industry. Despite this, 92% of companies believe every carmaker will eventually become a software company. This transformation could be the most disruptive to the automotive industry since mass production, as it involves rewriting processes, retraining engineers, and building new platforms.
Read also:
- Ford Discontinues Popular Top-Seller in Staggering Shift, Labeled as a "Model T Event"
- 2025 Witnesses a 27% Surge in Worldwide Electric Vehicle Sales, Despite Opposition to Electrification Policies in the U.S.
- Recorded surge in electric vehicle registrations during the initial half of the year
- Dubai-bound: Omega Seiki Mobility, an electric vehicle company from India, prepares for assembly establishment
